Ghiffari Emir Muchamad
Institut
Teknologi Bandung
Email: ghiffari_emir@sbm-itb.ac.id
Abstract
Indonesia's tourism sector was hit hard by the
COVID-19 pandemic, with a 56% drop in its contribution to the country's GDP
(Gross et al.). However, the sector has significantly recovered, with foreign
tourist arrivals increasing 119.64% in June 2023 compared to the previous year.
In response to this phenomenon, service providers, such as Performance
Management Systems (PMS), must implement effective strategies to maximise their
potential. PT. Marjaya Utama Wisata (Marjaya Trans), a travel agency based in
Bandung, experienced significant growth but experienced fluctuations in revenue
and experienced losses in some years. Designing a comprehensive performance
management system was necessary to deal with these problems. This research proposes a proposed performance
management system using the KBPMS framework. The proposed model was developed
by combining a literature review and a case study approach from previous
studies applied to the same industry. The analysis was conducted using a
qualitative approach and multicriteria decision-making using the Analytic
Hierarchy Process (AHP) approach from the management ranks in the company. This research proposes KBPMS with 19 key performance
indicators (KPIs) derived from vision, mission, strategy, business processes,
and discussions between researchers and the company. From each aspect of the
KBPMS, a priority order is generated from the AHP method to see which
indicators have a high priority according to the company's management. It is
expected that the application of the designed performance management system
model can help the company achieve its goals. The development of this model is
still in a stage that needs to be further developed. Evaluation and improvement
of PMS implementation will be planned on a long-term basis
Keywords: Performance Management System (PMS), Knowledge-Based
Performance Management System, Performance Indicator, Tours and Travel Industry
Introduction
The tourism sector in Indonesia has been
greatly affected by the COVID-19 pandemic. It was recorded that the tourism
sector's contribution to Indonesia's gross domestic income (GDP) fell by 56%,
which only became 2.2% of the total economy (Badan Pusat Statistik, 2023). This situation
has quite an impact on business players in the tourism sector, including tours
and travel agencies. However, with the end of the pandemic and starting to
enter the endemic, the tourism sector began to experience significant growth (Kolahchi et al., 2021). Recorded
according to the Badan Pusat Statistik (BPS) of Indonesia, the tourism sector
in Indonesia began to experience an increase, proven by foreign tourist visits
in June 2023, which increased by 119.64% compared to the previous year, namely
June 2022 and 12.57% cumulative domestic tourism in 2023 compared to 2022 (Badan Pusat Statistik, 2023).
The recovery of the tourism sector has
an impact on many sectors, one of which is tour and travel service providers (Abbas et al., 2021). In responding
to this phenomenon, service providers must prepare the right strategy to
maximize existing potential. One way is to implement targets and a system to
measure achievements, one of which is the Performance Management System (PMS).
In Indonesia, the implementation of PMS has not been on target. The PMS
framework used is still not neatly organized and the indicators used have not
synergized with each other (Purnomo et al., 2023).
PT Marjaya Utama Wisata (Marjaya Trans)
is a tours and travel agency based in Bandung (Indonesia), providing vehicles
for tourism purposes, from small cars with a capacity of six people to large
buses with 59 people. Marjaya Trans experienced significant growth from its
establishment, but during the COVID-19 pandemic, Marjaya Trans stopped
operating due to government policies that limited people's mobility. In extreme
situations such as a pandemic, companies need the right strategy to minimize
the losses received. In addition, recovery from the tourism sector needs to be
responded to optimally. Therefore, PMS is needed at Marjaya Trans (Maisyaroh, 2016).
To implement a good PMS, an appropriate
framework aligned with the company's goals is needed. Many frameworks,
including the Balanced Scorecard (Kaplan & Norton, 2000), Performance
Prism (Neely et al., 2002), and KBPMS (Wibisono & Khan, 2010), can be used.
Each framework focuses on variables, such as BSC, which focuses on financials
and Performance Prism, which focuses on stakeholder satisfaction. To find out
which framework is right to be applied to Marjaya Trans, it is necessary to
conduct an internal analysis of the company's conditions and objectives (Diprose et al., 2022).
The research objectives are as follows: 1. To find out
problem that occur on PT. Marjaya Utama Wisata. 2. Design an effective performance
management system to the specific challenge faced by PT. Marjaya Utama Wisata. 3. To find out
suitable indicator for the proposed performance management system.
