Designing an Integrated Performance Management System for a Regional Development Bank in Indonesia

Abstract

In recent years, one of the regional development banks in Indonesia called as PT BPD, has experienced uncertain growth in its performance. It already developed its performance management system (PMS) by adopting an approach in which the indicators are applied to the individual level. The currently implemented PMS has several flaws, including a lack of standardization of performance indicators, an unintegrated system, inefficient data entry processes, and a lack of corporate-level implementation. To address these issues we proposed a design of PMS by using an integrated performance management system (IPMS) approach. The research is proposed for the corporate level, which is limited to the stage of design. The performance variables cover the perspective of business outcome, internal process, and resource capability. Each variable will be further analyzed in the linkages and benchmarking process. Finally, this study proposes a new PMS comprised of 12 variables for business outcomes, 8 variables for internal processes, and 8 variables for resource capability. Each variable is decomposed into several indicators (48 indicators) that serve as a corporate measurement instrument. Keywords: integrated performance management system (IPMS), performance indicator, financial services provider, regional development bank