Articles

Performance Analysis and Optimization Proposal Using Balanced Scorecard Framework for IT Outsourcing Company, PT IT Expert System

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IT outsourcing companies enable businesses to delegate their IT functions, focusing on core activities, cost efficiency, and access to advanced expertise and technology. The success of these companies hinges on employee performance, influenced by factors like psychological well-being, work environment, and organizational culture. In Indonesia, the IT outsourcing industry is rapidly transforming due to increasing demand for digital solutions and technology experts. Companies strive to provide faster, more efficient services while being flexible and adaptable. The IT services market revenue in Indonesia is expected to grow from $4.89 billion in 2023 to $9.07 billion in 2028, driven by digital transformation, supportive government policies, and increased IT infrastructure investments. PT IT Expert System (PT IES), established in 2010, provides IT services like software development and IT outsourcing. Despite sector growth, PT IES’s financial performance has declined, with monthly revenue dropping from Rp. 220 million to Rp. 140 million, affecting liquidity and leading to debt for paying salaries. This financial strain is partly due to 46% of their IT professionals being idle and a lack of software development projects. The research aims to identify the main causes of PT IES’s business problems, determine an appropriate performance management system framework, and establish suitable Key Performance Indicators (KPIs). The root cause identified is the absence of a performance management system, leading to an ineffective appraisal system and poor decision-making. The Balanced Scorecard framework is recommended for PT IES, translating strategic objectives into measurable processes across four perspectives. This framework streamlines performance evaluation and forecasting. The Balanced Scorecard framework proposal includes 4 perspectives, 9 strategic themes, and 18 strategies with key objectives. These strategies are cascaded into 92 business strategies and objectives with 92 KPIs.

Designing a Performance Management Strategy to Retain Employees in an IT Consulting Startup

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In today’s competitive business environment, attracting and retaining top talent is a significant challenge. Developing an excellent employer branding strategy that aligns with an effective performance management strategy is critical to achieving these objectives. Regular performance appraisal is one measure that can enhance employee engagement by providing clarity about roles and responsibilities. Indonesia is expected to face a talent shortage of about nine million skilled and semi-skilled professionals between 2018 and 2030. Retaining top employees is crucial, and factors such as compensation, development opportunities, collaboration, workload, and feedback are critical to employee performance. A proposed performance management strategy for the IT Consulting Startup includes developing performance objectives, differentiated compensation, and regular feedback. By implementing these recommendations, the startup can retain top talent, create a positive workplace culture, and drive organizational success.

Proposed Design of Performance Management Framework for 3PL (Third-Party Logistics) Aggregator

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This white paper proposes a performance management framework for third-party logistics aggregators (3PLs) that connect e-commerce companies and logistics providers. The logistics industry has grown rapidly in recent years, and with the emergence of aggregators, performance records must be updated. Using a case study of an Indonesian startup PT P, we create a framework using qualitative and quantitative interviews with the company’s C-levels. The framework is based on KPBMS, a simple and knowledge-based performance management system available in Indonesia. Traditional financial-based performance management systems have proven limited in their ability to adapt to modern organizational operating systems. A new-generation performance management system is based on the company’s strategy and values, is customer-centric, long-term, and emphasizes continuous improvement. The proposed framework includes strategic objectives, key performance indicators (KPIs), objectives, initiatives and reviews. KPIs are categorized into financial, customer, internal process, and learning and growth perspectives. Goal setting is based on broader goals, and initiatives are defined on the basis of rapid outcomes and long-term projects. The review process includes monthly, quarterly, and annual reviews focused on identifying areas for improvement. The proposed framework will help 3PL aggregators like PT P to set up a performance management system to monitor the performance of logistics providers and provide recommendations to e-commerce companies.

Performance Management in Bangladeshi Schools: Head Teachers’ Perception

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Performance Management is a very important task for the management of an educational institution. However, this concept is not yet widely acknowledged by most of the educational institutions of Bangladesh. This small-scale qualitative study thus focused on performance management in Bangladeshi schools. The main objective of this study was to explore head teachers’ perception about performance management, their roles in performance management and the challenges that they face while managing performance. Six secondary school head teachers were selected through convenient sampling and were interviewed using semi- structured interview guide. The findings revealed that the head teachers’ concept about performance management is not very clear and they mostly measure teachers’ performance on the basis of students’ scores in the examinations. Results also showed that head teachers sometimes fail to provide effective feedback on teachers’ performance which in turn hampers the teachers’ productivity. This study recommends that head teachers themselves need proper training on performance management and there should be a proper guideline on performance management in every educational institution. The researcher believes that this study along with its findings will help improve the overall performance of the schools as well as the individual performance of the teachers and the head teachers.