Method
Researchers used content analysis to
extract information from the interview results in the data analysis.
Description analysis was used on the company's vision, mission, and strategy to
align the PMS framework and the indicators used. After extracting the interview
results, the author analysed them using the Current Reality Tree (CRT). CRT is
used to help the author find the root cause of the company's problems. After
that, researchers used the Analytical Hierarchy Process (AHP) to determine the
weighting of each indicator to achieve the company's goals.
Analytical Hierarcy Process (AHP)
The Analytic Hierarchy Process (AHP) is
a theory of measurement through pairwise comparisons and relies on the
judgements of experts to derive priority scales (Saaty, 2002). This
scale is for measuring intangibles in relative terms. In this study, AHP was
used to define the weights of the KPIs. The calculation uses the AHP online
calculator.
In making comparisons, a scale is needed
to determine how important one element is compared to another. The table shows
the scale used to make comparisons between elements.
Table 1 Fundamental Scale of
Absolute Number (Saaty,
2002)
|
Intensity of Importance |
Definition |
Explanation |
|
1 |
Equal
importance |
Two activities
contribute equally to the objective |
|
2 |
Weak or slight |
|
|
3 |
Moderate
importance |
Experience and
judgement slightly favour one activity over another |
|
4 |
Moderate plus |
|
|
5 |
Strong
importance |
Experience and
judgement strongly favour one activity over another |
|
6 |
Strong plus |
|
|
7 |
Very strong or
demostrated importance |
An activity is
favoured very strongly over another; its
dominance demonstrated in practice |
|
8 |
Very, very
strong |
|
|
9 |
Extreme
importance |
The evidence
favouring one activity over another is of the highest possible order of
affirmation |
The strength of the AHP method lies in
its capacity to mimic human judgment about the significant variance between
various factors. AHP also evaluates the consistency of the comparisons made
using each matrix's consistency ratio (CR). CR value smaller than 0.1 is
required to get a good result.
Results and Discussion
In the analytical interview, the author divides the
interview results into several aspects/categories based on company culture,
current problems, and 3 PMS perspectives (Business Result, Internal Process,
and Resources Capability). The interview analysis is contained in the following
table:
Table 2 Interview Summary Result
|
No |
Group/Category |
Outcomes |
|
1 |
Company Background |
1.
Professional,
but as a “family”. 2.
In
the post-covid period the number of projects has increased 3.
Fully
support on employees’ development |
|
2 |
Company Culture |
Company's culture
was formed since the company established and developed over time. The company
culture prioritizes professionalism and customer-centric. |
|
3 |
Problems Faced |
1.
Lack
of data 2.
Lack
of PMS 3.
No
record keeping on KPI 4.
On
the covid era, the company not operating at all 5.
High
maintenance time |
|
4 |
PMS |
1.
Lack
of PMS, No PIC measuring performance in all division 2.
Mostly
measured by financial indicator 3.
Need
a PMS implementation to covering all aspects |
Company Backgorund
Researcher want to learn more about the company to get a
clear picture of how the company runs its business. Based on the interview
results, the company highly upholds professionalism.
Company Culture
Researcher want to learn more about the company to get a
clear picture of its culture. The company culture was formed at the same time
as the company was established. The company highly values professionalism and
customer-centric
Problem in The Company
Researchers want to learn about the problem that occured
in company. Example of the problem experiences by the company are described
below:
“Pada umumnya permasalahan yang dialami ialah kurangnya
pencatatan data operasional yang detail dan KPI tidak diukur secara pasti.
Perusahaan masih fokus kepada hal-hal yang sangat penting seperti bagaimana
operasional berjalan dengan baik, pegawai dapat memberikan service yang terbaik
kepada pelanggan.” (Personal Interview, 02/11/2023)
PMS Implementation
Researchers want to know about the PMS implementation in
company, as described below:
“PMS belum diterapkan karena perusahaan terlalu fokus
kepada keberjalanan operasional perusahaan sehingga hal-hal seperi PMS
terabaikan walaupun hal tersebut dibutuhkan. Jika PMS diterapkan, dibutuhkan
divisi khusus yang bertanggung jawab dan menjalankan tugas, mulai dari
pencatatan hingga penerapan. Divisi tersebut tidak boleh ikut serta dalam
kegiatan operasional perusahaan secara langsung.” (Personal Interview,
02/11/2023)
One of the tools used to find the root of the problem in
this research is CRT. CRT is used to see the current situation or process in
the company (da Costa et al., 2019). The main problem, as mentioned above, is the lack of
detailed operational data recording and KPIs that are not measured with actual
number. In other words, there is no PMS implementation at Marjaya Trans.
