BALANCED

SCORECARD
[measure up to your goals]

2016

The Strategic Learning Process

Conduct Situation
Analysis
Learning Loop

Implement and
Experiment

Issues and Alternatives

Define Strategic
Choices and Vision

GAPS

Action Plan
Measures and
Rewards, People,
Structure and
Process, Culture

Mobil USM&R
From what I can see, we had a good quarter even though
financial results were disappointing. The poor results
were caused by unusually warm winter weather that
depressed sales of natural gas and home heating oil. But
market shares in our key customer segments were up.
Refinery operating expenses were down. And the result
from our employee-satisfaction survey were high. In all
the areas we could control, we moved the needle in the
right direction.
[Executive Vice President of Mobil Corporation]
3

Hambatan dalam
Melaksanakan Strateji dalam
Visi, misi serta strateji perusahaan sulit
Perusahaan

untuk dijabarkan menjadi tindakan-tindakan

yang harus dilakukan.
Strateji tidak berhubungan dengan tujuan
departemen, kelompok, serta individu yang
ada dalam perusahaan.
Strateji tidak dihubungkan dengan alokasi
biaya
Umpan balik yang diperoleh lebih bersifat
taktis dan bukan bersifat strateji
4

[The Dilbert Principle]

The first step in developing a vision statement is to lock
the managers in a room and have them debate what is
meant by a vision statement, and how exactly it differs
from a mission statement.
These are important questions, because one wrong move
and the employees will start doing vision things when
they should be doing mission things and before long it
will be impossible to sort it all out.

Concept and Definitions

V ision a challenging and imaginative picture of the future role and objectives of an
organization, significantly going beyond its current environment and competitive position
Mission statement defines the core purpose of the organization why it exist. The
mission examines the raison detre for the organization beyond simply increasing
shareholder wealth, and reflects employees motivations for engaging in the companys
work.
Values are the timeless principles that guide an organization. They represent the deeply
held beliefs within the organization and are demonstrated through the day-to-day
behaviors of all employees.
Objectives or goal State more precisely than a mission statement what is to be
achieved and when the results are to be accomplished.
Strategies The principles that show how an organizations major objectives or goal are
to be achieved over a defined time period. Usually confined only to the general logic for
achieving the objectives.
6

Mission Statement

Merk To preserve and improve human life.

3M to solve unsolved problem innovatively
Wal-Mart to give ordinary folks the change to
buy the same things as rich people
Walt Disney to make people happy
Marriott To make people away from home feel
that they are among friends and are really
wanted.

Translating a Mission into Desired Outcomes

Mission
Why we exist
Core Values
What we believe in
Vision
What we want to be
Strategy
Our game plan
Balanced Scorecard
Implementation and Focus
Strategic Initiatives
What we need to do
Personal Objectives
What I need to do

Strategic Outcomes

Satisfied
Shareholde
r

Delighted
Customer

Effective
Processes

Motivated & prepared

Workforce
8

Vision Statement

Concise [Starbucks 2000 stores by 2000]

By the end of this decade, to land a man on the
moon (JFK Vission for NASA)
Consistent with mission and values
Verifiable
Feasible the vision statement should not be the
collectives dreams of senior management, but
must be grounded solidly in reality.
Inspirational The vision statement should not
only guide, but also arouse the collective passion
of all employees the vision must be
understandable to every conceivable audience
from the boardroom to the shop floor.
9

Defining Your Focus

Positioning is sacrifice, as the saying goes.
Trying to be all things to all people is a recipe
for failure. Instead, pick a place to play where
you have a shot at being the best, where its
possible to know your customers and the market
superlatively well.
The longer and smarter you work at it, the
better youll become at serving these customers
and the harder it will be for competitors to
emulate your strategy.
10

