BALANCED SCORECARD

School of Business and Management ITB

Thursday, June 23, 2011
 Strategic Management Model
Environmental
Strategy Strategy Evaluation
and Control
Scanning Formulation Implementation and Control

External Mission
Reason for
Societal
existence
Environment Objectives
General Forces
What results
to
Task Strategies
accomplish
Environment
by when Plan to
Industry Analysis
achieve the
Policies
mission &
Internal objectives Broad
guidelines for Programs
Structure decision Process
Chain of Command making Activities to monitor
needed to performance
Culture Budgets and take
accomplish
Beliefs, Expectations, a plan corrective
Cost of the
Values action
programs
Procedures
Resources
Sequence
Assets, Skills
of steps
Competencies,
needed to
Knowledge do the job Performance

Feedback/Learning
Prentice Hall, 2004 Chapter 1 2
Wheelen/Hunger
 Basic Model of
Strategic Management

Four Basic Elements

Prentice Hall, 2004 Chapter 1 3

Wheelen/Hunger
 Strategic Decision Making

Prentice Hall, 2004 Chapter 1 4

Wheelen/Hunger
 Strategic Decision Making

Prentice Hall, 2004 Chapter 1 5

Wheelen/Hunger
Balanced Scorecard

• Balanced Scorecard provides managers with the

instrumentation they need to navigate to future
competitive success

• Balanced Scorecard translates an organization’s

vision, mission and strategy into a
comprehensive set of performance measures
that provides the framework for a strategic
measurement and management system.
Several reasons why using the BSC

• Barrier #1: Vision and Strategy is not actionable

• Barrier #2: Strategy not linked to departmental,

team and individual goals

• Barrier #3: Strategy not linked to resource

allocation
• Barrier #4: Feedback that is tactical not strategic
Four Perspectives Balanced Scorecard

• Internal Perspective

• Customer Perspective

• Learning and Growth Perspective

• Financial Perspective
Core measures
• Core financial measures
– Economic value added (EVA)
– ROI
– Profitability
– Revenue growth

• Core customer measures

– Market share
– Customer satisfaction
– Customer retention
– Customer profitability
Core measures…..cont’d
• Internal business process perspective
– Establish customer management
– Establish operations management
– Create product innovation
– Achieve environmental and social responsibility

• Learning and growth measures

– Employee satisfaction
– Employee retention
– Employee productivity
The Balanced Scorecard Framework
Financial Perspective
Long-Term
Shareholder
Value
Productivity Productivity

Customer Perspective
Product/Service Attributes Relationship Image
Price Quality Time Function Partnership Brand

Internal Process Perspective

Manage
Manage Manage Manage Regulatory
Operations Customers Innovation and Social
Processes

Learning and Growth Perspective

Human Capital Information Capital Organization Capital

Linking Balanced Scorecard Measures to your strategy
EVA (Economic Value Added)
• EVA is calculated in accordance with the
following formula:
Net sales
- Operating expenses
= Operating profit (EBIT)
- Taxes
= Net operating profit after tax (NOPAT
- Capital charges (invested capital X cost of capital)
= EVA

• EVA can be calculated in the divisional level.

• The main difference between EVA and
conventional profit is: EVA is a measurement
of economic profit not accounting profit.
Revenues should be able to exceed not only
operating cost, but also capital cost.
Calculating EVA

• EVA = NOPAT – capital charges; where

– NOPAT is operating profit after tax
– Capital charges = invested capital X WACC.

• WACC is the weighted average based on market value of

cost of capital from: short-term debt, long-term debt, and
equity

• Invested capital is the sum of interest-bearing debt and

equity
Calculating EVA…..cont’d
• RONA = NOPAT / net assets

• EVA can be calculated through:

