Design of Balance Scorecard-Based Key Performance Indicators Based on Organizational Vision in the Coal Mining Industry

International Journal of Current Science Research and Review ISSN: 2581-8341 Volume 08 Issue 10 October 2025 DOI: 10.47191/ijcsrr/V8-i10-47, Impact Factor: 8.048 IJCSRR @ 2025 www.ijcsrr.org 5392 *Corresponding Author: Violita Indar Pramuthia Volume 08 Issue 10 October 2025 Available at: www.ijcsrr.org Page No. 5392-5405 Design of Balance Scorecard-Based Key Performance Indicators Based on Organizational Vision in the Coal Mining Industry Violita Indar Pramuthia1, Winda Nur Cahyo2 1,2 Master of Industrial Engineering, Islamic University of Indonesia, Yogyakarta, Indonesia ABSTRACT: Facing the challenges of global competition and the dynamics of the mining industry, accurate performance measurement is crucial to ensure the sustainability and efficiency of a company's operations. A coal mining organization in Central Kalimantan does not yet have an integrated performance measurement system and relies solely on monthly production figures as a performance benchmark. This study aims to design Key Performance Indicators (KPIs) based on the Balanced Scorecard (BSC) approach, considering four main perspectives: financial, customer, internal business processes, and learning and growth. The study was conducted using a case study approach, data collection through questionnaires, interviews, and field observations, as well as analysis using the SMART approach and cut-off points. The results show that designing KPIs based on the BSC can provide a more comprehensive and strategic measurement tool for managing and evaluating company performance. The financial and customer perspectives are the main emphasis, given the importance of operational efficiency and customer satisfaction in supporting company competitiveness. In conclusion, the implementation of Balanced Scorecard-based KPIs can help PT Rimau Tangguh Perkasa improve transparency, accountability, and the effectiveness of the company's overall business and operational strategies. KEYWORDS: Balanced Scorecard, Key Performance Indicator (KPI), SMART Analysis, Mining Industry. INTRODUCTION The mining industry is a strategic sector in national economic development, yet it also faces significant challenges in terms of efficiency, safety, and sustainability. As a coal mining organization operating in Central Kalimantan, it plays a crucial role in national energy supply and regional economic growth. Amidst the pressures of global competition, commodity price dynamics, and stringent government regulations, operations are required to be not only productive but also efficient and aligned with long-term strategic objectives. However, in practice, the organization lacks a comprehensive and integrated performance measurement system. To date, company performance measurement has been limited to quantitative aspects such as monthly coal production. While these indicators are important, this approach is considered inadequate to reflect the organization's overall performance. The lack of formal benchmarks in finance, customer service, human resource development, or internal process innovation makes it difficult for the company to conduct objective and strategic performance evaluations. These limitations also impact the decision-making process, which is often based solely on intuition or is reactive to field conditions. Based on internal data for 2023–2024, total coal production was recorded at 4.1 million tons. However, the deviation from the operational cost target reached 18%, indicating inefficiencies in budget and resource management. Furthermore, the annual customer satisfaction survey only scored 72 out of 100, indicating gaps in service, delivery, and product quality consistency. Field observations also revealed disparities between work units in understanding their contribution to the overall success of the organization. The absence of a structured and directed measurement system led to each unit working based on its own orientation, without recognizing the connection to the organization's strategic objectives. The lack of integration between individual targets and the organizational vision creates conditions prone to conflicts of interest, inconsistent performance reporting, and weak accountability. In the long term, this situation will not only result in decreased productivity but also threaten the company's competitiveness in the face of uncertain global energy markets. To address these issues, organizations require a comprehensive, strategic performance measurement system that is integrated with the vision and direction of business growth. One approach that has proven effective is the Balanced Scorecard (BSC). This approach was developed by Kaplan and Norton as a method for measuring organizational performance not only from a financial perspective, but also from a customer perspective, internal business processes, and learning and growth. By using the BSC, companies can balance short-term financial indicators with non-financial factors that drive long-term success. In implementing the International Journal of Current Science Research and Review ISSN: 2581-8341 Volume 08 Issue 10 October 2025 DOI: 10.47191/ijcsrr/V8-i10-47, Impact Factor: 8.048 IJCSRR @ 2025 www.ijcsrr.org 5393 *Corresponding Author: Violita Indar Pramuthia Volume 08 Issue 10 October 2025 Available at: www.ijcsrr.org Page No. 5392-5405 Balanced Scorecard, Key Performance Indicators (KPIs) are a crucial element as a concrete representation of the strategic goals to be achieved. KPIs enable companies to measure the extent