Deni Dwi Junico and Moses Laksono Singgih
Extended Abstract
Animal Feed Company (AFC) has the vision to be the largest agricultural company in Indonesia to provide the best quality and service. Tight competition in the current era encourages companies to improve their company performance on an ongoing basis. Currently, AFC does not have a formal system of performance measurement. The unavailability a formal performance measurement system caused the vision and mission tending to become slogans without being supported by proper strategic planning. Currently, AFC designs a performance measurement system adaptive to business processes using the Balanced Scorecard (BSC) method. Performance measurement in this study applies the Analytical Hierarchy Process (AHP) method as a method for determining to weight between perspectives, strategic objectives, and Key performance indicators (KPI) on a priority scale. This performance system design produces six strategic targets and 12 performance indicators (KPI). The implementation of this research design shows that the current performance indicator value of AFC in the second semester of 2019 is 6.04, which is at levels 4-7, and traffic lights symbolize the system as yellow. The performance shows that AFC performing quite well but still needs improvement in achieving the expected target.
Keywords: Analytical Hierarchy Process (AHP), Balanced Scorecard, Key Performance Indicator (KPI)
1. INTRODUCTION
In this era of globalization, competition in the livestock industry continues to increase. With the increase in population, the economy will automatically increase. The livestock sector is constantly increasing; it is difficult to separate it from the animal feed company, which is the most crucial factor in supporting the livestock sector. However, with high demand, the competition is getting tougher. This competition encourages the company to continue to be competitive by improving the company’s performance sustainably.
2. METHODS
AFC is a growing animal feed company on a national scale; in its efforts to improve the performance of AFC to become the largest agriculture company in Indonesia in this highly competitive business environment, the step taken is to design a performance measurement system with a balanced scorecard. The following is a conceptual framework of thought in research.
3. RESULTS
SWOT is a strategic planning method for evaluating the weaknesses, threats, strength, opportunity of an organization. SWOT analysis shows strengths and weaknesses from an internal system. Meanwhile, external factors consist of opportunities and threats. From the SWOT analysis results, the critical success factors are beneficial for determining the business strategy to achieve AFC’s strategic goals.
4. CONCLUSIONS
The performance measurement system using BSC (balanced scorecard) method has four perspectives, six strategic objectives, and 12 performance measurement indicators (KPI). The implementation of this research design shows that the current performance indicator value of AFC in the second semester of 2019 is 6.04, which is at levels 4-7, and if the traffic light system symbolizes it is classified as yellow. This performance shows that AFC is performing exceptionally well but still needs improvement in achieving the expected target.