MANAGEMENT SYSTEM USING KNOWLEDGE BASED PERFORMANCE MANAGEMENT SYSTEM (KBPMS) FOR

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International Journal of Business and Economy eISSN: 2682-8359 | Vol. 4, No. 3, 384-398, 2022 http://myjms.mohe.gov.my/index.php/ijbec

International Journal of Business and Economy (IJBEC) eISSN: 2682-8359 | Vol. 4 No. 3 [September 2022]

Journal website: http://myjms.mohe.gov.my/index.php/ijbec

PROPOSED CORPORATE PERFORMANCE

MANAGEMENT SYSTEM USING KNOWLEDGE BASED PERFORMANCE MANAGEMENT SYSTEM (KBPMS) FOR

IKT

Ignatius Adrian Putra Hariawan¹ and Dermawan Wibisono^2*

1 2 School of Business and Management, Bandung Institute of Technology, Bandung, INDONESIA

*Corresponding author: dwibisono@sbm-itb.ac.id

Article Information:

Article history:

Received date : 18 August 2022 Revised date : 30 August 2022 Accepted date : 1 September 2022 Published date : 26 September 2022

To cite this document:

Hariawan, I. A. P., & Wibisono, D.

(2022).PROPOSED CORPORATE PERFORMANCE MANAGEMENT SYSTEM USING KNOWLEDGE BASED PERFORMANCE

MANAGEMENT SYSTEM (KBPMS) FOR IKT. International Journal of Business and Economy, 4(3), 384-398.

Abstract: According to ASEAN automotive federation 2021 data, Indonesia managed to increase the total car sales within the Indonesian market by 66.8% from the year 2020. This condition shows a growing need of car terminals within the Indonesian market to accommodate the said demand. PT Indonesia Kendaran Terminal (IKT) is a company that provides vehicle terminal services in the Indonesian market. As a step towards IKT vision - To be World Class Car Terminal Ecosystem, the researcher finds that it is necessary to develop a strategic change initiative based on IKT corporate roadmap that serves as IKT annual strategic theme to facilitate the leaders to determine the focus of annual development program that can accommodates the changing landscape of the industry. The researcher will use the Knowledge Based Performance Management System (KBPMS) as the chosen Performance Management System (PMS). KBPMS framework will be used to evaluate the vision, mission, and strategy;

internal and external environment; and the company performance. The primary and secondary data will be collected through discussions and observations with IKT management team and IKT 2021 annual report. Based on the analysis performed towards IKT, the researcher finds that in 2021, IKT shows a stable performance with a positive growth when compared to their 2020 performance data. Based on that findings, in this research the researcher develops a strategic change initiative to aid IKT in maintaining their stable performance and development through effective use of their corporate roadmap as an annual strategic theme with the use of McKinsey 7s framework and Kotter 8 Step

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1. Introduction

PT Indonesia Kendaraan Terminal TBK / IKT was established in 2012 as a company that provides vehicle terminal services operating at Tanjung Priok Port, Jakarta, and a number of other RoRo ports / Terminals in Indonesia. IKT has a corporate roadmap that spans over 5 operational years, starting from 2020 until 2024. This corporate roadmap is implemented as an annual strategic theme to facilitate IKT leaders to determine the annual focus of development and facilitate its evaluation in order to achieve IKT vision To Become a World Class Car Terminal Ecosystem. IKT corporate roadmap covers the development plan of 5 different sectors that serves as the foundation for IKT development plan. Those 5 sectors are Business Stabilization, Synergy and Improvement, Growth Through Integration, Value Chain Expansion and Value Chain Integration. During the two year run of IKT corporate roadmap annual strategic theme, IKT manages to develop directorates based on their annual strategic theme in its corporate level and corresponding department in order to achieve the annual strategic theme.

Based on IKT corporate roadmap and IKT Annual Main Strategies, the aim of IKT corporate roadmap is to aid IKT in facilitating the leaders to determine the focus of development and facilitate its evaluation in order to achieve their vision “To Become a World Class Car Terminal Ecosystem”. This strategy serves as a good building ground for IKT annual development plan since it defines a clear annual goal for the company, but on the other hand, in the ever changing market within Indonesia's automotive industry, a fixed set of annual goals can backfire since it leaves the company to be stiff and resistant to change. This research aims to generate a corporate strategic change initiative plan for IKT using the Knowledge Based Performance Management System (KBPMS) (Wibisono, 2012) as a business solution framework. KBPMS was chosen because the framework provides a thorough analysis of the company's internal and external ecosystem.