USM&R Segment

Road Warriors (18 %) Generally higher-income,

middle-age men who drive 25.000 to 50.000 miles
a year, buy premium gasoline with a credit card,
purchase sandwiches and drinks from the
convenience store, will sometimes wash their cars
at the carwash.
True Blues (16 %) Usually men and women with
moderate to high incomes who are loyal to a
brand and sometimes to a particular station;
frequently buy premium gasoline and pay in cash
Generation F3 (27 %) (F3 fuel, food and fast)
Upwardly mobile men and women half under 25
years of age who are constantly on the go; drive
a lot and snack heavily from the convenience
store.
11

USM&R Segment

Homebodies (21 %) Usually housewife

who shuttle their children around during
the day and use whatever gasoline station
is based in town or along their route of
travel.
Price Shoppers (20 %) Generally arent
loyal to either brand or a particular
station, and rarely buy the premium line;
frequently on tight budgets; the focus of
attention of marketing efforts of gasoline
companies for years.
12

USM&R Renewed Strategy

USM&R decided that its efforts should be focused

on the first three of segments (61 % of gasoline
buyers), and not attempt to attract the pricesensitive but low-loyality price shopper segment
that accounted for only 20 % of consumers
The new strategy required a commitment to
upgrade all service stations so that they could
offer fast, friendly, safe service to three targeted
customer segments.
Currently, C-stores were snack shops that catered
to gasoline purchasers impulse buying. USM&R
wanted to redesign and reorient its C-stores so
that they would become a destination stop,
offering consumers one-stop, convenient shoping
for frequently purchased food and snack items
13

About strategy

Understanding To get thousands of people in large

corporation moving in the same direction, they must all
understanding the strategy
Different activities Strategy is about choosing a
different set of activities than your rivals, the pursuit of
which leads to a unique and valueable position in the
market.
Trade-offs Strategies is more about the choice of
what not to do than what to do
Fit The activities chosen must fit one another for
sustainable success.
Continuity although major structural changes in the
industry could lead to a change in strategies, generally
they should not be constantly reinvented.
14

Aligning the Lever of Your

Organization
Measures and Rewards
Measurement and Reward
Systems

People
Competencies and
Motivation,

STRATEGY
STRATEGY

Structure and Process

Organization design,
Decision Processes, and
Information Systems

Culture
Widely Shared Beliefs and
Behaviors
15

Konsep Penting dalam

Balanced-Scorecard
Pengukuran kinerja pada tingkat
bisnis (business-unit level)
Hubungan sebab-akibat
Pengukuran yang bersifat keuangan
dan non-keuangan yang dikaitkan
dengan starteji perusahaan
Penyebaran strateji perusahaan agar
dimengerti dan dilaksanakan oleh
seluruh pegawai perusahaan.

16

Empat Perspektif dalam

Balanced Scorecard

17

Perspektif Keuangan (Financial)

Perspektif Pelanggan (Customer)
Perspektif Internal Bisnis (Internal
Business)
Perspektif Pembelajaran dan Pertumbuhan
(Learning and Growth)

Yesterday
Financial
Perspective
To Succeed financially, how
should we appear to our
shareholders?

Today

Today

Customer
Perspective
To achieve our vision, how
should we appear to our
customers?

VISION and
STRATEGY

Internal Business
Process Perspective
To satisfy our shareholders,
and customers, what business
processes must we excel at?

Learning and
Growth Perspective
To achieve our vision, how
will we sustain our ability to
change and improve?

Tomorrow

Source: Adapted from Robert S. Kaplan and David P. Norton, Using the Balanced Scorecard as a Strategic Management System

18

Pengukuran dalam
Perspektif Keuangan

Peningkatan nilai pemegang saham

> pengukuran melalui ROI/Accounting Profit
> pengukuran melalui EVA

Revenue Growth Strategy

Productivity Strategy

19

The Revenue Growth Strategy

20

Build the Franchise Membentuk sumber-sumber

pendapatan yang baru, terutama berasal dari pasar
yang baru, ataupun pelanggan yang baru. Strategi ini
mencerminkan adanya perubahan yang cukup besar
dan memerlukan waktu yang relatif lama untuk
membuahkan hasil
Increase Customer Value Memperdalam kerja
sama perusahaan dengan pelanggan-pelanggan yang
sekarang ini telah memiliki perusahaan. Strategi ini
lebih bersifat jangka menengah dalam hal waktu, dan
dapat dilakukan dengan cara seperti cross selling, dan
pemberian solusi bagi pelanggan.

