Enhancing Executive Effectiveness: Makmur Jaya’s Performance Management System
On a daily basis, a CEO navigates through a diverse array of tasks and responsibilities, encompassing direct decision-making as well as the subtle yet impactful realms of strategy and organizational culture. This holds true for the CEO of Makmur Jaya, whose business thrives within the dynamic landscape of e-commerce.
Similar to his counterparts in executive roles, the CEO harbors a vision for his company, one that entails sustained growth across all facets of its operations. This growth isn’t confined to specific areas but rather spans across vital dimensions, ensuring a holistic enhancement of organizational performance.
Objectives & Confusion
As numerous challenges arise along the journey, the CEO continually confronts obstacles that may hinder the realization of these goals. Upon exploring various issues that could potentially serve as barriers, it becomes evident that the CEO encounters the following problems on a daily basis:
Based on this analysis, it’s clear that an effective performance management system stands out as a crucial key to realizing the CEO’s aspirations. Such a system can significantly aid in decision-making processes. To progress toward this goal, we can outline several milestones, including:
- Documenting a comprehensive set of metrics from across departments to gain a holistic understanding of the organization’s performance.
- Streamlining and focusing on essential metrics for executive presentation to minimize confusion and cognitive overload.
The first objective ensures that our focus extends beyond isolated parts of the organization, emphasizing a holistic view. Moreover, it enables effective communication with our team, reinforcing the understanding that their contributions play a significant role in the overall success of the organization.
The latter objective is essential for enhancing clarity among executives, enabling them to direct their focus more effectively towards the organization’s strategic goals.
“Nothing is less real than realism. Details are confusing. It is only by selection, by elimination, by emphasis that we get at the real meaning of things,” — Georgia O’Keeffe
The Balanced Scorecard (BSC) is a strategic management framework that helps organizations translate their vision and strategy into action. It provides a comprehensive view of organizational performance by incorporating four key perspectives:
Financial Perspective
Focuses on financial objectives and measures that indicate the organization’s financial health and performance.
key metric: average order value, refers to the average monetary value of orders placed by customers within a given period. It is calculated by dividing the total revenue generated by the total number of orders.
Internal Processes Perspective
Centers on internal operational objectives and measures that drive efficiency, quality, and innovation.
key metric: order cycle time, the total time it takes for an order to be processed, from the moment it is placed until it is delivered to the customer. It includes order processing time, picking and packing time, and shipping time.
Customer Perspective
Emphasizes customer-focused objectives and measures that reflect the organization’s ability to satisfy and retain customers.
key metric: average review score, represents the average rating or score given by customers to products, services, or experiences. It is typically calculated by averaging the scores or ratings provided by customers in reviews or surveys.
Learning and Growth Perspective
Focuses on the organization’s ability to innovate, learn, and develop its human and intellectual capital.
key metric: average job satisfaction score, measures the level of satisfaction and contentment among employees within an organization. It is often assessed through employee surveys or feedback mechanisms.
Analytics Side
After gathering, processing, and visualizing the necessary data to create a dashboard tailored for the CEO, it became apparent that the data distributions are predominantly skewed. To ensure ease of monitoring the overall organizational performance, I opted to present the metrics in the form of cards. Here are several snapshots of the dashboard:
This dashboard is currently in its prototype stage, serving as the groundwork for future development and refinement.
Based on the data analysis conducted, it’s evident that job satisfaction emerges as a metric warranting increased attention. With a moderate score observed, it’s imperative to undertake further initiatives to delve deeper into this aspect. This can involve conducting interviews, qualitative surveys, and other exploratory methods to identify the underlying factors contributing to this moderate level. Subsequently, developing targeted programs aimed at enhancing job satisfaction becomes crucial, ensuring a more positive and conducive work environment for employees.
Conclusion
Any task will inflate until all of the available time is spent. — Parkinson’s Law
In summary, for a CEO managing diverse responsibilities, an effective performance management system is key. By integrating comprehensive metrics into a streamlined dashboard, we provide clarity amidst the CEO’s limited time and myriad tasks.
Disclaimer: “Makmur Jaya” is a fictional entity used solely for the purpose of illustrating the approach and analysis in this report. It does not represent any real organization or entity.