2. Literature Review

Knowledge Based Performance Management System (KBMPS)

Knowledge Based Performance Management System (KBMPS) offers many advantages that can be utilized by researchers to create a Performance Management System (PMS). These advantages come in the form of a simpler, much more complete, and easy approach to the framework. KBMPS uses 3 perspectives that consists of organizational output, internal process, and resource capability with 9 sub perspectives which includes financial and non-financial in organizational output, innovation, operation process, marketing and after sales service in internal process, human resource, technology resource, and organization resource in resource capability. The conceptual framework of KBMPS can be seen in the following figure.

Change Model. The outcome of this research is to propose a PMS in the form of a strategic change initiative in order to help IKT to achieve their vision effectively.

Keywords: Car Terminal; Knowledge Based Performance Management System; Strategic Change Initiative; McKinsey 7s framework; Kotter 8 Step Change Model.

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Figure 2.1: Knowledge Based Performance Management System Framework

According to the conceptual framework of KBMPS (Wibisono, 2012) as mentioned in figure 2.1, there are 4 steps of formulation in the KBMPS. Those steps are:

● Stage 0: Foundation

Stage 0 of KBMPS is the foundation stage where the understanding guideline principle of the framework is stated. There are four basic principles and five rules in the design of a performance management system that must be considered. To distinguish the rules and principles, we must keep in mind that principles are generally defined as a guideline for thinking and acting, while rules are a benchmark or provision made to regulate one’s form of decision. In this case, the principle is a foundation for the changes, development, and the implementation of the company’s new strategies. While the rules are the limitation for companies to make changes, develop or implement strategies. The four basic principles in stage 0 of KBMPS consists of Partnership Between Stakeholders;

Employee Empowerment; Integrated Performance Management and Independent Team.

The five basic rules in stage 0 of KBMPS consists of KISS (Keep It Stupid Simple); Long term orientation; Time based; Focus on continuous improvement and Quantitative approach

● Stage 1: Basic Information

This step is external environmental analysis. Everything outside the company’s boundaries that has direct and indirect impacts on the organization's activities is called the company’s external environment. The company’s external situation is analyzed with many applicable tools, such as the PESTEL analysis (Political, Economic, Social, Technological, Legal, and Environment) and Porter's Five Force Analysis.

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● Stage 2: Design

An evaluation of the company’s strategy is needed in this step specially to re-evaluating the company’s vision and mission and determine performance indicators and linking performance indicators. Here, the vision and mission statements are analyzed, then proposed based on the company goals.

● Stage 3: Implementation

In this stage, we develop the benchmarks and recommendations for implementing a performance management framework for the company.

● Stage 4: Evaluation

In the final stage of KBPMS, the evaluation plan will be created in order to keep the performance management system updated to the current condition of the company. Since the research focuses on creating a proposed performance management, this stage will not be carried out.

2.1. Problem Statement

According to IKT 2021 annual report, IKT has a vision “To be World Class Car Terminal Ecosystem”. Based on IKT 2021 annual report, IKT corporate roadmap consists of a 5 year development plan that guides the focus of IKT into 5 different sectors that serves as the foundation for IKT development plan. Those 5 sectors are 2020: Business Stabilization, 2021:

Synergy and Improvement, 2022: Growth Through Integration, 2023: Value Chain Expansion, and 2024: Value Chain Integration. Based on the said corporate roadmap, the researcher felt that it is necessary to develop a strategic change initiative in order to further increase the efficiency of IKT's existing directorate in order to accommodate the ever changing market within Indonesia's automotive industry. This research aims to generate a corporate strategic change initiative plan for IKT using KBPMS (Wibisono, 2012) with expectation that IKT will be able to effectively achieve their vision to “To be World Class Car Terminal Ecosystem''.

3. Method

To reach the purpose of this research, the researcher uses a conceptual framework to assist the researchers throughout the process of the research starting from the problem identification until the formulation of implementation plan. The conceptual framework that the researchers use can be seen in the following figure.