EVA = (RONA – WACC) * invested capital

• If EVA > 0, it is called value added

• If EVA < 0, it is called value destroying

 Analisa DuPont
• RONA dapat diuraikan menjadi :
NOPAT sales
RONA  x
sales average net asset
Profit margin total asset turnover
• Agregasi EVA dan RONA tidak berhenti di sana.
• Profit margin terdiri dari komponen : cost of goods sold, selling and
administrative expenses, tax, depreciation, dan personal expense – sebagai
persentase dari sales.
• Total aset turnover terdiri dari : fixed asset turnover dan working capital
efficiency.
• Selanjutnya working capital efficiency sendiri terdiri dari inventory period,
receivables period, payables periode, dan cash coversion.
• Kebayakan perusahaan EVA membuat usaha yang besar untuk perbaikan
working capital, karena biasanya komponen dari working capital – inventory,
receivables, dan payables – adalah bagian dimana manajer operasi dibawah
manajer senior memiliki kontrol yang paling besar.
Building a Balanced Scorecard
• Step 1: Select the appropriate organizational
unit
• Step 2: Identify SBU/Corporate Linkages
• Step 3: Conduct first round of interviews
• Step 4: Synthesis session
• Step 5: Executive workshop: first round
• Step 6: Subgroup meetings
• Step 7: Executive workshop: second round
• Step 8: Develop the implementation plan
• Step 9: Executive workshop: third round
• Step 10: Finalize the implementation plan
Recap Financial Statement Components

• Revenue • Inventories
• COGS • Receivables
• R&D • Account Payable
• SGAE • Fixed Assets
• Operating Profit • Debt
• Income Taxes • Shareholder’s
• NOPAT Equity
EXAMPLE
Target Objectives after 10 years
Benchmarking with Tata Steel

EVA spread after 10 years 24 %

EBITDA margin after 10 years 45 %
Profit margin after 10 years 25 %
PROFIT AND LOSS
2005 2006 2007 2008
PENJUALAN BERSIH 9,984,032 9,883,973 11,539,732 12,693,705
HARGA POKOK PENJUALAN (9,133,762) (9,503,722) (10,503,283) (10,814,389)
LABA/(RUGI) KOTOR 850,270 380,251 1,036,449 1,879,316
Persentase Laba/(Rugi) Kotor terhadap penjualan bersih 8.52% 3.85% 8.98% 14.81%

Jumlah Beban Usaha (364,501) (512,349) (684,088) (634,685)

Persentase Beban Usaha terhadap penjualan bersih 3.65% 5.18% 5.93% 5%

LABA/(RUGI) USAHA 485,769 (132,098) 170,040 1,244,631

Operating Margin 4.87% -1.34% 1.47% 9.81%

Jumlah Penghasilan/(Beban) lain-lain (307,148) 33,529 (167,534) (165,018)

EBIT 617,031 427,313 399,686 1,561,974

Depreciation 234,614 236,626 256,763 278,613
EBITDA 851,645 663,939 656,449 1,840,587

EBITDA MARGIN 8.53% 6.72% 5.69% 14.50%

Jumlah Beban (Manfaat) Pajak 53,196 - 59,792 323,884

LABA (RUGI) SBL HAK MINORITAS ATAS LABA (RUGI)

BERSIH ANAK PERUSAHAAN YANG DIKONSOLIDASI 234,351 (98,569) 125,035 755,729

Jasa Operasi (25,007) (151,146)

LABA (RUGI) BERSIH 234,351 (98,569) 100,028 604,583
BALANCE SHEET
2005 2006 2007 2008
AKTIVA
Aktiva Lancar
Jumlah Aktiva Lancar 6,096,591 4,851,952 4,738,248 5,368,379
Jumlah Aktiva Tidak Lancar 3,919,188 3,880,676 4,308,816 5,815,808

TOTAL AKTIVA 10,015,779 8,732,628 9,047,064 11,184,187

KEWAJIBAN DAN EKUITAS

Kewajiban Lancar
Jumlah Kewajiban Lancar 3,490,166 2,433,845 2,212,580 3,585,602

Jumlah Kewajiban Tidak Lancar 1,308,235 1,285,538 1,727,497 2,305,140

Jumlah Ekuitas 5,217,378 5,013,242 5,216,423 5,293,445

TOTAL KEWAJIBAN DAN EKUITAS 10,015,779 8,732,625 9,047,064 11,184,187

EVA CALCULATION
Item 2005 2006 2007 2008
NOPAT
Operating profit 485,769 (132,098) 170,040 1,244,631
Interest income 9,567 9,461 14,787 63,469
- income tax (53,196) 0 (59,792) (323,884)
- tax shield on interest (65,762) (78,882) (64,458) (76,162)
NOPAT 376,379 (201,519) 60,577 908,054

