This paper discusses the challenges faced by PT. XYZ. Provide recommendations for improvements to the Performance Management System (PMS) using the Knowledge Based Performance Management System (KBPMS) framework. By lowering key performance indicators (KPI) from the division level to sections and departments, PT. XYZ aims to increase organizational effectiveness, operational efficiency and creativity. The study process entails collecting and analyzing extensive data in order to integrate KBPMS into the existing system. The results show a considerable impact on company outcomes and internal procedures. Implementation and monitoring procedures ensure long-term performance improvement. This program sets PT. XYZ for excellence in the competitive motorcycle market, the accomplishment of its mission for customer satisfaction, and global leadership.