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Analysis and Metaphysics
ISSN: 1584-8574, e-ISSN: 2471-0849
Vol 23 (1), 2024
pp. 69 - 77
69
https://analysisandmetaphysics.com
Determining the Competitive Strategy of the University
Based on Performance Measurement with Malcolm Baldrige
Criteria
Muhamad Ardi Nupi Hasyim1, Agus Rahayu2, Puspo Dewi Dirgantari3
1 Universitas Pendidikan Indonesia; Ard.nupi@gmail.com
2 Universitas Pendidikan Indonesia
3 Universitas Pendidikan Indonesia
Corresponding Author
Muhamad Ardi Nupi Hasyim
Universitas Pendidikan Indonesia; Ard.nupi@gmail.com
Abstract
The problems faced by universities today are improving performance and using the right strategy to
increase the number of students in accordance with market conditions and demand. Therefore, the
university must have a measuring tool that assesses the overall condition of the university so that it can
find out the current performance condition to determine the appropriate strategy. So this research aims to
obtain an overview of university performance using the Malcolm Baldrige method. In accordance with its
objectives, this study uses qualitative research methods by measuring overall performance based on
Malcolm Baldrige criteria. The results showed that before applying the Malcolm Baldrige evaluation,
Universitas Koperasi Indonesia only focused on financial aspects, resulting in weak facilities, weak work
systems, and a lack of employee motivation. After analysing the Malcolm Baldrige criteria, there was a need
for improvement in the work system and operational processes. The university is at the early improvement
level, indicating systematic early adoption, but is not yet consistent in all work units, so strategies can be
done differently.
Keywords - Performance; Competitive Strategy; Malcolm Baldrige; University
Received: 05/11/2022 Revised: 12/12/2022 Accepted: 20/02/2023
1. INTRODUCTION
The growth of universities in West Java Province has experienced enormous growth, so the emergence of
new standards, changes in student demands, and others are part of what universities must anticipate.
Universities that have good performance will be the choice of students to enroll in college, so it can be seen
that the larger the number of students, the more the campus has implemented the company's performance
well and is the right choice for students. Universitas Koperasi Indonesia is a university that has 2 faculties,
namely the faculty of economics and business with 3 study programs, namely management, accounting,
and Sharia Economics, and the faculty of science and technology with 3 study programs, namely data
science, agribusiness, and food technology.
Universitas Koperasi Indonesia has different and unique characteristics in that this campus teaches
cooperative content. Universitas Koperasi Indonesia noted that the number of students decreased by 25%
in 2023; this data shows a decline in student interest. In addition, there are problems including:
coordination with the leadership has not been structured properly and correctly; unclear strategic

70
planning; students as consumers still feel dissatisfaction with the teaching and learning process because
facilities and services are still lacking and there is a gap between lecturers and students; unclear standard
operating procedures (SOP); inadequate human resources where the ratio between lecturers and students
is not balanced; and the rank or position is not yet established because some lecturers still have the rank
of expert assistant and lector while the number of head lecturers and professors is still very small. Because
of these problems, there is a need for comprehensive performance improvement at Indonesian cooperative
universities.Performance improvement requires a method that can be used by universities to become a
world-class university of customer choice. There are several methods for conducting performance
assessment, such as Balance Scorecard, Malcolm Baldrige, and ISO 9000, but Borowski (2008) considers
Malcolm Baldrige to be very different because it complements and refines the existing performance
assessment methods. Malcolm Baldrige has its own uniqueness compared to other assessment methods.
Denis (2006) states that utilizing Malcolm Baldrige for assessment effectively reveals both financial and
non-financial performance within the organization. There are seven categories that Malcolm Baldrige sees
in performance assessment, such as: leadership, strategic planning, customer focus, analytical measures,
knowledge management, workforce focus, process focus, and business results.
Literature Review
Core values and concepts closely relate to one another in the Malcolm Baldrige criteria. Core values and
concepts are inherent in the beliefs and behaviors that exist in high-performance organizations. These core
values and concepts form the foundation for integrating key business requirements into a result-oriented
framework, which then serves as the basis for action or feedback. There are eleven core values and concepts
to build the Malcolm Baldrige business criteria: visionary leadership, customer-driven excellence,
organizational and personal learning, valuing workforce members and partners, agility, focus on the future,
managing for innovation, management by fact, social responsibility, focusing on results and creating value,
and systems perspective.The eleven core values and concepts are then summarized into seven criteria
known as the Baldridge Criteria for Performance Excellence. The systems perspective is depicted in the
form of a burger, and then at the top is an umbrella that describes the organization's snapshot profile of the
philosophy, legal rules, and what and why the company was established. The following Malcolm Baldrige
criteria framework is presented in Figure 1:
Figure 1. Malcolm Baldrige criteria framework
Source : quality.nist.gov