_files/image002.gif)
Based on the diagram above, it can be seen that the main
root problem affecting the performance of Marjaya Trans is the absence of PMS.
This has an impact on inhibiting the company's progress. The absence of PMS
also causes the company's performance not to be measured optimally. It causes
many things that are not optimal in the company, from the use of assets to
double jobs experienced by certain divisions. In other words, the absence of
PMS causes the company to be unable to review its performance and achievements
and see areas for improvement.
Designing a Performance Management System
In designing a PMS using the framework proposed by
Wibisono (2006), there are four stages in the process. These stages are as
follows:
Partnership
All parties in the company must understand and fully
support the implementation of PMS. Data and records must be recorded by the
responsible party (PIC) in every aspect. The partnership is the first thing in
designing PMS at Marjaya Trans.
Empowerment
Every employee needs to participate in the implementation
of PMS. Each manager also needs to support and control the work of each team
and be a good role model for their subordinates to produce positive habits.
Integrated Performance Improvement
Any performance improvement should be based on the needs
of each division and the company itself. The goal is to improve the company's
overall performance by combining various elements and tactics.
Independent
To implement PMS effectively, it is necessary to form a
particular team or division to design and monitor the implemented PMS. In
addition, several aspects need to be considered as follows:
1.
Keep
it stupid simple (KISS)
The performance management system design should be as
simple as possible to make performance evaluation easy to understand and
implement. It can also make the company focus on the goals it wants to achieve.
2.
Long
Term Oriented
The dynamic industry has made Marjaya Trans face various
challenges. Therefore, the company needs to focus on long-term goals and
implement an excellent long-term strategy that can impact the company's growth.
3.
Based
On Time
Measured performance needs to be based on a specific unit
of time. This is so that the company can conduct an efficient evaluation.
4.
Focus
on Continous Improvement
The performance management system should consider
continuous improvement and support positive growth for the company.
5.
Quantitative
Approach
Indicators must be designed using a quantitative approach
to make valid performance measurements. So that company performance can be
measured using numbers, the measurement results are valid, and decision-making
can be based on solid data.
External Analysis: PESTLE Analysis
1.
Political
Government rules and regulations can impact a company's
business operations, especially visa policies, safety standards, and licensing.
Political stability also plays a significant role in attracting foreign
tourists. Government investments in infrastructure, such as airports, roads,
and public transportation, can significantly influence the industry's
accessibility and growth.
2.
Economic
Indonesia's economic growth can positively impact the
tourism industry by increasing revenue and leading to more domestic and
international travel. In addition, fluctuations in foreign exchange rates can
affect the affordability of travel for international tourists and the local
industry's competitiveness.
3.
Sociological
Indonesia's cultural diversity is an essential point in
attracting tourists. The different cultures of each region lead to different
services and experiences demanded by the industry.
4.
Technological
The era of digitalization facilitates interactions
between customers and business actors. Applying technology, such as online
booking, can increase customer engagement in the tourism industry. In addition,
technological improvements in transportation are also quite impactful on the
tourism industry.
5.
Environment
The tourism industry is susceptible to climate change,
and this has a direct impact on business continuity. In addition, the incessant
green practices in every line of business can affect the sustainability of the
tourism industry.
6.
Legal
Labor laws and employment regulations can directly impact
the tourism industry, ranging from employee salaries to working conditions. In
addition, there are regulations related to taxes and import tariffs that can
directly impact the services provided to pricing strategies.
External Analysis: Porter’s Five
Forces
External business analysis needs to be carried out to
find out and evaluate competition in related industries, especially the tours
and travel industry that Marjaya Trans is involved in. In addition, external
analysis is also carried out to create the right strategy to answer the dynamic
competitive situation of the industry.
1.
