Abstract :

The Balanced Scorecard is a work result measurement method that is used by companies to improve executive performance so that the companies knows more about the extent of movement and development that has been achieved. Balanced Scorecard provides companies with the elements they move from an “always about finance” paradigm to a new model in which the results become a starting point for reviewing, questioning, and learning about strategic management.

The functions of the Balanced Scorecard include; as a tool to determine wheter the company’s vision and mission have been achieved; as a tool to measure the company’s competitive advantage; as a strategic guide to running a business; as a key performance indicator tool for the company; and as an analysis system enterprise learning.

The Balanced Scorecard has four perspective, namely: 1) A financial perspective, the Balanced Scorecard can explain more about achieving the vision that plays a role in realizing the increase in company wealth. 2) The customer perspective, the company needs to first determine the market segment target customers. 3) Internal business process perspective, which displays critical processes that enable business units to provide a value position that is able to attract and retain customers in the desired market segmen. 4) Learning and growth perspective, provide infrastructure for the achievement of the three previous perspective to produce long-term growth and improvement.

The Balanced Scorecard can be used not only in the strategic management of large companies, but can also be used by small and mid-sized companies. Small and mid-sized business can use a limited number of indicators, most important to make sound and rational managerial decisions.

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Keywords :

Balanced scorecard, Company development, Strategic Management

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