Prof Dr Ir Patdono Suwignjo MEngSc IPU (center) during his inauguration as the 197th Professor at ITS

ITS Campus, ITS News — In order to enhance operational efficiency in industries, the concept of performance management continues to evolve. Addressing this issue, the 197th Professor at the Institut Teknologi Sepuluh Nopember (ITS), Prof Dr Ir Patdono Suwignjo MEngSc IPU, has proposed a performance management framework for innovation processes within State-Owned Enterprises (SOEs) in Indonesia.

The professor from the Department of Systems and Industrial Engineering at ITS revealed that the evolution of performance management began with financially based performance measurement systems. Developed during the 1800s to 1900s, these systems utilized financial approaches to evaluate company performance. “However, these systems have several shortcomings,” said Patdono during his academic inauguration at ITS some time ago.

Hailing from Kediri, this man elaborated that financially based performance measurement systems tend to measure in a single period in the short term. This lack of long-term insight results in companies not having a clear picture of sustainable profitability. Therefore, Patdono examined performance measurement systems with a quantitative approach, known as Quantitative Models for Performance Measurement Systems (QMPMS).

QMPMS involves three main steps: identifying performance-influencing factors, hierarchical arrangement of these factors, and measuring the factors’ impact on performance. These three steps inspired Patdono in designing a performance measurement framework for innovation processes. “There is no other performance measurement system that measures the impact of various factors,” said the former Director General of Institutional Science, Technology, and Higher Education (Iptek), and Higher Education (Dikti) of the Ministry of Research, Technology, and Higher Education (Kemenristekdikti) of the Republic of Indonesia.

The 197th ITS Professor, Prof Dr Ir Patdono Suwignjo MEngSc IPU, demonstrates the factor identification scheme using the QMPMS approach in his academic inauguration speech book

Based on his research on various systems, Patdono structured a framework for factors contributing to successful innovation processes in Indonesian SOEs. There are eight benchmark factors: input, push and pull factors, strategy, culture, processes, outputs and outcomes, and diffusion. “From these eight factors, there are then 28 success indicators,” added this ITS Mechanical Engineering graduate.

Within this framework, the identification of driving (push factor) and attracting (pull factor) factors from the company is performed. This 65-year-old lecturer explained that push factors are external factors that drive industries to innovate. Meanwhile, pull factors are policies within the company that encourage innovation.

Next is the analysis of the innovation process within the company. Through this analysis, Patdono explained, results are obtained in outputs and outcomes to be measured at the diffusion stage. All the analysis results in this framework are reviewed in the diffusion stage to derive steps for companies to implement innovations.

Prof Dr Ir Patdono Suwignjo MEngSc IPU (center) during a discussion with his research team before his inauguration procession as ITS Professor

The performance management framework envisaged by Patdono can help companies remain sustainable and competitive for the next 30 years. According to him, one key to a company’s sustainability is continuous innovation. “Therefore, this performance framework is designed to comprehensively manage the performance of innovation processes,” he emphasized.

Through this performance management framework, Patdono hopes to assist Indonesian SOEs in competing internationally. Furthermore, he mentioned that the academic novelty he pioneered, leading to the highest academic degree added to his name, is a blessing from God and the support of his closest ones. “I am very grateful because this degree is thanks to their support,” said the professor who also received the Angka Nitisastro Award, expressing his gratitude. (ITS Public Relations)

Reporter: Aghnia Tias Salsabila