Amara Reboan Sharing

Balanced Scorecard
Knowledge Management Sharing

Private & Internal Only

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Organizations need both Strategic and Operational
capabilities to WIN

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Organizations need both Strategic and Operational
capabilities to WIN

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 Strategy execution is now the #1 non-
financial factor driving business valuation

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Furthermore, a study shows that only 10%
company succeed in strategy execution

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Balanced scorecard implementation helps
companies focus on Strategy Execution

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This framework links Strategy and Operation
through performance management

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Balanced Scorecard has evolved as Strategic
Performance Management Tool

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David Norton Robert Kaplan
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The Premise behind the Balanced Scorecard
is that measurement motivates behavior

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Balanced Scorecard as a Dashboard

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Balanced Scorecard as a Dashboard

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 4 Original Business Perspectives

The Balanced
Scorecard model
suggest that we view
the organization from 4
perspective

Then Develop metrics,

collect data and
analyze it relative to
each of these
perspectives

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 The BSC consists four-perspectives of
building blocks with cause-effect relationship

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What is the cause-effect relationship?

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 Corporate Balanced Scorecard Map -
An Example
Enhance Long-term
Shareholder Value

Manage Cost Efficiency Increase Revenue Growth

Financial

Nurture Customer Expand Increase

Satisfaction Market Share Customer Acquisition

Customer

Achieve Drive Demand via Manage Dramatic Implement Good

Operational Customer Relation Growth through Environmental
Excellence Management Innovation Policy

Business Process

Learning & Growth

Develop Employee Enhance Employee Improve Employee

Satisfaction Productivity Appraisal System

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The architecture of BSC starts with Strategy
Map

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The BSC summarized listing Objectives,
Measurements, Targets and Initiatives

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Case : A Typical Manufacturing Strategy Map

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Case : A Typical Bank Strategy Map

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Case : A Typical Bank Measurements
at company level

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 Strategy and Balanced Scorecard

Mission –
Why We
Exist Strategic
Outcomes
Satisfied
Vision – Shareholders
What We Strategy : Balanced
Our Scorecard: Delighted
Want to Be
Customers
Game Map and
Plan KPI Excellent
Processes
Values –
What’s Motivated
Important Workforce
to Us

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 BSC and Management Strategic

1. What we want to be? - Vision and Mission

2. What we have to do? - Policy/Program/Activity
3. Where are we now? - Strategic environment analysis
4. Where should we go? - Goal and Target
5. How do we get there? - Strategic Planning, Budgeting
6. Do we succeed? - Performance measurement,
evaluation

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 BSC and Management Strategic

What we
want to be?

How do we get there?

Where are
we now?

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 Amara
Scorecard

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 Amara Mission, Vision, Strategy & Value
TO BE AN ENVIRONMENTALLY FRIENDLY COMPANY
MISSION THAT IS BENEFICIAL FOR ITS STAKEHOLDERS (Menjadi
Perusahaan yang Ramah Lingkungan dan Bermanfaat
bagi Pemangku Kepentingan )

TO BE A PLANTATION COMPANY WITH INTERNATIONAL

VISION REPUTATION (Menjadi Perusahaan Perkebunan dengan
Reputasi Internasional )

Themes:
STRATEGY 1. LANDBANK EXPANSION
2. INTENSIFICATION CURRENT ESTATE
3. IMPROVEMENT PROCESS

AMARA Culture :
VALUE
ATTITUDE – MERITOCRACY – ASCEND –
RESCPECTFUL – ABLE 26
 Amara Strategy Map (2013-2017)

Revenue & Growth Optimize Productivity & Cost / Risk

Financial

Earning
Maximize
“Manage
Revenue w/ Premium • GP Operation Cost”• EFC
Products • Net Earning
• Revenue Mix • EBITDA • Bulk target cost = CPO plus / kg
• hedged Price • PER • Freight Cost / kg
• ~ Budget

Enhance
Customer

Develop Deliver our

Fulfill Trustworthiness Provide reliable
Best Service Commitment &
High Quality & quick response
• # hrs spent w/ Customers & Helpfulness Dev. Community
• FFA % Products
• Customer Lifetime Value • customer retention rate • % On-Time-Delivery w/ Specs
Bulk • % Availability
• CS Index • % New Customer growth rate
• CP < 10 • ZAO
• Color < 3 red

Increase Productivity
Transport Mktg Plng
LC& Plant Upkeep Harvesting Processing Bulking
Internal

& Infra. & Selling

• Class Blocks • Density • Min. Restant • ER • ???
• Supplying # Ton CPO • ITO SHE
• # Ton FFB / ha • All weather road (Km)*
• Mill Utilization* • Utilization rate*
• % Lost Crops* Standard
• % Fertilizer application
• ISPO

• % IT User Satisfaction Index

• Replacement Table Chart • # applied ideas
Provide Technology
& Growth

Develop
Learning

Develop • Mentoring Index

Competence Leaders Infrastructure + R&D
• ESI
• % Matrix Completion
• 5 Culture Index
• # Avg. man-days development Create Conducive Climate & Culture • GP / emp. Comp.
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 Amara Consolidated KPI’s
Financial Customer
2013 2017
2013 2017
C1.1 FFA Prod. <2.5% - <2.0% 60% - 2% 60%-30%
F1.1 % GP 36% 46%
C1.2 CP <7 <7
F1.2 % Net Earning 13% 20%
C1.3 Color <2 <2
F1.3 EBITDA IDR 530 k IDR 700 k
C2.1 # hrs/wk spent w/ Cust. 5 hrs 5 hrs
F1.4 PER 10X 13X
C2.2 Customer Lifetime Value t.b.d NPV
F2.1 Revenue Mix – Loc:Exp 80:20 50:50
C2.3 CS Index 60% 80%
F2.2 FOB => USD 400 20% 20%
C3.1 % Availability 100% 100%
F3.1 EFC – Rp/kg (1 USD=10,000) 1300 1200 ??
C3.2 ZAO Green Green
F3.2 ~ Budget as budget as budget
C4.1 %On-Time-Delivery 100% 100%
C5.1 Customer Retention rate 90% 90%
C5.2 % New Cust. Growth 10% 10%
CAT AMR
• Net Earning • % Lost Crops
• EFC • # Ton CPO
• FFA < 2.5% • % Utilization
Internal Learning & Growth
2013 2017
I1.1 Class Blocks – A-B-C 80% 80% 2013 2017
I1.2 Avg. Supplying 3 yrs 2000 ha done
L1.1 % Matrix Completion 50% 90%
I1.3 3T Fertilizer 100% 100%
L1.2 # avg. man-days Staff up 5 days 5 days
I2.1 Density 121 126 L2.1 100% RTC/Winning Team Gol 5 – 7 Gol 4
I2.2 # Ton FFB / ha 14 Ton 22 Ton L2.2 Mentoring Index t.b.d t.b.d
I2.3 % Lost Crops 25% 0% L3.1 IT User Satisfaction Index 50% 80%
I3.1 Minimum Restant 0 0 L3.2 # applied ideas # ?? #??
I3.2 All Weather Road / km 70% 100% L4.1 ESI 70% 75%
I4.1 ER 23.5% 25% L4.2 Culture Index t.b.d t.b.d
I4.2 # Ton CPO 700 k Ton 1300 k Ton L4.3 GP / emp. comp 13 X t.b.d
I4.3 Mill Utilization rate 70% 90%
I5.1 Bulking Utilization Rate 60% 90%
I6.1 ISPO no major mandatory

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Thank you for your time

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