In the past, I thought the company's business targets were only Net Profit and Company Business Development. It turns out that after exploring the word CORPORATE TARGET, there are many internal company targets that must also be achieved. If there is no commitment to be achieved, then the company can face quite serious problems.
The explanation is as follows. Every business company definitely wants to get Capital Returned Value or Return on Investment Value that has been invested in all its Business Resources, of course with targeted profits.
Each Work Unit is a resource that must be available to succeed in the Company's Business. Examples of resources: Production, F&A, Human Capital, Audit, IT, and so on.
Each resource or work unit (department) has a specific role or function in the company's business to secure certain aspects. For example:The Production Unit has the function: Production Target achieved,The Marketing & Sales Unit has the following functions: Sales targets are achievedThe IT unit has the following functions: The IT system works RELIABLE and SAFE.The HC Unit has the function: Each HR individual produces the best work output.
The Company invests by presenting each Work Unit (Work Group) with the hope that the Company will get Return Investment Value in the form of Functions from each Work Unit that are fully developed so that the Company's Business Operations can run smoothly, effectively, achieve business targets, comply with legal regulations, be safe and Efficient.
In each work unit, there must be a group of human resources in their respective positions and each position has a special function for the company's business.
Business Companies definitely have certain Business Targets:
- Target Net Profit
- Target Market SHare
- Business Growth Targets
- Target Brand Image
- Target Corporate Image
All commitments in various forms must lead to the Business Targets mentioned above, for example:
- Company Business Vision and Mission
- Key Performance Indicators
- Core Values
- Corporate Culture
- Work Slogan or MOTTO
- Company regulations
- Company policy
- etc
Every company definitely hopes to achieve the following BIG TARGETS:All Work Units (Departments) can provide ROI in the form of work results in accordance with each Basic Function of why each Work Unit (Department) must exist in the Company.All HR can provide ROI in the form of work results in accordance with each basic function of why each HR must be in the company.Costs for HR Management and Development are always at a REASONABLE level according to Best Practice.The Company's business operational costs in all work units are always maintained at a reasonable level.The Company's business is managed in full accordance with GCG (Good Corporate Governance) principlesThe Company's business is managed in full accordance with applicable regulations or laws.
So in conclusion, the Company's Business must be managed with a large series of KPIs:
- 100% Net Profit Target achieved
- 100% Target Market Share achieved
- 100% Target Function of all Work Units appears
- 100% Target Function of all HR appears
- 100% Compliance Target with all Regulations and Laws achieved
- 100% Compliance target for all aspects of GCG achieved
- 100% Target Brand Image in society achieved
The list of BIG TARGETS cannot be negotiated because these targets are the default targets for why these Work Units are present in the company. What can be managed is how to bring the current target closer to the BIG TARGET.
So, to realize the list of BIG TARGETS, the key to success lies in the Governance and Leadership Model applied at the Middle Management Level (Execution Management) at the Work Unit level. It is still very rare for companies to realize the importance of an appropriate and effective Implementation Management Model (Middle Management) to realize a series of BIG TARGETS. In fact, many Work Units do not have a firm and clear Work Unit Governance Pattern and Leadership Model that is guaranteed to be able to realize these BIG TARGET. There are still many Heads of Work Units who take part in Management and Leadership training but are not explained or are not equipped with the Work Pattern and how to work. So, when he returned to the workplace from the training session, the Head of the Work Unit did not fully understand how the Work Unit Governance and Leadership Model were applied in his Work Unit.
AND, THE SOLUTION to this definitely exists!!!
