Method Analytic Network Process (ANP) Financial Performance for Measuring on the Higher Education

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1 Method Analytic Network Process (ANP) Financial Performance for Measuring on the Higher Education Method Analytic Network Process (ANP) Financial Performance for Measuring on the Higher Education Yoyo Sudaryo Study Program of Management, Sekolah TinggiIlmu Ekonomi Indonesia Membangun (INABA), Soekarno Hatta No. 448, Bandung, West Java, Indonesia, Abstract: Analytic Network Process (ANP) is a performance management system, not merely a performance measurement system, which seeks to translate the vision, mission and organizational strategy into real environmental actions based on feedback from within the business processes that run and externally of the results obtained, either from customer response and financial health. This study uses a combination of methodsexplorative explorative. As an exploratory study, this study aims to explore or explore the phenomenon under study. The research objective strategy up until the mapping stage is obtained through a descriptive study, while the causal relation between the key performance indicators assessed through descriptive hypothesis testing. Qualitative research is used to: 1. identify and assess the vision, mission, objectives, and performance measures; 2. identify and assess key performance indicators; and 3. develop a strategy mapping according to the vision, mission and goals of the college. While quantitative research is used to: 1. measure the key performance indicators and determine the priority of performance; and 2. assess the closeness of the causal relationship between it and determine strategic priorities. Weighting performance between STIE for the whole perspective is STIE Pasundan (0.2839) is greater than the STIE Inaba (0.2703), STIE Ekuitas (0.2524) and the STIE Tridharma (0.1934). Objective strategy with the highest importance weight is the innovation and learning perspective, that an increase in the college s commitment to sustainability education faculty and reduction in employees at the rejection of new technologies. Keyword: Analytic Network Process (ANP), Financial Performance. 27 International Journal of Applied Business and Economic Research

2 Yoyo Sudaryo INTRODCUTION Universities have always faced a fundamental challenge is how to survive in the present and able to compete in the future. Based on these measurements were taken overall performance. Analytical Network Process (ANP) is a system of management, measurement, and control is fast, precise, and comprehensive to provide insight to managers about business performance. Performance measurement Analytical Network Process (ANP) looking at business units from four perspectives, namely financial perspective, customer, business process within the enterprise, as well as the process of learning and growth. Analytical Network Process (ANP) is also an act of weighting to each individual indicator and aspects. Designing a strategy map and the weighting is an important step in designing the strategy performance measurement system. Method of Analytic Network Process (ANP) is a development method of Analytical Hierarchy Process (AHP). ANP method is able to rectify the shortcomings of the ability to accommodate AHP linkages or alternative criteria (Saaty, 2008). Linkage to the ANP method there are 2 types of linkages in a set of elements (inner dependence) and the linkages between the different elements (outer dependence). The existence of these linkages cause ANP method is more complex than AHP Method. Weighting by ANP requires a method that represents the interdependence of its criteria and subcriteria. There are two control methods that need to be considered within the system to be known weight. The first control is the control hierarchy that shows the linkage criteria and sub criteria. In this control does not require a hierarchical structure as in AHP. More control is the control linkage indicating interdependence criteria or cluster (Saaty, 2008). Financial performance is a formal business conducted efficiently and the company to evaluate the effectiveness of the company s activities that have been implemented in a specific time period. According Sucipto (2008) definition of financial performance is the determination of certain sizes that can measure the success of an organization or company in generating profits. Meanwhile, according to IAI (2009) Financial performance is the company s ability to manage and control its available resources. From the above understanding can be concluded that financial performance is a formal effort that has been done by the company to measure the success of the company to generate profits, so it can see the prospects, growth, and potential developments in both companies by relying on existing resources. A company can be said to be successful if it has reached the standards and objectives that have been set. Preliminary studies done by stages. MATERIAL AND METHOD This study uses a combination of methods explorative-explanatory. Exploratory research is research that aims to conduct assessments/exploration, while explanatory research is research that aims to identify and explain the relationship between variables and test hypotheses (Effendi and Tukiran, 2012: 2). As an exploratory study, this study aims to explore or explore the phenomenon under study, namely: 1. The vision, mission, objectives, and performance measures private colleges; International Journal of Applied Business and Economic Research 28

