PERFORMANCE MANAGEMENT OVERVIEW. Management and Industrial System Development Lab Department of Industrial Engineering ITS
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1 PERFORMANCE MANAGEMENT OVERVIEW Management and Industrial System Development Lab Department of Industrial Engineering ITS
2 PERFORMANCE MANAGEMENT Business Performance Management (BPM) Corporate Performance Management (CPM) Enterprise Performance Management (EPM)
3 PERFORMANCE MANAGEMENT NOT JUST ONLY It is often referenced as a bunch of measurement dashboards for feedback and better financial reporting Historically, performance management referred to individual employees and was used by the personnel and human resources function
4 BACKGROUND OF PERFORMANCE MANAGEMENT Strategy Planning Strategy Execution
5 CIMOSA BUSINESS PROCESS MAPPING
6 AIRLINE BUSINESS PROCESS MAPPING
7
8 SCOPE OF PERFORMANCE MANAGEMENT
9 KONSEP DASAR RENCANA STRATEGIS
10 COMPONENTS OF STRATEGIC PLAN Vision Mission Corporate Values Strategic Objectives Strategy Strategic Initiatives
11 THE FIVE TASKS OF STRATEGIC MANAGEMENT Task 1 Task 2 Task 3 Task 4 Task 5 Develop a Strategic Vision and Mission Set Objectives Craft a Strategy to Achieve Objectives Implement and Execute Strategy Monitor, Evaluate, and Take Corrective Action Revise as Needed Revise as Needed Improve/ Change Improve/ Change Recycle as Needed
12 #1 : VISION AND MISSION A mission statement focuses on current business activities -- who we are and what we do A strategic vision concerns a firm s future business path -- where we are going
13 ILLINOIS INSTITUTE OF TECHNOLOGY VISION : IIT will be internationally recognized in distinctive areas of education and research, using as its platform the global city of Chicago, driven by a professional and technology-oriented focus, and based on a culture of innovation and excellence. MISSION : To provide distinctive and relevant education in an environment of scientific, technological, and professional knowledge creation and innovation.
14 MANCHESTER INSTITUTE OF TECHNOLOGY The mission of MIT is to advance knowledge and educate students in science, technology, and other areas of scholarship that will best serve the nation and the world in the twentyfirst century. We seek to develop in each member of the MIT community the ability and passion to work wisely, creatively, and effectively for the betterment of humankind.
15 INSTITUT TEKNOLOGI SEPULUH NOPEMBER (ITS) VISION : To become an internationally reputable university in science, technology, and art, especially to support an environmentally conscious industrial and marine development. MISSION : ITS as a higher educational institution is committed in the development of science, technology, and art that can improve the welfare of community through educational activities, research, community service, and management system based Information and Communication Technology (ICT).
16 #2 : SETTING OBJECTIVES Converts strategic vision and mission into specific performance targets Represent commitment to achieve specific performance targets by a certain time Should be stated in quantifiable terms and contain a deadline for achievement Spell-out how much of what kind of performance by when
17 STRATEGIC OBJECTIVES EXAMPLES: Achieve revenue growth of 10% per year Increase earnings by 15% annually Increase dividends per share by 5% per year Increase net profit margins from 2% to 4% Recognition as a blue chip company A more diversified revenue base A bigger market share Quicker design-to-market times than rivals Higher product quality than rivals Lower costs relative to key competitors Broader product line than rivals Better e-commerce and Internet sales capabilities than rivals Better customer service than rivals Recognition as a leader in technology Wider geographic coverage than rivals
18 #3 : CRAFTING STRATEGY Strategy : means by which long-term objectives will be achieved. How to grow company How to please customers How to out-compete rivals How to respond to changing conditions How to manage each functional piece of ITS and develop needed organizational capabilities How to achieve strategic objectives Strategy is HOW to...
19 #4 : IMPLEMENTING AND EXECUTING STRATEGY Taking actions to put a freshly-chosen strategy into place Supervising the ongoing pursuit of strategy Improving the competence and efficiency with which the strategy is being executed Showing measurable progress in achieving the targeted results and objectives
20 #5 : MONITORING, EVALUATING, AND TAKING CORRECTIVE ACTIONS AS NEEDED The tasks of crafting, implementing, and executing a strategy are not a one-time exercise Customer needs and competitive conditions change New opportunities appear; technology advances; any number of other outside developments occur One or more aspects of executing the strategy may not be going well New managers with different ideas take over Organizational learning occurs All these trigger the need for corrective actions and adjustments
21 NEXT : PERFORMANCE MANAGEMENT CONCEPT
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