ANALYSIS AND PROPOSED DESIGN OF STRATEGY MAP AND PERFORMANCE MEASUREMENT SYSTEM USING BALANCED SCORECARD FRAMEWORK IN PT. PELITA AIR SERVICE OCC DIVISION

• Main Author: Abimanyu, Cristian
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/80755
• Institution: Institut Teknologi Bandung

The aviation industry in Indonesia is currently experiencing growth since the decrease in flight activities and passengers during the era of the Coronavirus Disease 2019 (COVID-19) pandemic. By mid-2023, the number of air transportation passengers in Indonesia reached more than 7 million, showing a significant increase from only 80,000 domestic passengers in mid-2020. On a global scale, in 2023, the demand for air transportation services even increased by 40.5% compared to the previous year. This indicates that commercial air transportation services, especially scheduled commercial air transportation services, are highly sought after and have become a necessity for the community. PT Pelita Air Service (PT PAS) has recently resumed its scheduled commercial air transportation business in 2022. As part of the State-Owned Enterprises (SOE), PT PAS has a responsibility not only to generate profits from a business perspective but also to provide public benefits for the Indonesian society based on healthy company management. Sound company management is closely related to the fulfillment of Key Performance Indicator (KPI) and Performance Measurement System (PMS) set by the company. The KPI framework of this company is also regulated by the Ministry of State-Owned Enterprises through Minister of StateOwned Enterprises Regulation PER-11/MBU/11/2020. The air transportation industry is closely related to the safety level in the operation of aircraft. The Operational Control Center (OCC) division plays a crucial role and serves as the heart of the flight operations of an airline. The OCC division at PT PAS is currently entrusted with the responsibility of the Internal BusinessProcess Key Performance Indicator - On-Time Performance (OTP), which must be fulfilled and maintained, and the top executives of the OCC division feel that this is a heavy burden. According to literature studies, OTP can be influenced by many factors and cannot be the sole responsibility of one party. The OCC division then proposed the development of a PMS that is more suitable and in line with the division's needs. There are several alternative PMS options that can be chosen, such as Balanced Scorecard (BSC), Performance Prism, Malcolm Baldrige National Quality Award (MBNQA), Objective Key Result (OKR), and Knowledge-based Performance Management System (KBPMS). The author then proposes the use of the BSC framework, which is considered more familiar for use by division members because it is similar to the KPI framework applied by the Ministry of State-Owned Enterprises. Before making decisions regarding changes in performance measurement that are complaints from clients, in-depth research into the scope of the industry, job, and capabilities of PT PAS is required, especially from the OCC division itself. In this research, the author uses a qualitative method to collect data from relevant sources. Several literature studies are also conducted to ensure and demonstrate the gap between academic knowledge and field conditions. After the data and findings are grouped based on their scope and categories, both external and internal, both macro and micro, the findings are further processed to form a comprehensive strategy for PT PAS, and selectively for the OCC division. Strategy formulation uses the SWOT and TOWS methods, combining both capabilities and opportunities possessed by the company. This analysis then results in 26 strategies, both long-term and short-term. These strategies are still in the form of a series of corporate strategies, so for their application in the OCC division, rearrangement is necessary. The design and formulation ultimately produce two strategic themes and strategy maps with their measurement scales and initiative steps, namely Operational Excellence and Sustainable Operations. The OCC division then contributes to each of these strategic themes and strategy maps in achieving the company's goals and objectives. By adhering to this performance measurement, it is expected that the OCC division can have a proper proportion in its contribution to meeting OTP.