3 Method Analytic Network Process (ANP) Financial Performance for Measuring on the Higher Education Table 1 Research Methods Qualitative Phases Research Method Data Collection Technique of Sampling Data analysis method Instrument Data Descriptive Colleges The method used in this study using qualitative and quantitative methods By interviews, observation and documentation Snowball Sampling Snowball Sampling, Analysis SWOT, FGD Analytic Network Process (ANP) 2. the key performance indicators that can be used as performance benchmarks private universities with the approach of Analytic Network Process (ANP); and 3. mapping strategies between key performance indicators in the performance management methods of private universities with the approach of Analytic Network Process (ANP). As an explanatory research, this study aims to explanatory or explain the influence (causal connection) between the key performance indicators in the performance management methods of private universities with the approach of Analytic Network Process (ANP). The research objective strategy up until the mapping stage is obtained through a descriptive study, while the causal relation between the key performance indicators assessed through descriptive hypothesis testing. Kaplan and Norton defined mission as Concise, internally-focused statement of the reason for the organization s existence, the basic purpose toward the which its activities are directed, and the values that Figure 1: Interpersonal Perspective in Feedback Network 29 International Journal of Applied Business and Economic Research

4 Yoyo Sudaryo guide employees activities. concise, internally focused statement of reason for existence of the organization, the basic goal towards which its activities are directed, and the values that guide the activities of employees. RESULT AND DISCUSSION 1. Performance Innovation and Learning Perspective The results of the analysis of the weighting between STIE on innovation and learning perspective through eigen vectors above shows that the weight of the performance of STIE Pasundan (0.2912) greater than, STIE Inaba (0.2531), STIE Tridharma (0.2334), STIE Equity (0.2223). These results indicate that STIE Pasundan relative performance innovation and learning perspective is best compared to other STIE. 2. Performance Internal Process Perspective The results of the analysis of the weighting between STIE the internal process perspective through eigen vectors above shows that the weight of the performance of STIE Pasundan (0.2914) is greater than the STIE Inaba (0.2734), STIE Equity dan STIE Tridharma (0.2000), Pasundan relative performance of internal process perspective is best compared to the other STIE. 3. Performance Customer Perspective The results of the analysis of the weighting between STIE the customer s perspective through eigen vectors above shows that the weight of the performance of STIE Inaba (0.2853) is greater than the STIE Pasundan (0.2621), STIE Equity (0.2343), and STIE Tridharma (0.2183). These results indicate that the Inaba STIE relative had the best performance of the customer s perspective compared to other STIE. 4. Performance Financial Perspective The results of the analysis of the weighting between STIE the customer s perspective through eigen vectors above shows that the weight of the performance of STIE Inaba (0.2985) is greater than the STIE Pasundan (0.2844), Tridharma (0.2385) and the STIE Equity (0.1786). STIE These results indicate that the Inaba STIE relative had the best performance of the customer s perspective compared to other STIE. Weighting between perspectives by forming a matrix comparison of interest among perspective. Values were compared based on the interests of the average value of interest between indicators of innovation and learning perspective, internal process, customer, and financial. The results of the analysis of weighting based on eigen vector calculation results can be seen in the following table. Table 2 The Weighting Inter Perspective Perspektif Eigen Value IP InovasidanPembelajaran PI Proses Internal P Pelanggan F Finansial Source: Data Proceed International Journal of Applied Business and Economic Research 30

5 Method Analytic Network Process (ANP) Financial Performance for Measuring on the Higher Education The results of the analysis of the weighting between perspectives through eigen vectors above shows that the weight of the interests of the internal process perspective (0.2578) and the customer s perspective (0.2548) is greater than the innovation and learning perspective (0.2505) as well as the financial perspective (0.2370). These results indicate that the internal process perspective is among the most important objectives and customer perspective is the culmination at STIE in Bandung. Table 3 The Weighting Inter Perspective STIE Eigen Value 1. Tridharma Inaba Ekuitas Pasundan Source: Data Proceed The results of the analysis of the weighting of performance among STIE by the weight difference of interest between the perspective of the result of multiplying two matrices eigen vectors above shows that the weight of the performance of the Balanced Scorecard as a whole at STIE Pasundan (0.2839) is greater than the STIE Inaba (0.2703), STIE Ekiutas (0.2524) and STIE Tridharma (0.1934), these results indicate that STIE Pasundan relative performance is best compared to other STIE. The above picture shows that the decline in rejection of new technologies enables the development of ICT academic services. In a systems approach, Balanced Scorecard strategy map generated in this study Figure 2: Key Objectives Strategy and Correlation 31 International Journal of Applied Business and Economic Research