Capital charges
Inv.capital end of year 8,220,685 7,059,527 6,766,158 7,893,671
Inv.capital beginning of year 6,170,623 8,220,685 7,059,527 6,766,158
Inv.capital (average) 7,195,654 7,640,106 6,912,843 7,329,915
Capital charges 1,313,147 1,213,382 1,097,880 1,145,328

EVA (936,769) (1,414,901) (1,037,302) (237,274)

PERHITUNGAN MARKET VALUE

ROIC 5.23% -2.64% 0.88% 15.38%
WACC 18.25% 15.88% 15.88% 15.63%
Spread -13.02% -18.52% -15.01% -0.25%

Invested Capital 7,640,106

PV of EVA (1,414,901) (896,130) (177,478)

Total PV EVA 8,055,701

Total Debt 3,719,383.00
Market value equity PT. KS 11,976,423
20% equity 2,395,285
PBV 2.39
BPF KS Q2-2020 & RJPP 2007 - 2011

“Achieving a Positive EVA Company”

Revisi per 14 September 2006

Divisi Perencanaan Strategis
New Vision & Mission
PERUSAHAAN BAJA KELAS DUNIA WORLD-CLASS STEEL COMPANY

V1  VISI 2008: PERUSAHAAN BAJA, UNGGUL DALAM EFISIENSI DI ASEAN V1  VISION 2008: COST-EFFICIENT LEADER IN ASEAN STEEL INDUSTRY
V2  VISI 2013: PERUSAHAAN BAJA TERPADU SECARA VERTIKAL V2  VISION 2013: VERTICALLY INTEGRATED STEEL COMPANY
V3  VISI 2020: PERUSAHAAN BAJA TERPADU TERBESAR DI ASEAN V3  VISION 2020: THE LARGEST INTEGRATED STEEL COMPANY IN ASEAN

V1  VISI 2008: PENYEDIA BAJA DUNIA DENGAN BIAYA KOMPETITIF V1  VISION 2008: COST-COMPETITIVE GLOBAL STEEL PROVIDER
V2  VISI 2013: PEMAIN BAJA TERPADU DUNIA YANG DOMINAN V2  VISION 2013: DOMINANT INTEGRATED GLOBAL STEEL PLAYER
V3  VISI 2020: PEMAIN BAJA DUNIA TERKEMUKA V3  VISION 2020: LEADING GLOBAL STEEL PLAYER


MISI
Kami adalah keluarga masyarakat dunia yang

MISSION
We are the part of the responsible members of a global
berbudaya, mempunyai komitmen untuk menyediakan society, committed to provide steel and steel related
baja dan produk terkait dengan pendekatan menyeluruh products with holistic approach producing industry an
yang menghasilkan solusi industri dan infrastruktur infrastructure solutions for the prosperity of the society
untuk kesejahteraan masyarakat
Definition of Vision

VISION MISSION
VISION 2008: COST-COMPETITIVE GLOBAL STEEL We are the part of the responsible members of a global
PROVIDER society, committed to provide steel and steel related
VISION 2013: DOMINANT INTEGRATED GLOBAL STEEL products with holistic approach producing industry an
PLAYER infrastructure solutions for the prosperity of the society
VISION 2020: LEADING GLOBAL STEEL PLAYER

DEFINISI VISI PERUSAHAAN:

VISION 2008: COST-COMPETITIVE GLOBAL STEEL PROVIDER
Produk PT KS unggul berdasarkan harga yang kompetitf dan dapat bersaing dengan produk kompetitor (import & export)
dengan kualitas setara. Semua aktivitas di dalam value chain perusahaan termasuk kegiatan ekspansi perusahaan
difokuskan ke dalam penciptaan keunggulan dengan biaya yang efisien. Pemanfaatan bahan baku dan energi lokal serta
penggunaan teknologi yang tepat menjadi kunci dalam penciptaan keunggulan biaya (cost leadership).

