BALANCE SCORE CARD
PERFORMANCE MANAGEMENT THINKING
FRAMEWORK
If we can measure it, we can manage it
If we can manage it, we can achieve it
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Definition
• Menurut Kaplan dan Norton
[1996], Balanced Scorecard
merupakan:
“…. a set of measures that gives top
managers a fast but comprehensive
view of the business….includes financial
measures that tell the results of action
already taken…complements the
financial measures on customer
satisfaction, internal processes, and the
organization’s innovation and
improvement activities operational
measures that are the drivers of future
financial performance.”
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Definition
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Definition
• The traditional Balanced Scorecard supplemented
traditional financial measures with criteria that in
addition measured performance from those of
customers, internal business processes, and learning
and growth.
• The new Balanced Scorecard translates a business
unit's mission and strategy into tangible objectives
and measures. The measures represent a balance
between external measures for shareholders and
customers, and internal measures of critical business
processes, innovation, and learning and growth.
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The Strategy Focused
Organization
Vision –
What we aspire to be
Mission –
What we do
Goals -
What we want to achieve
Strategies – How we accomplish our goals
Measures –
Indicators of our progress
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The Balanced Scorecard
Management translates its strategy into performance
measures that employees understand and accept.
Customers
Financial
Performance
measures
Internal
business
processes
Learning
and growth
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The Balanced Scorecard
How do we look
to the owners?
In which internal
business processes
must we excel?
How can we
continually learn,
grow, and improve?
How do we look
to customers?
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Financial Perspective
• “To succeed financial, how we
should appear to our shareholder?”
• Financial performance measures
indicate whether the company’s
strategy, implementation and
execution are contribution to bottom
line improvement
• Typically are related to profitability:
Operating Income, ROCE, EVA, Sales
Growth, Cash Flow Increases
siklus hidup produk
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Financial Perspective
• How do we look to stockholders?
– Survive
– Succeed
– Prosper
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Customer Perspective
• “To achieve our vision, how should
we appear to our customers?”
• To identify the customer and
market segments in which the
business unit will complete and
their performance in these target
market
• Typically includes customer
satisfaction, customer retention,
new customer acquisition, customer
profitability analysis
• Enables managers to articulate
their unique customer for producing
superior future financial returns
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Customer Perspective
• How do our customers see us?
– New products
– Responsiveness
– Quality
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Perspektif Pelanggan
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Perspektif Bisnis Internal
• To satisfy our shareholder and
customers, what business
process must excel at? – the
business processes: innovation,
operations and post sales
services
• To identify the critical internal
processes in which the company
must excel, in order to increase
customer satisfaction
• Typically includes: time need to
produce a new product, product
cycle time, machine efficiency
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Perspektif Bisnis Internal
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Internal Business Perspective
• At what must we excel currently?
– Manufacturing/service excellence
– New product/service introduction
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Perspektif
Pertumbuhan dan Pembelajaran
• “To achieve our vision, how will we
sustain our ability to change and
improve?”
• Identify the infrastructure that the
company must build to create longterm growth and improvement
• 3 principles sources: people, systems
and organizational procedures
• Typically includes: employee
satisfaction, employee retention,
employee training, and employee skill
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Innovation and Learning
Perspective
• Can we continue to improve and create value?
– Technological leadership
– Time to market
– Employee training and satisfaction
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Cause effect relationship
FINANCIAL
Return on Capital Employed/
Economic Value Added
CUSTOMER
Customer loyalty
On time Delivery
INTERNAL BUSINESS PROCESS
Process Quality
LEARNING and GROWTH
Process Cycle Time
Employee Skills
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Advantages
•
•
•
•
Comprehensive
Coherent
Balance
Measurable
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Example
FINANCIAL PERSPECTIVE
Operating Income, ROI, EPS, cash Flow, Economic value added
OBJECTIVES
To Succeed
Financially,
how should
we appear
to our
shareholder
To increase
market value
of the
company by
18%/year
over 5 years
MESAURES
TARGETS
INITIATIVES
Operating
Income
Increasing by 10%
each year
Control sales
return
Return On
Employed Capital
Increase by 5% each
year
Monitor account
receivables
Operating
expenses
Decreases by 1% of
sales/year
Monitor rework
Cash Flow
Increase by 5% each
year
Negotiate credit
terms
Sales Growth
Increase by 5% each
year
Win customer
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ACTUAL
PERF.
DIVIATIONS
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The End
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