to which each process, work unit, or individual contributes to the success of the company's strategy. Selecting and designing appropriate KPIs will provide clarity of direction, increase accountability, and support an objective, data-driven evaluation process. The problem formulation in this study is designed to answer three main questions, namely: (1) how to design a Balanced Scorecard-based performance measurement system that suits the characteristics of organizations in the mining industry? (2) what are the relevant key performance indicators for each BSC perspective? and (3) how can KPI visualization be designed to support effective decision-making? These three questions form the basis for the entire performance management system design process that will be discussed in this study. The purpose of this study is to design a Balanced Scorecard-based Key Performance Indicator (KPI) system that is aligned with the organization's vision, mission, and strategy. This study also aims to identify relevant and measurable KPIs for each perspective in the BSC. By designing structured KPIs, companies are expected to improve their strategic management processes, increase operational efficiency, and strengthen accountability between work units. This study is expected to be a real contribution to the development of performance measurement systems in the mining sector, especially in Indonesia, while expanding the use of the Balanced Scorecard approach in the context of heavy and capital-intensive industries. METHOD This research method explains the detailed research framework flow and its explanation. This section explains the methods used for the research to achieve the objectives of the problem formulation. This method covers the discussion of the research object and subject, research scope, population and sample, variables and operational definitions, research instruments, data collection, data analysis, and research procedures. Figure 1. Research Flow International Journal of Current Science Research and Review ISSN: 2581-8341 Volume 08 Issue 10 October 2025 DOI: 10.47191/ijcsrr/V8-i10-47, Impact Factor: 8.048 IJCSRR @ 2025 www.ijcsrr.org 5394 *Corresponding Author: Violita Indar Pramuthia Volume 08 Issue 10 October 2025 Available at: www.ijcsrr.org Page No. 5392-5405 The following are the research steps which can be seen in the flow diagram with the following details. At this stage, the data collected includes: • PT. Rimau Tangguh Perkasa Sales Data: This data provides an overview of the company's sales performance. This information serves as the primary basis for analyzing the company's current sales performance. • Operational and Strategic Data: This data includes information on the company's ongoing operational activities and strategies. With operational and strategic data, research can identify any gaps between the designed strategy and its implementation on the ground. • Literature on the Balanced Scorecard and KPIs: Literature discussing the Balanced Scorecard (BSC) and Key Performance Indicators (KPIs) is crucial as a theoretical reference. The Balanced Scorecard is a commonly used method for measuring company performance across four key perspectives: financial, customer, internal business processes, and learning and growth. This literature also provides information on how to develop effective KPIs to monitor and improve company performance. • At the process stage, several steps are taken to implement the Balanced Scorecard and KPI in the context of, Analysis of Problems related to Company Performance Measurement, Implementation of the Four BSC Perspectives, Compiling a • Determining KPIs for Each BSC Perspective, Identifying Factors Affecting Performance Based on SMART Analysis. • The output of this research is expected to include, Recommendations and Performance Improvement Strategies Based on Balanced Scorecard and SMART Analysis, Visual KPI Dashboard for Performance Monitoring. 1. Balance Scorecard The Balanced Scorecard is an instrumentation system for business actors to control the company's organization in order to translate the company's vision and mission into a strategic measurement framework against a set of parameters (Putra & Adhitya Putra, 2019). Each comprehensive perspective, so that it can improve the company's work capabilities to create sustainable competitive advantage. In today's competitive conditions, the Balanced Scorecard contains four perspectives, namely the Balanced Scorecard Perspective, Financial Perspective, Customer Perspective, Internal Business Process Perspective and Growth and Development Perspective. The balanced scorecard consists of two words: "Balanced" and "scorecard." "Scorecard" is defined as a scorecard used to plan future scores. "Balanced" means balanced, measuring executive performance in a balanced manner across various dimensions: short-term and long-term financial and non-financial, internal and external. The Balanced Scorecard typically refers to gap analysis, which compares strategic targets with actual results. This allows organizations to identify gaps or weaknesses and then determine steps to achieve their goals. Therefore, gaps in the balanced scorecard are a crucial tool for ensuring that established strategies are effectively implemented and produce sustainable performance. Figure 2 gap balance scorecard International Journal of Current Science Research and Review ISSN: 2581-8341 Volume 08 Issue 10 October 2025 DOI: 10.47191/ijcsrr/V8-i10-47, Impact Factor: 8.048 IJCSRR @ 2025 www.ijcsrr.org 5395 *Corresponding Author: Violita Indar Pramuthia Volume 08 Issue 10 October 2025 Available at: