COMPANY PROFILE

ABC Group Indonesia

ABC Distributors ABC Parts ABC Financial ABC Asia

Marketing office in 24 cities across Indonesia

>10,000 employees

“Aiming for a continuous development of costumers engagement and satisfaction”

 PROBLEM DEFINITION &
POSSIBLE SOLUTION

FACTS:

Line employees do not Corporate executives

>95% understand business
strategies
82% experience one unsuccessful
change initiative

Unclear understanding of company’s strategies lead to unsuccessful implementation

Develop & Implement

The Balanced Scorecard

• Map the corporate strategies. The Balanced Scorecard could map the strategy into four main perspective – Financial,
Customer, Internal Process, and Learning & Growth. This will lead everyone in the company to stay on the track, aiming
the corporate main goals.
• Tools for performance monitoring. Also can be used as the basic of employees performance appraisal, performance-
based remuneration, and possibly performance-based promotion.
• Improving employees engagement. By mapping the corporate strategies through the Balanced Scorecard and cascade it
into objectives, the employees will know where their “positions” are in the company and why they are important in
striving corporate main goals.
 IMPLEMENTATION OF
THE BALANCED SCORECARD

1 2 3 4 5
Develop Strategy Cascade the Measures Analysis & report
Cascade the Strategy (can be used as
Map and its linkage, measures into performance based
Map into measures performance appraisal &
based on corporate divisional & personal on the Balanced performance-based
(KPI) and targets
strategy measures & targets Scorecard remuneration)

Strategy map example

Profit growth: 10%
Financial

Increase Profit
• Revenue: Rp 2 Trillion
Increase
• # of product sold: 1,000,000 Cost Efficiency • Cost efficiency rate: 15%
Revenue
• # of service sold: 5,500,000

• % of complaints handled: 95%

Customer

• Availability of IT-based CS
application: Jan 2018
Improve Brand • Forbes 50 Best
• % of marketing program Effective Excellent Image
Marketing After-Sales
Companies: #40
executed: 98%
Service
Int. Process

• # of new product: 100 Product Process • Average service cycle

• # of new service: 20 Development Efficiency time: 40 mins/customer
Learning &

• Average training
Growth

hours/employee: 80 Human Excellent

hours Innovation • SOP compliance rate:
Resources System &
• Employee Development Procedure 100%
engagement index: 4
• # of business process innovation: 50
 IMPLEMENTATION ALTERNATIVES OF
THE BALANCED SCORECARD

The Old-school Scorecard

IT-Based Balanced Scorecard App
(Using Ms. Office)
Sales & Marketing Division

Target (in
Perspective Objective Measures / KPI
2018)

Revenue Rp 2T

Financial Increase Revenue # of product sold

# of service sold
1,000,000

5,500,000
VS
% of marketing program
Customer Effective Marketing 98%
executed

• Implement performance-based culture • Implement performance-based culture

• Employee performance appraisal tool • Employee performance appraisal tool
• Increase employee engagement score, improve • Increase employee engagement score, improve
performance management and career planning performance management and career planning
for employees for employees
• A more systematic and attractive tool to monitor
organization’s performance
• Less bureaucratic organization
COST – BENEFIT COMPARISON
BETWEEN ALTERNATIVES

COST BENEFIT

• Human efforts
• Socializations and learning
The Old-school Scorecard costs • Cheaper
(Using Ms. Office) • Additional time • Easier maintenance
• Time for data collection and
analysis

• Software (purchase and initial • Simpler

IT-Based Balanced Scorecard installation) • Easier Adjustments
App • Training costs • Easier Analysis
• Software maintenance • Notification for all employees
CLOSING REMARKS

Implementation of Balanced Scorecard is a must in order to make all employees understand the
1 corporate strategies, know where their “positions” are in the company, and why they are important
in striving corporate main goals.

Developing & implementing the IT-based Balanced Scorecard will possibly more effective because of:
2 • More attractive;
• Simpler;
• Easier adjustments & analysis;
• Notification for all employees regarding their KPI & targets.

Key Success Factors in developing and The Balanced Scorecard includes:

3 • Top/senior management encouragement;
• Socialization of performance-based company through the Balanced Scorecard;
• Continous improvement.
THANK YOU!
© AGNIA ANDJANI
Agnia.andjani@yahoo.com