Presented by: Josua Tarigan, MBA, CMA, CFP, CSRS

Performance Management System: Introduction

[Ch 1-2]

Slide 2

The Book

Slide 3

Changing of Business Environment: Global Competition

Slide 4

Type of Globalization

Slide 5

Global Competition

Slide 6

Changing of Business Environment

• “Tidak ada yang pasti di dunia ini kecuali perubahan itu sendiri”

• Perubahan tidak selalu membawa kemajuan, tetapi kemajuan selalu membutuhkan perubahan -Henry Steele Commager

Slide 7

Rules for Ensuring Poor Performance

• Tanpa Sistem Kinerja Bisnis menghasilkan “poor performance”

• Sistem Kinerja Bisnis juga masih banyak yang fokus pada financial perspective

Slide 8

Performance Management: Myth or Realty

Performance management is all about improvement – synchronizing improvement to create value for customer with result of economic value creation to stockholders (owners)- Cokins

Slide 9

Performance Management: Myth or Realty

Performance management may be defined as the integrated seat of management processes which link strategy into execution- (Frank Buytendijk, 2009)

Slide 10

Performance Management: Myth or Realty

It is the process of managing organization’s strategy with 3 major choice:

(1) What products or services line should we/ should we not offer?

(2) What markets and types of customers should we/ shoulde we not offer?

(3) How are we going to win and keep winning?

Slide 11

Performance Management: Myth or Realty

• Performance management is not just performance measurement

• Performance management is not just a software

• Performance management is not just a balancescorecard

• It embraces the methodologies, metrics, processm sofware, tools and systems that manage the performance of an organization as a whole

Slide 12

BPM Framework: Value Creation is not a goal, it is a result

Performance Management

System

CustomerValue

SupplierValue

EmployeeValue

ShareholderValue

Slide 13

Performance Network- (Frank Buytendijk, 2009)

Slide 14

Three Objectives of BPM- (Frank Buytendijk, 2009)

• First, it is important to track result or variances (Compliance)

• Second, to enable strategic decision making and learning (Continuous Improvement)

• Third, to drive people’s behavior (performance leadership)

Slide 15

Rules for Ensuring Poor Performance

Behavioral change is the most concrete of all performance improvement. If you push the right buttons, meaningful and sustainable change of behavior is a matter of weeks- Frank Buytendijk, 2009

Slide 16

Thank you for your attention!

Josua Tarigan

Business Accounting Program

Petra Christian University, Indonesia

P: +62-31-2983230

E: josuat@petra.ac.id

FB: josuatrg@yahoo.com