VISION 2013: DOMINANT INTEGRATED GLOBAL STEEL PLAYER

PT Krakatau Steel menjadi perusahaan baja terpadu yang diperhitungkan di tingkat dunia, unggul dengan high-end product
yang didukung oleh cost competitiveness, dengan kapasitas total 8 juta ton, diantaranya dicapai melalui joint venture,
penempatan modal (equity placement) dan akusisi perusahaan baja di dalam negeri dan regional.

VISION 2020: LEADING GLOBAL STEEL PLAYER

PT Krakatau Steel menjadi perusahaan baja global yang menyediakan solusi berbasis baja, dengan kapasitas total 20 juta
ton, yang masuk di dalam list perusahaan baja terkemuka versi World Steel Dynamic atau IISI, aktif melakukan aliansi
strategis dan akuisisi baik dalam rangka integrasi vertikal (hulu-hilir) maupun horisontal dengan pabrik baja di dunia.
 KS Business Policy Framework Voyage Plan BPF KS Q2-2020
CHALLENGES
• Resistance to change VISION
• Production capacity lower than demand Vision 2008: Cost-competitive global steel provider
• Capital-intensive expansion requirement
INTERNAL

Vision 2013: Dominant integrated global steel player

• Obsolete IT infrastructure & information islands
• Inadequate HR competency at certain levels Vision 2020: Leading global steel player
• Inconsistent application of R/M procurement
policy
STRATEGIC POSTURE 2020
• Inadequate mastery of steel technology
• Bureaucracy BUSINESS & FINANCIALS PEOPLE & ORGANIZATION
PRODUCT & SERVICE SCOPE VALUES
• Unstructured regional autonomy • Flat Product: Slab, HRC/P, CRC/S, Coated steel & Derivatives
• Shortage of energy supplies and raw materials • Long Product: Billet, Bloom, Wire Rod & Derivatives INPUT PROCESS OUTPUT
• Inability to compete with product substitutes • Engineering & Management Services • Self-leadership • Fairness • QCDS-based
• Unpredictable business (market & forex) risks • Infrastructure Rural & Urban • Professionalism: • Independence Customer
• Unfair trade practices (dumping, etc) • Industrial Development Package Integrity, • Transparency satisfaction
EXTERNAL

