1. Balanced Scorecard Dian Mardi Safitri dianmardi.safitri@gmail.com

2. The Balanced Scorecard Balanced Scorecard 21 languages 17 languages Ide tentang BSC diinisiasi oleh Robert S. Kaplan dan David P. Norton di Harvard Business Review tahun 1992 dalam artikel berjudul “Balanced Scorecard-Measures that Drive Performance”.

3. Success Story Bob McCool became head of Mobil NAM&R in 1992 when the past performance was not acceptable. Mobil launched its Balanced Scorecard project in 1994. From 1994 to 1998. The productivity strategy created a 20-percent reduction in the cost of refining, marketing, and delivering a gallon of gasoline. The growth strategy, with its new value proposition for targeted segments, produced increased customer satisfaction led to increased revenue that exceeded industry averages by more than 2 percent per year.

4. Mereka melakukan penelitian dengan keyakinan bahwa pendekatan pengukuran kinerja yang ada, terutama mengandalkan ukuran akuntansi keuangan telah menjadi usang

5. Research finding Balanced Scorecard — Strategic Measures That Drive Performance

6. A set of performance targets and results that show an organization’s performance in meeting its responsibilities to various stakeholders. Employee Stakeholder Group Investor Stakeholder Group Balanced Scorecard

7. Financial Perspective Objectives Key Performance Indicators Targets Initiatives STRATEGY Learning & Growth Perspective Objectives Key Performance Indicators Targets Initiatives Customer Perspective Objectives Key Performance Indicators Targets Initiatives Internal Process Perspective Objectives Key Performance Indicators Targets Initiatives Balance Scorecard Perspectives Kaplan and Norton, 1996

8. What is Financial Strategy? [to satisfy shareholders] Productivity strategy  Improve cost structure/yields  Increase asset utilization Growth strategy  Expand revenue opportunities  Enhance customer Value How to reach the financial goals? Financial Perspective

9. Performance Measures in Financial Perspective Return on investment Economic value added Sales growth rate by segment Percentage revenue from new product, service, or customer Share targeted customer an account Cross-selling Customer and product line profitability Revenue/employee Cost reduction rate Unit cost Payback Return on Capital Employed Working capital ratios (cash-to-cash cycle)

10. Information about market & customer Customer selection, acquisition, retention & growth Who are profitable customers? — Target Segmentations What do they need? [ same as the thing we serve them ] — Customer Values Propositions (e.g. QSC&V – quality, services, cleanliness, and value) Customer Perspective

11. Performance Measures in Customer Perspective Market Share: Reflects the proportion of business in a given market (in term of number of customer, dollar spent, or unit volume sold) that a business unit sells. Customer Acquisition: Measures, in absolute or relative, the rate at which a business unit attracts wins new customers or business. Customer Retention: Measures, in absolute or relative, the rate at which a business unit retains or maintains ongoing relationships with its customers. Customer Satisfaction: Assesses the satisfaction level of customers along specific performance criteria within the value proposition. Customer Profitability: Measures the net profit of a customer, after allowing for the unique expenses required to support customer.

12. Internal Process Perspective In order to serve customers’ need and satisfy other stakeholders, what process the organization need to be excellent. –The nature of the customer value proposition determines the kind of internal processes How to build excellent process to serve customer and other stakeholders.

13. Internal Process Perspective  Production Management Processes  Customer Management Processes  Innovation Process es  Regulatory & Social processes

14. Operations management processes Developing and sustaining supplier relationships Producing products and services Distributing and delivering products and services to customers Managing risks

15. Learning & Growth Perspective What competencies the organization need in order to obtain or sustain competitiveness? –Competencies’ Gap Analysis How to fill the gap between ‘what organization what to be’ and ‘its current position’ –Competencies, Employee Satisfaction and Retention –Management Information System –Corporate Culture and Motivations

16. Learning & Growth Perspective Human Capital— Employees' skills, talent, and knowledge. Organization Capital— Culture, leadership, employee alignment, teamwork, and knowledge management Information Capital— Databases, information systems, network, and technology infrastructure

17. Performance Measures in Learning & Growth Perspective Employee satisfaction Employee retention/turnover rate Employee productivity Information system availability Organizational Climate Index Personal Goals Alignment Index Staff development

18. Key Performance Indicators Derived from strategy Clearly defined/explicit purpose Mixed performance driver and outcome measures Optimum number of measures (from 15 to 25 measures) Construct Strategy Map (causal model—cause- and-effect relationships)

19. Characteristics of good performance indicators Relevant Accurate Understandable To measure things that can be measured within certain time. Comprehensive VS The main things

20. How to set targets Stretch Target – Benchmarking – Stakeholders requirement – Capacity Incremental Target – Comparing with baseline/last year Baseline Target – Natural number/Normal rate

21. Balance Scorecard: How is it “balanced” ? Financial VS Non-financial measures Tangible VS Intangible assets Long-term VS Short-term Goals Internal VS External Perspective Performance Drivers VS Outcomes Cause-and-effect relationships

22. Contribution of BSC Provide information to management and create accountability Influence behaviours Facilitate development (learn and adapt) Achieve goal congruence and make a system self-correcting Encourage continuous improvement

23. How to use the Balanced Scorecard Strategic Measurement Systems Framework for Implementing Strategy Strategic Management System

24. BSC Strategic Measurement Systems Strategy Key Performance Indicators Targets

25. BSC Framework for Implementing Strategy Strategy KPIs & Targets Initiatives & Resources

26. BSC Strategic Management System BSC & KPIs Implementation Strategic Learning Performance Report Quarterly Yearly Strategic Initiatives & Resources Strategy

27. Bagaimana Penerapan Balanced Scorecard di Berbagai Jenis Organisasi? http://kuliahdianmardi.wordpress.com