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The evaluation of the assessment is then weighted with the values set in Table 1:
Table 1. Malcolm Baldrige Assessment Points
Categories and Items Point Values
1. Leadership
1.1 Senior Leadership
1.2 Governance and Social Responsibilities
70
50
120
2. Strategic Planning
2.1 Strategy Development
2.2 Strategy Implementation
40
45
85
3. Customer Focus
3.1 Voice of the Customer
3.2 Customer Engagement
45
40
85
4. Measurement, Analysis, and Knowledge Management
4.1 Measurement, Analysis, and Improvement of Organizational
Performance
4.2 Management of Information, Knowledge, and Information
Technology
45
45
90
5. Workforce Focus
5.1 Workforce Environtment
5.2 Workforce Engagement
40
45
85
6. Operation Focus
6.1 Work System
6.2 Work Process
45
40
85
7. Result
7.1 Product and Process Outcomes
7.2 Customer-Focused Outcomes
7.3 Workforce-Focused Outcomes
120
90
80
450

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Categories and Items Point Values
7.4 Leadership and Governance Outcomes
7.5 Financial and Market Outcomes
80
80
TOTAL 1000
To find out the level of organizational performance predicate on value weighting based on Malcolm
Baldrige criteria can be shown in Table 2
Table 2. Predicate Levels and Malcolm Baldrige Performance Score Values
Predicate level Skor Level
EarlyDevelopment 0 – 275 Poor
Early Result 276 – 375
EarlyImprovement 376 – 475
Average
Good Peformance 476 – 575
EmergingIndustry
Leader
576 – 675
Industry Leader 676 – 775 Exellent
BenchamarkLeader 776 – 875
World Leader 876 – 1000
Measuring organizational performance involves describing the empirical conditions of various standard
measures of the company. According to Nasucha, company performance is the overall effectiveness of the
organization in meeting the needs of each group with regard to systematic efforts to improve the
organization's ability to continuously and effectively achieve its needs (Fahmi, 2013: 3).The purpose of
performance appraisal is to motivate personnel to achieve organizational goals and comply with standards
in order to produce the actions and results desired by the organization. Performance appraisal is carried
out for continuous organizational improvement because, for every organization, especially business
organizations, it is a must. This is seen in the high level of competition between companies. Performance
appraisal is essential for enhancing performance quality and boosting productivity and company profits.
Another purpose of performance appraisal for all parties is to ensure that they understand the benefits
they expect (Rivai and Basri, 2004: 55). Atkinson et al. (1997: 58) say that "the role of performance
assessment in helping organization members manage the value chain". Referring to this statement,
performance appraisal contains the task of measuring various organizational-level activities so as to
produce feedback information to make organizational improvements. Organizational improvement
includes planning improvement, process improvement, and evaluation improvement. Evaluation results
are information for planning-process-evaluation improvement, and then planning-process-evaluation
must be carried out continuously so that competitive advantage can be achieved.
2. METHODS
This research uses qualitative research methods because it is in accordance with the purpose of the study,
which is to obtain an overview of university performance using the Malcolm Baldrige method. The data
sources in this study consisted of primary data sources and secondary data sources. Primary data sources
were obtained from questionnaires given to students and interviews with informants consisting of heads

