Balanced Scorecard definition

Balanced Scorecard consists of two words and the Balanced Scorecard.

The Balanced Scorecard some sense according to some experts:

a. According to Kaplan and Norton (1996) The Balanced Scorecard consists of two words, namely:

Scorecard: It is the card used to record the score results of the performance of a person that will be used to compare with actual performance results.

Balanced: Indicates that the personnel or employee performance is measured in a balanced and considered from two aspects, namely the financial and non financial, short term and long-term and in terms of internal and external.

b. According to Yuwono et al (2003: 8)

Balanced Scorecard is a management system, measurement, and control the rapid, accurate and comprehensive to provide insight to managers about business performance. Performance measurement are looking at the business unit from four perspectives, namely financial perspective, customer perspective, internal business process perspective and learning and growth perspective.

c. According to Govindarajan (2003: 151)

Balanced Scorecard is a tool to see clearly the organization, enhance communication, establish organizational goals and feedback to the strategy.

d. According to Hansen and Mowen (2006: 521)

Balanced Scorecard is a strategic management system that translates the vision and strategy into operational size objectives.

e. According to Vincent Gasperz (2002: 9) in his book entitled "The Balanced Scorecard with six sigma" points out:

Balanced scorecard is a performance measurement system management or strategic management system derived from the vision and strategies and reflect the most important aspects of a business.

f. According to Widjaja Single Amin (2002: 1) in his book entitled "Understanding the concept of Balanced Scorecard" is as follows:

Balanced Scorecard is an integrated set of performance measures derived from corporate strategy to support the overall corporate strategy

Some understanding of the above can be concluded that the Balanced Scorecard is a management measure that is able to implement the organization's strategic goals of the organization through four basic perspectives (financial, customer, internal business processes, and growth), with the aim of improving organizational performance in the long run.

Kaplan and Norton (2000) mentions that the Balanced Scorecard is a management system to implement strategy, measure performance not only in terms of money alone but also involve non-financial side, as well as to communicate the vision, strategy, and expected performance. In other words, performance measurement is not done solely for the short term, but also for the long term. So that an organization uses the Balanced Scorecard measurement focus in order to produce a variety of critical management processes, namely:

a. Translating Vision and Mission

To determine the size of the company's performance, the organization's vision translated into goals and objectives. Vision is a picture of the conditions that will be realized by the organization in the future which is usually expressed in a declaration or a few short sentences. To realize the conditions described in the vision, the company needs to formulate a strategy. A goal is a condition of the company that will be realized in the future and is a further elaboration of the vision of the company which became one of the basis for the formulation of a strategy to formulate it. In the strategic planning process, this goal is translated into strategic objectives with measures of achievement.

b. Communication and Relationships

Balanced scorecard to show each employee what the company is to achieve what the wishes of shareholders and consumers for the purpose of the required performance of a good employee.Therefore, the balanced scorecard showing the overall strategy that consists of three activities, namely Comunicating and Educating, Setting Goals and Linking Reward to Performance Measures

c. Business Plan

The business plan allows organizations to integrate the business plan and financial plan. Almost all organizations currently implementing a wide range of programs that have the advantages of each competing with each other. These circumstances make it difficult to integrate the manager of the ideas that emerged and different in every department. However, by using the balanced scorecard as a basis for allocating resources and set up which is more important to be prioritized, will move in the direction of the company's long-term goals as a whole.

d. Feedback and Learning

The fourth process will provide the company's strategic learning.With the balanced scorecard as a central system of the company, the company can monitor both what has been produced by the company in the short term, of which there are three pespektif namely: customers, internal business processes and learning and growth to be used as feedback in evaluating the strategy.

The concept of Balanced Scorecard is a concept of performance measurement that provides a comprehensive framework to translate the vision into the strategic goals of a comprehensive strategic.Sasaran it can be formulated into Balanced scorecard, Balanced scorecard for using the four perspectives are interrelated to one another and can not be dipisahkan.Keempat juaga a perspective of performance measurement indicators that are complementary and mutually causal relationship. (Mulyadi, 2001: 7)

sumber : penelitian ilmiah "Analisis Kinerja Perusahaan dengan Menggunakan Metode Balanced Scorecard (BSC) pada PT. Bank Rakyat Indonesia. Tbk"