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Issues relating to performance management system (PMS) have been on serious agenda of business and management school institutions for last twenty years following the similar attention on corporate organizations. More over self evaluation and performance management are not well developed in school environment to operate in a competitive education market and lack of standard regarding definition, classification, and usage of specific tools make both research and application of performance management principles difficult. Consequently, Indonesian business and management school need a PMS framework that could be used as facilitator and tools for self assessment of business and management school in enhancing performance based on existing condition, i.e. accredited by BAN-PT to the world class business and management school accredited by international agency, such as AACSB, EQUIS, or ABEST2. Since human aspect in the input, process, and output could be occurred at once in business and management school, therefore it would be not easy and needs complexity stages in designing and implementing PMS. The PMS should also be ready for different situation. However, the school of business and management cannot be directly copying and just adopting without making any adaptations of PMSs since it would create difficulties to be implemented for practitioners. Moreover most of the published performance management systems focus on manufacturing environment, only a few studies on this area look into the context of business and management school and the implementation of PMS in business and management school is very limited and stills a challenge. So, this research propose PMS design for school of business and management from top to bottom management that conducted to help Indonesian business school and management in increasing their competitiveness. The research is conducted by using exploratory study and a case study research methodology was used to develop a conceptual model based upon literature review. ii A case study approach also was used to investigate the way in which PMS actually evolve within school of business and management environment. Inductive theorybuilding was done by a series of survey and interview to the practitioners in school to propose design of performance management. Explanatory study was done to determine relationship among variables and survey instrumentation to eleven Indonesian Business Schools that meet several characteristics. Pre-test was done to ensure the content of questionnaire is understandable and also show acceptable level of reliability. Confirmatory study will be done in order to be able to address the issue of business school and management performance in detail; the performance variables validation is confined to three Indonesian Business Schools that meet several characteristics. The research provides a PMS Model developed by considering four performance levels (1) Foundation, (2) Basic Information, (3) Designing PMS, (4) Mechanism of performance measurement, with three perspectives for school of business and management performance: Organizational Result Perspective, Internal Process Perspective, and Resource Capabilities Perspectives, and it consists of sixteen performance variables that consist of 50 priority indicators and 87 supporting indicators. The model integrates the managing of performance across these three levels through key areas of potential improvement and benchmarking standards qualitatively and quantitatively. The research limitations are regarding the adjustment that should be made for the certain performance variable and their related knowledge based to be implemented in the other environments.