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Figure 3.1: Conceptual Framework

4. Results and Discussion

Based on the analysis performed by the researcher towards IKT, the researcher managed to find several findings. The findings that the researcher found can be seen in the following paragraph:

4.1 External and Internal Analysis

Based on the researcher’s analysis towards IKT external condition in the Indonesian market and the car terminal industry, the researcher managed to find several findings. The first finding is in terms of IKT external condition in the Indonesian market. Based on the researcher's analysis using the PESTEL framework with the data provided by IKT 2021 annual report in the Indonesian market, the researcher manages to find that IKT manages to utilize the condition of the given market. This conclusion is reached after analyzing 6 different aspects of IKT. In the political perspective analysis, the researcher finds that in 2021, IKT manages to utilize the international trade partnership between Indonesia and other countries to boost their revenue.

This is also in line with the Legal perspective analysis where IKT manages to utilize the newly implemented policy by the government that waive taxes regarding new car purchases. In the economic perspective analysis, the researcher finds that IKT has grown in line with the economic growth of Indonesia, utilizing the most out of the international trade and legal policies in the field of automotive. Based on the analysis, the researcher also finds that in social perspective analysis, the general indonesia market is experiencing a rise in consuming power as an effect of the economy recovery policy implemented by the government, this indirectly

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aids IKT in growing their revenue and services. In the next finding, the researcher finds that in the technological aspect analysis, IKT manages to develop their supporting services in the field of Information Technology (IT) as a part of developing IKT services in the sector of Digital Transformation. Lastly, the researcher also finds in the environment aspect analysis that IKT complies to the existing environmental guidelines implemented by the government. Based on the researcher's analysis using the Porter’s 5 Forces Analysis framework with the data provided by IKT 2021 annual report in the Indonesian car terminal industry, the researcher finds that IKT has a strong standing within the industry. This can be seen due to the analysis where the researcher concludes that the threat of new entrants within the car terminal industry is low due to the high capital needed to enter the business, followed by the low power that the supplier and buyer have due to the limited option. The researcher also finds that the threat of substitute products is low due to the nature of the maritime logistics industry. Besides that, the researcher also concludes that the rivalry between competitors is high due to the limited number of companies that operate within the same industry with such a high market demand. Based on the internal analysis towards IKT by utilizing the VRIO framework, the researcher manages to map out the critical component within IKT that can be the basis of the improvement for IKT.

Based on the analysis, the development point for IKT should be focused on aspects of operation process resources, innovation resource, and organizational resource.

4.2 Vision, Mission, and Strategy Analysis

Based on the researcher's analysis towards IKT vision, mission, and strategy as stated in their 2021 annual report, the researcher managed to find 2 findings. The first finding is in terms of IKT vision and mission. Based on the researcher analysis towards IKT vision and mission using vision and mission standard criteria as stated by Wibisono (2012), the researcher manages to reach a conclusion that the vision and mission of IKT is good because it fulfills the vision and mission criteria as stated by Wibisono (2012) and it also fulfills the function of a vision and mission within a company. The second finding is in terms of IKT strategy. According to the researcher analysis using The Strategy Diamond Framework towards IKT, the researcher can conclude that IKT has a good strategy when it comes to running the business when analyzed using The Strategy Diamond Framework 5 aspects. Those aspects are Economic Logic, Differentiation, Vehicles, Sequencing, and Arenas.

4.3 Performance Management System (PMS) Design Analysis

Based on the Performance Management System (PMS) Design Analysis towards IKT by utilizing the 9 aspects analysis of Knowledge Based Performance Management System (KBPMS) by Dermawan, the researcher manages to elaborate the performance of IKT. This analysis will further be used as the basis of improvement of IKT in the following analysis mechanism.

Organizational Output

Based on the researcher's analysis regarding IKT in terms of IKT organizational output, the researcher manages to find several findings based on IKT historical data from 2019 until 2020.

As seen on Figure 4.3.1: IKT Organizational Output Perspective Analysis, the researcher generates a performance standard that has been separated into 5 sets of standards. Based on that set of standards, the researcher manages to develop the following figure.

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Figure 4.3.1: IKT Organizational Output Perspective

Based on the figure above, we can see that IKT reaches its organizational output standard in 2021 with a few exceptions. In terms of operating income and gross profit, IKT manages to reach its annual goals, while in terms of cost revenue, in 2021 IKT experiences a major spike in its percentage due to the amount needed to operate its business in the pandemic situation and to support their upcoming partnership. In terms of total assets and current ratio, in 2021 IKT didn’t make it to their annual standards. On the other hand, IKT reaches its target in terms of equity and return on total assets. In terms of IKT non-financial aspects, IKT experienced growth across its loading / unloading segment in car, packages, and motorcycle. Even though those 3 sectors experienced growth, IKT experienced a decline in its heavy vehicles segment.

