1

Building a Balanced
Scorecard
Disusun Oleh :
Dedi Haryanto
Ifanny Adnan Pratama

THE BALANCED SCORECARD

Financial Perspective
Goals

Measures

Customer Perspective
Goals

Measures

VISION AND
STRATEGY

Inovation and
Learning Perspective
Goals

Measures

Internal Business
Perspective
Goals

Measures

The Balanced Scorecard

Manager can build a balanced scorecard by
following a logical four-step sequence
Step 1 : Develop Goals and Measures for Critical Financial Performance
Variabels
The balanced scorecard retains the financial performance perspective
discussed in previous chapters because financial measures are
essential in summarizing the economic consequences of strategy
implementation. Financial performances measures indicate whether the
implementation of plans and contributing to profit improvement.

Step 2 : Develop Goals and Measures for Critical Customer

Performance Variabels
The customers perspective typically includes several core or
generic measures that relate to customer loyalty.
Financial Objectives
--------------------------------------------------------------------------------------------------------------------------------------------------------Customer Outcomes
Market
Customer
Share
Profitability
Account
Share

Customer
Retention
Customer
Acquisition

Customer
Satisfaction
---------------------------------------------------------------------------------------------------------------------------------------------------------Core Outcome Drivers and Internal
Business Process Measures

Step 3 : Develop Goals and Measures for Critical Internal

Procosess Performance Variabels
In the internal business process perspective, managers identify the critical
internal process for which the organization must excel in the implementing its
strategy.
Post-Sale
Innovation Cycle

Customer
Need
Identified

Identify
the
Market

Operation Cycle
Create
the
Product/
Service
Offeriing

Build the
Prducts/
Services

Deliver
the
Products/
Services

Service Cycle
Service
The
Custmer

Customer
Need
Satisfied

5
Innovation Porcesses
In the innovation process, managers research the needs of
customers and then create the products or services that will meet those
needs. Companies identify new market s, new customers, and the
emerging and latent needs of existing customers. Then, companies
design and develop new products and service that enable them to reach
these new markets and customers.
Operation Processes
The operations process, the second major step in the internal value
chain, represent s those processes that produce and deliver existing
products and servic es to customers. The operations process starts with
receipt of a customer order and finishes with delivery of the product or
service to the customer. These processes stress efficient, consistent,
and timely delivery of existing products and services to existing
customers.
Post-Sale Services Processes
The post-sale service process includes warranty and repair
activities, treatment of defects and returns, and the administration of
payments, such as credit card processing. Some companies have
explicit strategies to offer superior post-sale service. For example,

Step 4 : Develop Goals and Measures for Critical Learning and

Growth Performance Variabels
The fourth balanced scorecard perspective-learning and growth-identifies
the infrastructure that the organization must build to create long-term
growth and improvement. The customer and internal business process
perspectives identify the factors most critical for current and future
success. However, businesses are unlikely to be able to meet their longterm targets for customers and internal processes using todays
technologies and capabilities. Intense global competition requires
companies to continually improve their capabilities for delevering value to
customers and shareholders.

Step 5 : Use the Balanced Scorecard to Communicate Strategy

Using the balanced scorecard, top managers can measure how effective
their business units are in creating value for current and future customers,
building and enhancing internal capabilities, and investing in people,
systems, and procedures necessary to improve future performance. The
balanced scorecard captures critical value-creation activities that escape
tradisional income statement and sheets. While retaining an interest in
short-term performance via the financial perspective the balanced
scorecard clearly reveals the value drivers for superior long-term financial
and competitive performance.

TESTING THE LINKAGE OF MULTIPLE

SCORECARD MEASURES TO A SINGLE STRATEGY
Cause and effect relationships
Good measurement systems should make the relationships among goals and
measures explicit so they can be managed and validated. The chain of couse
and effect should pervade all four perpectives of a balanced scorecard.
FINANCIAL

ROCE

CUSTOMER

Customer Loyality
On Time Delivery

INTERNAL
BUSINESS
PROCESS

LEARNING AND
IMPROVEMENT

Process Quality

Process Cycle Time

Eployee Skill

Thank You !