In order to improve their business performance, PT Bakrie & Brothers Tbk. as holding company considered to restructure the operation of business units that have similarity in business nature i.e PT. Bakrie Pipe Industries (BPI) and PT. South East Asia Pipe Industries (SEAPI). One of the motivating factors is to revitalizing the management team that believed will increase corporate competitiveness to sustain their steel pipe businessess.



Join operation of BPI/SEAPI requires new performance management system to be in line with the corporate strategy that will optimize synergies, reduce cost through streamline effort and to achieve accurate reporting on time.



To analyze Bakrie Performance Contract, our framework consists of understanding the future state, seeing its alignment with business performance, reviewing the performance appraisal form andrating, its content design and process of plan - act - monitor - review process as well as its correlation with other HR initatives.

Through balance scorecard approach, we found that Key Performance Indicator (KPI) to measure business unit performance in Bakrie & Brothers is merely focus of financial parameter with lack on consumer service, operation excellence and learning and grow. Considering to the nature of steel pipe industry, BPI/SEAPI should consistently focus their strategy to customer oriented enterprise. Therefore, it is necessary to re-construct the KPI to be aligned with their strategic style (customer oriented enterprise). Meanwhile, for individual performance measurement, we recommend the job competency to be included as parameter to complete the existing parameters.



Research Location : PT Bakrie Pipe Industries and PT South East Asia Pipe Industries

Supervisor : K. Rajendran

Accepted : May 3, 2008



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