Sahabat Group was established as a non profit oriented institution under "Yayasan Dharma Bhakti Parasahabat or YDBP" in 1999. Modeled after the famous Grameen Bank from Bangladesh, YDBP provides micro financing for non-bankable customers in several places in Indonesia as a community service rather than profit taking.

As the business grows rapidly, the management faces raising complexity to manage the activities as well as to secure new funding from banks and other financial institutions. Because of these barriers, the management of Sahabat Group entered into profitable sectors which was hoped to produce better result commercially. Currently, Sahabat Group consist of several legal entities operating in financial services; six Rural Banks (Bank Perkreditan Rakyat or BPR), one Foundation (Yayasan Dharma Bhakti Parasahabat or YDBP) and one Multi Finance (Sahabat Finance).

Currently the Company is in the process of transformation from a non profit oriented company into a financially sound company which is still be able to maintain organization's mission. In line with the process, management of Sahabat Group faces the necessity to improve business alignment. Further, they engaged with the FReSH team of IPMI who were looking for a project study for their Group Reid Project (GFP) as a prerequisite task prior to graduation at IPMI Magisterial Management program.

The objective of this project is to help the Company to develop a Strategy Map that translates the company's strategic intents. Therefore, to achieve this objective, the project is started from reviewing the strategic intent of the Company (consist of Mission, Vision, Values & Strategy) and recommends the Strategy Map, Key Performance Indicators and Strategic Initiatives for Sahabat Group as the final project deliverables.

To develop the Strategy Map, the FReSH team has conducted several workshops and meetings with the Company's management team, with objectives to get the agreement among management team regarding current and expected future direction of the Company. The team also visited a sampled branch to get the sense of current business operation and conducting interviews with branch management with regard to the business process and operational problems. Moreover, the FReSH team carried out industry and competitor's analysis and several internal surveys on competitors and core values. To guide the evaluation process, the FReSH team mainly used Balanced Scorecard framework as the basis, and several other concepts to support the assumption.

With the strategy map, Sahabat Group is expected to have a clear pathway to pursue their strategy and a tool to measure the target achievement. As quote from the Balanced Scorecard book, "You can't manage what you can't measure and you can't measure what you can't describe". With this regards, the FReSH team has performed its task to describe the strategy and to establish the strategy map for Sahabat Group. Moreover, the FReSH team also equipped the company with Key Performance Indicators to measure the target achievement within the agreed timeframe, and proposing several Strategic Initiatives to speed up the target accomplishment. On the other hand, Sahabat management's task is to determine the target achievement for each identified KPIs in the agreed timeframe and to execute the strategic initiatives. With this implementation, we hope that Sahabat Group could become the Strategy Focused Organization.



Research Location : Sahabat Group

Supervisor : Alecander Cyrus

Accepted : September 30, 2006



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