Clarifying the Business Strategy of the Indonesian Pawning State Company: Combining AHP and Balanced Scorecard

Kirti Peniwati
PPM Graduate School of Management
Nani Koespriani
PPM Graduate School of Management

Publication date: Aug, 1999

Journal: Proceedings of the fifth International Symposium on The Analytic Hierarchy Process

Publisher: Creative Decisions Foundation

Abstract: The most source of failure in implementing business strategy of company is because of the inability to translate business strategy to strategic actions. Translating strategic objectives into strategic actions is very important since it will determine the strategy implementation success. Balance Scorecard has been proven as an effective method to translate the strategic objectives into strategic actions. It shows the cause- effect relationship among many aspects in the company, as well as relationship between strategic objectives, performance criteria and strategic actions. Nevertheless, this cause-effect relationship could even more be clarified and sharpened using the AHP. Many strategic actions that could not be derived from BSC method, could be derived using AHP resulting in clearer strategic actions that have to be taken by many units of the company.

Keywords: AHP, Balanced Scorecard