A Proposed Corporate Performance Management System Using the Balanced Scorecard for PT PJM

Abstract

PT PJM experienced significant financial losses in 2023 due to high operational costs and inadequate profit margins, highlighting inefficiencies in its performance management. The absence of a comprehensive Performance Management System (PMS) limited the company’s focus to financial metrics, neglecting critical dimensions such as customer satisfaction, operational efficiency, and employee development. This research aims to address these challenges by proposing a Balanced Scorecard (BSC) framework tailored to PT PJM’s needs to improve profitability and efficiency. The study employed a mixed-methods approach, utilizing primary data from interviews and observations and secondary data from the company’s financial records. Key Performance Indicators (KPIs) were developed to align with the BSC framework, focusing on financial, customer, internal processes, and learning and growth perspectives. This multi-dimensional framework allows PT PJM to address operational inefficiencies and improve overall performance. The findings indicate that implementing the BSC-based PMS can optimize operational costs, improve customer satisfaction, enhance employee competency, and ultimately drive sustainable growth. This research not only provides actionable recommendations for PT PJM but also contributes to the literature on strategic performance management in medium-sized enterprises in emerging markets. Future research could explore the application of this framework in other regions or industries to validate its effectiveness and scalability.