PROPOSED DESIGN OF PERFORMANCE MANAGEMENT SYSTEM USING KNOWLEDGE-BASED PERFORMANCE MANAGEMENT SYSTEM (KBPMS) FRAMEWORK IN PT. ABC

• Main Author: Gilang Aria Gautama, Muhammad
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/76501
• Institution: Institut Teknologi Bandung

Heat, ventilation, air conditioning (HVAC) industry in Indonesia is expected to have high growth from 2018 to 2030, at 5.1 % annually. Moreover, Indonesia is the fourth most populated country with tropical climate and high humidity throughout the year. This condition makes the country as a potential market for any AC company, including for PT. ABC. The company is a principle distributor in Indonesia for one of the biggest brand in AC industry. Referring to market share data from GFK YTD 2021, sales of PT. ABC put the company on the second highest market share in the country, following PT. Sharp Electric Indonesia on the first place. The company also successfully maintain positive revenue growth every year (except in 2020 due to Covid-19 pandemic). However, these achievements is not satisfactory enough for management of PT. ABC. Even in every year the company is always able to gains profit, but for 11 years it has established, PT. ABC can only achieved sales target two times, which is in Fiscal Year 2014 and Fiscal Year 2015. Moreover, the management finds it’s difficult to determine efficient countermeasure and action plan to improve company’s performance in order to achieve sales target. It becomes an important issue that urgently need to be solved. The company aims to be back as the market leader and able to achieve sales target every year. Concerning that goals, management of PT.ABC realize that one of the most critical things to do is to evaluate company’s performance and establish continuous improvement. Currently PT. ABC doesn’t have specific performance management system (PMS) that can support them to achieve the goals. Company’s performance is only measured by using financial measurement. This performance measurement is lack of relevance and hardly foster continuous improvement. There are some alternatives of performance management system framework that can be implemented in PT. ABC such as Balance Scorecard (BSC), MBNQA, Performance Prism, Knowledge Based Performance Management System (KBPMS), etc. Among these PMS frameworks, KBPMS is chosen as a business solution framework on this research. This framework has been widely implemented in Indonesia and able to generate performance variables which align to company’s vision, mission, and strategy. Moreover, KBPMS framework also focus on achieving company’s stakeholders wants and needs. The framework consists of five stages which are foundation, basic information, design process, implementation, and refreshment. This framework has three perspectives in designing performance variable, namely organizational output, internal business process, and resource capability. In order to generate suitable performance variables and Key Performance Indicator (KPI) for each KBPMS perspective, internal and external analysis was conducted by using VRIO analysis, PESTEL analysis, SWOT analysis and TOWS matrix. These analysis bring out 12 strategies for the company to achieve the goals. Eventually, 32 KPIs and 20 variables for three KBPMS perspectives was generated based on company’s vision, mission, and strategies. Organizational output perspectives has 3 variables and 11 KPIs, internal business process has 11 variables and 14 KPIs, resource capabilities has 6 variables and 7 KPIs. Analysis for linkage of variables and variable’s weight of importance by using fishbone diagram and Analytic Hierarchy Process (AHP) also conducted to obtain knowledge of impact and correlation between variables, also variable priority ranking. Furthermore, this research also provides competitor benchmarking and implementation plan.