The Productivity Strategy

21

Improve Cost Structure Mengurangi biaya-biaya

produksi yang bersifat langsung maupun tidak
langsung, dan pemakaian sumber daya secara
bersama-sama dengan Strategic Bisnis Unit (SBU)
lainnya.
Improve Asset Utilization Mengurangi modal kerja
dan aktiva tetap yang dipergunakan untuk
mendukung suatu tingkat operasi perusahaan, dengan
cara memperbesar pemakaian aktiva, proses akuisisi
yang berhati-hati, serta membuang / menjual sebagian
dari aktiva yang dimiliki.

THE CUSTOMER PERSPECTIVE CORE MEASURES

MarketShare
Share
Market
Customer
Customer
Acquisition
Acquisition

Customer
Customer
Profitability
Profitability

Customer
Customer
Retention
Retention

Customer
Customer
Satisfaction
Satisfaction
Market
Share
Customer
Acquisition
Customer
Retention
Customer
Satisfaction
22
Customer
Profitability

Reflects the proportion of business in a given market (in terms of number of customers,
dollars spent, or unit volume sold) that a business unit sells.
Measures, in absolute or relative terms, the rate at which a business unit attracts or wins
new customers or business.
Tracks, in absolute or relative terms, the rate at which a business unit retains or
maintains ongoing relationships with its customers.
Assesses the satisfaction level of customers along specific performance criteria within
the value proposition.
Measures the net profit of a customer, or a segment, after allowing for the unique
expenses required to support that customer.

Pengukuran dalam
Perspektif Pelanggan
Market Share
Customer Retention
Customer Acquisition
Customer Satisfaction
Customer Profitability

23

How the Company Differentiates Itself

from Competitors?

24

Product Leadership A product leadership company

pushes its products into the realm of the unknown, the
untried, or the highly desirable. Sony Corporation and
Intel Corporation.
Customer Intimacy A customer intimate company
builds bonds with its customers; it knows the people it
sells to and the products and services it needs.
Operational Excellence Organization pursuing an
operational excellence discipline focus on low price,
convenience, and often no frills

A GENERIC ORGANIZATIONS
VALUE CHAIN

Customer
Innovation/
Management
Product Development
Processes

(Generation and Retention)

Build the
Franchise

Increase
Customer Value

Operational/
Product Delivery

Achieve Operational
Excellence

Regulatory &
Environmental
Processes

Be a Good
Corporate Citizen

25
Adapted from: The Strategy Focused Organization Robert S. Kaplan, David P. Norton

Pengukuran dalam Internal

Business Processes
Innovation/Product Development
Customer Management Processes
Operational/Product Delivery
Regulatory & Environmental
Processes

26

Perspektif Internal Bisnis

Innovation
Processes

Strategy

Product
Leadership

Customer
Management
Processes

Operational
Processes

Invention
Product

Development
(speed to

Exploitation

market)

Customer
Intimacy

Solution

development
Customer service
Relationship Management

Supply

Chain Management
Operations Efficiency
Capacity Management

Operational
Excellence
Strategic Practices

27

Meet Basic Requirements

THE LEARNING & GROWTH

MEASUREMENT FRAMEWORK
Core Measurements

Results
Results

Employee
Employee
Retention
Retention

Employee
Employee
Productivity
Productivity
Employee
Employee
Satisfaction
Satisfaction

Enablers
Staff
Staff
Competencies
Competencies
28

Technology
Technology
Infrastructure
Infrastructure

Climatefor
for
Climate
Action
Action

Learning and Growth Perspective

29

Strategic Competencies The strategic skills and

knowledge required by the workforce to support the
strategy.
Strategic Technologies The information systems,
database, tools, and network required to support the
strategy.
Climate for Action The Culture shifts needed to
motivate, empower, and align the workforce behind the
strategy.

