Articles

Design of Balance Scorecard-Based Key Performance Indicators Based on Organizational Vision in the Coal Mining Industry

/in /by

Facing the challenges of global competition and the dynamics of the mining industry, accurate performance measurement is crucial to ensure the sustainability and efficiency of a company’s operations. A coal mining organization in Central Kalimantan does not yet have an integrated performance measurement system and relies solely on monthly production figures as a performance benchmark. This study aims to design Key Performance Indicators (KPIs) based on the Balanced Scorecard (BSC) approach, considering four main perspectives: financial, customer, internal business processes, and learning and growth. The study was conducted using a case study approach, data collection through questionnaires, interviews, and field observations, as well as analysis using the SMART approach and cut-off points. The results show that designing KPIs based on the BSC can provide a more comprehensive and strategic measurement tool for managing and evaluating company performance. The financial and customer perspectives are the main emphasis, given the importance of operational efficiency and customer satisfaction in supporting company competitiveness. In conclusion, the implementation of Balanced Scorecard-based KPIs can help PT Rimau Tangguh Perkasa improve transparency, accountability, and the effectiveness of the company’s overall business and operational strategies.

Asset Management Transformation in Energy Companies: Integration of ISO 55001, Balanced Scorecard, and SWOT Analysis for Competitive Advantage

/in /by

Asset management is a strategic component in ensuring the sustainability and operational efficiency of electric energy companies, especially in facing the challenges of increasing demand and the need for reliable electricity services. This article examines the implementation of ISO 55001 as a structured asset management system framework, with a Balanced Scorecard (BSC) approach as an integrated performance measurement tool from four perspectives: financial, customer, internal business processes, and learning and growth. The research was conducted at an electric energy provider organization, by analyzing Key Performance Indicators data for 2022–2023. The results of the BSC measurement show positive trends, such as increasing ROI, EBITDA Margin, Customer Satisfaction Index, and human capital readiness, but also reveal weaknesses such as the still high ratio of power outages and Equivalent Forced Outage Rate (EFOR). SWOT analysis is used to identify internal factors (strength and weakness) and external factors (opportunity and threat). Quantitative SWOT results show that the company is in quadrant I (aggressive strategy), with internal strengths and external opportunities dominating. Based on these findings, alternative strategies are formulated that are adjusted to each BSC perspective and ISO 55001 pillars (Cost, Performance, Risk). Strategies include optimizing asset life cycles, reducing maintenance costs, increasing distribution system reliability, and developing Human Resource capabilities. The integration of ISO 55001 and BSC has been proven to provide a holistic approach in designing data-based and risk-based strategies. These findings not only provide theoretical contributions to the development of modern asset management systems, but are also practically relevant for corporate policy makers in improving the efficiency, reliability, and competitiveness of organizations in the energy sector.

Performance Analysis and Optimization Proposal Using Balanced Scorecard Framework for IT Outsourcing Company, PT IT Expert System

/in /by

IT outsourcing companies enable businesses to delegate their IT functions, focusing on core activities, cost efficiency, and access to advanced expertise and technology. The success of these companies hinges on employee performance, influenced by factors like psychological well-being, work environment, and organizational culture. In Indonesia, the IT outsourcing industry is rapidly transforming due to increasing demand for digital solutions and technology experts. Companies strive to provide faster, more efficient services while being flexible and adaptable. The IT services market revenue in Indonesia is expected to grow from $4.89 billion in 2023 to $9.07 billion in 2028, driven by digital transformation, supportive government policies, and increased IT infrastructure investments. PT IT Expert System (PT IES), established in 2010, provides IT services like software development and IT outsourcing. Despite sector growth, PT IES’s financial performance has declined, with monthly revenue dropping from Rp. 220 million to Rp. 140 million, affecting liquidity and leading to debt for paying salaries. This financial strain is partly due to 46% of their IT professionals being idle and a lack of software development projects. The research aims to identify the main causes of PT IES’s business problems, determine an appropriate performance management system framework, and establish suitable Key Performance Indicators (KPIs). The root cause identified is the absence of a performance management system, leading to an ineffective appraisal system and poor decision-making. The Balanced Scorecard framework is recommended for PT IES, translating strategic objectives into measurable processes across four perspectives. This framework streamlines performance evaluation and forecasting. The Balanced Scorecard framework proposal includes 4 perspectives, 9 strategic themes, and 18 strategies with key objectives. These strategies are cascaded into 92 business strategies and objectives with 92 KPIs.

The Balanced Scorecard Model for Strategic Business Management

/in /by

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.