6 Yoyo Sudaryo is a half-open system. Unless reduction strategies rejection of new technologies (IP15) and a strategy for improving the sustainability commitments of education lecturers (IP11) in the perspective of innovation and learning; strategy for improving the quality of education through quality assurance (PI20) in the strategy of internal processes; as well as other sources of income creation strategy beyond tuition and subsidies (F5) in the financial perspective; the entire fabric of the strategy objective in the strategy map is the cycle. Four strategies mentioned above is a component of an open strategy whose development depends on the development of technology, technological adaptation of key stakeholders, the commitment of key stakeholders, a business opportunity of higher education services market, and regulation of the quality of education of Higher Education. Djokopranoto (2004) revealed that the culture of secrecy, which cause asymmetry of information, and lack of commitment is a source of major causes of the failure of governance. Diagrammatically, meaning the position value as a driver of performance achievement college, vmemes, and governance. In such models individuals or cultures do not occupy one color category. Each person or culture to form a mixture of patterns of values, with varying degrees of intensity. Ken Weber (philosopher) called Holon for conditions that indicate the highest level achieved, but at the same time that hamper the previous level. Spranger (Alport, 1964 in Sauri, 2010: 7) dividing the value into 6 classifications value, namely: theoretical value, economic value, aesthetic values, social values, political values and religious values that steer people toward the goal. In theological, religious values are values which have the basic truth of the highest compared with other values. Thus the value of religion is a basic driving force of the most powerful of the behavior of individuals because of religious values sourced from the highest truth that comes from God. Figure 3: vmemes International Journal of Applied Business and Economic Research 32

7 Method Analytic Network Process (ANP) Financial Performance for Measuring on the Higher Education CONCLUSIONS 1. Vision and STIE not much different despite having specificity. STIE have a vision of a better reputation with different characteristics; development of accounting and management (STIE Tridharma); implementation of quality management education, research and community service (STIE Inaba), financial education, and banking and entrepreneurship (STIE Equity), as well as the quality of human resources in the field of economics (STIE Pasundan). STIE implicitly has a mission to carry out quality SCARA Tridharma college with different characteristics; the quality and quantity of activities, support human resources and infrastructure and cooperation (STIE Tridharma); the development of quality education programs STIE Inaba; memnangun institution that produces graduates high berkualias (STIE Equity); and develop quality human resources professional secra (STIE Pasundan). The results showed that in achieving the vision and mission execution organization college is still a gap between the vision and mission of the organization with the vision and mission of the individual from the parties concerned. 2. Weighting performance between STIE for the whole perspective is STIE Pasundan (0.2839) is greater than the STIE Inaba (0.2703), STIE Ekiutas (0.2524) and the STIE Tridharma (0.1934). Objective strategy with the highest importance weight is the innovation and learning perspective, that an increase in the college s commitment to sustainability education faculty and reduction in employees at the rejection of new technologies. For the internal process perspective is the development of ICT academic services and the fulfillment of minimum education requirement lecturers. For the customer s perspective is an increase in satisfaction with the lecture method. As for the financial perspective is improving the efficiency and effectiveness of operational costs. 3. Results of mapping strategies between perspectives in this study can be used as the basis of a strategic decision to position a strong internal process perspective as a leverage (leverage) for increased overall performance, while the customer perspective is positioned as a key perspective of performance targets. As for the financial perspective and the perspective of innovation and learning is positioned as a pedestal performance. ACKNOWLEDGEMENTS This research was supported by Director of Institute of Economic Science (STIE) Indonesia Membangun (INABA), Bandung. We thanks our colleagues lecturer in Study Program of ManagementInstitute of Economic Science (STIE) Indonesia Membangun (INABA). We thank all to the lecturerin Institute of Economic Science (STIE) who has helped in this study. so that this research can be done well, hopefully this research can be useful in developing education in Bandung. REFERENCES Andi, S. (2008), Penerapan Balanced Scorecard Sebagai Indikator Komprehensip Pengelolaan Sumber Daya Alam Lingkungan Hidup. Jurnal Sistem Manajemen, Strategi Bisnisdan Kewirausahaan. Dally. Dadang., (2009), Implementasi Kebijakan Manajemen Berbasis Sekolahmelalui Manajemen Kinerja Balanced Scorecard. Disertasi. Bandung: PPS UPI. 33 International Journal of Applied Business and Economic Research

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