Balanced Scorecard is a carefully selected set of measures derived from an organization's strategy that represent a tool for leaders to use in communicating to employees and external stakeholders the outcomes and performance drivers by which the organization will achieve its mission and strategic objectives. The scorecard provided a framework for organizing strategic objectives into the four perspectives, e.g. Financial, Customer, Internal Business Processes, Learning and Growth.



PT. Astra CMG Life (ACMGL) as a joint venture company in life insurance services that face tight competition in Indonesian market is seeking new management method to improve its overall performance. The company has assigned a group from IPMI Business School to assess and develop Balanced Scorecard framework in company level and one divisional level. The assessment and development process start from business process review, internal survey to ACMGL employees, in-depth interview to managerial level, and use of secondary data of Customer Satisfaction Index (CSI).



The Balanced Scorecard frameworks developed by the group recommend some action plans which align the Key Performance Indicators (KPI), Key Success Factors (KSF), and the Drivers to its Business Perspectives. ACMGL might implement the proposed action plans in company level and derive it into divisional practices for getting involvement of its employees. The implementation of Balanced Scorecard framework developed by the group should be monitored continuously and adjusted accordingly in order to get optimum result.



Research Location: P. T. Astra CMG Life

Supervisor: Junius Tirok, Ph. D.

Accepted: 25 August 2003



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