PROPOSED STRATEGY TO BECOME INDUSTRY LEADER BASED ON BALDRIGE EXCELLENCE FRAMEWORK USING VALUE FOCUSED THINKING AND ANALYTICAL HIERARCHY PROCESS

• Main Author: Yuliana
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/70188
• Institution: Institut Teknologi Bandung

PT Pupuk Indonesia (Persero) is a state-owned company that produces he largest fertilizer in Asia. Currently, Pupuk Indonesia has ten subsidiaries engaged in fertilizer, petrochemical, agrochemical industry, electricity and gas, transportation and distribution, trade as well as engineering, procurement and construction. As a state-owned company, the Government’s aspiration is outlined in the RUPS until it is cascade to a company’s annual performance target. The corporate’s performance indicators are reported and monitored periodically for its achievements. One of the corporate’s performance indicators that is mandatory is the implementation of excellence performance. Where through the application of excellence performance, the company commit to maintain the quality of processes and product consistently. An indicator of successful implementation of excellence performance is the score of assessment. The company conducts an annual Baldrige assessment, known as the Baldrige Excellence Framework (BEF). In 2022, the company’s excellence assessment score target is 676. In last two years, the company is at emerging industry leader level and this year the company has a target assessment score to increase at the industry leader level with a minimum score increase up to 33 points. There are five dominans from the analysis of the root causes of the problem using fishbone diagram. There are the team is not competent, company has not do internal assessment facing external assessment, poor SOP for excellence performance management, poor document application BEF from company, and lack of focus from team and management. Then deeply analyze with the 5 Whys method, several alternative solutions were found that could be done, namely conducting executive briefing to management, internalizing the AKHLAK culture, as a government declare, and standardizing the required corporate performance indicators, known as nomenclature in Baldrige Framework. Executive briefing to management is the activity of providing direction to management on the substance needed in the framework of excellence performance so that management has commitment to the implementation of the work program. AKHLAK culture is a culture declare by state-owned enterprises and becomes a reference for the attitude of all employee to contribute and give the best performance for the company. Performance indicator standards are mandatory in the excellence performance framework as a reference for the company in carrying out work programs so that they are align with the corporate vision and mission. By doing these, the expectation that it can provide the best results for this year’s assessment. On the other hand, time constraints are a consideration in determining the priority work program carried out. From these obstacles, the prioritization of the work program will be carried out using the concept of thinking focusing on values or goals and the method of analytical hierarchy process (AHP). Using the AHP method, the priority work program is to carry out executive briefing for management (56,7%), create performance indicator standards (nomenclature) based on the Baldrige excellence framework (29,7%), and AKHLAK culture internalization (14,1%). With using combination of these three work programs, the company’s targets are expected to be achieved.