PROPOSED PERFORMANCE MANAGEMENT SYSTEM FOR AILESH POWER

• Main Author: Ulfa Sahubawa, Sarifah
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/57777
• Institution: Institut Teknologi Bandung

Ailesh Power is a developing renewable energy and environment startup company that has not been able to translate the company’s vision and strategy into concrete objectives. The lack of concrete objectives led to unclear directions that each division needs to achieve; thus, each division tends to move individually. It will be risking the company’s performance. Thereby, the company, especially the Human Capital division, expect to have a performance management system that begins with a clear strategy alignment and considers various perspectives to control and monitor its performance. Thereby, this research will help the company determine its strategic objectives, appropriate Key Performance Indicators, and design of performance appraisal. To address the unclear directions, the research starts with comparing strategic objectives obtained from the company’s vision, mission, and values with strategic initiatives obtained through interviews with the key leaders. The interview results then are grouped into four Balanced Scorecard perspectives, i.e., financial, customer, internal business process, and learning and growth. The obtained strategic objectives will be mapped in a strategy map to help the company communicate and align the strategies to all parts of the company in achieving the company goals. Then, it is followed by determining appropriate KPIs and targets. Additionally, the company has been used Objectives and Key Results (OKRs) as its performance management, and this tool will also be used in this research. In another case, Ailesh Power still had several shortcomings in its performance management system, including the performance appraisal system, which will be improved as its final stage. The data is obtained through interviews and secondary data. The result of this research is a gap between strategic objectives obtained from interviews and the company’s vision, mission, and values. The strategic objectives obtained are as follows: innovation excellence, operational excellence, sustainable partnership, and exceptional human capital. Regarding the financial perspective, the strategic objectives involve increasing revenue, improving cost structure, and increasing profitability. Then, this research also obtained 20 Key Performance Indicators, which covers all the Balanced Scorecard perspectives. At the same time, the improved performance appraisal design includes a quantitative assessment of strategic objectives and OKRs achievements.