Image of Performance Measurement Variables of Brand Management Positions in PT HM Sampoerna Tbk.

Performance Measurement Variables of Brand Management Positions in PT HM Sampoerna Tbk.

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Publisher :IPMI , 1999

The objective of the study is to define appropriate measurement variables for brand management position in lieu of employee's perspective and corporate strategic direction. The scope of the study is limited to find performance measurement variables to brand manager positions, which in the case is addressed to Brand manager.

In terms of theoretical background of measuring organization performance, there are two approaches; financial and behavior. In financial oriented approach, there is only one measurement of performance, which are shareholder returns. The behavior approach is talking the organization as a coalition of stakeholders with different aims. One example of the behavior approach is balanced scorecard where the performance indicator of an organization is a balanced set of financial, customer, internal business and long-term growth and development perspectives. What Kaplan and Norton in the balance scorecard do not explain is how such an approach can be applied to team-based organizations. It could, with one caveat: senior managers should create the strategic context for the teams but not measures. With the understanding that each perspective is not fully contributions of only one function or position in the organization, but the contributions of all functions in the organization, the balanced scorecard can be used to measure the performance of the strategic achievement of one Profit & Loss organization or one business unit. It suggests that Balance Scorecard not to be used in measuring the divisional level or team's or individual's performance.

In order to measure individual and team performance, there is Zigon's technique which focuses on value added result, performance measures and standards, a clear picture of the priorities and a way track to compare to standard.

The conceptual framework of the study consists of three stages (corporate level, marketing division and brand management). The first stage is in corporate level; the corporate vision and mission are translated into four perspectives of balanced scorecard. And each perspective is deployed into Marketing Key Performance Indicators in the second stage which are determined by reviewing the objective and strategy of marketing division in order to relate the required Marketing Division contribution to achieve the corporate objectives and strategy. To achieve Marketing Division objective and performance indicators, the contribution of Brand Management is elaborated through the business processes, main roles and direct outputs that are performed by a Brand manager. And finally the performance measurement variables are determined by statistical approach to measure the degree or magnitude of importance of each variable.

The group of performance measurement variables and its magnitude of importance


Brand performance : 41 %

Internal knowledge : 19%

External knowledge : 17%

Clarity of outputs : 9%

Productivity : 9%

Financial Result :5% .

The study suggests that the performance measurement should be based on the outputs or value-added activities that are directly contributed by a Brand manager.

Based on the applied model, the study concludes that: 1. A Brand manager's major responsibility is to build the brand equity. Therefore, the most important performance measurement variable for this position is the Brand Performance.

2. Company's bottom line is the indirect output of Brand manager although the achievement of it required some parts of contribution from Brand manager. Therefore, a Brand manager's performance is still needed to be measured from this perspective but in the lower degree of importance.

Job description is one of the tools to translate company's requirement on each position's contribution. Therefore, it is recommended to develop a clear job description, to institutionalize it, and to share it to the jobholder.

The jobholder should understand what are the accomplishments expected from his/her contribution. Accomplishment is the value-added results or direct results that a jobholder contributes to the company that are resulted from his/her activities. The performance measurement variables should be built based on the expected direct results or value-added results that are contributed by a jobholder.

Reseach Location: PT. H. M. Sampoerna Tbk.

Supervisor: Irham Dilmy, MBA.

Accepted: 18 December 1999.

For IPMI Internal -- Read at library only

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vii, 48p.: exbts., quest., 27 cm.

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