Pengukuran dalam Learning

and Growth
Employee competencies
Information systems capabilities
Motivation and reward system

30

Strategy Maps

31

A strategy map for a Balance Scorecard makes

explicit the strategys hypotheses.
Each measure of a Balanced Scorecard becomes
embedded in a chain of cause and effect logic that
connects the desired outcomes from the strategy with
the drivers that will lead to the strategic outcomes.
- Strategy maps help organization see their strategies
in a cohesive, integrated, and systematic way the
best way to understand strategy.

STRATEGIC MAP CAUSE & EFFECT

FAST FOOD RESTAURANT
Financial

ROCE

Customer

Customer
Loyalty

Internal
Business
Process
Learning &
Growth
32

Quality
Food

Fast
Service

Employee
Skills &
Attitude

PETA STRATEGI BSC

.
INSTITUSI KEUANGAN: BANK XYZ

Strategi Pertumbuhan Penjualan

Tingkatkan konsistensi penghasilan
dengan perluas produk yang dijual.
Financial
Perspective

Strategi Produktivitas
Kurangi biaya dengan meningkatkan
efisiensi pelayanan.

Tingkatkan
ROE
Perluas Jenis
Produk yang Dijual

Customer
Perspective

Tingkatkan Efisiensi
Operasi

Tingkatkan
Kepercayaan Pelanggan

Tingkatkan Kepuasan
Pelanggan atas Pelayanan

Internal
Perspective
Tingkatkan
Kualitas
Pemasaran

Bentuk
Produk
Baru

Cross-Sell
Jenis
Produk

Bentuk
Kurangi
Saluran
Pelayanan Baru Masalah

Tingkatkan
Produktivitas
Karyawan

Learning
& Growth
Perspective
Kembangkan
Ketrampilan
Strategis

Akses ke
MIS

Seimbangkan
Sistem Pengukuran
Kinerja

Tingkatkan
Waktu
Tanggapan

MOBIL NAM&Rs
STRATEGY MAP
Increase ROCE to 12%

Revenue Growth Strategy

Financial
Perspective

ROCE
Net Margin (vs. industry)

New Sources of
Nongasoline
Revenue

Increase Customer
Profitability through
Premium Brands

Nongasoline
Revenue and Margin

Volume vs. Industry

Premium Ratio

Delight the Consumer

Customer
Perspective

Basic
Mystery
Shopper
Rating
Share of
Segment

Clean
Safe
Quality
Product
Trusted
Brand

Productivity Strategy

Become
Industry
Cents Leader

Cash Expense
(Cost per Gallon)
vs. Industry

Maximize
Use of
Existing Assets

Cash Flow

Win-Win Dealer Relations

Differentiators

Speedy
Purchase

Friendly,
Helpful
Employees

Recognize
Loyalty

34
Adapted from The Strategy Focused Organization Robert S. Kaplan, David P. Norton

More
Consumer
Products

Help Develop
Business
Skills

Dealer
Profit
Growth
Dealer
Satisfaction

MOBIL NAM&Rs
STRATEGY MAP (Contd)
Build the Franchise Increase Customer
Value
Create
Nongasoline
Products and
Services

