MM6042 Corporate Performance Management
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1 MBA Programme INSTITUT TEKNOLOGI MM6042 Corporate Performance Management Executive Program MASTER OF BUSINESS ADMINISTRATION SCHOOL OF BUSINESS AND MANAGEMENT INSTITUT TEKNOLOGI BANDUNG Page 0
2 Table of Contents Table of Contents... 1 Vision and Mission of MBA ITB... 2 Learning Goals of MBA ITB... 2 Learning Goals of This Course... 3 Learning Outcomes of This Course... 4 The Course Structure... 5 The Course Plan... 7 Lecturer Profile Grading Students Guidance References Page 1
3 Vision and Mission of MBA-ITB Vision: To be A World Class Program of Master and Business Administration that Creates Ethical and Entrepreneurial Leaders Mission: To educate and develop future leaders in business To develop sustainable education program for building human resource capacity needed for enhancing industry competitiveness in Indonesia Learning Goals of MBA ITB In General, The MBA ITB s learning goal is to develop students to have the following characteristics: A Strong competence in business and technology based management as well as decision making capabilities as demonstrated by business leaders in the world. An ethical leadership and professional mindset An entrepreneurial spirit both as professionals and as entrepreneurs. Ability to make decisions based on human values in a systemic and integrated manner so as to meet the needs of the community. There are three programs at MBA ITB Bandung campus with specific learning goals as follows: A. Young Professional The learning goal of this program is to build business sensitivity and business administration knowledge and skills required to start career at managerial level. B. Creative and Cultural Entrepreneurship (CCE) The learning goal of this program is to teach students about doing business in creative and culture sectors and how to manage their new business in these areas. C. Young Executive The learning goal of this program to improve students agility in decision making and to develop a holistic view of business which enables them to lead a business project on a higher level effectively in today s business environment. Page 2
4 Learning Goals of This Course The Jargon you can t manage what you can t measure has been long time used as reference among executives of companies in responding global business competition. However, a lot of companies are currently still lack of capabilities in designing a performance management system contextually to their condition at current competition. This course is designed for the executives student and aims to develop the skills and competence required as follow : 1. Understand the full length of theory Corporate Perfomance Management (CPM) 2. Equip students with concepts and techniques to design performance management system contextual to the company s needs 3. Knowledge and understanding to increase corporate performance by identifying and analyzing variables and factors that is relevant. Most of them tried to adopt various performance management frameworks such as thebalanced Scorecard (Harvard), The Performance Prism (Cambridge), the Malcolm Baldrige National Quality Award (Department of Trade USA), the Key Performance Indicator Manual (Department of Industry Australia), the ISO series, the Six Sigma, and many others without fully understanding of the essence of those frameworks.. Page 3
5 Learning Outcomes of This Course After completing this course, students will be able to solve management cases regarding corporate performance management. The Corporate Performance Management subject offers students for dealing with two main aspects: How to diagnosis company performance competitiveness How to design performance management system contextual to certain type of company. In the aspect of diagnosis company competitiveness, students will be equipped with certain tools such as customer aspects of measurement, internal process diagnosis, resource capabilities analysis, and benchmarking technique. In the aspect of design performance management systems, the students will be supported by comprehensive stages in designing integrated performance management systems consist of four stages, namely basic information, designing, implementation and updating in which in each stage there are several concepts, techniques and aspects will be explored in detail. Page 4
