DESIGNING KEY PERFORMANCE INDICATOR (KPI) BASED ON THE KNOWLEDGE-BASED PERFORMANCE MANAGEMENT SYSTEM (KBPMS) MODEL IN A CONSTRUCTION COMPANY (CASE STUDY: MARKETING DEPARTEMENT OF PT BANGUN MAJU)

• Main Author: Medeline, Whenny
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/84696
• Institution: Institut Teknologi Bandung

The construction industry has become one of the sectors playing a crucial role in economic development in Indonesia. The construction sector ranks fifth in its contribution to Indonesia's GDP, accounting for 9.92% in 2023. This reflects the high market demand for infrastructure development in Indonesia, leading to intense competition among contracting companies, particularly state-owned enterprises (BUMN), in securing new contracts. PT Bangun Maju, as a state-owned enterprise, faces this fierce competition, making it necessary to evaluate the extent to which marketing plays an active role in contract acquisition. In a construction company, marketing serves as the primary channel for securing contracts through the tender process, requiring a marketing strategy distinct from the manufacturing industry. The marketing strategy must align with the company's vision, mission, and objectives by considering the company's internal and external conditions. The achievement of the marketing strategy must also be measurable, where Key Performance Indicators (KPIs) serve as a tool to measure the achievement of established targets. The challenge in determining KPIs is that many companies do not cascade KPIs down to lower levels, leading to a lack of integration between the company's goals. Therefore, this research aims to identify the variables that affect performance in the marketing department, develop KPIs for the marketing department, and examine the interrelation of each KPI. This research uses the Knowledge-Based Performance Management System (KBPMS) model as a reference for KPI design. The methods used are qualitative methods through literature reviews from annual reports, books, and journals. Quantitative methods are also employed in this research to calculate the weights of the KPIs through importance level assessment using the Analytical Hierarchy Process (AHP). Additionally, benchmarking calculations and performance evaluations for the review years, namely 2020, 2021, and 2023, are conducted. The results show that the variables influencing the marketing department's performance can be seen from three perspectives and nine aspects used in KBPMS. Furthermore, the design of 16 KPIs for the marketing department is established. A qualitative analysis of the interrelationships is performed to explore the connections between the perspective of resource capability, internal business processes and business results. Moreover, a ranking is conducted for the highest weighting, revealing that the KPIs with the highest weights are in the aspects of marketing and after-sales service. This indicates that these two perspectives have a greater influence on the marketing department. In the performance measurement phase, there are 10 KPIs that the author developed which are not measured by the company. These KPIs are not measured because PT Bangun Maju has one reference in designing KPIs so that there are marketing activities that are actually important to measure performance but there are no relevant KPIs to cascade from the corporate level to the marketing department level. When reviewing the performance measurement results for the review years, the year 2020 has the lowest performance compared to other years. This is because, in 2020, the Covid-19 pandemic was still ongoing, leading to social restrictions that hindered project activities and disrupted the supply chain. In contrast, the year 2021 showed improvement despite some KPIs not meeting the targets, due to the ongoing recovery process from the Covid-19 pandemic. In 2023, performance has improved where all KPIs have passed the target because infrastructure in Indonesia is increasing due to the high development in IKN.