Measuring Management Performance Using Balanced Scorecard: The Case of Small Manufacturing Company (A Case Study in PT Aseli Dagadu Djogja, Yogyakarta)

Abstract

Fachrodian,Widia (2005) "Measuring Management Performance Using Balanced Scorecard: The Case of Small Manufacturing Company" (A Case studv at PT Aseli Dagadu Djogja). Accounting Department. International Program-Faculty of Economics Islamic University of Indonesia. In a very complex and turbulent business environment, companies can no longer gain sustainable competitive advantage solely by deploying tangible assets. Companies will succeed only if they can invest and manage their intangible assets and capabilities Financial measures alone, however, are insufficient for guiding and evaluating how companies create future value through investment in customers, employees processes and innovation. Nowadays, the financial accounting model must be expanded to incorporate the valuation of the company's intangible asses and intellectual assets As a result, it raises a necessity to use balanced scorecard. The objective of the research is to know the possibility of implementing balanced scorecard as management performance measurement system in small manufacture company. The examination process are, first by describing the mission into company's strategy, next are translating and adapting them to become PT Aseli Dagadu Djogja performance measurement according to balanced scorecard classification which are dnided into lour perspective, they are financial, customer, internal business process and learning and growth. The financial perspective using income, ROI, and financial ratio as performance measurement. The customer perspective using number of sales, percentage of satisfaction, trust, and loyalty of customer as performance measurement The internal business process perspective using increasing product quality, defect product and eiiectively ol of debts collecting activity as performance measurement The learning and growth perspective using ratio of training expense toward .total employee ratio of trained employee toward total employee and the percentage of capability, commitment and readiness in facing global of employee as performance measurement,"The evaluation of each performance measurement in four different perspective showing cause and effect relationship. Based on the research result, the current performance measurement system of PT Aseli Dagadu Djogja was considered no longer adequate in responding the complex and turbulent business environment. It revealed that the management should use balanced scorecard in measuring the performance of the company. In order to be successful "it would be better to uie the form of balanced scorecard which has already determined '