Title: EVALUATION OF STRATEGY MAP AND KEY PERFORMANCE INDICATORS (CASE STUDY: SURABAYA I ISLAMIC HOSPITAL)

Authors: DEWI MURDIAWATI

Item Type: Thesis

Affiliations: Master of Science in Management Study Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia

Publisher: Universitas Airlangga

Abstract

This research is motivated by the fact that many companies fail to execute their strategies. This failure is not due to a flawed strategy, but rather to the inability of executives to translate the strategy into their daily operational activities. To address this issue, in the early 1990s, Robert S. Kaplan and David P. Norton introduced the Balanced Scorecard (BSC) through research on organizational performance measurement. The BSC is a tool that enables organizations to translate their vision, mission, and strategy into action, providing feedback. The BSC includes a strategy map, which provides a macro view of an organization's strategy and translates it into achieving organizational goals, along with key performance indicators (KPIs) as benchmarks for performance. However, in practice, the BSC is difficult to implement. According to Kaplan and Norton, two important factors must be considered for successful BSC implementation: alignment and focus. This means that an organization adopting the BSC must ensure alignment between the BSC design, strategy map, vision, mission, and strategy. Likewise, the established KPIs must truly be indicators worthy of being used as performance benchmarks. Therefore, researchers need to conduct a study in which this study evaluates the alignment of the strategy map and KPIs established by the organization in relation to the vision, mission, strategy, and characteristics of a KPI. This study was conducted at the Islamic Hospital of Surabaya I. As a reference for alignment, researchers conducted several stages starting from the analysis of the vision and mission against the criteria of a good vision and mission, analysis of the relationship between strategy map components and the vision and mission, grouping strategy map components into a balanced scorecard perspective, and KPI analysis against the characteristics of performance measurement. The results of the study indicate that there is a relationship between the strategy map components and the hospital's vision and mission, but it does not yet cover all existing critical success factors. Meanwhile, the KPI components established by the hospital generally meet the characteristics of performance measurement. Therefore, the researchers advise the Islamic Hospital of Surabaya I to change the established strategy map with the proposed strategy map.

Keywords: Vision, Mission, Balanced Scorecard, Strategy Map, Key Performance Indicator, Alignment, Characteristics of performance measurement

Sources: http://repository.unair.ac.id/39061/