Internal
Perspective

New Product
ROI
New Product
Acceptance
Rate

Understand
Consumer
Segments

Improve
Hardware
Performance

Share of Target
Segment

Best in Class
Franchise
Team

Yield Gap
Unplanned
Downtime

Dealer Quality
Rating

Improve
Environmental,
Health and
Safety

Improve
Inventory
Management

On Spec
On Time

Dealer Quality
Rating

Be a Good Neighbor

Achieve Operational
Excellence

Inventory
Levels
Run-out Rate

Environmental
Incidents
Safety
Incidents

Industry Cost
Leader

Activity Cost
vs.
Competition

A Motivated and Prepared Workforce

Climate for Action

Learning &
Growth
Perspective

35

Aligned
Personal Growth

Personal Scorecard
Employee Feedback

Competencies

Technology

Functional Excellence
Leadership Skills
Integrated View

Process Improvement
Y2K

Strategic Skill
Coverage Ratio

Systems Milestones

Adapted from The Strategy Focused Organization Robert S. Kaplan, David P. Norton

Achieving Strategic Alignment

A prerequisite for implementing startegy is that all

employees, senior corporate executive, and the board of
directors understand the strategy and the required
behavior to achieve the strategic objectives
Communication and Education Program
Once a base level of understanding exist, individual and
teams throughout the business unit must translate the
higher level strategic objective into personal and team
objectives. Goal Setting Programs
Alignment of the organization toward the startegy must
ultimately be motivated through the incentive and reward
systems Reward System Linkage
36

Linking Strategy to Budgets

Translate strategy into a Balanced Scorecard, defining the strategic

objectives and measures.
Set stretch targets for specific future times for each measures.
Identify planning gaps to motivated and stimulate creativity.
Identify strategic initiative and resource requirements to close the
palnning gaps, thereby enabling the strech targets to be achieved.
Authorize financial and human resource for the strategic initiatives.
Embed these requirements into the annual budget. The annual
budget comprises two components; a strategy budget to manage
efficiency of departments, functions, and line items.

37

Strategic Budgeting

The Balanced Scorecard strategic planning process is :

Strategy Objectives Measures Targets(stretch) Initiatives.

The strategic budget authorizes the initiatives required to

close the planning gap between desired breakthrough
performance and that achievable by continous
improvement and business as usual.
The scorecard provides a framework and the discipline
to screen initiatives, identify missing ones, and
communicate to all employees the ultimate source of
new ideas, intiatives, and programs where new
initiatives could be most valuelable.
38

Updating the Scorecard : Store

24

Store 24s motto was Ban Boredom. Overall

financial performance was fine, but customer
feedback surveys showed low differentiation of
Store 24 from its competitor.
Customer recognition of the enjoyable
experience that we sought to create was
particularly low. Customer told us that they
valued fast service and good selection most.
Store 24 introduced new customer strategy
under the banner Cause You Just Cant Wait.
This strategy focused on three features; fast
and efficient (in and out), find what you want
(selection), and good stuff (quality).
39

Updating the Scorecard : Store

24

The Balanced Scorecard was updated to reflect

this shift. In the financial perspective, the
measure percent sales from new item replaced
net sales from new concepts, to reflect the
new emphasis on interesting selection.
The customer feedback surveys dropped the
customer-intimacy measurement of enjoyable
experience. In its place, a competitive
comparison measures was added to determine
whether Store 24 was succeeding in creating
differentiation through its new strategy of speed,
quality, and selection.
40

Peranan BSC dalam Pengendalian

Operasional dan Manajemen
Hal-hal yang harus diperhatikan :
Siapa yang dapat mengakses dan
mempergunakan sistem BSC ?
Bagaimana cara kita
mengkomunikasikan kinerja ?
Apakah BSC akan menciptakan
persaingan atau kerjasama ?
Apakah BSC akan menambah
jumlah laporan yang ada sekarang ?
41

Siapa yang dapat mengakses dan

mempergunakan sistem BSC ?

Pertanyaan yang mendasar apakah startegi perusahaan

sebaiknya hanya diketahui oleh top manajemen atau
seluruh jajaran yang ada dalam perusahaan.
Jika yang mengetahui hanya top manajemen, maka
tidak akan optimal, karena bawahan hanya akan
berupaya untuk mencapai target yang ditentukan
perusahaan, tanpa mengetahui makna target tersebut.
Contoh Mobil USM&R
Disini peranan dari sistem IT menjadi penting, agar
seluruh organisasi dapat melihat dan terus memonitor
kemajuan dari target-target yang telah ditetapkan,
salah satunya adalah penggunaan intranet.

