Performance Management in Strategic Management.pdf

Strategic planning and
How is Performance management system, Balance Score card
How company setup the strategic management and How the company measure the KPI with performance management system, Balance score card

1. PERFORMANCE
MANAGEMENT
SYSTEM
Dwi Heriyanto B
1
Performance Management

2. S3: Doctorin StrategicManagementBusiness
PadjadjaranUniversity
S2: Master of Telecomunication Management
UniversityofIndonesia
S1: Bachelor of Industrial Engineering
Universityof Indonesia
(July 2020 – Now) VP Human Capital Strategic Management Telkom
(Nov 2019 – June 2020) Director of Higher Education Yayasan Pendidikan Telkom (YPT)
(July 2021 – Now) Board of Commissioners PT Admedika
(2020 – June 2021) Board of Commissioners PT BOSNET
(August 2019 – April 2020 ) Commissioners PT PINS
(Jan 2019 – Oct 2019) Vice President Human Capital Strategic Management
(2018 – 2019) Vice President Human Capital Development
(2016 – 2018) Vice President Human Capital Strategic Management
(2014 – 2015) Senior General Manager Telkom Corporate University
(2012 – 2014) Deputy SGM Telkom Corporate University
(2018 – Now) Advisory Board AMOEBA Project
(2017 –2019 ) BoardofCommissionersPT InfomediaNusantara
(2013 –2019 ) The Board of Trustee Telkom Foundation(YPT)
(2013 –2017) BoardofCommissionersTelkomedika
2
Dwi Heriyanto B.
EDUCATION
TITTLE & ACTIVITIES
•HRM American Certification Institute
•EPC Erickson Professional Coach
•Global Mindset, Thunderbird University
CERTIFICATION
VP HC Strategic Management
Since : Dec 1990JOIN TELKOM

3. JADUAL KULIAH
Sabtu,
4 Sept '21
15:50-18:20
DWI
Manajemen Kinerja Stratejik, Balance
scorecard & HR Scorecard
-Manajemen Kinerja
Stratejik '-
Balance Scorecard
'-HR Scorecard
Lecturer
Interactive Learning
Sabtu,
11 Sept '21
07:00-09:30
DWI
Small Group
Discussion dan
Interactive Learning
Sabtu,
9 Oktober '21
07:00-09:30
DWI
Best Practices & Trend terkini penyusunan KPI
di perusahaan
KPI vs OKR
Lecturer
Interactive Learning
Sabtu,
04 Dec '21
07:00-09:30
DWIMonitoring kinerja dan tindak lanjut
Monitoring kinerja, tindak
lanjut karir dan
pengembangan
Lecturer
Interactive Learning
Sabtu,
11 Dec '21
07:00-09:30
DWI
Put it all together : Penyusunan Kebijakan
Manajemen Kinerja di Perusahaan
Penyusunan Kebijakan
Manajemen Kinerja
Small Group Discussion
dan Interactive
Learning
http://library.imtdubai.ac.ae/content/e_books/E0016.pdf
https://jadoobi.com/wp-content/uploads/2018/03/Parmenter-David-Key-performance-indicators-_-developing-implementing-and-using-winning-KPIs-Wiley-2015.pdf
PERFORMANCE MANAGEMENT Strategic performance management, Leveraging and measuring your intangible.pdf (untag-smd.ac.id)
Dave Ulrich, Mark.A.Huselid, Brian E.Becker. (2001), The HR Scorecard: Linking People, Strategy and Performance, Harvard Business School Press.
3

4. 4
Outline
HC PLANNING1.
PERFORMANCE MANAGEMENT2.
a.Strategic Planning Hierarchy
b.Strategic Planning Process
c.Strategy Development Process
BALANCE SCORECARD3.
a.Definition Balanced Scorecard
b.Component Balanced Scorecard
a.Definition Performance Management
b.Difference Between Performance Management & Performance appraisal
c.Performance management process

5. Start with
Strategic Planning
5

6. CSS (5 tahun): Merupakan dokumen
strategi pada corporate level yang
didalamnya berisi tentang:
Visi, Misi, Strategi Objektif dan Inisiatif
Strategis.
Corporate Composition (Portofolio
bisnis yang akan di kelola beserta arah
bisnisnya)
Corporate Management (Alokasi
resource dan organisasi pendukung)
Proyeksi Keuangan Konsolidasi dari
semua portfolio bisnis.
Profil resiko perusahaan
Dokumen Business Strategy (5 tahun):
1.Business Strategy berdasarkan segmen
pelanggan (dikenal dengan dokumen
GBP/ Group Business Plan), yang terdiri
dari: CFU dan FU.
2.Business Strategy berdasarkan product/
services (SBP/ Strategic Business Plan),
terdiri dari seluruh portofolio produk dan
pelanggan.
Dokumen Functional Strategy disusun
oleh masing-masing fungsional di
Direktorat (Master Plan: Network, IT,
HR, Finance, etc).
Business Plan
Functional Plan
CORPORATE
DIVISION
(BUSINESS)
FUNCTIONAL
GENERIC
Use Case : TELKOM
Corporate
Plan
(CSS/ RJPP)
Strategic Planning Hierarchy
6

