"You can not manage what you can not measure", say the teacher of management, Peter Drucker. Spirit sentence indicates that the management of performance management or performance of the business must work through the process and measurable results. Without management based on the indicators and measurable objectives, prompting a business organization can slip into a kind unit that's not productive.
In the context of measuring the performance of this company, we now know of the existence of an approach known as the Balanced scorecard. This approach has populated by Kaplan and Norton through their books, which is phenomenal, Balanced Scorecard : Translating Strategy Into Action. Balanced Scorecard understandingif can be translated as meaning a balanced result performance (balanced). It's called a balanced approach because it would measure the performance of the organization through a comprehensive four main dimensions, namely: the dimensions of financial, customer, business processes and internal dimensions of learning and growth.
The financial dimensions is the final result that wanted by a business organization. Because without that generate sustainable profit and cash flow is healthy, a company may be more feasible as the social unit. In this dimension, some of the indicators of performance (or commonly referred to as the key performance indicators, or KPI), which is often used as a reference, among others: the level of profitability of the company, the number of sales in the year (sales revenue), the level of cost efficiency of the operation (operation cost, compared to sales) , And also a number of financial indicators such as ROI (return on investment), ROA (return on assets) or EVA (economic value added).
The next dimension is the customer that's a great milestone to achieve success in the financial aspect. Because without customers, a business organization no longer have a reason to continue winded. Thus to achieve success, companies must also make a number of measures of success in the dimensions of the customer. A number of key performance indicators (KPI) that are commonly used in the dimensions of these customers include: the level of customer satisfaction (customer satisfaction index), index of the brand image, brand loyalty index, the percentage of market share, or market Penetration level.
The next dimension is dimension of internal business processes. The key question asked here is feasible: to achieve financial success and satisfaction of our customers, internal business processes that must be continuously enhanced? Some key elements in the internal business processes that fit with the optimal routes include the entire chain (supply chain) the process of production / operations, quality management, and process innovation. Some examples of KPI, which is used commonly in the dimensions of this are: the percentage of the product defect (defect rate), high speed in the production process, the number of product and process innovations are developed in a year, the number of products / services in the delivery of timely, the number of violations or SOP (Standard Operating Procedures).
The last dimension is the dimension of learning and growth. The dimensions of this would focus on the development of human resources capability, leadership potential and strength of the cult organization to continue to split the optimal point. In other words, this dimension would put a solid foundation to a business organization, so that can continue to display its superiority. Example KPI (Key Performance Indicators) that are commonly used to measure the performance of the dimensions of this are: employee satisfaction (Employee satisfaction index), level of competence the average employee, the index cultural organization (organizational culture index), or the number of hours of training and development per employee.
Thus the four main dimensions that must be managed and measured in constant performance from time to time. Basically, the four dimensions above are synergistic and mutually behubungan closely in hierarchical. A business organization is almost not possible without achieving excellence supported financially by the line of customers satisfied and loyal. And the line of loyal customers that this will never continue to grow if an organization does not have a business process that ekselen innovative. And in the end, the process of excellent working will probably only become reality if the organization is supported by a superior line of human resources, a respite leadership and a positive culture of the organization.
Business performance management organization with such an optimal must consider the fourth dimension over the intregratif. A series of key performance indicators (with the target number) for each of the above dimensions must then be monitored and identified pencapaiannya periodically (eg once a month in each session Monthly performance review meetings). Through a process of comprehensive management performance in the four dimensions of this, a business organization should continue to grow and blossom to the domain of success.
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