Kuliah 1:

OVERVIEW

Resource-POOR Countries
South Korea
Taiwan
Singapore
Hongkong
Israel
Denmark

Resource-RICH Countries
Indonesia
Nigeria
Former USSR
Saudi Arabia
Venezuela

1970 GDP per capita

1998 GDP per capita

1,954
2,987
4,438
5695
8102
12,658

12,125
15,012
22,643
20,193
15,152
22,123

1970 GDP per capita

1998 GDP per capita

1,194
1,233
5,569
7,624
10,672

3,070 *
1,232
3,893 (Rusia)
8,225
8,965

Source : A Maddison, The World Economy : A Millenneal Perspective

2

ResourcePOORCountries
SouthKorea
Taiwan
Singapore
Hongkong
Israel
Denmark
ResourceRICHCountries
Indonesia
Nigeria
Russia
SaudiArabia
Venezuella

GDPperCapita
1970
1.954
2.987
4.438
5.695
8.102
12.658

1988
12.125
15.012
22.643
20.193
15.152
22.123

36.151
58.930

1970
1.194
1.233
5.569
7.624
10.672

1988
3.070
1.232
3.893
8.225
8.965

2013
3.475
3.010
14.612
41.692
14.415

2013
25.977
55.182

Source:fordata1970&1988,AMaddison,TheWorldEconomy:AMillenneal Perspective;
andfordata2013,WorldBank.

WHAT DRIVES PERFORMANCE ???

???

PERFORMANCE

IS STRATEGY IMPORTANT ??
Does strategy drive performance?
VISION, MISSION

Formulation
Strategy
Strategy is a unique
way or the roadmap to
living the mission and
achieving the vision
statements

Strategic Plan

PERFORMANCE
Execution
>90%Failure

Role:
Strategy Map &
BSC System !!!

WHY STRATEGY (RJPP) FAILS ??

Formulation

Strategic Plan/ RJPP

VISION,MISSION
&PERFORMANCE

Strategy
Execution
>90%Failure
Corporate Strategist Under Fire (Fortune (1982) :
Kurang dari 10 (sepuluh) persen strategi yang
diformulasikan secara efektif dapat dieksekusi secara
efektif pula. Dengan kata lain, lebih dari 90 (sembilan
puluh) persen strategi gagal dieksekusi.

Why CEOs Fail (Fortune 1999):

Kegagalan para CEO tersebut, yang diperkirakan 70
persen, diakibatkan oleh bad execution bukan karena
bad strategy.
Kaplan dan Norton (2001), dengan tingkat kegagalan
eksekusi strategi yang berkisar 70 (tujuh puluh) sampai
90 (sembilan puluh) persen, maka tidak mengherankan
bila para investor berpandangan bahwa eksekusi
strategi jauh lebih penting dibandingstrateginya
sendiri.

(1) vision barrier

(2) people barrier
(3) management barrier
(4) resource barrier

WHY STRATEGY (RJPP) FAILS ??

vision barrier

people barrier

strategi tidak dipahami oleh para anggota organisasi

yang melaksanakan
hanya 5 % karyawan yang memahami strategi.

tidak adanya keselarasan antara kompetensi human

capital manusia dalam organisasi dengan kompetensi
yang diperlukan oleh strategi.
sistem insentif tidak mampu memberikan dukungan
terhadap implementasi strategi
hanya 25 % manajer yang insentifnya terkait dengan
strategi.

management barrier

kurangnya perhatian manajemen pada isu-isu strategis

para manajer hanya menghabiskan waktu kurang dari 1
(satu) jam per bulan untuk mendiskusikan strategi

resource barrier

sumberdaya organisasi yang dialokasikan melalui

anggaran umumnya tidak terkait dengan strategi
60 % organisasi tidak menghubungkan anggaran dengan
strategi

From Silo Perspective

Finance

Operation

Mktg

TO

HRD

Strategic Perspective

Helicopter View
A View from the Top

TheLanguageofSTRATEGY
STRATEGY-FOCUS
ORGANIZATION (SFO)