7. 7
CSS 2021-2025
CFUs BUSINESS PLAN
2021 - 2025
HC MASTER PLAN
2021 -2025
HC MAIN PROGRAMS 2021
- 2025
HC STRATEGIC BUDGET
2021
CORPORATE LEVEL
FUNCTIONAL LEVEL
BUSINESS LEVEL
OPERATIONAL LEVEL
SI 6 Gear Up for Streamlined Lean Digital-Ready Organization
SI 8 Transform Digital Telco Talents & Incorporate Digital Culture
SI 7 Improve Operation Quality & Synergy
SI 10 Link Up Group Strategic Planning & Implementation and Enhance Risk Management & Compliance
CSS STRATEGIC INITIATIVES 2021-2025 RELATED TO HCM
CFU BUSINESS PLAN 2021 – 2025
HC MASTER PLAN 2021 - 2025
•Strategic Intention : Develop Telkom as productive and digital-ready organization with best-
in-class digital talents and clear digital culture
•Strategic Objective : Be one of the most reputable companies for digital talents in Indonesia
•Human Capital Strategy : HARMONIZE
HC MAIN PROGRAMS 2021
HC STRATEGIC BUDGET 2021
CORPORATE ANNUAL MESSAGE 2021
HC Strategic Management is driven by CSS, Business Plan, HC Masterplan, and HC Main Programs translation
Corporate Strategy Philosophy : Cascading The Strategy

8. Source Prof. Dr. Sucherly SE. , MS, Unpad
Strategy development are compiled based on stages and levels
Strategic Management Concept & Levels
8

9. STRATEGIC SITUATION
ANALYSIS (SSA)
STRATEGY
IMPLEMENTATION (SI)
STRATEGY FORMULATION
(SF)
STRATEGY EVALUATION &
CONTROL (SEC)
Adalah tahapan melakukan
analisis terhadap kondisi
internal dan eksternal serta
identifikasi tantangan
strategis dan keunggulan
strategis yang dimiliki atau
dihadapi perusahaan
Adalah tahapan untuk
melakukan assessment
dan perumusan
terhadap: purpose, visi &
misi perusahaan; strategi;
kebijakan.
Contoh tools yang digunakan:
•External Factor Analysis:
PESTEL, 7Cs, Porter 5 Forces
•Internal Factor Analysis:
Business Functional
Analysis, 7S McKinsey,
SWOT, Internal Surveys
Adalah tahapan
perencanaan
implementasi atas strategi
yang telah ditetapkan,
yang secara umum terdiri:
program, budget,
procedure atau guidance
Adalah tahapan untuk
memastikan agar
implementasi strategi
dapat mencapai sasaran
atau target yang telah
ditetapkan
Contoh tools yang digunakan:
Key Performance Indicator
(KPI) & Management Review
Feedback
9
Strategic Planning Process

10. 10
ANALYSIS DECISION ACTION PERFORMANCE
Strategic Situation
Analysis (SSA)
Strategy
Formulation
(SF)
Strategy
Implementation
(SI)
Strategy
Evaluation and
Control(SEC)
External Environment
Analysis
7 C, PEST (TO)
EFAS:
(Opportunities & Threats)
IFAS:
(Strength & Weakness)
Internal Environment
Analysis
BFA (WS)
Input
External Data
7C:
•Customer
•Channel
•Company
•Complementor
•Competitor
•Center
•Change (PEST)
PEST:
•Political-Legal
•Economical
•Socio-culture
•Tecnology
BFA:
•Marketing
•Financial
•Operational
•Human Resource
•Innovation
Input
Internal Data
Feed Back
•Vision, Mission,
Strategic
Objective
•Strategies
•Policies
•Programs
•Budgets
•Guidances
Potential Blind Spot
Identification
Key Performance
Indicator (KPI)
Management
Review
Source Prof. Dr. Sucherly SE. , MS, Unpad EFAS: External Factors Analysis Summary IFAS: Internal Factors Analysis Summary
Telkom follow strategy development process staging from SSA to SEC
Strategy Development Process