Internal Process

Based on the researcher's analysis regarding IKT in terms of IKT internal process, the researcher manages to find several findings based on IKT historical data from 2019 until 2020.

Those findings are:

● In terms of internal process perspective in innovation aspects, the researcher uses 2 different measurement goals, namely in new service improvement innovation and % of deviation of the implementation and innovation plan. Based on those measurements’ goals and IKT 2021 annual report, the researcher finds that IKT does not efficiently measure both of the said aspects.

● In terms of internal process perspective in marketing aspects, the researcher uses 3 different measurement goals, namely in new cooperation with external partners, number of agreement extension, and utilization of assets. Based on those said measurement goals and IKT 2021 annual report, the researcher finds that IKT manages to define the goals of

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the said department as a part of the department directorate. On the other hand, the researcher still finds that IKT does not have a numerical goal on those aspects.

● In terms of internal process perspective in after sales service, the researcher finds that IKT employs the use of customer satisfaction surveys to determine the satisfaction level of their customers. Based on said findings, the researcher concludes that IKT has sufficient measurement goals for IKT after sales service aspects.

● In terms of internal process perspective in the operation process, the researcher uses 4 measurement goals namely in IKT import and export segment realization and domestic trade loading and unloading segment realization. Based on the data from 2019 to 2020 that has been provided by IKT in their 2021 annual report, the researcher manages to see the changes that occur annually in terms of unit / packages handled. Based on the measurement goals analysis, the researcher finds that the annual target needed to stay positive value due to the annual fluctuation. Based on that target, the researcher finds that in 2021, IKT manages to reach the said target.

Resource Capability

Based on the researcher's analysis regarding IKT in terms of IKT resource capability, the researcher manages to find several findings based on IKT historical data as stated in IKT 2021 annual report. Those findings are:

● In terms of resource capability perspective in the human resource variable, the researcher finds that IKT still measures their human resource development practice based on the training that was held.

● In terms of resource capability perspective in the technological resource variable, the researcher finds that IKT has measurable plans in terms of developing IKT supporting services in the field of Information and Technology based on their goals, digital transformation.

● In terms of resource capability perspective in the organization resource variable, the researcher finds that IKT has good measurements in terms of good corporate governance as stated in their good corporate governance score. On the other hand, IKT still lacks in measurements of leadership competencies and teamwork and knowledge sharing.

4.4. Strategic Initiative Plan Building

As stated in Conceptual Framework, the researcher will analyze the findings as stated above using the 4W+1H framework in order to generate the proposed corporate strategic change initiatives for IKT in order to aid IKT to achieve their 2024 vision effectively using the development plan as stated in IKT corporate roadmap. The elaboration of the 4W+1H analysis can be seen in the following paragraph.

Why did the change happen?

Based on the information provided, the researcher sees that the changes that happen within IKT happen because of 2 factors. The first reason is in the form of internal factors that are implemented in order to improve IKT performance in order to achieve their vision to To be World Class Car Terminal Ecosystem, and also to achieve their mission to Develop Integrated Car Terminal Network in Indonesia to Reduce Logistic Cost & Energize Trade. The second reason is in the form of external factors that are implemented in order to accommodate changes that occur within the Indonesian automotive industry and the corresponding car terminal

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industry. Based on the information as stated above, the researcher can conclude that the changes that occur within IKT are done in order to improve IKT based on their vision and mission and also to accommodate changes within the market to stay competitive.

When did the change happen?

Based on the information provided above, the researcher sees that IKT corporate roadmap is designed to be implemented annually as an annual corporate goal as a step of fulfillment towards IKT vision. Based on the information above, we can conclude that the changes occur annually in the form of corporate roadmap goal implementation for IKT.

What are the changes?

The what analysis in the 4W+1H framework will be done using McKinsey 7s model. This model is implemented in order to analyze the changes that occurs within IKT in order to allow IKT to achieve their corporate roadmap as a way to achieve their 2024 vision. The McKinsey 7s model analysis can be seen in the following paragraph.

● Strategy

Based on the information provided by IKT in their 2021 annual report, the researcher can identify several strategies that have been developed and implemented by IKT in order to develop their business and remain competitive in the car terminal industry in the Indonesian market. Based on that information, the researcher can identify the existing corporate strategy of IKT in the form of IKT corporate roadmap. Based on the information above regarding IKT corporate roadmap, the researcher sees that IKT has developed an annual plan of development with following annual objectives in order to achieve the planned goal and ultimately IKT 2024 vision.

