Improved performance measurement

Oct 13, 2025 by magicalceylontours.com 7 views

Measurement of Company Performance Using the Balanced Scorecard - Analytical Network Process (ANP) Approach at PT. Chevron Pacific Indonesia

Introduction

In today's fast-paced business environment, companies are constantly seeking ways to improve their performance and stay ahead of the competition. One of the key aspects of company performance is the strategy that is applied, and therefore, performance measurement becomes crucial. In this context, the Balanced Scorecard (BSC) approach has emerged as a popular method for measuring company performance. However, the BSC approach has its limitations, particularly in assigning weights to performance indicators and showing the contribution of each indicator to the achievement of company goals. To overcome these limitations, the integration of BSC with Analytical Network Process (ANP) has been proposed as an effective solution.

The Balanced Scorecard Approach

The Balanced Scorecard is a performance measurement framework that views the performance of a company from four perspectives: finance, customers, internal business processes, and learning and growth. This approach is based on the idea that a company's performance can be measured from different angles, and that a balanced view of performance is essential for making informed decisions. The BSC approach has been widely adopted by companies around the world, including PT. Chevron Pacific Indonesia, one of the largest foreign oil companies in Indonesia.

The Limitations of the Balanced Scorecard Approach

While the BSC approach has its advantages, it also has some limitations. One of the main limitations is the inability to assign weights to performance indicators, which can make it difficult to prioritize efforts and make strategic decisions. Additionally, the BSC approach does not provide a clear indication of the contribution of each indicator to the achievement of company goals. These limitations can make it challenging for companies to make informed decisions and prioritize their efforts effectively.

The Analytical Network Process (ANP) Approach

The Analytical Network Process (ANP) is a decision-making method that can be used to assign weights to performance indicators and show the contribution of each indicator to the achievement of company goals. ANP is a more advanced method than BSC, as it can handle complex relationships between indicators and provide a more comprehensive view of performance. In the context of PT. Chevron Pacific Indonesia, the ANP approach was used to integrate with the BSC approach and provide a more accurate and comprehensive view of company performance.

The Integration of BSC and ANP at PT. Chevron Pacific Indonesia

The integration of BSC and ANP at PT. Chevron Pacific Indonesia was a successful experiment that provided a more comprehensive picture of company performance. The calculation results showed that the weight for the financial perspective (finance) reached 0.627036, followed by learning and growth with a weight of 0.16861, internal business processes with a weight of 0.142236, and customers with a weight of 0.062907. These results indicate that the company's current strategy is very oriented towards achieving financial results, and that there is a need to invest more in customer satisfaction and services to increase competitiveness in the market.

Additional Analysis and Explanation

The integration of BSC and ANP not only adds value to performance measurements but also increases the clarity of strategies applied by the company. With a clear weight, management can prioritize efforts based on perspectives that make the greatest contribution to the achievement of goals. For example, a more focus on financial perspectives gives an indication that the current company strategy is very oriented towards achieving financial results. In addition, this approach also allows companies to identify areas that require more attention, such as the perspective of customers who have the smallest weight. This can be a signal that companies need to invest more in terms of customer satisfaction and services to increase competitiveness in the market.

Benefits of Using BSC and ANP

The use of BSC and ANP at PT. Chevron Pacific Indonesia provides several benefits, including:

Improved performance measurement: The integration of BSC and ANP provides a more comprehensive picture of company performance, which can help companies make informed decisions and prioritize their efforts effectively.
Increased clarity of strategies: With a clear weight, management can prioritize efforts based on perspectives that make the greatest contribution to the achievement of goals.
Identification of areas that require more attention: The ANP approach can help companies identify areas that require more attention, such as the perspective of customers who have the smallest weight.
Long-term performance monitoring: The use of BSC and ANP allows companies to monitor their performance over a long period, which can help them identify trends and make adjustments to their strategies accordingly.

Conclusion

In conclusion, the integration of BSC and ANP at PT. Chevron Pacific Indonesia provides a more comprehensive picture of company performance and increases the clarity of strategies applied by the company. The use of BSC and ANP can help companies make informed decisions and prioritize their efforts effectively, which can lead to improved performance and increased competitiveness in the market. By understanding in depth the performance metric obtained, PT. Chevron Pacific Indonesia will not only be able to survive in competition but also has the potential to lead in the oil and gas industry in Indonesia.
Frequently Asked Questions (FAQs) About the Balanced Scorecard - Analytical Network Process (ANP) Approach

Q: What is the Balanced Scorecard (BSC) approach?

A: The Balanced Scorecard is a performance measurement framework that views the performance of a company from four perspectives: finance, customers, internal business processes, and learning and growth. This approach is based on the idea that a company's performance can be measured from different angles, and that a balanced view of performance is essential for making informed decisions.

Q: What is the Analytical Network Process (ANP) approach?

A: The Analytical Network Process (ANP) is a decision-making method that can be used to assign weights to performance indicators and show the contribution of each indicator to the achievement of company goals. ANP is a more advanced method than BSC, as it can handle complex relationships between indicators and provide a more comprehensive view of performance.

Q: Why is the integration of BSC and ANP necessary?

A: The integration of BSC and ANP is necessary because the BSC approach has its limitations, particularly in assigning weights to performance indicators and showing the contribution of each indicator to the achievement of company goals. The ANP approach can help overcome these limitations and provide a more comprehensive view of company performance.

Q: What are the benefits of using BSC and ANP?

A: The use of BSC and ANP provides several benefits, including:

Improved performance measurement
Increased clarity of strategies
Identification of areas that require more attention
Long-term performance monitoring

Q: How can BSC and ANP help companies make informed decisions?

A: BSC and ANP can help companies make informed decisions by providing a more comprehensive view of company performance. With a clear weight, management can prioritize efforts based on perspectives that make the greatest contribution to the achievement of goals.

Q: Can BSC and ANP be used in any industry?

A: Yes, BSC and ANP can be used in any industry, including the oil and gas industry, where PT. Chevron Pacific Indonesia operates.

Q: How can companies implement BSC and ANP in their organization?

A: Companies can implement BSC and ANP by following these steps:

Identify the company's goals and objectives
Develop a list of performance indicators
Assign weights to each performance indicator using ANP
Monitor and evaluate performance over time

Q: What are the challenges of implementing BSC and ANP?

A: Some of the challenges of implementing BSC and ANP include:

Resistance to change from employees and management
Difficulty in assigning weights to performance indicators
Need for significant resources and time to implement

Q: How can companies overcome the challenges of implementing BSC and ANP?

A: Companies can overcome the challenges of implementing BSC and ANP by:

Communicating the benefits of BSC and ANP to employees and management
Providing training and support to employees
Allocating sufficient resources and time to implement

Q: What is the future of BSC and ANP?

A: The future of BSC and ANP is bright, as more companies are adopting these approaches to improve their performance and competitiveness. As technology continues to evolve, we can expect to see even more advanced tools and methods for implementing BSC and ANP.