INTEGRATED PERFORMANCE MANAGEMENT SYSTEM A CONCEPTUAL DESIGN FOR IMMERSION BUSINESS UNIT OF PT. XYZ

• Main Author: YUNIANTO 29115145, HENRIE
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/27822
• Institution: Institut Teknologi Bandung

PT. XYZ is a family business (private company) in Indonesia that provide educational program and consultation services. The company was in a comfort zone state for about 4-5 years period after its establishment. It was due to the low business rivalry level, no serious competitors in the market, which makes the company easily explore the market. Such situation makes the company become lulled: the company moves without proper management, undirected, no short-term or long-term business strategy, unclear vision and mission, no product development plan, no information technology utilization for process improvement; the company feels sufficient with the current performance and achievements, does not try further to develop the business. <br /> <br /> Nowadays competition is observed become intense. Few new entrants are known providing similar program (imitate of what PT. XYZ doing) and aggressively penetrate the same market area. PT. XYZ feel if they don’t respond well, the business might be gone taken by competitors. The company realized that the business opportunity is still available. Along the time the company, due to the size of the organization is small (limited human resource), only capable to handle Bandung and Jakarta market. There are still plenty of market in Indonesia that has not been explored yet. In the situation of intensifying business rivalry, PT. XYZ need to react positively by conducting the business in appropriate manner. Besides that, to ensure the strategy is being done, a Corporate Performance Management (CPM) system is required by the company. This system should be able to create, monitor, and measure their success. <br /> <br /> By conducting internal and external environment analysis, and with Strength-Weakness-Opportunity-Threat (SWOT) analysis, it is determined the company vision and mission. PT. XYZ vision is to be preferred educational service partner, trusted by our customer, employees, and society in Indonesia. And company mission statement is: (1) earn the trust from our customer through our excellent services of international education program which would improve our customer competitive advantage: knowledge, competencies, character building, interpersonal skill respectively in the global society, and international experience; (2) Earn the trust from our employee through honesty, fairness, integrity, and personal development; (3) Earn the trust from our business partner (supplier) through business opportunity and growth; (4) earn the trust from the shareholders through consistently attractive financial results. Based on the business situation analysis, integrated with PT. XYZ vision and mission, PT. XYZ define its business-level as focused differentiation strategy. By using TOWS analysis, the company defined the alternative business strategies. <br /> <br /> The framework of Performance Management System chosen is Integrated Performance Management System (IPMS). IPMS framework has the advantages of its simplicity, linkage between its business variables and indicators where the company can see the connections between all factors measured. IPMS framework consist of 3 (three) perspectives: (1) Business Result, (2) Internal Processes, (3) Resource Capability. Variables and indicators were derived from company vision, mission, and its business strategy; respectful to the IPMS framework perspective mentioned. The linkage between variables inter-perspective is analyzed using Analytical Hierarchy Process (AHP) method. The purpose of this analysis is to quantify the weight of each variables with respect to the hierarchy structure. The higher the weight indicates if that variable have higher priority/importance compare to the other variables (at the same perspective) to the contribution in achieving a certain company performance indicator. With this method the company can analyze the key drivers of the business that they should focus on, to reach the company’s goal effectively. <br /> <br /> The result of this study is creating a conceptual design of performance management system for PT. XYZ by using IPMS framework. For the initial stage (of implementation) it has been chosen 8 (eight) performance variables which has the highest weight. With current company goals, the critical indicators for each perspective are: (1) business results: customer satisfaction order intake and employee satisfaction, (2) internal process: customer retention, utilization of IPMS for measuring the company performance, and gain new customer from new geographical market area; (3) resources capability: strengthen leadership role and personnel development. <br />