42

Bagaimana Cara Perusahaan

mengkomunikasikan Kinerja ?

Jika pelaporan dilakukan secara terbuka, maka semua

orang mengetahui prestasi dari setiap orang yang ada
dalam perusahaan tersebut.
Keadaan seperti itu bukan untuk menciptakan
persaingan yang ketat antar personel yang ada dalam
perusahaan tersebut.
Keadaan seperti ini dipergunakan untuk menciptakan
kerjasama yang didasarkan pada knowledge sharing,
serta keterbukaan antara atasan-bawahan, dan juga
antara sesama rekan kerja untuk memecahkan
masalah tersebut.
Untuk itu perusahaan harus menciptakan culture
yang tidak buru-buru menghukum jika kinerja buruk,
namun lebih mementingkan dialog untuk memecahkan
masalah-masalah tersebut.
43

Apakah BSC menambah jumlah

laporan yang ada sekarang ?

Penggunaan Balanced Scorecard membuat

perusahaan dapat melakukan fokus pada
beberapa KPI (Key Performance Indicator)
yang dianggap paling penting (karena paling
terkait dengan strategi perusahaan), sehingga
BSC bukan menambah laporan, bahkan
mungkin saja dapat mengurangi laporan.
Contoh JP Morhan memiliki 1.100
pengukuran, kemudian City of Charlotte
memiliki 1.000 pengukuran, ada juga
perusahaan Indonesia yang memiliki KPI
banyak sekali.

44

Menghubungkan BSC dengan

Sistem Kompensasi ?

Suatu upaya untuk melakukan pengendalian

dengan baik, harus dihubungkan dengan
sistem pengukuran kinerja dan sistem
kompensasi yang baik.
Jika upaya penyusunan anggaran dan
pengendalian sudah dikaitkan dengan BSC,
namun tidak halnya dengan pengukuran
kinerja dan kompensasi, maka hal tersebut
akan menciptakan keadaan yang tidak
optimal.
45

The Balanced Paycheck

Typically companies used three financial measures and

assigned 40 percent of weight to financial measures. The
most common measures were net income, operating
margin, and revenues, although ROCE, EVA , and revenue
growth were also often used.
The customer measures, receiving about 15 percent to 20
percent of the weight. Customer Satisfaction, customer
retention, and new customer were the most often used
metrics.
Internal business process metrics represents about 25
percent of weight.
The learning and growth metrics, receiving about 15
percent to 20 percent of the weight.
46

How Many Measurements ?

Today most organization already have many more

than 16 and 25 measures to keep themselves
functioning.
Typical allocation across the four perspective are:
* Financial - 5 measures (22 percent)
* Customer 5 measures (22 percent)
* Internal Business 8 to 10 measures (34 percent)
* Learning and growth 5 measures (22 percent)

47

Design Failures

Companies may use too few measures (only one or two

measures per perspective)
Fail to obtain a balanced between the outcomes they are
trying to achieve (lag measurement) and the performance
drivers of those outcomes (lead measurement).
Far too many measures and never identify critical few.
Business and shared service units are not aligned with an
overall startegy If each business units follows its own
path in developing a Balanced Scorecard, organizations will
not have a common strategic vocabulary Many large
enterprises lost interest in the scorecard concept because
each unit did it differently, with no overall coordination or
linkage for group and corporate level synergies.
48

Process Failures

Lack of senior management commitment

To few individuals involved
Keeping the scorecard at the top
Too long a development process: The Balanced
Scorecard as a one time measurement project
Treating the Balanced Scorecard as a systems
project.
Hiring inexperienced consultants
Introducing the Balanced Scorecard only for
compensation.
49

The end , and .

Thank You

50