HIGH-TECH START-UP ENGINEERING FIRMS: HOW TO GENERATE VALUE THROUGH PERFORMANCE MANAGEMENT AND REWARD SYSTEMS

摘要

Technology-based companies, particularly those invested by venture capital and private equity funds search to maximize their value as a major goal. Therefore, it makes sense to develop performance management systems aligned with the company's value drivers. Hence, one has to identify which are the company's key value drivers and which are the respective performance indicators linked to them. However, since companies are ultimately made of people and they are the ones who will accomplish the expected performance for the company, their reward or compensation systems also need to be aligned with the targets set for each performance indicator. Thus, being able to align performance indicators, reward systems and drivers of value becomes a task of high importance. The methodology applied in this paper involves carrying initially an assessment of the main types of performance management systems, reward systems, and valuation techniques and parameters. Next, a proposed integrated model using a performance measurement system, reward systemand value management strategies in high-tech engineering companies will be evaluated. Finally, we evaluate the use of this approach in three high-tech engineering based companies active in the market, which have been invested by venturecapital.