• Lack of government support for steel industry MARKET SCOPE Loyalty, • Accountability • Corporate
• Time frame for privatization • HRC/P Segments: Manufacturing, Shipping and Container, Innovative, • Teamwork Social
Automotive, Coil Center, Packaging, Construction, Piping and Competent, • Speed Responsibility
• Escalation of environment issues Tube, Distributor Religious, • Participative • Public image
• Competitor growth CHALLENGES & CONSTRAINTS• CRC/S: Home & Office Appliances, Automotive, Coil Center, Honest, • Mutual respect • Shareholder
• Export of Services Product Pipe/Tube, Enamel Ware, Tin Mill Black Plate, Packaging, GI Discipline • Trust Value
• Rapid innovation requirements in the future Sheet • Team playership
• Industry flexibility in the future • Slab, Billet, Bloom: Manufacturing
• Wire Rod: Nail, Wire Mesh, High Carbon, Electrode, Bolt and INFRASTRUCTURE
Nut, Cold Heading, Spring Wire, Automotive • Krakatau Steel Office/Branch in major industrial cities
CONSTRAINTS • Coated Steel: Roof, Galvalum, Ducting, Home & Office in Indonesia
• Worldwide Sales Office Network (China, Europe, north
• Free trade penetration Appliances, Electro Galvanizing
• Special Steel America, Philippines, Thailand, Malaysia, Vietnam,
• Poor law government enforcement Myanmar, Middle East)
• Low effectiveness in prevention of illegal • Engineering, Procurement & Construction (EPC)
• Financial Network
imports GEOGRAPHICAL SCOPE • 20 million ton Controlled Production Capacity
• Domestic 60% ; Export 40% (e.g. ASEAN, Japan, China, North
• Unstable socio-political climate America, Europe, Australia, Middle East)
• Jasa Engineering, Procurement & Construction (EPC)
• Inadequate land availability in Cilegon • Dermaga Curah 200,000 DWT*
TECHNOLOGICAL SCOPE • Total Power Plant 1200 MW*
• Inadequate utilities & infrastructure in Cilegon • Gas-based and Coal-based process technologies
• The China Factor • Water Utility Capacity 5,000 L/sec (Incl. Water
• e-Commerce Treatment)*
• Inadequate financing support • Flexible Manufacturing • Environment-Friendly Infrastructure
• EPC • Transportation Network
• Efficient Process Technology, e.g. Thin Slab Flat Rolling, Direct • Infrastructure Gas Industry
Smelting. • Adequate Mining Resources
MISSION • Waste Management Technology / Waste Recycling Process • Adequate Industrial Complex (outside Cilegon)
• Energy Center • Lands availability
We are responsible members of a global
society, committed to provide steel and steel
WAYS TO WIN COMPETITION FINANCIAL POSITION
related products with holistic approach • Solution-based Marketing • Large prod. capacity base • Assets: IDR … T (USD … Billion)*
producing industry and infrastructure Approach • Innovative Logistic • EVA (+)
• Consistent Product & Service Methods, e.g. counter • ROI >= …%*
solutions for the prosperity of the society Quality trade, consignment, e- • ROE >= …%*
• Reliable On-time Delivery procurement • Price/Book Value >= …*
• Cost Competitiveness • Market research and • Company Rating = ID Bond Rating ‘AAA’*
• Strategic Alliances, M&A business intelligence
• Energy & Raw Material • Innovative Marketing
Resources Methods, e.g. distribution, Note: *) Subject to further discussion
• Highly Competent HR & Dual Very Close to the
Frame Organization Customer
• Long-term versus Short-term • Good Corp. Governance
Business Outlook • Strategic Financing
• Enterprise wide Risk Method
CURRENT Management FUTURE
 RJPP 2007-2011
PT KRAKATAU STEEL
(revisi)
VISI & MISI
VISI 2008 : COST-COMPETITIVE GLOBAL STEEL PROVIDER
• Produk PT KS unggul berdasarkan harga yang kompetitif dan dapat bersaing dengan
produk kompetitor (import & export) dengan kualitas setara.
• Semua aktivitas di dalam value chain perusahaan termasuk kegiatan ekspansi
perusahaan difokuskan ke dalam penciptaan keunggulan dengan biaya yang efisien.
• Pemanfaatan bahan baku dan energi yang efisien serta penggunaan teknologi yang tepat
menjadi kunci dalam penciptaan keunggulan biaya (cost leadership).

VISI 2013 : DOMINANT INTEGRATED GLOBAL STEEL PLAYER

• PT KS menjadi perusahaan baja terpadu yang diperhitungkan di tingkat dunia
• PTKS unggul dengan high-end product yang didukung cost competitiveness
• Kapasitas total 10 juta ton, diantaranya dicapai dengan joint venture, penempatan modal
(equity placement) dan akuisisi perusahaan baja di dalam negeri dan regional.

MISI
Kami adalah keluarga masyarakat dunia yang mempunyai komitmen untuk menyediakan
baja dan produk terkait dengan pendekatan menyeluruh yang menghasilkan solusi industri
dan infrastruktur untuk kesejahteraan masyarakat
 Milestone Visi
• 35% sales volume HVA
• Equal cost than best in class
• JV/build iron making plant • 45% sales volume HVA
• Privatization/IPO/Bosnd issue • JV/build iron & steel making + rolling plant
• Profit more than Rp. 800 bio • Profit more than Rp. 1000 bio
• Good performance of MBNQA • EVA positive
Score • Emerging industry leader of MBNQA Score (576-675)
(476-575)

