Implementation of Balanced Scorecard as a Performance Evaluation

(Case Study at CV. Pelita Aluminium Surabaya)

Abstract

In today’s increasingly competitive business environment, companies need accurate and comprehensive performance measurement systems. Organizations must consider not only financial aspects but also non-financial factors such as customer satisfaction and employee development. However, many companies still rely on traditional systems that focus mainly on financial indicators, overlooking other critical elements of success. To overcome this limitation, the Balanced Scorecard can be applied as a more comprehensive approach. It integrates financial and non-financial perspectives by translating a company’s vision, mission, and strategy into clear objectives and performance indicators. These are measured through four main perspectives: financial, customer, internal business processes, and learning and growth.These four perspectives are interrelated and serve as a framework to support the achievement of organizational goals. Determining and implementing appropriate strategies aligned with organizational objectives enables companies to better cope with increasingly intense competition. In its implementation, the Balanced Scorecard incorporates three key principles that link business unit strategies with performance measurement: cause-and-effect relationships, performance drivers, and the linkage between operational activities and financial outcomes. These principles help organizations achieve optimal performance results. Furthermore, the successful implementation of the Balanced Scorecard requires strong cooperation and commitment between management and employees. Without such collaboration, the Balanced Scorecard cannot be effectively implemented to support the achievement of the organization’s strategic objectives.