Strategic Alignment And Performance Improvement Through Balanced Scorecard: A Case Study Of An Indonesian Garment Company

Abstract

The Balanced Scorecard (BSC) is a strategic framework that helps organizations measure and manage performance through four perspectives: financial, customer, internal business processes, and learning and growth. While BSC has proven effective in various industries, its application in SMEs, particularly in the creative sector, remains underexplored. This study aims to identify relevant performance indicators for a creative SME in the sports apparel industry. This exploratory study employed Focus Group Discussion (FGD) with six managerial-level participants selected through purposive sampling to ensure relevant expertise and understanding of the company’s performance system. The findings reveal key challenges across BSC perspectives: ineffective recruitment and low learning motivation in the learning and growth perspective; KPI implementation issues and operational inefficiencies in internal processes; low customer satisfaction in the customer perspective; and cost inefficiencies and financial target challenges in the financial perspective. This study recommends innovative training programs, a relevant KPI structure, workload redistribution, market-driven product innovation, and operational cost audits. These strategies are expected to improve efficiency, productivity, and overall performance. Future research should explore digital technology integration to support BSC implementation in SMEs.