6 The Course Structure The course structure is designed for students to understand holistically regarding corporate perfomance management systems. Ability to provide solutions regarding corporate performance management in small to large companies to improve its performance Ability to explain the decision of utilizing a certain framework for corporate performance measurement Ability to explain the final design of the performance management system Ability to understand what choices of framework can be implemented for measuring corporate performance Ability to analyze performance variables,leading, lagging and their relationship with each other using scientific methods Ability to design a complete performance management information system. Develop your analytical skills in data handling and interpretation; Explain and improve the competence in analyzing company management performance through preliminary analysis; Page 5
7 The knowledge structure that is expected for the students are as follow Page 6
8 The Course Plan Please fill in the table below which describes how students are going to attain specific competence as mentioned in the course structure above and how you re going to evaluate it. (See an example below) = Muhammad Hanafi = Muhammad Tresnadi Hikmat GL: Guest Lecture Date Outcome(s) Activity(ies) Preparation Evaluation Facilitator 1st Week Have understanding on course structure and obectives of this course. Have capabilities and knowledge in the knowing each position of performance management sytems approach. Session 1 (08:00 9:30) Structure of course Course Management Introduction to the Performance Management Systems Session 2 (9:45 11:15) Introduction to Integrated Performance Management Systems (IPMS)Approach Student get all course materials Student understand the source of course materials will be used in the course Read the book of Manajemen Kinerja (Wibisono, 2006 & 2011) Session 3 (11:30 13:00) Introduction to BSC, Performance Prism Read Reference book : Performance Prism, BSC and Strategy Focused Class Homework: Comparison of PMS Session 1 (08:00 9:30) Integrated Performance Management Approach Stage 0 Read the book of Manajemen Kinerja (Wibisono, 2006 & 2011) 2nd Week Have understanding of clear principles of the Integrated Performance Management Approach Session 2 (9:45 11:15) Integrated Performance Management Approach Stage 1 Read the book of Manajemen Kinerja (Wibisono, 2006 & 2011), Step, CASE NO. 5 and 6 Session 3 (11:30 13:00) Integrated Performance Management Systems Approach Stage 2 Read the book of Manajemen Kinerja (Wibisono, 2006 & 2011) Page 7
9 3rd Week Understanding the clear principles of the Integrated Performance Management Approach Session 1 (08:00 9:30) Integrated Performance Management Approach Stage 2 Session 2 (9:45 11:15) Integrated Performance Management Approach Stage 3 Read the book of Manajemen Kinerja (Wibisono, 2006 & 2011) Read the book of Manajemen Kinerja Quiz (Wibisono, 2006 & 2011) CASE NO. 7 and 8 4th Week 5th Week Have understanding of basic principles of MIS for MBAs, how to design a robust software application, intuitive dashboard and translate Performance Management System Framework in to a basic design of a software application. Understanding the implementation of Six Sigma for MBAs, how to measure performance using Six Sigma Approach. Session 3 (11:30 13:00) Integrated Performance Management Systems Approach Session 1 (08:00 9:30) Introduction of Management Information Systems for MBA Session 2 (9:45 11:15) Example Design of IPMS in the Indonesia Company Session 3 (11:30 13:00) Group Assignment Exercise for Stage O and Stage 1 IPMS Session 1 (08:00 9:30) Intro to Six Sigma Application in real world Read the book of Manajemen Kinerja (Wibisono, 2006 & 2011) Syndicate Presentation Read the book of Manajemen Kinerja (Wibisono, 2006 & 2011) McLeod, Raymond, Jr, Sistem Informasi Manajemen. Edisi ke 10 Read the book of Manajemen Kinerja (Wibisono, 2006 & 2011) Read CASE NO. 11 AND 13 Read the book of Manajemen Kinerja (Wibisono, 2006 & 2011) Syndicate Presentation Reference : Six Sigma Business Scorecard, Lean Six Sigma for Service, Michael L. George; Six Sigma Handbook, Thomas Pyzdek; The Six Sigma Way Reference : Lean Six Sigma Session 2 (9:45 11:15) for Service, Michael L. Six Sigma Station Simulation and George; Six Sigma Handbook, Result Monitoring Thomas Pyzdek; The Six Sigma Way Session 3 (11:30 13:00) Six Sigma Station Simulation and Result Monitoring Reference : Lean Six Sigma for Service, Michael L. George; Six Sigma Handbook, Thomas Pyzdek; The Six Sigma Way Syndicate Presentation /GL /GL /GL Page 8
