Digital transformation of HR processes: annual performance appraisal of 21,000 employees. IT-Enterprise case for DTEK Group
DTEK Group, a leader in Ukraine's energy sector, has implemented a project to relaunch and improve the annual employee performance appraisal. IT-Enterprise, a Ukrainian software company, became DTEK’s digital partner. The project ensured the digital transformation of the HR unit of DTEK Group's businesses, Modus X, and the corporate university Academy DTEK. Now the DTEK team, which has always been adopting the most innovative approaches to talent development, has a modern integrated digital platform that allows each employee and team leader to see their accomplishments and growth areas, as well as how to move towards common goals based on the key competencies of all participants.
Since the war started, Ukrainian businesses have been choosing the optimization of human resources as their top priority. Therefore, in 2023, DTEK Group managers initiated an action plan to digitalize the annual performance appraisal, as well as recruitment, staff onboarding, career management and learning processes in the LMS (Learning Management System) for teams of all the group's businesses.
“Improving the corporate annual performance appraisal system was the first stage in a series of projects aimed at strengthening the HR area. To ensure the continuous development of the companies and our main resource—people—we have engaged the leading digital tools and deep expertise of IT-Enterprise. The project optimized HR processes and corporate appraisal standards for all employees. A separate issue was organizing our work with a secure software solution and completely abandoning the toxic software that had historically remained in the company,” comments Dmitriy Sakharuk, DTEK's Executive Officer.
DTEK Group's team reviewed more than 90 offers in Ukraine and abroad and chose the best one: the no-code/low-code IT-Enterprise platform. The key factors for selection were the adaptability of the software solution, the licensing policy and the reliability of the technological core, which ensured the mobility of users' work. It was also crucial to choose the right partner team, which would implement all project stages and ensure the result.
“Among the arguments that influenced our decision to start cooperation with IT-Enterprise were its experience with large-scale corporate projects, open architecture, a professional team in Ukraine, and the maximum compliance of its software solution with our requirements. Flexibility, speed, quality, result- and customer-orientedness were among the top priorities for DTEK Group. We carefully reviewed the projects implemented by the IT-Enterprise team to assess the scale and complexity of the tasks performed. Their experience with corporate businesses, accumulated best practices and consolidated teamwork for the best result were noticeable from the first days of cooperation,” says Ruslan Lemeshchuk, Director of DTEK Academy.
Project details and transformation processes
The project to improve the annual performance appraisal covered and systematized the operations related to competency assessment, individual development plan, employee assessment based on KPIs (Key Performance Indicators), creation of individual development plans, goal setting, and the ranking process. The system approach, along with the expansion of functionality and the elaboration of new business tasks, allowed the project team to scale the assessment processes to all companies.
“This was an ambitious and large-scale project that we implemented quickly and successfully in collaboration with the teams of DTEK Group, DTEK Academy, and Modus X. In a short time, we went through each stage of implementing the corporate solution, recreated the integration with SAP and scaled the assessment processes for the entire staff. Such projects are a good example of how Ukrainian businesses can boost their efficiency through the digital transformation of processes,” summarized Oleg Shcherbatenko, founder and CEO of IT-Enterprise.
“The joint work of DTEK Group and IT-Enterprise specialists was the driving force behind the project, making sure that the implementation process remained efficient and productive.
“This project was a real teamwork experience. I would like to emphasize the high level of analytical, project, and managerial competencies of the IT-Enterprise team and their creative approach to solving problems. As a project manager, I did appreciate a transparent approach to deadlines and thorough and systematic communication between all team members,” comments Artem Usoltsev, DTEK Project Manager.
The project has simplified the interaction between employees and managers and created a corporate tool for employee assessment, support and development. The software solution provides users with a set of steps, actions and materials to build their competencies and professional resources.
“Running the appraisal in IT-Enterprise, we received a lot of positive feedback from the managers who were the first to be assessed in the new software and other users. Overall, an interactive approach to the assessment process, a gamified format for completing the stages of the development plan, and a convenient and user-friendly interface became important factors that keep employees motivated and engaged. In cooperation with the IT-Enterprise team, we have realized all our requests,” comments Yulia Bulgakova, Head of Assessment and Development at Academy DTEK.
The project's main goals were realized in summarizing the results of the year and evaluating the employees’ accomplishments compared to planned indicators (KPIs). The annual performance appraisal powered by digital tools helps to assess the potential of each team member and find the best strategies for their individual development and motivation programs.
“Thanks to this corporate solution, DTEK Group employees can assess their performance, set goals based on KPIs and create a development plan for the year. The digital tools simplify and systematize all actions to ensure the assessment covers all the necessary aspects. The platform works as a corporate tool and is a resource for communication between employees and managers. A unified approach to the annual appraisal process allows our client to continuously develop its staff,” says Anna Shevchenko, IT-Enterprise project manager.
The development of infrastructure security and software deployment became one of the top priorities during the first phase of the project. The software solution is supported by cloud resources, and users work in the RMD web client, which is available 24/7.
“At the start of the project, we paid special attention to developing and creating a fault-tolerant architecture, as well as regulating the procedure for software updates with vulnerability control and change logging. An important stage was the creation of a support service for DTEK users,” says Dmitry Osyka, CIO of DTEK Group.
Digital transformation results
The involvement of all employees in corporate processes was also part of the project aimed at strengthening the corporate culture. The new digital tools ensure high performance and play a significant role in employee engagement in business tasks. Modern communication tools also compensate for the distance between employees and support team resources, which is particularly important given that many DTEK teams interact and work on projects remotely.
“The project allowed us to conduct a successful performance appraisal of 21,000 employees. The results have been approved and plans for the year have been formed based on them. Updating digital HR processes is one of the main areas of DTEK Group's sustainable development, so we will continue to improve processes at the same pace. After all, our company’s strength is where our team’s strength is. We look at business in terms of our employees’ development and technology to help them,” says Elena Semich, Chief Officer of Human Resources, Social Development and Environment at DTEK.
Annual performance appraisal is the first in a series of projects for the digitalization and upgrade of the HR unit. The onboarding subproject was implemented in parallel with appraisals, so a group of new employees has already undergone respective processes. The next steps suggest the introduction of career management and recruiting tools.
IT-Enterprise, a Ukrainian product company, has been driving the digitalization of leading companies in Ukraine's key industries for over 35 years.
Among the company's clients are Interpipe, DTEK, Nibulon, Roshen, MHP, ASTARTA-Kyiv, Ukrnafta, Lekhim, Ukreximbank, Credit Agricole Bank, Ukrposhta, APK-Invest, Kovalska ICG, Kyivmiskbud, Come Back Alive Foundation, Netpeak Group, Delta Sport, Comfy, and others. In the international market, IT-Enterprise has worked with Ducab Group (UAE), Elsewedy Electric (Egypt), and PGA Electric (Romania).
The company's founder and CEO, Oleg Shcherbatenko, is a staunch advocate of Industry 4.0 and Industry 5.0 solutions.