Vol 6, No 5 (2015) > Industrial Engineering >

Key Performance Indicators Development for Government Agency

Rahmat Nurcahyo, Alan Dwi Wibowo, Ricky F. Eka Putra

 

Abstract:

Organizations perform
all activities and operations within a framework, which are built on its vision
and mission. The performance of each activity and operation can be measured
using Key Performance Indicators (KPI), which indicate the organization’s
success in achieving its strategic objectives. KPI is widely used not only by
profit-oriented organizations, but also by non-profit organizations such as
government agencies. Government agencies have different characteristics in
terms of funding, programs, and culture. This research describes the
development of KPI in an Indonesia government agency. This research was
conducted in three stages: evaluating the organization’s vision and mission;
determining the organization’s position using Strength, Weakness, Opportunity,
and Threat (SWOT) analysis; and preparing a strategic plan, and developing the
priorities of that plan using the Analytical Hierarchy Process (AHP). The
result of KPI development shows that the government agency has eight strategic
objectives and five KPI.

Keywords: AHP; Government agency; Key performance indicator; SWOT analysis

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