10 6th Week 7th Week 8th Week 9th Week Understanding the basic principles of Six Sigma for MBAs, how to measure performance using Six Sigma Approach. Understand the Malcom Baldridge National Quality (MBNQA) approach to performance measurement Understand the real world implementation of Information System to measure Performance Managment Session 1 (08:00 9:30) Introduction of Six Sigma as a measurement system Session 2 (9:45 11:15) Six Sigma Performance Management Example Session 3 (11:30 13:00) Six Sigma Performance Management Example Session 1 (08:00 9:30) MBNQA Theory Session 2 (9:45 11:15) The Malcolm Baldrige Approach Session 3 (11:30 13:00) Applied KPI Session 1 (08:00 9:30) Introduction of Software Implementations Session 2 (9:45 11:15) Applied IPMS in Real World Session 3 (11:30 13:00) Group Assignment Exercise for Stage 3 and Stage 4 IPMS Reference : Lean Six Sigma for Service, Michael L. George; Six Sigma Handbook, Reference : Six Sigma Business Scorecard, Lean Six Sigma for Service, Michael L. George; Six Sigma Handbook, Thomas Pyzdek; The Six Sigma Way Reference : Six Sigma Business Scorecard, Lean Six Sigma for Service, Michael L. George; Six Sigma Handbook, Thomas Pyzdek; The Six Sigma Way Mid Term Exam Quiz and Class Discussion Quiz and Class Discussion and Syndicate Presentation Read The Baldridge Quality Quiz System, Stephen George Class Exercise Read The Baldridge Quality Quiz System, Stephen George Class Exercise Read The Baldridge Quality System, Stephen George Syndicate Presentation &Designing PMS Composing (GL) Consultation of topic choosing & Designing PMS (GL) Case Syndicate Page 9
11 10th Week 11th Week 12th Week Understand the Malcom Baldridge National Quality (MBNQA) approach to performance measurement and Key Performance Indicators (KPI)and the Implementations Have understanding of Performance Based Management : Technniques and Tools for Implementating the Government Performance and Results Act (GPRA) Session 1 (08:00 9:30) Applied MBNQA Session 2 (9:45 11:15) Apllied MBNQA Session 3 (11:30 13:00) Applied KPI Session 1 (08:00 9:30) Discuss Establishing and Maintaining A Performance Based Management Program and Integrated Performance Measurement System Read The Baldridge Quality System, Stephen George Read The Baldridge Quality System, Stephen George Key Performance Indicators, Developing, Implementing and Using Winning KPIs, David Parmenter 'Analysis and Participation Case analysis & participation Read Performance Based Management : Technniques and Tools for Implementating the Government Performance and Results Act 1993 (GPRA) Session 2 (9:45 11:15) Discuss Establishing Accountability for 'Analysis and Participation Performance and Collecting Data Read GPRA (see above) to Assess Performance Session 3 (11:30 13:00) Discuss Analyzing, Reviewing, and Reporting Performance Data and Using Performance Information To Drive Improvement Quiz Read GPRA (see above) Final Group Assignment Page 10
12 Lecturer Profile Muhammad Hanafi, ST(ITB),MBA(ITB),SSBB(SSCX) hanafi301@gmail.com Mr.Hanafi graduated with a degree in Mining Engineering from Bandung Institute of Technology (ITB) in Achieved Milling College Diploma from University of British Columbia, Vancouver Canada in 2001, and continued to have a Master Business Administration degree from ITB in 2009 and have Project Management Professional (PMP*) from Project management Institute in He started as a metallurgist in PT Freeport Indonesia and holding various management positions as Mill Operation, and Metalurgical Accounting, before his recent assignment as the Technical Affairs Manager. Skilled in Lean Six Sigma planning and projects implementation and obtained his Lean Six Sigma Black Belt certification in In his career, he also involved in many government policy projects such as : Performance Evaluator Team for smelter projects in Indonesia (2012), Taskforce Team for Indonesia Copper Smelter (2013) in Ministry of Mine and the development of Supply Chain Value into Roadmap reformulation for Copper, Iron and Steel Downstream Industries in the Ministry of Industry (2013). Other than that he is also a charman in various mining and coal forum and conferences held by PERHAPI (2010,2011), IMA (2011,2012). Furthermore his recent project is Benchmarking Study of Oil and Gas Facility Project of 10 companies under SKK MIGAS supervision with his capability in Performance Management, Operations Management, Project Management and Total Quality Management. Muhammad TresnadiHikmat,SE(UI),MBA(ITB), MCTS (Microsoft) muhammad.th@sbm itb.ac.id Mr Hikmat graduated from Economic Faculty University of Indonesia FEUI (2003) and a Cum Laude Graduate for the Executive MBA ITB Program (2011) developing a thesis on Performance Management System Software Application using IPMS Framework. Currently works as General Manager for Projects for a Mining Metallurgical Processing Consultant and also has role as a project management consultant management and business performance systems. Poses Microsoft Certified Technology Specialist (MCTS) in Managing Projects with Microsoft Project An experience MS Project Trainer (cooperating with MBA ITB Jakarta) and project controller for several metallurgical projects as the master scheduler and project management advisor creating procedures and project performance measurements and assessments. Involved in government policy development projects as member of the evaluator team for reviewing smelter projects in Indonesia (Ministry of Mine), Taskforce Smelter Evaluation Team (Ministry of Mine) Page 11