www.ijcsrr.org Page No. 5392-5405 2. Key Performance Indicator (KPI) A Key Performance Indicator (KPI) is a variable used to quantitatively express the effectiveness and efficiency of a process or operation based on organizational targets and objectives. It serves as a tool for assessing the success of achieving organizational goals, which are manifested in specific metrics. KPIs are quantitative indicators used to assess the level of success of an activity or process in achieving strategic objectives. KPIs must meet the SMART criteria: Specific, Measurable, Achievable, Relevant, and Time-bound. Effective KPIs serve as management control tools that drive improvement and datadriven decision-making. KPI values can be obtained through various approaches, some of which are qualitative, which subjectively measure performance based on the experience or abilities of an expert or individual. The next is qualitative, which relies on structured and systematic calculations (Arlina et al., 2019). In this study, the calculations will be adjusted to standard performance, as shown in the following table Table 1 Performance Standards Indicator system Performance indicators <40 Poor 40-50 Marginal 50-70 Average 70-90 Good >90 Excellent (Source: performance measurement and improvement trienekens) Based on the Performance Indicator Standards table, it can be explained that performance assessments are divided into five main categories based on system indicator values. If the score obtained is less than 40, then the performance falls into the Poor category, indicating very low performance and requires significant improvement. If the score is in the 40–50 range, the performance is categorized as Marginal, meaning performance is still below standard and only slightly better than the Poor category. Furthermore, for a score of 50–70, performance falls into the Average category, indicating that performance has sufficiently met minimum standards, although there is still room for improvement. In the 70–90 range, performance is considered Good, meaning the system or individual is performing well as expected. Finally, if the score is above 90, performance falls into the Excellent category, reflecting an optimal level of performance, exceeding standards, and demonstrating very satisfactory achievement. With this standard, performance can be measured more objectively and its quality level can be easily mapped. 3. SMART SMART refers to an acronym developed around key characteristics related to important objectives, thus being very helpful in writing objectives that can be used as capital in evaluating the quality of proposed and implemented programs. According to Iverson (2003: 12), SMART can be seen as a program vision that stands for specific, measurable, achievable, realistic, and time-bound. Key Performance Indicators are indicators that show the value or quality of an industrial process, business, or organizational performance (Saraswati et al., 2017). 1. Specific, Specific means that the goal is concrete, detailed, focused and well-defined. The program states specific results, or precise goals.Measurable, 2. Measurable means being able to measure whether the goal has been achieved or not (numbers, quantities, and comparisons). The goal being measurable means that the measurement source has been identified and can be used to carry out progress actions towards the goal.. 3. A Achievable, Achievable concerns the question of whether the goals set can be met and achieved, the goals must be achievable. If the goals are too far in the future, care must be taken to maintain motivation to achieve them. 4. Realistic, Realistic means having the resources to complete it. Achieving objectives requires resources such as: staffing, expertise, money, equipment, etc. Most goals are achievable but may require a change in priorities to make them happen. 5. Time bound means setting a time limit for achieving a goal. The time limit needs to be both achievable and realistic. International Journal of Current Science Research and Review ISSN: 2581-8341 Volume 08 Issue 10 October 2025 DOI: 10.47191/ijcsrr/V8-i10-47, Impact Factor: 8.048 IJCSRR @ 2025 www.ijcsrr.org 5396 *Corresponding Author: Violita Indar Pramuthia Volume 08 Issue 10 October 2025 Available at: www.ijcsrr.org Page No. 5392-5405 4. Data Processing Methods The data processing method in this study was carried out through systematic stages to ensure that the final result is a Key Performance Indicator (KPI) design based on the Balanced Scorecard (BSC). For quantitative data from questionnaires, interviews, and observations with experts, the researcher used a weighted scoring technique based on two main criteria: importance and measurability. After that, a cut-off point method was used to determine which indicators passed the selection. Meanwhile, qualitative data from interviews and observations were analyzed using thematic analysis, which grouped statements and information into themes that correspond to the BSC dimensions. RESULT AND ANALYSIS 1. Vision and mission of the organization. The organization's vision is to continuously strive to become a leading and trusted coal mining company in Indonesia. While the organization's mission is to provide and give equal opportunities for everyone to develop their potential in the spirit of togetherness, optimize the best business added value for customers while maintaining environmental sustainability, implement good corporate governance in all business lines, carry out corporate social responsibility consistently. 