Performance Management and Objective Setting at a SaaS Company in Japan: A Personal Account Using the SMART Method

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Performance management is a critical aspect of human resource management that aims to improve organizational efficiency by enhancing the performance of its members (Senyucel, 2009). In my experience at a SaaS company in Japan, performance evaluation was conducted through a 360-degree review process. This method allowed feedback from a spectrum of sources, including peers, direct reports, and supervisors, providing a holistic view of employee performance. I will discuss the application of the SMART method in setting personal job objectives and evaluates the experience of using this method in a structured corporate environment.

How your performance was managed and evaluated?

At my previous employer which is a SaaS company in Japan, performance was evaluated comprehensively through a 360-degree review system. This method facilitated feedback that was not only diverse but also inclusive of various interpersonal and cross-departmental interactions, essential in a software as a service (SaaS) company where teamwork and client interaction play significant roles (Miller, 2011).

Three most important job duties and design three (3) objectives or measurements using the SMART method.

Based on my job roles, three critical duties were identified, and objectives were designed using the SMART criteria (Miller, 2011):

Enhance Client Satisfaction

1. Specific: Improve client service satisfaction rates.
2. Measurable: Achieve a 10% increase in satisfaction on customer service surveys.
3. Achievable: Implement feedback loops and training sessions for client interactions.
4. Relevant: Higher client satisfaction increases client retention and overall profitability.
5. Time-bound: Target to be reached within the fiscal year.

Increase Software Deployment Efficiency

1. Specific: Reduce the time from client signup to software deployment.
2. Measurable: Decrease deployment time by 15%.
3. Achievable: Streamline deployment processes and enhance team training.
4. Relevant: Efficient deployment improves client satisfaction and resource management.
5. Time-bound: Achieve this within six months.

Improve Team Collaboration

1. Specific: Enhance the collaborative efforts across the project teams.
2. Measurable: Reduce the number of project delays due to miscommunication by 20%.
3. Achievable: Introduce monthly team-building exercises and weekly progress meetings.
4. Relevant: Effective teamwork is crucial for timely project delivery.
5. Time-bound: Objectives to be met by the end of the third quarter.

Discuss your experience using this method. Did you find it difficult? Why or why not?

Using the SMART method to delineate objectives provided a clear and structured framework, which facilitated easier communication of expectations and benchmarks within the team. However, setting these objectives was challenging, particularly in quantifying qualitative aspects such as team collaboration and client satisfaction. The need to balance ambitious targets with achievable goals required a thorough understanding of team capabilities and potential obstacles (People Performance Management Toolkit, 2017).

Conclusion

The application of the SMART method in setting objectives within the framework of a 360-degree review process proved to be both effective and challenging. While it helped in setting clear and structured goals, the difficulty in quantifying some of the objectives highlighted the complexity of performance management in a dynamic business environment. The experience underscores the importance of adaptability and continuous improvement in performance management practices to meet the changing needs of the organization and its workforce.

References

Senyucel, Z. (2009). Managing Human Resources in the 21st Century.

People Performance Management Toolkit. (2017). NHS Employers and Skills for Care. Retrieved from https://www.skillsforcare.org.uk/Documents/Leadership-and-management/People-Performance-Management-Toolkit/People-Performance-Management-Toolkit.pdf.

Miller, S. (2011). Pay for Performance: Make it more than just a catchphrase. SHRM. Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/compensation/pages/catchphrase.aspx.

Note:
This article is written based on University of The People Human Resource Management (BUS 5511) written assignment by Fristy Tania Sato in May 2024