DESIGN OF CORPORATE PERFORMANCE MANAGEMENT BASED ON INTEGRATED PERFORMANCE MAANGEMENT SYSTEM (CASE STUDY: PT. IEV PABUARAN KSO)

• Main Author: William Cornell, Axel
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/72308
• Institution: Institut Teknologi Bandung

As a growing oil company in KSO (Kerja Sama Operasi) industries, which is a partnership to state oil company Pertamina Upstream (EP), PT. IEV Pabuaran KSO (IEVPABKSO) performance is in need of improvements. As we know, oil price is dropping below US$ 35 USD/barrel which is close to the lifting cost of crude oil production, which forces every oil company in the market to adjust their strategy and adapt to the situation. IEVPABKSO also suffers a quite big loss in 2015 because of their failed drilling project, which led to zero production and negative profit margin for them, despite their target which to reach positive profit. IEVPABKSO have not yet implemented performance management system in their company, which leads to to inconsistent internal performance of their company. For 2016, the Integrated Performance Management System (IPMS) Framework are being used because of their flexibility to match any companies, whether profit or non-profit. The objective of the of this research is to determine the proper indicators or the KPIs, develop a performance management framework and analyze IEVPABKSO’s performance through radar diagram. Vision and mission of the company will also be analyzed and will be determined whether it’s a good vision and mission or not. The data is gathered by focused questionnaire, having discussion with the general manager of IEVPABKSO and analyzing the internal data of the company. The vision and mission of IEVPABKSO will be analyzed by Vision Generator from Wibisono (2012) and the preferable KPIs is all taken from Panduan Penyusunan Indikator also from Wibisono (2011). After analyzing the available data and having discussion the the general manager, we’ve come to an agreement that vision and mission of IEVPABKSO is already a good vision and mission. It is simple and easy to remember, yet the vision managed to represent what IEVPABKSO wants to achieve in the future. The KPIs that resulted from the questionnaire and the discussions with the management consists of 53 preferable KPIs with no Gap and False indicators. The analysis of the indicators shows that IEVPABKSO have a good relationship with government, suppliers and communities. They also managed to satisfy the stakeholders and emphasize maximum productivity from their employees. As a growing company, they should implement “Hold and Maintain” Strategy.