Threat
of New Entrants
The tours and travel industry is very easy to enter.
There are no high barriers to entering the industry, but building a brand
image, building partnerships with hotels and transport providers, and complying
with government regulations is not accessible.
Also, the barrier for new entrants is brand loyalty.
Newcomers will be faced with brands that already have big names and loyal
customers. Brands with big names also have more advantages in building
partnerships with hotels and airlines, making it a high barrier for newcomers.
2.
Bargaining
Power of Suppliers
Suppliers such as airlines and hotels have considerable
bargaining power, especially on specific routes. On the other hand, the
availability of many alternatives to hotels and airlines reduces suppliers'
bargaining power of suppliers so that the replacement of partnerships between
hotels and airlines with tours and travel businesses is commonplace and
significantly impacts suppliers' bargaining power.
3.
Bargaining
Power of Buyers
The size of the available market is one factor that needs
to be considered for the tours and travel business. In addition, the number of
consumers is a bargaining power for buyers. Price sensitivity is also a factor
that can increase the bargaining power of buyers.
4.
Threat
of Substitute Services
This industry has a moderate threat from substitute
services such as self-planned trips, online booking platforms, and package
deals from competitors.
5.
Competitive
Rivalry
The number of tours and travel service providers makes
competition in this industry relatively high. Various types of services each
competitor offers also add intensity to the competition. Not to forget, the
rapid growth experienced by the tours and travel industry has further increased
the intensity of competition.
Summary of external analysis conducted by using Porter’s
Five Forces are shown below at Table 3.
Table 3 Five Forces Assesment
|
Aspect |
Scale |
||||||
|
|
1 |
2 |
3 |
4 |
5 |
|
|
|
Threat of New
Entrants |
|||||||
|
Bariers to entry |
Low |
|
|
|
|
|
High |
|
Brand loyalty |
Low |
|
|
|
|
|
High |
|
Economics of scale |
Low |
|
|
|
|
|
High |
|
Bargaining Power of
Suppliers |
|||||||
|
Number of
partnertship |
Small |
|
|
|
|
|
Big |
|
Availability of
alternative |
Small |
|
|
|
|
|
Big |
|
Switching costs |
Low |
|
|
|
|
|
High |
|
Bargaining Power of
Buyers |
|||||||
|
Number of buyers |
Small |
|
|
|
|
|
Big |
|
Price sensitivity |
Low |
|
|
|
|
|
High |
|
Threat of
Substitute Services |
|||||||
|
Alternative travel
options |
Small |
|
|
|
|
|
Big |
|
Customer
preferences |
Low |
|
|
|
|
|
High |
|
Technology
distruption |
Low |
|
|
|
|
|
High |
|
Intensity of
Competitive Rivalry |
|||||||
|
Number of
competitors |
Small |
|
|
|
|
|
Big |
|
Product
differentiation |
Small |
|
|
|
|
|
Big |
|
Industry growth |
Slow |
|
|
|
|
|
Rapid |
Internal Analysis: SWOT Analysis
1.
Strong
a)
Marjaya
Trans provides high-quality service.
b)
High
level of professionalism from Marjaya Trans employees.
c)
High
level of trust from customers.
2.
Weakness
a)
Slow
asset regeneration: Many vehicle assets are old, so more regular maintenance is
needed.
b)
Idealism
to avoid bank loans and other financial services makes investment in assets
slow.
3.
Opportunity
a)
High
growth of the tourism industry post-COVID-19.
b)
Indonesia's
economic growth.
c)
High
growth of the tourism industry post Covid-19.
4.
Threat
a)
Economic
uncertainty
b)
Competitors
such as online travel agencies.
c)
Changes
in customer behavior.
d)
Pandemics
such as COVID-19 make the tours and travel business model cannot operate.