73
of study programs, deans, and vice rectors. Secondary data sources are obtained from information and
other written documents used by the university.
3. FINDINGS AND DISCUSSION
Performance measurement based on student perspectives with Malcolm Baldrige criteria can be used to
analyze the university's performance for future university performance improvement strategies as follows:
The results of the study provide an overview that leadership describes the vision and mission of the
organization has been laid by university leaders as the basis for organizational movement that is always
instilled in employees in order to make the vision and mission of the organization the soul of the
organization. The role of leadership at the university in providing direction and role models for all
employees at the university can translate the vision and mission of the company so that service activities
to partners, relationships between employees, and rapid response to complaints can be handled properly.
The above conditions are in line with the Malcolm Baldrige concept that leadership in an organization must
be able to direct the formation of the vision, mission, values, governance, and social responsibility of the
organization. To implement the vision, mission, governance, and social responsibility, university leaders
are currently trying to carry out cultural transformation. This can be understood because this university is
one of the oldest campuses in Sumedang Regency, which is in a very strategic location. The process of
cultural transformation carried out by university leaders has been quite successful, as evidenced by the fact
that the company's leaders have begun to create a family atmosphere and customer complaints can be
handled properly. The Malcolm Baldrige concept not only relies on the development of strategic plans but
also emphasizes the ability of organizations and leaders to spread the strategic plan and translate it into
key indicators that are easily understood and implemented in daily activities. The dissemination of
organizational strategy requires an integrated effort by senior leaders and technical leaders to create a
communicative medium so that all parties in the organization can be involved in efforts to achieve the goals
of the strategy that has been set. The results obtained regarding respondents' perceptions of strategic
planning variables at Indonesian cooperative universities should be a key indicator for improving
performance. With the capital status of the campus and very good accreditation, the university should be
able to develop various strategic plans, especially to increase competitiveness at this time and in the future.
The current situation illustrates that the university does not have a strong strategy, so it is unable to answer
the challenges of competition from the service delivery of other educational service industries that are
better prepared.Students feel that the company has not been good at focusing on customers due to the lack
of a positive and quick response to any complaints given to customers. The quality improvement program
must be led by SPMI and oriented to students in order to run successfully. Juran (1999) added that the best
quality should be in accordance with what is needed or expected by customers. Based on the description
above, it can be concluded that the university is still not optimal in focusing on customers. It is still found
that there are facilities that are not in accordance with the expectations desired by customers. The proof is
that wifi access is very slow, the lobby is not representative of waiting for guests, and there is a lack of
signage that directs students.
There is still a lack of information obtained as a form of service provided. Employees are still considered
unable to measure the implementation of the work they have done, so there is no standard time carried out
by each worker. This variable is closely related to the previous variable, namely strategic planning, which
is the clearly visible development of strategic plans that are not good, causing difficulties for implementers
in measuring the success criteria for the implementation of the work. Malcolm Baldrige criteria for
measurement, analysis, and knowledge management variables are divided into two sub-variables, namely
measurement, analysis, and performance improvement, as well as information management, information
technology, and knowledge sub-variables. The existence of this variable plays an important role in
synergizing the three variables in the Leadership Triad, namely leadership, strategic planning, and focus
on customers, and the three other variables in the Results Triad, namely focus on labor, focus on operations,
and performance results. This information is based on the image in the Malcolm Baldrige criteria
framework. Based on the analysis above, the university actually already has a work plan and measuring
instruments that have been made by each work unit. Each employee should be able to measure

74
independently on the results of their work, but not all employees can do it well, so the university has not
optimized the improvement of employee competence on an ongoing basis. The current condition of the
university does not have backup data properly, so if a disaster occurs, it will be very difficult to get
university data. This indicates the weakness of the technology system used by the university.Malcolm
Baldrige criteria emphasize that achieving high performance requires companies to manage compensation,
career paths, and work practices well. In managing human resources, it is still seen that the length of service
of employees is the main thing. For example, in the process of recruiting employees, the university recruits
employees from other universities by looking at the length of work experience without any regeneration
process from within the university. Besides that, the information on promotion is still closed, making
employees less motivated to improve functional positions.The process of continuous improvement of
quality and productivity in every activity can help leaders achieve improvements in quality (Deming, 1986).
Universities currently face the main obstacle of improving facilities to enhance performance quality. The
process of repairing facilities takes quite a long time and process, because for the authorization of repair
work, it takes a very long time, starting from finding a third party for the work, submitting a proposal to
the ranks of the vice chancellor for the approval process of the repair process and funds, until the process
of disbursing funds carried out by the central finance department. The ability of university management to
improve quality is still not optimal because, at this time, the development of external factors is very
dynamic. With the growth of the number of universities offering attractive prices and facilities, the campus
should anticipate the growth immediately, but based on evidence in the field, the university cannot
anticipate in advance all forms of market competition. For this reason, university leaders are required to
always be responsive and adaptive, always following and adjusting to the state of the environment. The
rector and his staff must build a strong team to determine the ways or approaches for maintaining and
developing the organization in an ever-changing environment. Researchers encountered obstacles faced
by students in terms of presenting the quality of the evidence of poor wifi access and a lack of lighting in
the hallway to the class because the building is old. The above problems should be a concern in order to
improve the quality at the university. Good quality should be in accordance with what is needed or expected
by students, so that with the presentation of low quality, it will be difficult for the university to increase its
competitiveness.
Based on the above analysis, the calculation of the evaluation of Malcolm Baldrige criteria for Indonesian
cooperative universities can be seen in Table 3.
Table 3. Malcolm Baldrige calculation Indonesian Cooperative University
Categories and Items Target Pencapaian Nilai
1. Leadership
1.1 Senior Leadership
1.2 Governance and Social Responsibilities
120
70
50
28,5
30,5
59
2. Strategic Planning
2.1 Strategy Development
2.2 Strategy Implementation
85
40
45
21
25
46
3. Customer Focus
3.1 Voice of the Customer
3.2 Customer Engagement
85
45
40
26,75
17,25
44

