Bagaimana Konsep Balance Scorecard? Berikut Penerapannya [Portal HR]

Summary

In this video, the speaker discusses the Balanced Scorecard concept for managing company performance. They highlight how traditional financial measures like profit margins and turnover cannot capture long-term company prospects. The Balanced Scorecard, introduced by Kaplan and Norton, includes four perspectives: Learning & Growth, Internal Processes, Customer, and Financial. These perspectives are interlinked, with improvements in employee skills leading to better processes and, eventually, higher customer loyalty and financial returns. Various performance indicators like employee skills, on-time delivery, and customer loyalty (e.g., NPS) are explored. The session concludes with a promise to discuss the PLN sport framework in the next episode.

Takeaways

• 😀 The balanced scorecard (BSC) is a tool for measuring performance in companies, offering a broader view beyond traditional financial metrics.
• 😀 Financial metrics like gross profit margin and net profit margin do not capture long-term prospects, such as employee training outcomes.
• 😀 Employee training costs are typically recorded as expenses in financial reports, but their impact on productivity and cost reduction is not immediately visible.
• 😀 The Balanced Scorecard, introduced by Kaplan and Norton in the 1990s, addresses the limitations of relying solely on financial performance measures.
• 😀 The BSC consists of four perspectives: Financial, Customer, Internal Processes, and Learning & Growth.
• 😀 The 'Balanced' aspect of the scorecard refers to balancing the revenue (Customer perspective) with the costs (Internal Processes and Learning & Growth).
• 😀 Cause-and-effect relationships exist between the four perspectives, where improvements in Learning & Growth lead to better processes and customer outcomes.
• 😀 A focus on employee skill development through Learning & Growth leads to increased process quality, faster processing times, and improved customer delivery.
• 😀 Customer loyalty, an important aspect of performance, can be measured using the Net Promoter Score (NPS) and repeat customer ratios.
• 😀 On-time delivery and process cycle time are key internal process metrics that help evaluate operational efficiency and customer satisfaction.
• 😀 Employee skills and competencies are critical metrics to assess, and they influence the overall performance of the organization in achieving its strategic goals.

Q & A

What is the balanced scorecard concept mentioned in the transcript?

The balanced scorecard is a strategic performance management tool that includes four key perspectives: learning and growth, internal process, customer, and financial performance. It helps organizations measure and improve various aspects of their performance beyond just financial metrics.

Why can't financial reports alone be used to measure a company's long-term performance?

Financial reports, such as gross profit margin or inventory turnover, focus on short-term financial metrics. They fail to capture long-term factors like employee training, which can lead to productivity gains and cost reductions that are not immediately visible in financial statements.

How does employee training impact the company's performance?

Training improves employees' skills, leading to increased productivity. Although the costs of training are reflected as expenses in financial reports, the long-term benefit is higher efficiency, reduced production costs, and improved overall company performance.

What led Kaplan and Norton to develop the balanced scorecard?

Kaplan and Norton, during a research study in 1990, realized that financial metrics alone were insufficient for measuring long-term company performance. They observed that companies using non-financial metrics, like customer satisfaction and internal processes, were achieving better results.

What are the four perspectives of the balanced scorecard?

The four perspectives of the balanced scorecard are: 1) Learning and Growth, 2) Internal Processes, 3) Customer, and 4) Financial. Each perspective helps track different aspects of organizational performance, from employee development to customer loyalty and financial returns.

Why is the balanced scorecard called 'balanced'?

The balanced scorecard is considered 'balanced' because it includes both financial and non-financial metrics. Financial performance measures the outcome, while non-financial metrics focus on the inputs, such as employee skills, internal processes, and customer satisfaction.

How does employee learning and growth influence company performance?

Improved employee skills lead to better internal processes, faster production cycles, and higher product quality. This, in turn, enhances customer satisfaction, timely deliveries, and ultimately, company profits.

What is the formula for calculating Return on Capital Employed (ROCE)?

The formula for ROCE is EBIT (Earnings Before Interest and Taxes) divided by total assets minus current liabilities. This ratio measures the efficiency of a company in generating profits from its capital.

What is the Net Promoter Score (NPS) used for?

The NPS is a measure of customer loyalty. It is calculated by subtracting the percentage of detractors (customers who are dissatisfied) from the percentage of promoters (customers who would recommend the product). A higher NPS indicates better customer loyalty.

How is on-time delivery measured in the context of performance?

On-time delivery is calculated by comparing the number of delayed shipments to the total shipments made. The resulting percentage reflects how reliably the company delivers products on time to customers.