Internal Analysis: Resources and
Capabilities
|
Resources |
Tangible |
Financial |
Company can
generate internal fundings and does not have huge debt. |
|
Physical |
d)
Office
to meet with customers e)
Garage
to store and maintenance their vehicle assets. f)
Vehicle
for rent. |
||
|
Technological |
All equipment to
support the company's business and website to interact with customers and
potential customers. |
||
|
Organization |
Since the company
was established, they can plan, control, and coordinate the system. |
||
|
Intangible |
Human Resources |
The average
education in the company is a high school graduate, with managerial graduates
from D3 to S1 and top-level management from S1 to S2. |
|
|
Relationship –
alliances |
Partner with
specialized travel agencies and ASITA (Association of The Indonesia Tours and
Travel Agencies) membership. |
||
|
Brand, Image, and
Reputation |
Excellent service
reputation of PT Marjaya Wisata Utama. |
|
Capabilities |
Technical |
Pengalaman project
hampir seluruh Indonesia, terutama Pulau Jawa, dan pernah sampai luar negeri |
|
|
Non Technical |
·
Skill
komunikasi yang baik ·
Profesionalisme
yang tinggi ·
Cepat
tanggap dalam menyelesaikan permasalahan di lapangan |
Internal Analysis: VRIO Analysis
Table 6 VRIO Criteria Analysis
|
Resources |
V |
R |
I |
O |
Competitive
Implication |
|
|
Tangible Resources |
||||||
|
Financial Resources |
Ability to generate
internal fundings, funding source and loan |
Yes |
Yes |
Yes |
Yes |
Sustainable
competitive |
|
Physical Resources |
Ability to get
tools and spareparts |
Yes |
Yes |
No |
Yes |
Temporary
competitive advantage |
|
Technological
Resources |
Using techology to
suppot project |
Yes |
No |
Yes |
Yes |
Temporary
competitive advantage |
|
Organizational
Resources |
Ability to plan,
control, coordinate company system |
Yes |
No |
No |
Yes |
Competitive parity |
|
Intangible
Resources |
||||||
|
Human Resources |
Skill and knowledge |
Yes |
No |
Yes |
Yes |
Temporary
competitive advantage |
|
Relationship –
alliances |
Trust |
Yes |
No |
Yes |
Yes |
Temporary
competitive advantage |
|
Brand, Image, and
Reputation |
Reputation |
Yes |
Yes |
No |
Yes |
Temporary
competitive advantage |
|
Services Quality |
Yes |
Yes |
No |
Yes |
Competitive
advantage |
|
Vision
Vision of PT. Marjaya Utama Wisata are:
a)
To
be a company that always prioritizes the best service for domestic and foreign
tourists.
b)
To
be a tourist transportation company that excels in quality and service for
customer satisfaction and employee welfare.
Analyzing the vision of a company can be done by looking
at the criteria mentioned in Table IV.6. The following is an analysis of the
vision of PT Marjaya Utama Wisata.
|
Criteria |
Yes |
No |
|
A single sentence |
|
|
|
Give inspiration |
|
|
|
Make all employee
comfort working in the organization |
|
|
|
Written correctly |
|
|
|
Not only bluffing |
|
|
|
Focus on certain
aspect |
|
|
|
Can be proven the
achievement |
|
|
|
Developed by CEO or
leader not by the commision or consultant |
|
|
|
Tested the validity
each year |
|
|
|
Realistic give a
current position and source of organization |
|
|
|
Can be changed
depend on environtment business |
|
|
|
Easy to rememberred
by employee without note |
|
|
_files/image004.gif){kind=small}
Based on the criteria in Table IV.6, the vision of PT
Marjaya Utama Wisata could be better. So, it is necessary to make improvements
to the company's vision. To create a company vision, we can generate using the
list in Table IV.7. So that we get a new vision for PT Marjaya Utama Wisata as
follows:
|
Vision Generator |
|||
|
List A: ·
World
Class ·
Leading ·
Premier ·
Benchmark ·
Biggest ·
World’s
best ·
Preferred ·
Number
One |
List B: ·
Producer ·
Manufacturer ·
Provider ·
Distributor ·
Developer ·
Processor ·
Supplier ·
Facilitator |
List C: ·
Leading-edge ·
Innovative ·
Market-driven ·
Value-added ·
Benchmark-level ·
Highest
quality ·
Cost
effective ·
Customer
focused |
|
|
List D: ·
Solutions ·
Products ·
Services ·
Systems ·
Data ·
Materials |
List E: ·
Empowered
employees ·
Highest
quality materials ·
The
best technology ·
High-performance
teams ·
New
paradigms ·
Leading-edge
systems |
|
|
|
List F: ·
Synergistic
fashion ·
Total
quality manner ·
Reengineered
processes ·
Our
core competencies ·
Market-driven |
List G: ·
Meet
the real needs of customers ·
Delight
our customers ·
Exceed
stakeholder expectations ·
Deliver
consistent profits and growth ·
Supplier
of choices |
|
|
By using the vision generator, the new vision of PT
Marjaya Utama Wisata was obtained as follows:
“To be prefferd tourist transportation vechicle provider
with the highest quality services to meet the real needs of customers.”
