SCHOOL OF BUSINESS AND MANAGEMENT

MM6024 DASHBOARDS
CORPORATE PERFORMANCE AND KPI
MANAGEMENT CASCADING1
 Objective
• Knowing What Dashboards are , and why they
are essential
• Know how to make them
• Know how to cascade KPIs, and why cascading
are important

2
 Direction with Performance Dasboards

Dasboards are :
diagnostic tools designed to provide busy managers
with a quick overview of a company's performance.
Laitinen et al (2012)
 Purpose and Benefit of Dashboards :

Pauwels et al(2009) • Communicate Strategy

suggest 4 possible purpose
of dashboards: • Refine Strategy
1) monitoring • Increase Visibility
2) consistency • Increase Coordination
3) planning
4) communication
• Increase Motivation
• Give consistent view of
Doll and Wiersma(2009)
the business
Torkzadeh (1998): Dashboards in • Reduce costs and
MIS are used for : context with BSC: redundancy
1) problem 1) decision
solving making and • Empower users
2) work decision
integration rationalizing • Deliver Actionable
3) customer 2) communicati Information
service on and
consistency
3) self
monitoring
Definitions
Layers of Performance Dasboards
Context of Business Performance Dasboards
Parameterized Reporting
Performance Dashboards components
Sample of Operational Dashboard
Sample of Tactical Dashboard
Sample of Strategic Dashboard
Types of Performance Dashboards
KPI Displays
 Output Display Dashboard
Start 1-Jan-11 1 Poor
Balanced Scorecard 2011 As of 30-Jun-11 2 Fair
%YTD 49.5% 3 Good
Koperasi Pekerja CNOOC - KPC 4 Excellent
Polari Annual YTD YTD Achiev
Strategic Objective NO KPI UOM Score Weight Result
zation Target Target Actual ement
F1 Increase SHU 1 F1.1 SHU before Tax Jt Rp MAX 1,571 777 816 105% 3.34 Good 7.5% 0.25
C1. Enhance customer 2 C1.1 Customer Satisfaction Index Each MAX 3.00 3.00 3.6 120% 4.00 Excellent 5.0% 0.20
value
P1 Maintain growth of 3 P1.1 Margin operational manpower Jt Rp MAX 1,726 854 741 87% 2.12 Fair 7.5% 0.16
business unit supply
4 P1.2 Margin operational services Jt Rp MAX 433 214 297 139% 4.00 Excellent 7.5% 0.30
supply
5 P1.3 Margin operational goods Jt Rp MAX 192 95 178 187% 4.00 Excellent 7.5% 0.30
supply
P2 Improve service 6 P2.1 Ratio of loan to saving % MAX 80% 80% 78% 98% 2.87 Fair 5.0% 0.14
quality of SIMPAN- 7 P2.2 Bad debt of KPC's member Jt Rp MIN 1 1 6.70 -470% 1.00 Poor 5.0% 0.05
PINJAM 8 P2.3 Total KPC's member of Each MAX 600 600 558 93% 2.53 Fair 5.0% 0.13
CNOOC's employee
P3 Enhance 9 P3.1 Ratio of invoices amount % MIN 10% 10% 3% 165% 4.00 Excellent 7.5% 0.30
effectiveness of settled > 2 month
Business Support 10 P3.2 Overhead cost Jt Rp MIN 1,243 615 549 111% 3.71 Good 5.0% 0.19
11 P3.3 Ratio of invoice amount issued % MAX 75% 75% 83% 111% 3.70 Good 7.5% 0.28
to working capital
12 P3.4 Ratio of collected evidence of % MAX 95% 95% 93% 98% 2.83 Fair 5.0% 0.14
deducted tax.
L1 Improve employee 13 L1.1 Ratio of competency gap % MIN 50% 25% 27% 91% 2.42 Fair 5.0% 0.12
capability
L2 Enhance IT utilization 14 L2.1 Progress of COBIS % MAX 100% 49% 35% 71% 1.05 Poor 5.0% 0.05
L3 Improve organization 15 L3.1 Working climate index Index MAX 3 3 2.65 88% 2.22 Fair 5.0% 0.11
capability 16 L3.2 Progress of KPC Manual % MAX 100% 49% 75% 152% 4.00 Excellent 5.0% 0.20
17 L3.3 No of meeting Pengurus and Each MAX 12 6 4 67% 1.00 Poor 5.0% 0.05
Pengelola
Sub total 100.0% 2.97
KPI Cascading

17
 Case Study Cascading KPIs
Bunawan et al. (2011) have studied KPIs and BSC
implementation in PT. Dipa Pharmalab Intersains – a
pharmaceutical company that has main business in
import, manufacture, market and distributes drugs and
medical device in Indonesia.
With the implementation of BSC, top down strategic map
and KPIs seems to run well but the horizontal KPI are not
yet established. With this situation every department
only have guidance in vertical line and don’t care about
other departmental achievement. One sample of this
situation could be seen on launching new products.
 Objective
• To ensure the Top level KPI are cascaded
evenly to the bottom level
• To make sure KPI’s are aligned with strategic
objectives
• To measure the contribution level of each
subordinat towards the superordinate owner
of the KPI

19
 Flow of Setting KPIs
Vision, Mision, and Values
Corporate Objective /RKAP
Corporate Strategy /RJPP
Strategic Objective

Organizational Resource &

Internal Proses
Criteria for Designing Result Capability

KPI
Critical Success Factor (CSF)

Key Result Indicator (KRI)

Deployment/Cascadi Performance Indicator (PI)
ng KPI Key Performance Indicator (KPI)

20
 Juknis (Petunjuk Teknis)

A set of
important KPI
fields
showing the
implementati
on of SMART
 Cascaded according to Structure
HR Manager

Exceptional HR

Secretary
Ketepatan Laporan
HR

Spv People
Spv Recruitment / Spv
Development /Career
Mutation Remuneration/Payroll
Planning
Akurasi Rekruit Anggaran Pelatihan Effective Reward
HR dalam Setahun Program

22
 KPI Engine Development Challange
• This part we will create a KPI Engine that will
be vertically cascading KPIs from top level to
bottom level
• This will be demonstrated in Excel therefore
each syndicate can only write down the steps
and will create it in the syndicate.
SYNDICATE HOMEWORK

24
 Syndicate Task (Next Week)
• Think of a made up company
• Create an Excel Data showing operational
performances of at least 4 divisions for some
length of time
• Create and operational dashboard in Excel
• Explain why the chosen indicators are
important for management to track
• Make a cascading KPI scheme using excel
with your syndicates own idea.
• Put all above in PPT.
• Submit ppt and excel file of your work .
25