● Structure

Based on the information provided by IKT, the researcher sees that IKT structure conforms to the corporate structure of a company. Based on that structure, the researcher managed to identify that IKT has a clear hierarchical structure that governs the flow of information and command within IKT.

● Systems

Based on the information provided by IKT, IKT utilizes strategic formulations and strategic initiatives that are developed by the board of directors and top management of IKT. These strategic formulations and strategic initiatives will then be used as the basis of development of task directions to each Directorate to carry out work programs that have been defined in the Strategic Management Work Plan.

● Shared Values

Based on the information provided by IKT, in order to define the clear vision of the company towards its employees, IKT employs the use of corporate vision. The corporate vision of IKT is “To be World Class Car Terminal Ecosystem”. Besides using IKT corporate vision, as a State-owned Corporation under the ministry of state owned enterprises, IKT is subjected to follow the AKHLAK company work culture value that has been implemented by the ministry of SOEs. The AKHLAK company work culture value stands as an acronym of Amanah / trust, Kompeten / Competent, Harmonis / Harmonious, Loyal, Adaptif / Adaptive and Kolaboratif / Collaborative.

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● Skills

Based on the information stated by IKT, IKT has implemented appropriate and effective Human Capital management strategies in terms of meeting the needs of the employees and investing in employee competency development programs in order to ensure a fair and competitive working environment. IKT achieves this by developing employees competency development and training activities that will be done regularly to ensure that the goal is achieved. The learning methods will be performed virtually, this will be done with few exceptions such as certain training that requires face-to-face contact to see real practice in the Terminal.

● Style

Based on the information stated by IKT and the structure analysis of IKT above, the management style in IKT utilizes the strategy formulation process and the determination of the Company’s performance targets and goals using the top-down management approach.

In this type of approach, the board of directors and top management of IKT have the authority to decide as well to provide task directions to each Directorate to carry out work programs that have been defined in the Strategic Management Work Plan. In order to ensure that all strategic formulations and strategic initiatives that have been determined have been met properly and correctly, the board of directors supervises, reviews, and directly oversees the progress of target achievements. On top of that, in order to accommodate changes and improve the existing goals and process, the board of directors and top management of IKT performs regular evaluations of the actualization of work programs contained in the Strategic Management Work Plan.

● Staff

Based on the information stated by IKT, IKT has 396 active workers that are full time employees, contract employees, and outsource employees. As mentioned above in shared value, IKT employees' motivation in terms of corporate performance adhere to the standard of IKT vision and mission supported by the AKHLAK work culture value. In order to encourage IKT employees' performance improvement, IKT also implements a performance assessment system based on the achievement of Key Performance Indicators (KPI). With the implementation of KPI based performance assessment, IKT can carry out objective, tiered, periodic, and transparent performance assessment. In order to prepare IKT employees for their performance assessment, IKT develops employee’s competency development and training activities that will be done regularly to ensure that the goal is achieved. The learning methods will be performed virtually, this will be done with few exceptions such as certain training that requires face-to-face contact to see real practice in the Terminal.

Who took the initiatives to change and who became the object of change?

Based on the information provided by IKT in their 2021 annual report, the initiative comes from the board of directors and top management of IKT. These initiatives come in the form of Company’s performance targets and goals that will later be developed into task directions to each Directorate to carry out work programs that have been defined in the Strategic Management Work Plan. Based on that, the researcher finds that the one that became the object of change is the company itself and the employees of the company. This is because the initiative that is developed by the board of directors and top management of IKT is aimed to improve

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the company in order to achieve their vision. With this goal in mind, the said initiative will then be developed into task directions for its employees that serves as the guideline and goals for their work.

How did it happen?

Based on the information stated above, the researcher will develop the proposed corporate strategic change initiative using Kotter’s 8-Step Change Model. The proposed corporate strategic change initiative using Kotter’s 8-Step Change Model can be seen in the following paragraph.

