Combining Analytical Hierarchy Process and Simple
Multi-Attribute Rating Technique for designing a
Sustainable Balanced Scorecard as Strategic
Performance Measurement System
One of the challenges for the companies is to set the right strategic performance measurement system that meet the need of
all business challenges but at the same time also meet the need of an efficient and effective strategic performance measurement system.
While in today's business environment, sustainability has become more important to companies in order to achieve their competitive
advantage. Therefore, integrating sustainability aspect into their strategy , identifying KPIs and priority setting are major challenges in
designing a strategic performance measurement system based on a sustainable balanced scorecard model. This research is a case study of
an education technology company in Indonesia. The aim of this research are to integrate sustainability perspective into the company's
balanced scorecard and find the KPIs to be used in the company's performance measurement system and also to identify priority level of
those KPIs. Six evaluation criteria were applied to identify KPIs. These criterias were weighted using Analytical Hierarchy Process
(AHP) and all potential indicators were weighted trough Simple Multi-Attribute Rating Technique (SMART). From this research 8
strategic objectives and 25 KPIs from 60 potential KPIs were identified, and KPI priority were set to 25 selected KPI. This article
reveals how sustainability perspective were integrated to the other 4 perspectives by adding the fifth perspective. This article also reveals
a structure to guide decision makers through a systematic process in designing a Sustainable Balanced Scorecard and its KPIs
identification and selection in order to help the company to achieve their competitive advantage.
Published In:IJCSN Journal Volume 7, Issue 4
Date of Publication : August 2018
Pages : 279-288
Figures :02
Tables : 08
Rachmat Partama Adhitya Suryaningkusuma :
Economics and Business Faculty, UPN "Veteran" University
Sleman, Yogyakarta, 55283, Indonesia.
Arief Subyantoro :
Economics and Business Faculty, UPN "Veteran" University
Sleman, Yogyakarta, 55283, Indonesia.
Sabihaini :
Economics and Business Faculty, UPN "Veteran" University
Sleman, Yogyakarta, 55283, Indonesia.
The aim of this paper was to integrate sustainability aspect
into company's strategic performance measurement system in a balanced scorecard frame work and to provide a
structure on how decision maker determine the KPIs to be
used in a strategic performance measurement system.
At the time of designing the sustainable balanced scorecard,
sustainability perspective were added as the fifth
perspective of the company's balance scorecard. This
perspective become one of leading indicator for customer
perspective and also as one of lagging indicator for internal
business process perspective.
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