75
Categories and Items Target Pencapaian Nilai
4. Measurement, Analysis, and Knowledge
Management
4.1 Measurement, Analysis, and Improvement of
Organizational Performance
4.2 Management of Information, Knowledge, and
Information Technology
90
45
45
15
20
35
5. Workforce Focus
5.1 Workforce Environtment
5.2 Workforce Engagement
85
40
45
25
20
45
6. Operation Focus
6.1 Work System
6.2 Work Process
85
45
40
16,25
10,5
26,75
7. Result
7.1 Product and Process Outcomes
7.2 Customer-Focused Outcomes
7.3 Workforce-Focused Outcomes
7.4 Leadership and Governance Outcomes
7.5 Financial and Market Outcomes
450
120
90
80
80
80
40
44
48
50
30
212
TOTAL 1000 467,75
Based on the calculation of Malcolm Baldrige, the resulting value achieved by the Indonesian cooperative
university shows that the Indonesian cooperative university is in the Early Improvement condition,
meaning that the Indonesian cooperative university has an initial method approach that is systematic,
effective, responsive to existing conditions, but still not consistently applied to all related work units.
According to the Malcolm Baldrige criteria, becoming a superior company requires a score in the range of
850–1000 with the predicate world leader, so leaders and staff of Indonesian cooperative universities must
strive to implement innovative activities to encourage breakthroughs or changes so that relations between
work units can run harmoniously to support the achievement of organizational goals.
The current organizational level indicates that Indonesian cooperative universities are still at an average
level, so Indonesian cooperative universities must make a good strategy so that in the future, Indonesian
cooperative universities can achieve their vision and mission. With the creation of the mission, the strategy
and its implementation can begin. The strategy is an action plan for an organization to achieve the mission.
In accordance with the mission of Indonesian cooperative universities, namely providing high-quality
products and services to meet student expectations through the development of the best resources and
management,.

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The results of the assessment using the Malcolm Baldrige criteria are expected to improve the quality of
performance at the Indonesian cooperative university, so the results of this study can justify the theory put
forward by Denis (2006), which states that performance measurement using the Malcolm Baldrige criteria
can be used to effectively measure financial and non-financial performance in the organization.
1. CONCLUSION
The condition of the Indonesian cooperative university before using the evaluation of Malcolm Baldrige is
still limited to looking at the financial aspect, so the assessment is not comprehensive to the company's
performance, so weaknesses are still found, for example, facilities in bad condition, the absence of a work
system, and the lack of employee motivation that causes a decrease in the quality of performance. Analysis
of the seven Malcolm Baldrige criteria revealed that company leaders should prioritize focusing on
operations. Research found weak work systems and work processes that exist in Indonesian cooperative
universities, so there is a need for the implementation of quality control by means of maintenance,
motivation, and work systems, as well as guidelines for work standards and operations. The predicate level
of Indonesian cooperative university performance based on measurements using Malcolm Baldrige is in
the Early Improvement position, meaning that the university has an initial method that is systematic,
effective, and responsive to existing conditions but still not consistently applied to all related work units.
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