2007 2008 2009 2010 2011

• Dominant market share (HR & CR) • 40% sales volume HVA • 50% sales volume HVA
• 30% sales volume HVA • JV/built steel making & rolling plant • Output capacity output 6 mio ton
• Cost max 10% than best in class • Profit more than Rp.1100 bio • Privatization/IPO (2nd)
• Secured raw material & energy • EVA = 0 • Industry leader of MBNQA Score (676-775
supply • Emerging industry leader
• Early improvement of MBNQA Score of MBNQA Score (576-675)
(376-475)
• Profit more than Rp. 500 bio
Deployment of Strategy & Program
Strategic Map PTKS
 CEO (Direktur utama)
Strategic Objectives
Key Performance
(Key Performance Strategic Action Programs PIC
Indicators
Management)
Financial Perspective
Achieve Positive Economic - Spread EVA Maximize the use of existing assets Dir. Keuangan
Value Added (EVA) - Total asset turnover
Increase revenue growth Dir. Pemasaran
Build corporate restructuring Semua Direktur
Customer Perspective
Increase Customer Value & - Market share Enhance customer & distributor Dir. Pemasaran
Supply Chain Solution - Profit margin relationship
Capability
Improve product quality Dir. Produksi, Dir P&T
Improve OTD Dir. Pemasaran
Internal Business Process Perspective
Achieve Operational - EBITDA/sales compared Enhance customer management Dir. Pemasaran
Excelence to become the with the best in class
Create product innovation Dir. P&T
industry cost leader
Establish operation management Dir. Produksi &
Dir. SDM & Umum
Dir. P&T
Establish & build new plants Dir. P&T
Achieve Environment & social Dir. SDM & Umum
responsibility
Learning & Growth Perspective
Improve Organizational - Employee productivity Achieve high performance people Dir. SDM & Umum
Capability and Motivation
Build integrated IT Dir. P&T
Key Performance Indicators Target Dirut (CEO)
Strategic Objective KPI Formula 2007 2008 2009 2010 2011
(KPM)
Financial Perspective

Achieve Positive Spread EVA ROIC – WACC (%) (6,5) (3,2) 0,0 3,3 6,6
Economic Value Total Asset Sales / Total Asset (X) 1,16 0,75 0,64 0,81 1,04
Added (EVA) Turnover
Customer Perspective
Market share Domsetic sales / domestic
Increase Customer demand (%)
Value & Supply - CRC 55 58 62 65 65
Chain Solution - HRC 55 58,75 62,50 66,25 70
Capability - WR 31 32 33 34 35
Profit margin EBIT / Sales (%) 11 15 19 24 28
Internal Business Process Perspective
Achieve EBITDA/Sales
Operational
Excellent to EBITDA / Sales (%) 14,00 17,88 21,75 25,63 29,50
become industry
cost leader
Learning & Growth Perspective
Improve Employee Total sales volume / total ? ? ? ? ?
Organizational Productivity employee (Ton/Orang)
Capability and
Motivation
 Strategic Action Program Schedule
Strategic Action Program PIC 2007 2008 2009 2010 2011
1. Increase revenue growth Dir. Pemasaran
2. Enhance customer & distributor
Dir. Pemasaran
relationship
3. Enhance customer management Dir. Pemasaran
4. Maximize the use of existing assets Dir. Keuangan
5. Build corporate restructuring (SBU
Semua Direktur
establishment)
6. Improve product quality Dir. Produksi
7. Improve OTD Dir. Pemasaran
Dir. Produksi &
8. Establish operation management Dir. SDM & Umum
Dir. P&T
9. Create product innovation Dir. P&T
10. Build integrated IT Dir. P&T
11. Establish & build new plants Dir. P&T
12. Achiece Environment & social
Dir. SDM & Umum
responsibility
13. Achieve high performance people Dir. SDM & Umum
14. Establish organizational allignment with
Dir. SDM & Umum
strategy
Deploy Dirut To Direktur Pemasaran
 Deploy Dirut To Direktur Pemasaran
Strategic Performance
Performance Indicators Action Programs PIC
Objectives Management
Financial Perspective

