1.

Strategy Implementation
Strategy implementation is often called as operational planning because it
consists of some activities (program) that involves standardized
implementation procedure and proper corporate budget. Hence, strategy
implementation explains components that can be abbreviated as 3P + 1B
which are Program (some implemented activities), People ( department and
human resource who are responsible to execute the activities) and Procedure
( operational standard procedure to execute the activities).
In implementation strategy step, planner needs to synchronize between
company structure organization and program implementation schedule. They
will be explained in the next parts of this book.
2. Evaluation and Strategy Control
The last part of strategic management framing is executing evaluation and
strategy control. In this step company evaluates based on company
performance by using qualitative and quantitative performance
measurement. Quantitative performance measurement consists of
performance indicator determination: marketing, finance, human resource
and operation. However, qualitative performance measurement consists of
activities surveying customer satisfaction, employee satisfaction and other
survey supporting company performance. After quantitative and qualitative
measurement is done, the next step is Balanced Score Card making to
integrate all companys business functions performance to achieve their
objectives.
2.1. Quantitative Measurement
2.1.1. Finance Performance Indicator
Company performance measurement is presented in the early part
(chapter 1). Finance performance indicator is from level of liquidity,
leverage, activity, profitability, and grow.
Level of liquidity of a company is an indicator to understand
capability of the company to pay current liabilities. The better
the level of liquidity, the lower risk of the company to default.
Regarding size or ideal value of level of liquidity, it should be
overviewed from the level of liquidity pattern of the industry
itself. Too high liquidity of a company also could indicate
inefficient fund that accumulates in cash and it could be
assumed as idle.
The higher the level of leverage also indicates two things.
First, it means high funding portions from debt could be the
result of tax savings, but the composition of high funding
from debt is quite risky because it can raise risk of default.
Level of activity becomes company indicator to measure
level of inventory, assets or equity rotation. It is about how

fast and efficient those three systems rotate in every period

of time.
Level of profitability is company indicator to measure level of
profit generated by the company. The measurement could be
as profit margin, value gained from stock paper, or could be
return of equity.
2.1.2. Marketing Performance Indicator
Marketing performance generally is measured by using marketing
metrics. Metrics are some quantitative performance measurement
that is used to value an operation or activities of a company or unit.
Marketing metrics is quantitative performance measurement that is
used to measure marketing activities.
Table 8.1. Marketing Metrics
Customer
Metrics

Sales Metric
Sales Growth
Market
New Product Sales
Customer
Awareness Metrics
Awareness
Preference
Purchase Intention
Level of testing
Level of repurchase

Distribution Metrics

Customer feedback
Customer
satisfaction
Cost to get
customer

Outlet number

Profit per customer

Cost of losing
customer

Daily available procurement

Lost customer
Level of repurchase
Lifetime customer
value
Customer equity
Customer
profitability

Profit per outlet

Mean of procurement value
volume

Communication
Metrics
Level of brand
awareness
Level of top of mind
Advertisement reach
Advertisement
frequency

Out of stock frequency

Mean of selling per selling
point
Cost of outlet service

Gross rating point

Number of outlet rack

composition

Level of market
response

2.1.3. Human Resource Indicator

Human resource performance could be measured using HR Metrics.
HR metric is quantitative performance measurement that is used to
measure human resource activities and its administration. For
example, HR metrics indicators are absence rate, cost per hire, HR
expense factor, time to fill and turnover rate. Other than that,
indicator to measure human resource performance could be done
based of human resource management functions such as ratio
between procurement cost and number of human resource, mean
of cost of variable per recruitment, means of number of days to fill
vacancy, means of days of training per employee per year, means
of employee absence per year. Besides, it could be measured from

its characteristic such as employee productivity rate based on age,

gender, and contract status or non-contract status of an employee.
2.1.4. Operation Performance Indicator
Operation performance could be measured using operations metrics
which is efficiency and effectivity measurement of an operation or
process. Besides, operation performance indicator could be
measured from level of service accuracy, service quality level is
indicator for company to control service quality produced based on
defined standard. Other indicator, for example, amount of defects.
It is an indicator showing number of defect product produced. The
lower the number the better the performance. Quality control is an
indicator to measure product quality produced by the company.
Other performance indicator are service accuracy level, service
quality level, number of defect products, cost of inventory in
warehouse, ordering cost, distribution channel cost, marketing cost
maintenance cost, inventory turn over, productivity rate.
Attached insight strategic measurement of best insurance company
version Investor, Business &Capital Markets