The Assessment of Company Performance Target Using Balanced Scorecard Methods

Abstract

Purpose: This study aims to determine the performance of a company by comparing the targets and company achievements to produce the final score of the balanced scorecard achieved.   Theoretical framework: This study discusses several theoretical frameworks which include Target Achievement, Company Performance and Balanced Scorecard theory along with company key performance indicators   Design/methodology/approach: This research is a descriptive study with quantitative and qualitative approaches using the calculation through the balanced scorecard concept for each key performance indicator in the four balanced scorecard business perspectives by comparing the targets and their achievements to produce the final score of the balanced scorecard achieved by the company.   Findings: The results of this study indicate that (1) The balanced scorecard achievement at Company A in 2020 is 4.15. This value indicates that the target achievement achieved by the company is slightly higher than the predetermined target. (2) Key Performance Indicators (KPI) determined by Company A in 2020 are (a) Financial perspective consisting of Profitability index, Return on Capital Employed, Return on Investment, Current Ratio reaching a cumulative Balanced Scorecard score of 1, 58. (b) Customer Perspective which is carried out by analyzing customer satisfaction which consists of physical evidence, reliability, responsiveness, assurance, and care to achieve a BSC cumulative score of 1.00. (c) Internal Business Process Perspective which consists of the innovation ratio and the compliance level ratio reaching the BSC cumulative score of 0.70. (d) Growth and learning perspective consisting of employee satisfaction, the number of employees attending education and training, education and training costs, the implementation time of 0.87.   Research, Practical & Social implications: The results are useful for decision makers in finance companies and other organizations on work culture in Indonesia because they show that the proposed practices have an important impact on organizational excellence.   Originality/value: The value of this study stems from its handling of one of the important sectors, namely the financial industry sector in companies, because this sector is considered the most important and effective in the process of corporate economic development.