Achieve Increase revenue - Revenue growth - Sell more HVA product - GM Penjualan
Positive growth - Sell more steel products - GM Penjualan &
Economic GM Pemasaran
Value Added Build corporate - Unit marketing cost - Establish marketing directorate restructuring - GM Pemasaran &
(EVA) restructuring performance GM Penjualan
Customer Perspective
Increase Enhance customer & - Customer satisfaction - Enhance distribution system - GM Pemasaran
Customer distributor index - Build total brand reputation - GM Pemasaran
Value & relationship
Supply Chain
Solution Improve OTD - % OTD - Decrease lead time with establish process - GM Penjualan &
Capability activity GM P. Produksi

Internal Business Process Perspective

Achieve Establish customer - Customer commited - Build customer rating - GM Penjualan &
Oprational management - Customer loss Perbendaharaan
Excelence to - Build customer intimacy - GM Pemasaran &
become the Penjualan
industry cost
leader - Number/Amount of claim - Effective complain process - GM Pemasaran

Learning & Growth Perspective

Improve Achieve high - Number of GM - Establish GM marketing PM & PI deployment - GM Pemasaran &
Organizational performance people marketing PI’s & monitoring GM Penjualan
Capability and achiement
Motivation
Deploy Dirut To Direktur Keuangan
 Deploy Dirut To Direktur Keuangan
Strategic Performance
Performance Indicators Action Programs PIC
Objectives Management
Financial Perspective
Maximize the use of - Working capital - Optimize working capital level - GM Akuntansi &
existing assets turnover GM
Perbendaharaan
Achieve - DER - Enhance & generate additional equity - GM
Positive Perbendaharaan
Economic - Establish privatization, divestment & bond - Ketua Tim
Value Added issued Privatisasi
(EVA)
Build corporate - Unit finance cost - Establish finance directorate restructuring - All GM Finance
restructuring performance - Coordinate unit cost performance - GM Akuntansi
- Establish KS Group Business Synergy & - GM MBAP&PP
Portfolio
Customer Perspective
Increase Enhance customer - Flexible term of - Establish term of payment system - GM
Customer & distributor payment Perbendaharaan
Value & relationship - GM Akuntansi
Supply Chain
Solution
Capability
Internal Business Process Perspective
Achieve Establish operation - Finance process - Establish finance process reengineering - All GM Finance
Operational management activity (days)
Excelence to (revitalization)
become
industry cost
leader
Learning & Growth Perspective
Improve Achieve high - Number of GM finance - Establish GM finance PM & PI deployment - All GM Finance
Organizationa performance people PI’s achiement & monitoring
l Capability
and
Deploy Dirut To Direktur Produksi
 Deploy Dirut To Direktur Produksi
Strategic Performance
Performance Indicators Action Programs PIC
Objectives Management
Financial Perspective
Achieve Build corporate - Unit production cost - Establish production directorate restructuring - All GM Produksi
Positive restructuring performance
Economic
Value Added
(EVA)
Customer Perspective
Increase Improve product - Total OK to order - Establish quality assurance & control - GM Pengendalian
Customer quality Kualitas
Value &
Supply Chain
Solution
Capability
Internal Business Process Perspective
Achieve Establish operation - Overall plant - Enhance plant reliability - GM P. Perawatan
Oprational management effectiveness - Enhance plant utilization & performance - GM Produksi
Excelence to (revitalization)
become the - Energy assurance - Assure & control energy supply - GM P. Perawatan
industry cost - Consumption rate - Maintain technology process & energy - GM Produksi
leader conservation
- Inventory turn over - Optimize inventory raw material, semi-finihsed - GM P. Produksi
& finished product
Learning & Growth Perspective
Improve Achieve high - Number of GM - Establish GM production PM & PI deployment - All GM Produksi
Organizational performance people production PI’s & monitoring
Capability and achiement
Motivation
Deploy Dirut To Direktur P&T
 Deploy Dirut To Direktur P&T
Strategic Performance
Performance Indicators Action Programs PIC
Objectives Management
Financial Perspective
Achieve Build corporate - Unit cost performance - Establish P&T directorate restructuring - All GM P&T
Positive restructuring - Establish SBU development - GM PPU
Economic
Value Added
(EVA)
Customer Perspective
Increase Improve product - No. of improved quality - Establish quality assurance & improvement - GM Ristek
Customer quality & material design
Value &
Supply Chain
Solution
Capability
Internal Business Process Perspective
Achieve Create product - Number of new HVA - Develop new product of HR, CR & WR - GM Ristek
Oprational innovation product development - Develop new application of HR, CR & WR - GM Ristek
Excelence to - Number of new product
become the application
industry cost
leader Establish operation - Consumption rate - Improve technology process & energy - GM Ristek
management - energy cost conservation
(revitalization) - Develop energy diversification
- Energy assurance - Assure and optimize energy supply - GM Ristek
Establish & build new - S-Curve project - Establish & build new plants :
plants development - Preliminary study for 20 M-Ton capacity - GM PPU
- Kalimantan pelletizing & iron making plant - Ka. Tim Ekspansi
- Mining and land banking - Ka. Tim Ekspansi
- Infrastructure & utilities development - GM Ristek & GM
- 2nd line CRM development PPU
- Plate mill development - GM Ristek & GM
PPU
- GM Ristek & GM
 Deploy Dirut To Direktur P&T
Strategic Performance
Performance Indicator Action Programs PIC
Objectives Management
Learning & Growth Perspective
Achieve high - Number of GM P&T PI’s - Establish GM P&T PM & PI deployment & - All GM P&T
performance people achiement monitoring

