Stakeholder-Centric KPIs: Enhanching Company Performance Evaluation

Abstract

In process of performance evaluation performance measurement ir is important to define the needs, capacities and contributions of stakeholders. The object of this paper is a service and consulting company, namely PT. X. For the present, the company only carry out performance evaluations based on a financial perspective without considering a more comprehensive point of view. Therefore, performance measurement or benchmarking in this research requires appropriate components and meaningful key performance indicators (KPIs). To obtain comprehensive measurement results, this research used four perspectives from Performance Prism (PP) Model. These perspectives consist of company investors, employees and suppliers and customers. This research begins by identifying KPIs for each perspective based on in-depth interview with top manager and the owner of the company. Analytical Hierarchy Process (AHP) model was used to sort and ensure that each KPI was assessed objectively and its weight reflects its importance in the context of the company's goals. To provide the company with and help measure the performance of areas that need to be improved (weaknesses) and those that are working well (strengths), the Objective Matrix (OMAX) method is used. OMAX can also be an approach that can provide useful information for companies in making strategic decisions, such as business planning and development. This research result offers a good and implementable performance measurement metrics that it can be used by a researcher, manager or company owner in certain companies, especially service and consulting companies in the same or different countries.