The interpretation and implications of the vision are
explained in the table below.
Table 9 Good Mission Checklist
|
Criteria |
Yes |
No |
|
It clearly
differentiates with competitor |
|
|
|
Define what
organization do and don’t |
|
|
|
Identify capability
and competence of organization |
|
|
|
Push organization
to make better decision making in the future |
|
|
|
No more than one
paragraph |
|
|
|
Can be easily
understood by employees |
|
|
|
Written in a good
and correct sentences without bluffing |
|
|
|
Focus on current
condition and not mix with the vision |
|
|
|
Review and
rewritten if the environment change |
|
|
|
Specific to
influence individual behavior |
|
|
|
Reflect company
superiority based on the resource and competences |
|
|
|
Realistic and can
be achieved |
|
|
|
Refer to
competitive superiority |
|
|
Based on the table above, the overall mission of PT
Marjaya Utama Wisata already has an excellent mission to achieve the desired
new vision.
1.
Strategy
TOWS analysis will be used to create the right strategy
for Marjaya Trans. By considering the SWOT that Marjaya Trasns has, the
following strategies can be implemented.
Table 10 Strategy Based on SWOT Matrix (TOWS Matrix)
|
|
Strengths ·
Marjaya
Trans provides high-quality service. ·
High
level of professionalism from Marjaya Trans employees. ·
High
level of trust from customers. |
Weakness c)
Slow
asset regeneration: Many vehicle assets are old, so more regular maintenance
is needed. Idealism to avoid
bank loans and other financial services makes investment in assets slow. |
|
Opportunities d)
High
growth of the tourism industry post-COVID-19. e)
Indonesia's
economic growth. f)
High
growth of the tourism industry post Covid-19. |
S-O Strategies g)
Leverage
Marjaya Trans' high-quality service and professionalism to capitalize on the
high growth of the tourism industry post-COVID-19. h)
Utilize
the high level of trust from customers to expand services in line with
Indonesia's economic growth. |
W-O Strategies ·
Overcome
the slow asset regeneration by capitalizing on the opportunities presented by
the high growth of the tourism industry, potentially seeking partnerships or
collaborations for faster asset acquisition. ·
Explore
financing options to overcome idealism in avoiding bank loans and accelerate
investments in assets. |
|
Threats e)
Economic
uncertainty f)
Competitors
such as online travel agencies. g)
Changes
in customer behavior. h)
Pandemics
such as COVID-19 make the tours and travel business model cannot operate. |
S-T Strategies ·
Address
the slow asset regeneration issue by leveraging the high level of
professionalism to attract investors or secure loans for asset renewal. ·
Develop
contingency plans to navigate economic uncertainties and disruptions caused
by pandemics, considering the high level of trust from customers. |
W-T Strategies ·
Mitigate
the impact of economic uncertainties and competitor challenges by leveraging
Marjaya Trans' high-quality service and professionalism to retain customer
trust. ·
Develop
flexible business models that can adapt to changes in customer behavior and
withstand disruptions caused by pandemics. |
Performance Variable
Two types of variables can be applied in identifying
performance variables: quantitative and qualitative. Variables that are simple
and more objective are called quantitative variables. Quantitative variables
are easier to understand and more straightforward. Therefore, these variables
do not cause double meanings. Meanwhile, qualitative variables sometimes have
double meanings and different interpretations for each person. Therefore,
quantitative variables are more often used than qualitative variables. Even so,
company performance always consists of many things that cannot be described
using numbers or quantitative variables. So, to consider all aspects and
variables in this research, qualitative variables are needed (Wibisono, 2012).
