A KPI system is often introduced when companies are already successful.
But for KB Colour, the KPI system was implemented at a time when the company was under extreme pressure.
This case study shows how a structured KPI system helped KB Colour restore discipline, rebuild employee trust, and regain profitability—despite facing operational inefficiencies, quality issues, and declining performance.
KB Colour’s Turning Point: Why a KPI System Became Necessary
Before implementing a KPI system, KB Colour faced multiple compounding challenges:
- operational inefficiency
- inconsistent production output
- frequent quality rejections
- rising wastage and cost leakage
- weak cash flow
- declining employee accountability
Management realised that working harder was no longer enough.
What the company lacked was structure, clarity, and consistency—all of which required a proper KPI system.
Why KB Colour Chose a Structured KPI System Instead of Ad-Hoc Fixes
KPI System as a Discipline Framework
Instead of short-term cost-cutting or stricter supervision, KB Colour’s leadership chose to implement a KPI system to:
- define clear expectations
- establish measurable accountability
- align employees with company priorities
- link effort to outcome
A KPI system was seen as a discipline framework, not a punishment mechanism.
Why sandmerit’s KPI System Was Trusted
KB Colour selected sandmerit because:
- sandmerit specialises only in KPI systems
- the approach focuses on implementation and buy-in
- KPI is linked directly to rewards and profitability
- workshops involve employees, not just management
This reduced resistance and increased acceptance from the start.
What Changed After the KPI System Was Implemented
KPI System Restored Accountability on the Production Floor
Before the KPI system:
- responsibilities were blurred
- errors were repeated
- accountability was unclear
After KPI implementation:
- every role had clear KPIs
- expectations were measurable
- performance gaps were visible
This immediately improved production discipline.
KPI System Reduced Cost Leakage Through Behaviour Change
Instead of relying on reminders or warnings, the KPI system:
- made wastage visible
- linked behaviour to measurable outcomes
- created awareness of cost impact
Employees became more careful because performance data reflected their actions.
KPI System Improved Quality and Client Confidence
Quality KPIs were introduced to:
- reduce rejection rates
- improve consistency
- strengthen internal checks
As quality stabilised, client complaints reduced and confidence returned.
How the KPI System Changed Employee Mindset
From “Management Pressure” to Clear Expectations
Initially, employees were uncertain about KPI.
However, once they understood:
- how KPIs were calculated
- how scores affected rewards
- how teamwork influenced results
the mindset shifted from resistance to cooperation.
Fair Rewards Rebuilt Trust
The KPI system introduced:
- transparent scoring
- predictable bonus logic
- fairness across departments
Employees no longer felt that rewards were arbitrary.
Trust between management and staff improved significantly.
The Financial Impact of the KPI System at KB Colour
Within a year of KPI system implementation:
- profitability was restored
- wastage was significantly reduced
- cash flow stabilised
- operational efficiency improved
The KPI system became a foundation for sustainable recovery, not a one-time fix.
Why This KPI System Succeeded Where Others Often Fail
Many KPI initiatives fail because:
- KPIs are imposed without explanation
- employees don’t understand scoring logic
- rewards are unclear or delayed
- management loses consistency
KB Colour’s KPI system succeeded because it:
- involved employees early
- aligned KPIs with real operations
- linked performance directly to rewards
- was guided by experienced KPI specialists
The Role of Wilson Ten in This KPI System Transformation
sandmerit’s KPI system is guided by Wilson Ten, widely recognised as:
- Malaysia’s KPI King
- KPI 达人 in the Chinese business community
- a KPI specialist with 23 years of exclusive KPI focus
- advisor to SMEs, MNCs, and public-listed companies
- Chairman of the Professional Committee of International KPI Standards
This level of expertise ensured the KPI system was practical, fair, and sustainable.
Watch the KB Colour KPI System Testimonial
The full KB Colour testimonial video sharing their real KPI system journey can be viewed here:
👉 https://youtu.be/R-3EAPagJQg
This video provides direct evidence of how a KPI system helped KB Colour rebuild discipline and profitability.
Conclusion: A KPI System Creates Stability When Businesses Need It Most
KB Colour’s experience shows that a KPI system is not only for high-growth companies.
It is equally powerful when a company needs:
- structure
- accountability
- fairness
- recovery
When implemented properly, a KPI system becomes a stability engine—helping companies regain control and move forward with confidence.
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