IMPLEMENTATION DESIGN OF BALANCED SCORECARD AS AN ALTERNATIVE OF PERFORMANCE MEASUREMENT IN PT FREEPORT INDONESIA

• Main Author: HAMDI SHABRI (NIM : 29107147); Pembimbing : Alibasjah Inggriantara, MM, MASNI
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/18888
• Institution: Institut Teknologi Bandung

Current business world has undergone revolution in many aspect, namely, organizational forms, information technology, business-customers relation, business-supplier relation, and customer's behavior are among others. PT Freeport Indonesia as a commodity based company whose sole product is copper concentrate, also encounter the same situation. Customer's need, cost and production efficiency, and strategic plan critical to shareholder's value creation, are part of business issues yet to be solved. PTFI has strategic plan to change its production from open pit and underground to fully underground mining. The shift schedule is really tight, that will cause a declining production of <br /> <br /> <br /> copper concentrate. This situation could disturb share holder value creation of PTFI. Unsyncronized production of key divisions, division based performance measure and unfocus of company's strategic targets are the main issues, rooted from partial performance measurements dan disconnected to strategy. Nowadays, there a lot of alternatives for performance measurements, formulated by <br /> <br /> <br /> scores of management experts. Basically those strategic performance measurements try to find key success factors of aspects of business or organization, and tying the aspects to apprehend the long term strategy of its respective organization. This final project tried to elaborate 2 alternatives to current condition, namely Balanced scorecard, introduced by Kaplan in 1996 and <br /> <br /> <br /> Systemic Scorecard introduced by Leibold in 2002. Those 3 methode's analyzed using QSPM (quantitative strategic planning matrix) based on PTFI's SWOT. Result of quantification using QSPM, showed that BSC alternative, is the most suitable for PTFI's operation. Based on this result, a step by step implementation plan devised. There are 3 major steps : planning phase, development phase, and implementation phase. All those phases need 38 weeks to fully implemented.