11. STRATEGIC SITUATION
ANALYSIS
(SSA)
STRATEGY IMPLEMENTATION
(SI)
STRATEGY FORMULATION (SF)
STRATEGY EVALUATION &
CONTROL
(SEC)
Purpose
Vision
Mission
CFU & FU Business
Strategy
External Analysis
Internal Analysis
•Business Landscape
•Global HR Trends
•National HR Issues
•CFU/FU Business Priorities
•Telkom Group Workforce Profile
•Telkom Group Productivity
•Current Organization State
•Culture
•HC Applications
•Feedbacks from Employees
Strategic directions for
HCM
CSS Document
HC Challenges Summary
HCM Strategic Initiatives from
CSS
HCM Strategic Intention
HCM Strategic Objective
Functional Strategy
Implementation Program
Charters & Directions
HCM Roadmaps
HCM Cost
Workforce Planning
Management Review
Guidance
KPI Guidance
Risk Assessment &
Mitigation Plan
HC Strategy Development Phases

12. 12
HC PLANNING1.
PERFORMANCE MANAGEMENT2.
a.Strategic Planning Hierarchy
b.Strategic Planning Process
c.Strategy Development Process
BALANCE SCORECARD3.
a.Definition balanced scorecard
b.Component balanced scorecard
a.Definition performance management
b.Difference between performance management & performance appraisal
c.Performance management process

13. Nature of Performance Management
Performance Management: Processes used to identify, encourage, measure,
evaluate, improve, and reward employee performance.
13
•Provide information to employees about their performance.
•Clarify organizational performance expectations.
•Identify the development steps that are needed to enhance employee
performance.
•Document performance for personnel actions.
•Provide rewards for achieving performance objectives.

14. Source: Aguinis, Herman. 2019
Why Do You Need Performance Management?
•A performance management system is a key tool to transform people’s talent and
motivation into a strategic business advantage.
❖Continuous process: Performance management is ongoing. It involves a never-ending process of
setting goals and objectives, observing performance, and giving and receiving ongoing coaching and
feedback.
❖Alignment with strategic goals: Performance management requires that managers link employees’
activities and outputs with the organization’s goals. Making this connection helps the organization
gain a competitive advantage because performance management creates a direct link between
employee and team performance and organizational goals, and makes the employees’ contributions
to the organization explicit.
14
•Performance management is a continuous process of identifying, measuring, and
developing the performance of individuals and teams and aligning their performance with
the strategic goals of the organization.
•Let’s take a look at the two main components of the definition of performance
management:

15. 15
Performance Management Illustration -1
Initial Postion
Business Target
With navigation
Without navigation

16. 16
Performance Management Illustration -2 Business Target

17. Source: Armstrong, Michael. 2006
Aims of Performance Management
17
Empowering, motivating and rewarding employees to do their best (Armstrong World Industries).
Focusing employees’ tasks on the right things and doing them right. Aligning everyone’s individual goals to the goals of the
organization (Eli Lilly & Co).
Linking job performance to the achievement of the council’s medium-term corporate strategy and service plans
(Leicestershire County Council).
The alignment of personal/individual objectives with team, department/divisional and corporate plans. The presentation of
objectives with clearly defined goals/targets using measures, both soft and numeric. The monitoring of performance and
tasking of continuous action as required (Macmillan Cancer Relief).
Systematic approach to organizational performance aligning individual accountabilities to organizational targets and activity
(Royal Berkshire and Battle Hospitals NHS Trust).

18. Difference Between Performance Management and
Performance Appraisals
18
Performance Management Performance Appraisal
Performance Management is not performance appraisal
•Processes used to identify, encourage,
measure, evaluate, improve, and reward
employee performance.
•Driven by line manager
•Strategic business purpose
•Ongoing feedback
•Emphasis on past, present, and future
•The process of evaluating how well employees
perform their jobs and then communicating
that information to the employees.
•Driven by the HR function
•Mostly administrative purpose
•Feedback once a year
•Emphasis mostly on past

19. Performance Management Process
19
Establishing Prerequisites
Strategic planning: define its purpose and reasons for existing, where it wants to be in the future, the
goals it wants to achieve, and the strategies it will use to attain these goals.
Work analysis: determining the key components of a particular job, including activities, tasks, products,
services, and processes.
Performance Planning
Result: outcomes of what employees do — what employees produce.
Behaviour: how job is done (behaviour & competency).
Development plan: areas that need improving and goals to be achieved in each area.
Performance Execution
The employee strives to produce the results and display the behaviors agreed upon earlier as well as to
work on developmental needs. Execution stages: commitment to goal achievement, check-ins and
performance touchpoints, collecting and sharing performance data, preparing for performance review,
observation & documentation, updates, feedback, resources, reinforcement.
Performance Assessment
The employee and the manager are responsible for evaluating the extent to which the desired behaviors
have been displayed, and whether the desired results have been achieved.
Performance Review
The performance review stage involves the formal meeting between the employee and the manager to
review their assessments.
Source: Aguinis, Herman. 2019