● Step One: Create Urgency

Based on the data that has been gathered and processed by the researcher, the researcher found that IKT change urgency resides in their internal and external conditions, as stated in point one 4W+1H Framework that elaborates the reason for the occurring changes. Based on those factors, the researcher concludes that the urgency in why IKT has to change is caused by IKT internal factors that demand IKT to improve based on their vision and mission using their annual strategy theme as stated in IKT corporate roadmap. Besides internal factors, there are also external factors that urges IKT to always improve in order to stay competitive within the car terminal industry in the Indonesian market. This factor is based on the researcher findings in the PESTEL analysis that shows that IKT business is heavily impacted by the Indonesia’ macroeconomic environment and the findings in Porter’s 5 Forces analysis where it shows that the competition in IKT car terminal industry is high due to the small number of players with such a huge demand from the Indonesian automotive industry. Based on those findings, IKT should focus on the driving factors of change that became the urgency of the change itself. These forces should be the basis of their improvement and also the basis of the work motivation in both the management and the worker in order to achieve their vision and mission and stay competitive within the market.

● Step Two: Form a Powerful Coalition

Based on the data that has been gathered and processed by the researcher, the researcher found that the changes in IKT happen under the influence and management of the board of directors and top management of IKT. These findings show that behind the changes in IKT, there is a powerful coalition within the high rankings of IKT management. Based on those findings, the researcher concludes that the changes in IKT are driven by the top management in IKT. Based on that, the research suggests that IKT actively involves every segment within IKT hierarchy to be an agent of change.

● Step Three: Create a Vision for Change

Based on the data that has been gathered and processed by the researcher, IKT already has a vision of change. As stated in step one: create urgency, the researcher finds that the internal urgency of change within IKT is to achieve their vision “To be World Class Car Terminal Ecosystem” and their mission to “Develop Integrated Car Terminal Network in Indonesia to Reduce Logistic Cost & Energize Trade”. As stated in IKT 2021 annual report, this vision will then be developed into IKT annual strategic theme in order to define a clear annual goal of IKT. Based on those findings, the researcher concludes that IKT already has a vision of change and the annual implementation of that vision that includes IKT main directorate and their following departmental directorate. The researcher suggests that these

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directorate as the derivative of IKT annual strategic theme be evaluated regularly in order to keep them aligned with the annual strategic theme and to accomodate any changes that may occur during those time.

● Step Four: Communicate the Vision

Based on the data that has been gathered and processed by the researcher regarding the vision delivery process within IKT, the researcher suggests that the company should focus on the “why” aspect on the implementation of the existing vision and mission statement.

As stated in step one: create urgency, the company should communicate their vision based on the urgency of why the vision is being implemented. With this type of delivery method, the worker will be able to understand the background of the implemented vision and can help the company to achieve their vision based on the background of that vision. This type of vision delivery method can utilize existing vehicles such as regular meetings and other methods such as indirect communication methods like subtle delivery through departmental and individual works and goals.

● Step Five: Remove Obstacles

Based on the data that has been gathered and processed by the researcher, the researcher finds that IKT has implemented programs to mitigate and remove existing difficulties that might drag down the company business process. This has been mentioned in PESTEL Analysis, where IKT tries to remove existing inefficiencies in their processes through digital transformation that manages to reduce inefficiencies within their business processes.

This action can also be seen in their annual improvement as stated in IKT annual report where the company annually re-evaluates their business processes to remove inefficiencies.

Based on those findings, the researcher suggests that IKT quarterly evaluate existing processes within the span of 4 months in order to reduce the time within evaluation to always keep the company process as efficient as possible with regular improvements on their business processes.

● Step Six: Create Short-Term Wins

Based on the data that has been gathered and processed by the researcher, the researcher finds that IKT implements their vision using a corporate roadmap as an annual strategy theme. Based on those findings, the researcher finds that IKT generates an annual directorate for their corporate goals and departmental goals based on their annual strategy theme as stated in IKT corporate roadmap. Based on that, the researcher concludes that IKT has short-terms wins as stated in their directorate. Based on those findings, the researcher suggests that IKT further evaluates and improves this directorate regularly to team level in order to generate specialized short-term wins for each and every team in IKT departments.

This is needed in order to generate short term wins in both corporate levels and worker level that can raise the work morale of the worker based on their results and achievements in the process.

● Step Seven: Build on the Change

Based on the data that has been gathered and processed by the researcher, the researcher finds that IKT implements annual changes. As seen above, IKT employs an annual directorate based on their annual strategy theme as mentioned in IKT corporate roadmap.