From the KBPMS framework, there are three main
perspectives in designing a PMS. Then, from each perspective, we can identify
the needed aspects, as seen in Table IV.11.
|
Perspective |
Aspect |
|
Business Result |
Financial |
|
Non-financial |
|
|
Internal Process |
Innovation |
|
Operation |
|
|
Marketing |
|
|
After sales
services |
|
|
Resource Capability |
Human resources |
|
Technnology
resources |
|
|
Organization
resources |
By adjusting the company's vision, mission, strategy, and
stakeholders’s needs, the following initial variables were selected for the
designed PMS.
Table
12 Performance Variables
|
Perspective |
Aspect |
Performance Variables |
|
Business Result |
Financial |
·
Net Profit Margin ·
Return on Investment ·
Return on Asset ·
Earning After Tax |
|
Non Financial |
·
Customer Satisfaction Index ·
Customer Retention Rate ·
Customer Reccomendation |
|
|
Internal Process |
Innovation |
·
Management Innovation |
|
Operation |
·
Vechicle Utilization Rate ·
Maintenance Downtime |
|
|
Marketing |
·
Social Media Engagement ·
Conversion Rate of Marketing Campaingn |
|
|
After Sales |
·
Customer Support Response Time ·
Customer Feedback Resolution Rate |
|
|
Resources Capability |
Human Resources |
·
Employee Training Hours ·
Employee Satisfaction Index |
|
Technological Resources |
·
Availability of Technology |
|
|
Organizational Resources |
·
Leadership ·
Teamwork and Knowledge Sharing |
Table 13 Weight for Each
Perspectives and Variables
|
Perspective |
Weight |
|
Business Result |
0.5 |
|
Internal Process |
0.3 |
|
Resources Capability |
0.2 |
|
Performance Variables |
Weight |
|
Net Profit Margin |
0,439 |
|
Leadership |
0,309 |
|
Maintenance Downtime |
0,302 |
|
Employee Satisfaction Index |
0,241 |
|
Vehicle Utilization Rate |
0,222 |
|
Teamwork and Knowledge Sharing |
0,221 |
|
Customer Satisfaction Index |
0,195 |
|
Employee Training Hours |
0,194 |
|
Customer Support Response Time |
0,154 |
|
Customer Feedback Resolution Rate |
0,153 |
|
ROI |
0,126 |
|
ROA |
0,115 |
|
Social Media Engagement Metrics |
0,091 |
|
Conversion Rate of Marketing Campaign |
0,06 |
|
Earning after Tax |
0,048 |
|
Customer Retention Rate |
0,046 |
|
Availability of Technology |
0,035 |
|
Customer Reccomendation |
0,03 |
|
Management Innovation |
0,017 |
Based on the table above, in perpective
level, business result have the biggest weight, it
means business result is most important for PT. Marjaya
Utama Wisata. Additionally, for strategic objective
level, Net Profit Margin and
Leadership are the most biggest weight. It means Net Profit Margin and Leadership are the
most important for PT. Marjaya Utama Wisata business process.
Conclusion
Implementation of a Knowledge-Based
Performance Management System (KBPMS) is about bring significant positive
changes within the organizational landscape. Before adopting KBPMS, the
organization faces challenges such as complex processes, a short-term focus,
time-consuming manual procedures, limited emphasis on improvement, and a lack
of data-driven decision-making.
Upon successful implementation of KBPMS,
the organization can expect a transformative shift. Processes will be
simplified and streamlined, fostering efficiency and reducing unnecessary
complexities. The adoption of a long-term orientation will enable strategic
planning aligned with organizational goals, promoting sustainable success.
Automation introduced by KBPMS will lead to time-efficient operations,
enhancing the speed and accuracy of decision-making.
Several aspect that can be highlighted
from this research include the following:
1. Tours
and travel is a highly competitive business that relies on partnerships and
very high service levels.
2. here
needs to be more previous research on performance management systems in the
tours and travel industry because of the variety of business models in the
industry.
3. Company
performance cannot only be measured using financial aspects; it is necessary to
consider other aspects such as customer satisfaction, operations, and
stakeholder satisfaction.
4. The main
problem experienced by the company is that there is no performance measurement
system, and the KPIs that have been implemented need to be systematically
recorded and measured.
There are 19 indicators of KBPMS
designed, with the formation of seven in the business result aspect with net
profit margin as the highest priority, seven in the internal process aspect
with maintenance downtime as the highest priority, and five in the resource
capability aspect with leadership as the highest priority.
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