In today’s highly competitive automotive landscape, technology, branding, and product innovation alone are no longer enough. Behind every successful automotive organization lies a powerful yet often overlooked engine: a Performance Management System that fairly evaluates people, rewards real contribution, and drives sustainable Productivity.
This reality was candidly acknowledged by the leadership of Mitsubishi Motors Malaysia, through a testimonial shared by its Managing Director, Hiroyuki Onoda. His reflections provide rare insight into the internal challenges faced by many Japanese and multinational organizations—and why Mitsubishi Malaysia sees KPI-based systems as essential for the future.
This article explores how Mitsubishi Malaysia identified gaps in traditional management, why the sandmerit KPI workshop became a turning point, and how a modern Performance Management System anchored in KPI creates fairness, clarity, and measurable productivity improvements.
The Silent Weakness in Traditional Performance Management Systems
Many well-established organizations assume their management systems are “good enough.” Yet, as Onoda-san openly shared, even large and respected corporations face structural limitations when performance evaluation is not properly designed.
1. Performance and Rewards Are Not Clearly Connected
One of the most critical issues highlighted in the testimonial was the lack of direct linkage between individual performance and rewards such as salary increments or bonuses.
In many traditional systems:
- Employees work hard but do not know how their effort is measured
- Bonuses are awarded, but the logic behind them is unclear
- Managers struggle to explain decisions objectively
Without a structured Performance Management System, compensation becomes a sensitive topic rather than a motivational tool. Over time, this erodes trust and weakens productivity.
2. Cultural Barriers in Japanese-Style Corporate Management
Onoda-san also touched on a deeper challenge—corporate culture.
Many Japanese companies emphasize harmony, loyalty, and long-term service. While these values are admirable, they can unintentionally limit:
- Clear KPI ownership
- Transparent performance-based rewards
- Objective differentiation between high and average performers
In a globalized automotive industry, where speed, accountability, and results matter more than ever, such cultural gaps must be addressed with the right system—not by changing values, but by modernizing execution.
3. Ambiguity in Individual Evaluation
Perhaps the most damaging weakness of traditional systems is ambiguity.
When employees cannot clearly answer:
- “What exactly am I evaluated on?”
- “How does my KPI score affect my income?”
- “What does good performance truly look like?”
motivation drops. Ambiguity is the enemy of Productivity. Clarity, on the other hand, creates focus, ownership, and momentum.
Why the sandmerit KPI Workshop Was a Breakthrough
To overcome these challenges, Mitsubishi Malaysia engaged sandmerit Business Strategy KPI Solutions for a structured KPI workshop with its leadership team.
According to Onoda-san, the experience was not just useful—it was “really important” and “precious.”
Practical, Not Theoretical
Unlike conventional training programs that focus on concepts, the sandmerit workshop emphasized:
- How to design practical KPIs
- How to align KPI with real business outcomes
- How to connect evaluation results to rewards fairly
For leaders, this shifted KPI from an abstract idea into a workable Performance Management System.
Learning How KPI Drives Organizational Results
One of the strongest outcomes of the workshop was a deeper understanding of how KPI acts as a bridge between strategy and execution.
Leadership teams learned how KPI:
- Translates corporate goals into measurable actions
- Aligns departments and individuals
- Supports productivity, quality, and efficiency simultaneously
Instead of KPI being perceived as control, it became a shared performance language across the organization.
“We Definitely Need to Implement This”
The most decisive moment in the testimonial came when Onoda-san stated that they “definitely need to implement” this KPI practice into Mitsubishi Malaysia’s evaluation system.
This statement reflects a leadership-level realization:
A modern automotive organization cannot rely on subjective judgment if it wants long-term competitiveness.
The Core Benefits of a KPI-Driven Performance Management System
1. Fairness for Every Employee
One of the strongest messages from the testimonial was the importance of fairness.
A properly designed KPI system ensures:
- Everyone is evaluated by the same logic
- Expectations are clear from day one
- Performance—not personal relationships—determines outcomes
Fairness is not just ethical; it is a powerful driver of productivity and engagement.
2. Clarity and Transparency in Evaluation and Rewards
With sandmerit’s approach, employees can clearly see:
- Their KPIs
- Their performance scores
- How those scores link directly to compensation
This transparency transforms the Performance Management System from a “black box” into a trusted mechanism.
3. Objective Measurement of Success
By replacing vague assessments with measurable KPI data, organizations move toward objective evaluation.
This reduces:
- Bias
- Emotional decision-making
- Internal disputes
And increases trust, accountability, and sustained productivity.
Why Automotive Companies Need a Strong Performance Management System Today
The automotive industry faces relentless pressure:
- Margin compression
- Rising labor costs
- Complex supply chains
- Rapid technological disruption
Without a strong Performance Management System, even top brands risk inefficiency and disengagement.
A KPI-driven system enables automotive organizations to:
- Improve cross-functional collaboration
- Drive continuous productivity improvement
- Retain top talent through fair rewards
- Execute strategy with discipline
Mitsubishi Malaysia’s leadership perspective reflects a broader global trend: people performance is now a strategic priority.
The Expertise Behind sandmerit: Why CEOs Trust Wilson Ten
The success of sandmerit is inseparable from its founder, Wilson Ten, widely recognized as Malaysia’s KPI King.
Wilson Ten’s Professional Authority
Wilson Ten brings:
- 23 years of dedicated KPI and performance management experience
- Hands-on consulting with SMEs, MNCs, and public-listed companies
- Deep exposure across manufacturing, automotive, logistics, and services
- Leadership as Chairman of the Professional Committee of International KPI Standards
Unlike consultants who only deliver slides, Wilson works directly with CEOs to:
- Clarify vision and strategy
- Design fair KPI frameworks
- Link performance to rewards transparently
- Ensure real implementation, not cosmetic change
This practical, CEO-level engagement is why sandmerit is trusted by leadership teams across Southeast Asia.
sandmerit vs Traditional Performance Management Approaches
| Traditional Approach | sandmerit Performance Management System |
|---|---|
| Subjective appraisals | Data-driven KPI evaluation |
| Weak reward linkage | Clear performance-to-reward connection |
| HR-centric focus | Business strategy-driven |
| Low employee trust | High transparency and fairness |
| Manual processes | Automated and structured system |
This integrated approach explains why sandmerit consistently receives strong CEO testimonials and high client renewal rates.
Watch the Mitsubishi Malaysia CEO Testimonial
Hear directly from Mitsubishi Malaysia’s Managing Director on why KPI implementation is critical for fairness, clarity, and productivity:
🎥 Watch the full testimonial video:
👉 https://youtu.be/tJlaSnFbNvo
Conclusion: Performance Management System Is the Future of Automotive Leadership
The testimonial from Mitsubishi Malaysia delivers a powerful message:
A company cannot achieve sustainable productivity with unclear evaluation and disconnected rewards.
A modern Performance Management System, powered by KPI, is no longer optional. It is essential for:
- Fairness
- Transparency
- Productivity
- Long-term organizational success
For automotive leaders and CEOs across industries, Mitsubishi Malaysia’s experience serves as a compelling reminder: when performance is clear, people perform better—and businesses win.
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