Based on this, the researcher finds that IKT employs gradual changes in its internal processes in order to improve the efficiency of existing processes and generating and improving new business and services that adds to their differentiation and eventually their

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advantages. Based on IKT's annual report, the said improvements are based on their last year performance, benchmarking the achievement of the previous year as the basis of the next year's changes and improvement. Based on that, the researcher concludes that IKT implements major changes annually based on last year's performance. Based on those findings, the researcher suggests that IKT changes and improvements be based on the indicator that has been analyzed as stated in Performance Analysis. The researcher also suggests that IKT changes should be focused in aspects that include operation process resources, innovation resource, and organizational resource as stated in the VRIO Analysis due to it being the core aspects of IKT improvements.

● Step Eight: Anchor the Changes in Corporate Culture

Based on the data that has been gathered and processed by the researcher, the researcher finds that IKT anchored their changes using the implemented corporate roadmap that serves as their annual strategy theme that spans from 2020 until 2024. In order to support said corporate roadmap, IKT also implements company work culture value AKHLAK in order to develop a dynamic work culture based on value and tradition, values that are needed to aid IKT in achieving its vision.

5. Conclusion and Recommendation Conclusion

Based on the analysis performed towards IKT by the researcher using KBPMS framework that was developed by Dermawan Wibisono, the researcher manages to reach the conclusions as stated in the following explanation:

● IKT has a good vision and mission statement. This conclusion is reached after the researcher performs vision and mission analysis by utilizing the vision and mission criteria as stated by Dermawan Wibisono and finds that IKT vision and mission meet those criteria.

● IKT has a strong business strategy in the car terminal industry. This conclusion is reached after the researcher performs the strategy analysis by utilizing the Strategic Diamond Framework and finds that IKT has fullill all of the Strategic Diamond Framework aspects.

● IKT has a strong standing in the Indonesian macro and micro economic environment. This conclusion is reached after the researcher performed external analysis towards IKT by utilizing PESTEL framework and Porter’s 5 Forces Analysis framework.

● IKT has good internal resources management. This conclusion is reached after the researcher performed internal analysis towards IKT by utilizing VRIO Framework and found that IKT has a good management in internal resources as stated by Dermawan Wibisono 9 aspects internal performance.

● IKT has a good performance. This conclusion is reached after the researcher analyzes IKT performance by utilizing 9 aspects analysis as stated by Dermawan Wibisono.

Recommendation

Based on the analysis performed towards IKT by the researcher using KBPMS framework that was developed by Dermawan Wibisono, the researcher manages to generate several recommendations for IKT to improve IKT corporate performance by utilizing 4W+1H framework that includes McKinsey 7s Analysis and Kotter’s 8-Step Change Model to generate a corporate strategic initiative recommendation. The recommendation that has been developed by the researcher based on the findings on IKT can be seen in the following explanation:

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1. The researcher recommends that IKT actively involves every segment within IKT hierarchy to be an agent of change. This is important in order to generate positive changes that can improve IKT performance in both the corporate level and also on the worker level under the changes that has been implemented by the higher management of IKT.

2. The researcher recommends that these directorate as the derivative of IKT annual strategic theme be evaluated regularly in order to keep them aligned with the annual strategic theme and to accomodate any changes that may occur during those time.

3. The researcher recommends that IKT should focus on the “why” aspect on the implementation of the existing vision and mission statement. As stated in step one: create urgency, the company should communicate their vision based on the urgency of why the vision is being implemented.

4. The researcher recommends that IKT regularly evaluate existing processes within the span of 4 months in order to reduce the time within evaluation to always keep the company process as efficient as possible with regular improvements on their business processes.

5. The researcher recommends that IKT further evaluates and improves IKT directorate regularly to team level in order to generate specialized short-term wins for each and every team in IKT departments.

6. The researcher recommends that IKT changes and improvements be based on the indicator that has been analyzed as stated in Performance Analysis.

7. The researcher recommends that IKT changes be focused in aspects that includes operation process resources, innovation resource, and organizational resource as stated in VRIO Analysis due to it being the core aspects of IKT improvements.

6. Acknowledgement

The author would like to say thank you to all stakeholders that were involved in this research.

Without their support, help, and advice, this research will not be completed as it is. The author also expresses gratitude to and acknowledge the support of Prof. Dr. Ir. Dermawan Wibisono, M, Eng as the author supervisor whose knowledge and experience has guided the author along the way of accomplishing this final project and President Director of IKT, Mr Rio Lasse, whose knowledge and experience has guided me in finishing this research by helping me to refine my ideas and providing information needed to perform my research.

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