THE FOUNDATION OF VALUE CREATION

No Space for Blind Perspective

Cash
A/R
Fixed Assets

ValueCreation

TANGIBLE
ASSETS

STRATEGY

Human
Capital

Information
Capital

Organization
Capital

INTANGIBLE ASSETS

ENABLERS
Readiness & Alignment

Value Drivers
Value

Intangible assets>75%

Tangible assets<25%

Intellectual
Capital
Financial and Physical Capital

Information
Capital

Organization
Capital

Human
Capital

Database
Systems

Leadership
Culture
Teamwork
Alignment

Competency
Strategic Skills

Basic Management
Principle :

If you cannot measure it

You cannot manage it !!!
Kaplan & Norton
Harvard University

1990s
Knowledge-based Assets mulai penting bagi
organisasi untuk bersaing

Human Capital

Information
Capital

Organization
Capital

Tetapi bagaimana pengukuran kinerja?

Masih mengandalkan ukuran-ukuran keuangan
Financial reporting systems provided no foundation for
measuring and managing value created by intangible assets
(Kaplan & Norton)

The Birth of Balanced Scorecard

Pertahankan Ukuran-ukuran Keuangan
Tambahkan ukuran-ukuran Non-Keuangan yang menjadi
pemicu (driver) kinerja keuangan yad

Human Capital

Information
Capital

Organization
Capital

Learning &
Growth

Internal
Process

Customer

Financial

Good Strategy = Good Orientation + Good Animation

A
N
I
M
A
T
I
I
O
N

High
Good Strategy

Low

Low

High

ORIENTATION

Good Orientation vs Good Animation

Financial

ANIMATION
(STRATEGY MAP)

Revenue

Customer
ORIENTATION
(STRATEGY
FOCUS)

On-time
Delivery

Internal/Business Process

Process
Quality

Process
Cycle Time

Learning and Growth

Employee
Skills

Strategy Map
Process : Operation Management
Theme : Gr. Operating Efficiency
Profit
and RONA

Grow
Revenue

LG

How success in
achieving the
strategy will be
measured and
tracked

Attract and
Retain More
Customers

On-time
Service

Cost
Reduction

Statement of
what strategy
must achieve
and whats
critical to
its success

Lowest
Prices

Fast
Ground
Turnaround

Strategic job
Ramp Agent
Strategic Systems
Crew Schedulling
Ground
crew alignment

Objectives
Fast ground
turnaround

The level of
performance
or rate of
improvement
needed

Measurement
On-ground time
On-time
departure

Target
30 minutes
90%

Key Performance
Indicator (KPI)

Key action
programs
required to
achieve
objectives

Initiative
Cycle Time
Optimization

Strategy Maps?
Strategy is a hypothesis
The essence of implementing strategy is to have
hypotheses clearly understood in the organization, to
align resources with the hypotheses, to test the
hypotheses continuously and to adapt as required in
real time.
We refer these hypotheses as strategy maps
Kaplan & Norton

Roles :
1.

OSM (Office of Strategy Management)

Scorecard Management
Design and report on the BSC measures

2.

Organization Alignment
Ensure all business and support units are aligned with the strategy

3.

Strategy Reviews
Shape the agenda for management strategy review and learning meetings

4.

Strategic Planning
Help the CEO and executive team to formulate and adapt the strategy

5.

Strategy Communication
Communicate and educate employees about the strategy

6.

Initiative Management
Identify and oversee management of strategic initiatives

7.

Planning/ Budgeting
Link financial, human resources, information technology, and marketing to strategy

8.

Workforce Alignment
Ensure all employees goals, incentives and development plans link to strategy

9.

Best Practice Sharing

Facilitate a process to identify and share best practices

Sources of
Performance Management

Principles of
Strategy Focused Organisation (SFO)

RECENT DEVELOPMENT

Balanced Scorecard System Supports and Improves

Malcolm Baldrige Implementation

Balanced
Scorecard
System
-Corporate, SBU Level
-Divisional Level
-Individual Level

Integrated
Management
System

Total Score : 1,000

BALANCED SCORECARD IS
NOT A METRIC PROJECT,

NOT AN IT PROJECT, BUT A

CHANGE PROJECT

(Kaplan and Norton)