Performance Management in 2015: ASEAN

Special Edition
Interview Guide

Your Full Name: Prof. Dr. Ir. Dermawan Wibisono, M.Eng

Company Name: Institut Teknologi Bandung - Indonesia
Current Position in the Company: Senior lecturer

Trends
1. Which are the 2015 key trends in Performance Management, from your point of
view?
After the Balanced Scorecard has flourished in 2000 and Prof. Kaplan retired, there isnt
any other surefire, popular approach to be implemented in many organizations. As such, I
have come up with my own framework, aimed especially at Indonesian organizations,
namely Knowledge-Based Performance Management Systems, which have different
perspectives and offer guidance in choosing indicators, as well as being supported by
software. As of right now, some of them are still in an implementation phase, according
to each context. This is because many companies in Indonesia still do not understand its
mechanism properly and some of them implemented it separately, for their daily
practices.
2. What are your thoughts on the integration of Performance Management at
organizational, departmental and employee level?
This is the most difficult task in practice. There is a lot of data, but some of it is collected
without looking at such kind of links between different levels of management. As such,
some companies, e.g Telkom Indonesia and Pertamina have designed their performance
systems to suit at least their departmental level. Still, there are gaps between the
departmental and employee level.
3. Which will be the major changes in managing performance, in the future?
Although many research endeavors have studied the vertical links between the
corporate-department-shop floor level, there are also many links between the indicators
used to measure their performance. This part has not been explored thoroughly and as
such, we do not have much research on this topic. I think that in the future, the Analytic
Network Process (ANP) that explores any link between indicators used for the same
perspective, but from different levels, would become the main concern for many
researchers and be a point of interest for many companies.
The ANP would also need to be supported by software and with this in mind, it would
make it attractive for organizations working in what I call the macro area, which are
governmental agencies.

Research
4. What aspects of Performance Management should be explored more through
research?
The link between vertical and horizontal indicators would be a nice topic of research, in
my opinion.
5. Which organizations would you recommend to be looked at, due to their particular
approach to managing performance, and their subsequent results?

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At the macro level, any sector can prove insightful, from government agencies and NGOs,
to state-owned and private-owned companies in the Health Care, Financial,
Manufacturing or Education industry.
6. What Performance Management question would you like to have answered by
researchers?
Is there any research on Performance Management Systems that strongly analyzes all
topics of interest within this subject: which indicators are more valuable, what links are
more significant, are there any benchmarking thresholds or standards for performance?

Practice
7. Which are main challenges of Performance Management in practice, today?
Knowledge, especially related to the inner workings of Performance Management
Systems, is still quite lacking. Most practitioners always have different opinions about
performance management and performance appraisal. Even academics do not share the
same opinion about performance management systems. Some sort of unity should be
found.
8. What should be improved in the use of Performance Management tools and
processes?
A holistic approach must be the main goal for todays PM experts, one that is supported
by software and is easily adapted to daily managerial tasks. A system that is built around
experts, aided by AIs, which would help many organizations streamline their day-to-day
activities and also support leaders in any decision-making processes.
9. What would you consider as a best practice in Performance Management?
One of the best practices I see today originates from the USA. Multiple American
companies have implemented a BSC that is supported by various software tools. Now,
even some of these do not feature a full mapping of the links between vertical and
horizontal indicators, but its a very good practice nonetheless. Here in Indonesia, very
few companies try such an approach, as they see these tools as still being quite new and
requiring further testing.

Education
10. Which aspects of Performance Management should be emphasized during
educational programs?
We have to introduces many
We have to introduce many new approaches and methods in performance management
education, including things like the Balanced Scorecard, the Performance Prism, the
Malcolm Baldrige Quality Award, the Knowledge-Based Performance Management
System, the Six-Sigma approach, and also strengthen the students understanding of
these approaches with statistical operations like regression analysis, correlation analysis,
Analytic Hierarchy Processes, Analytic Network Processes and Benchmarking
methodologies.
11. Which limits need to be surpassed in order to achieve higher levels of proficiency
in Performance Management, among practitioners?
Many practitioners oftentimes are limited by their own understanding of what
Performance Management is and what it is good for. In Indonesia, from what I know, only
ITB has been offering correctly designed Performance Management package services.
Many other providers only know about the Balanced Scorecard and thats it.

Personal Performance
12. What is your opinion on the emerging trend of measuring performance outside
working hours?
I dont really know what to say about this, as I havent heard much about this topic.
13. What personal performance measurement tools do you use?
The Knowledge-based Performance Management Systems, the BSC, the Prism, the
Malcolm Baldrige, the Six Sigma approach.

Specific Question
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14. We are developing a database of subjects/degrees in Performance Management.

What are your suggestions relevant to the database (i.e. subjects/degrees such as
the Masters in Managing Organizational Performance)?

You should look for something like a Masters in Corporate Management Systems,
focused on the following subjects:

The Balanced Scorecard

The Performance Prism

The Knowledge-Based Performance Management Systems

The Six-Sigma Scorecard

Regression analysis

Correlation analysis

Analytical Hierarchy Process

Analytical Network Processes

Expert systems

Benchmarking

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