13 and development of roadmap for mineral processing and refining industries in the Ministery of Industry according Inpres No , and latest Benchmarking Study of Oil and Gas Facility Project of 10 companies under SKK MIGAS supervision (2013). Has experience case writing in the SBM ITB developing a business case and involved as a research consultant for CCE SBM ITB for the Evaluation of Strategic Development Study for Pertamina EP Project. He is a part time lecturer in STIE Ekuitas Bandung for the subject of Management Information Systems (MIS) and other Management subjects for undergraduate students. He has worked in management roles in various companies from IT consultant, solar water heater to fertilizer industry. Before pursuing a career in management, with a Diploma of Civil Engineering background from Polytechnic of ITB 1995, he worked for a construction company (Jaya Obayashi) as a planning engineer for the Astra Isuzu Project in KIIC Karawang. Grading Grading within this courses determined as below : Item Weight Quiz 5 Individual assignment 10 Group assignment 30 Mid Test 20 Final Test (Group Presentation) 25 Participation 10 TOTAL 100% A special final task shall be assigned for the syndicate group at the end of the semester in development of performance system based on IPMS framework. Students Guidance In order to succeed, students are advised to do the followings: 1. Allocate sufficient time for self preparation 2. Discuss concepts and cases with their syndicate 3. Elaborate practical cases apart from cases given 4. Have a proper notes of all lecture 5. Contribute actively in the class Page 12
14 References Main text book: 1. Wibisono, D. (2006) Manajemen Kinerja: Konsep, Design dan Teknik Meningkatkan Daya Saing Perusahaan, Penerbit Erlangga. 2. Wibisono, D. (2011) Manajemen Kinerja: Panduan Penentuan Indikator, Penerbit Erlangga 3. Neely et. all (2002), The Performance Prism, Cambridge Press 4. Kaplan, R. S. & Norton, D.P., (1996) The Balanced Scorecard Translating Strategy into Action, Harvard Business School Press. 5. Kaplan, R. S. & Norton, D.P., (2008) The Premium Execution, Harvard Business School Press 6. MBNQ Authorized site 7. McLeod, Raymond, Jr, Sistem Informasi Manajemen. Edisi ke Lean Six Sigma for Service, Michael L. George; Six Sigma Handbook, Thomas Pyzdek; The Six Sigma Way 9. The Six Sigma Business Scorecard, Praveen Gupta, McGraw Hill, Second Edition 10. Performance Based Management Handbook: Technniques and Tools for Implementating the Government Performance and Results Act 1993 (GPRA) Supporting textbook: 1. Amsyah, Zulkifli, Manajemen Sistem Informasi,PT.Gramedia Pustaka Utama, 2. Van Belle,Eclles,Nash Discovering Information Systems,Berne Convention Case List Case No CASE NAME PUBLISHER Topic 1 Lack of Traditional PMS, Tidak bisa melihat datangnya Introduction to Financial Ratio's HBS untung atau rugi detail ke operasional 2 Customer Relation Management at Capital One (UK) INSEAD Comparison of PMS 3 Stage by Stage Designing contextual PMS. BUMN Minister Decree Environmental Scanning 4 Analyzing Syndicate's own company statement compare with best practice Class IPMS, Vision Mision 5 Cineplex, The Loyalty Program Ivey Case IPMS, Business Result, Managing Customer 6 Inovation at Timberland, Thinking out of the box HBS IPMS, Internal Process, Inovation 7 Reengineering a business process HBS IPMS, Internal Process, Operations Process 8 Real Madrid Club HBS IPMS, Internal Process, Marketing 9 Individual Assingment : Sales Services in Indonesia Class IPMS, Internal Process, After Sales Service 10 Human Resources at AES Cooperation Stanford IPMS, Resource Availibility, Human Resources 11 Information Technology HBS IPMS, Resource Availibility, Tech and Infrastructure 12 Guident Cooperation: Shaping Culture thru system HBS IPMS, Resource Availibility, Organization 13 Technosystems Corp: Benchmarking Sourcing HBS IPMS, Benchmarking 14 BSC Simulation Software Practice KaplanNorThe Balance Score Card 15 Selasar Sunaryo Case Neely Performance Prism 16 Paul Revere Insurance Company Competing for Baldridge BR Exercis MBNQA Page 13
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