20. Performance Management Model
#1
Balance scorecard
#2
Objective & Key Result
21
Source: Prince, Sam. 2020.

21. 22
HC PLANNING1.
PERFORMANCE MANAGEMENT2.
a.Strategic Planning Hierarchy
b.Strategic Planning Process
c.Strategy Development Process
BALANCE SCORECARD3.
a.Definition balanced scorecard
b.Component balanced scorecard
a.Definition performance management
b.Difference between performance management & performance appraisal
c.Performance management process

22. What is a Balanced Scorecard?
Adapted from The Balanced Scorecard by Kaplan & Norton
The Balanced Scorecard is a strategic planning and management system used to align business activities to the
vision and strategy of the organization by monitoring performance against strategic goals.
Balanced Scorecard Concept
•Was first published in 1992 by Kaplan and Norton, a book followed in 1996.
•Traditional performance measurement that only focus on external accounting data are obsolete.
•The approach is to provide 'balance' to the financial perspective.
Why Use a Balanced Scorecard?
•Improve organizational performance by measuring what matters
•Increase focus on strategy and results
•Align organization strategy with workers on a day-to-day basis
•Focus on the drivers key to future performance
•Improve communication of the organization’s Vision and Strategy
•Prioritize Projects/ Initiatives
23

23. Balanced Scorecard Benefit
Adapted from The Balanced Scorecard by Kaplan & Norton
•Helps align key performance measures with strategy at all levels of an organization
•The methodology facilitates communication and understanding of business goals and
strategies at all levels of an organization
•Strategic initiatives that follow "best practices" methodologies that cascade through the
entire organization
•Transforms an organization’s mission statement and strategic plan from a passive
document into the "marching orders" for the organization on a daily basis.
•It enables executives to truly execute their strategies by identifying what should be
done and measured.
24

24. 4 Original Business Perspectives
Adapted from The Balanced Scorecard by Kaplan & Norton
◼The Balanced Scorecard model
suggests that we view the
organization from 4
perspectives.
◼Then Develop metrics, collect
data and analyze it relative to
each of these perspectives
Key Implementation Success Factors
•Obtainingexecutive sponsorship and commitment
•Involving a broad base of leaders, managers and employees in scorecard development
•Choose the right Scorecard Champion
•Beginning interactive (two-way) communication first
•Viewing the scorecard as a long-term journey rather than a short-term project
•Getting outside help if needed
25

25. Balanced Scorecard Strategy Map
Adapted from The Balanced Scorecard by Kaplan & Norton
26

26. Scorecard Potential Pitfalls & Criticisms
Adapted from The Balanced Scorecard by Kaplan & Norton
•Lack of a well Defined Strategy
The balanced scorecard relies on a well defined strategy and understanding of linkages
between strategic objections and metrics. Without this foundation the implementation could
fail.
•Too much focus on the lagging measures
Focusing on only the lagging measures may cause a lack of priority or opportunity for the
leading measures.
•Use of Generic Metrics
Don’t just copy metrics from another firm. Identify the measures that apply to your strategy
and competitive position.
•Self-serving managers
Managers whose goal is to achieve a desired result in order to obtain a bonus or other self
reward.
27

27. 28
Reference
•Mathis, Robert L dan John H. Jackson. 2005. Human Resource Management. USA: South-
Western Cengage Learning.
•Aguinis, Herman. 2019. Performance Management. Canada: John Wiley & Sons, Inc.
•Armstrong, Michael. 2006. Performance Management Key Strategic and Practical
Guidelines. USA: Thomson-Shore, Inc.
•Prince, Sam. 2020. OKRs and Balanced Scorecard: What's the difference.
https://www.whatmatters.com/resources/okr-vs-balanced-scorecard-bsc/. (18 Feb 2021).
•Kaplan, Robert S. dan David P. Norton. 2008. The Execution Premium Linking Strategy to
Operation for Competitive Advantage. USA: Harvard Business School Publishing
Corporation.

28. Mencari contoh PMS dalam
suatu perusahaan
Batas waktu pengumpulan: 10 September 2021
Send to : [email protected]
29
Tugas Materi untuk Diskusi 11 September 2021

29. THANK YOU!
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