Improve
Organizational Build integrated IT - E-procurement - Implement ERP & manufacturing execution - GM Tek.
Capability and implementation system Informasi
Motivation - Transaction processing - Implement E-business & MES II - GM Tek.
application Informasi
Deploy Dirut To Direktur SDM & Umum (+ Logistik)
Deploy Dirut To Direktur SDM & Umum (+ Logistik)
Strategic Performance
Performance Indicators Action Programs PIC
Objectives Management
Financial Perspective
Achieve Build corporate - Unit cost performance - Establish SDM & Umum directorate - All GM SDM &
Positive restructuring restructuring Umum
Economic
Value Added Build corporate - Unit cost performance - Establish Logistik directorate restructuring - All GM Logistik
(EVA) restructuring

Customer Perspective
Increase Improve product - No. of Vendor - Verifiy & control vendor capability - GM P. Logistik
Customer quality assessment
Value &
Supply Chain
Solution
Capability
Internal Business Process Perspective
Achieve Establish operation - Raw material assurance - Assure raw material supply (pellet & scrap) - GM Pembelian
Oprational management - Assure semi-finished product supply (slab & - GM Pembelian
Excelence to (revitalization) billet)
become the
industry cost - Inventory turnover (ton) - Optimize inventory spare-part level - GM P. Logistik
leader
- SDM & Umum process - Establish SDM & Umum process activity - All GM SDM &
activity (days) Umum
Deploy Dirut To Direktur DM & Umum (+ Logistik)
Strategic Performance
Performance Indicator Action Programs PIC
Objectives Management
Learning & Growth Perspective
Achieve high - Number of GM SDM & - Establish GM SDM & Umum PM & PI - All GM SDM &
performance people Umum achivement deployment & monitoring Umum
- Coordinate all PM & PI deployment & - GM SDM
monitoring (mindset solution)
- Establish human resources development & - GM SDM
management process (related to all
company PI’s achievement)
- Recruit new employee (related to total - GM SDM
company requirement)
- Number of GM Logistik - Establish GM Logistik PM & PI deployment - All GM Logistik
Improve achivement & monitoring
Organizational - Number of competence - Establish training requirement to minimize - GM Pusdiklat
Capability and development gap competences
Motivation
- Employee satisfaction index - Establish compensation & welfare system - GM SDM
Establish - MBCfPE score - Implement MBCfPE - GM SDM
organizational
allignment with - GCG Index - Implement GCG and risk management - Ka.GCG
strategy - Culture Implementation - Implement corporate values (disiplin, - GM SDM
Index kerjasama, keterbukaan, saling
menghargai)
- 5R score - Coordinate & Implement 5R - GM SDM
- No.of Improvement - Coordinate & Implement quality circle - GM SDM