PROPOSED CORPORATE PERFORMANCE MANAGEMENT USING INTEGRATED PERFORMANCE MANAGEMENT SYSTEM (IPMS) FRAMEWORK AT PT LEN INDUSTRI (PERSERO)

• Main Author: THERESIA 29115549, NANDA
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/23435
• Institution: Institut Teknologi Bandung

The growth of industrial electronics and infrastructure is predicted has compound annual <br /> <br /> <br /> <br /> growth rate (CAGR) around 23.8%. PT Len Industri (Persero) that was later stated as Len <br /> <br /> <br /> <br /> is one of State Owned Enterprises (SOEs) in Indonesia that related with industrial electronic <br /> <br /> <br /> <br /> field. Len has three phases for developing company and on 2017 Len is entering second <br /> <br /> <br /> <br /> phase of strategy implementation but there is incompatibility performance management <br /> <br /> <br /> <br /> system in Len. Measurement of healthy level score in Len is seems not optimal because it <br /> <br /> <br /> <br /> only give high percentage on financial aspects. To overcome drawbacks, so Len implement <br /> <br /> <br /> <br /> Kriteria Penilaian dan Kinerja Unggul (KPKU) that adopted from Malcolm Baldrige <br /> <br /> <br /> <br /> National Quality Award (MBNQA). KPKU still seems not optimal to improve Len’s <br /> <br /> <br /> <br /> performance, so it becomes a constraint for Len to achieve company’s target in third phase. <br /> <br /> <br /> <br /> This paper report aims to help Len to design new performance management system to <br /> <br /> <br /> <br /> improve company’s performance with indicates direction, show how the company maintains <br /> <br /> <br /> <br /> its business for long term value and translate corporate strategy into operational action, so <br /> <br /> <br /> <br /> Len can keep compete in industry competition. Integrated Performance Management System <br /> <br /> <br /> <br /> (IPMS) framework is selected as a suitable business solution framework because it is <br /> <br /> <br /> <br /> relevance to coverage the problem and it can translate company’s vision and mission into <br /> <br /> <br /> <br /> company’s strategy, so it makes easy for management to control consistency of strategy and <br /> <br /> <br /> <br /> company’s vision. There are five stages on IPMS framework consist of foundation, <br /> <br /> <br /> <br /> background and information, design process, implementation, and refreshment. IPMS consist <br /> <br /> <br /> <br /> of three perspectives: Organizational Output, Internal Process, and Resources Availability. <br /> <br /> <br /> <br /> This paper report has resulted 26 KPIs which derived from company’s vision, mission, <br /> <br /> <br /> <br /> strategy, and business process. With using Linkage Variable, it will ensure these KPIs have <br /> <br /> <br /> <br /> relationship inter-department and mutually support to company’s competitive advantage. <br /> <br /> <br /> <br /> There is competitor benchmarking analysis as a reference point or comparison between Len <br /> <br /> <br /> <br /> and direct competitor (PT INTI). Comparison analysis is used through comparing before and <br /> <br /> <br /> <br /> after implementing IPMS by using four guiding principles and five rules.