2. Organizational Objectives Developing the coal mining sector and expanding the business into shipping, trading, and energy (including small-scale coalfired power plants) so that it can contribute to increasing operational efficiency, paying attention to environmental and social aspects. 3. SMART Analysis SMART is an acronym used as a guide in setting effective and measurable goals. This method helps ensure that the goals created can be achieved clearly and systematically. The following is a complete explanation of each element in SMART. In an effort to achieve the strategic goals of mining companies, the SMART approach (Specific, Measurable, Achievable, Relevant, Time-bound) is used, as shown in Table 4.8, to ensure that each formulated strategy is focused, measurable, realistic, relevant to the company's vision, and has a clear deadline. Specifically, the company targets improving mining operational efficiency to achieve industry-leading standards in accordance with SOPs. Furthermore, the company is committed to building harmonious working relationships with the surrounding community and creating decent jobs for local and regional workers as part of its corporate social responsibility. From a measurable perspective, the company targets an increase in mining production from 197,000 tons to 645,000 tons per year. Furthermore, local workforce satisfaction is measured through a survey, with a minimum target of 80%. The implementation of training programs, increased productivity, stakeholder support, and strengthening of the customer relationship management system are key indicators for measuring the strategy's achievement. The success of this strategy is marked by a reduction in the number of damaged heavy equipment by at least 15%, as well as an increase in the effectiveness of training programs and communication with the surrounding community. In terms of achievability, the strategy adopted takes into account the company's current conditions and resources, including technology, finance, and human resources. Training for the local workforce and community support are crucial factors in supporting the strategy's success. The strategy is also designed to be relevant to the company's vision and mission, namely to become a leading mining company in Indonesia. Therefore, increasing production and operational efficiency, as well as local community empowerment programs are positioned as important steps in line with the company's long-term goals, including achieving ISO 14001 environmental certification. Meanwhile, for timebound, the success of achieving this target is also relevant to the company's revenue growth strategy and is evaluated on an annual basis (time-bound). 4. Balanced scorecard • financial persepective The following is the financial perspective of the Balanced Scorecard at PT Rimau Tangguh Perkasa Central Kalimantan for 2023 and 2024. In the Balanced Scorecard approach, the financial perspective focuses on measuring organizational performance in terms of profits and the economic value generated. International Journal of Current Science Research and Review ISSN: 2581-8341 Volume 08 Issue 10 October 2025 DOI: 10.47191/ijcsrr/V8-i10-47, Impact Factor: 8.048 IJCSRR @ 2025 www.ijcsrr.org 5397 *Corresponding Author: Violita Indar Pramuthia Volume 08 Issue 10 October 2025 Available at: www.ijcsrr.org Page No. 5392-5405 Table 2. Financial Persepective The financial indicators in Table 4.10 reflect a balanced and proportional approach to three key financial aspects: increasing company revenue, increasing company profits, and reducing annual operating costs. The primary reason for giving equal weighting is because these three indicators play complementary and equally important roles in assessing the company's overall financial performance. A 10% weighting is assigned to each financial performance indicator equally because all three revenue, profit, and cost efficiency play an equally important role in assessing the company's overall financial performance. Revenue indicates the ability to generate income, profit reflects profitability, and cost reduction indicates operational efficiency. This balanced weighting reflects management's holistic and fair approach to the three key aspects of company finance. Data processing to determine achievement is done by dividing the actual results by the target and then multiplying by 100. The final score is obtained by multiplying the weight by the achievement and then dividing by 100. One example is the Customer Satisfaction Index (CSI) achievement. Achievement = (Realization / Target) X 100 = (30.168 / 180.00) X 100 =16.76 Value = (Weight × Achievement) /100 = (10 x 16.76) / 100 = 1.68 Achievement shows how much realization is compared to the target in the form of realization, while the value is obtained from the achievement multiplied by the weight, then divided by 100 to make the scale in accordance with the assessment system. This calculation is done for each performance indicator, then the results are added up to get the total value, for the next process which is the same and applies to all indicators contained in PT Rimau Tangguh Perkasa. • Customer persepective The following is a customer perspective from the Balanced Scorecard at PT Rimau Tangguh Perkasa Central Kalimantan for 2023 and 2024. In the Balanced Scorecard approach, the customer perspective aims to assess customer satisfaction, loyalty and clearer offerings of the company's products or services at PT Rimau Tangguh Perkasa. Performance indicators Unit Weight Target Realization Achievement value (%) 2023 2024 2023 2024 2023 2024 2023 2024 Increase company revenue Million (Rp) 10 180.000 811.875 30.168 189.724 16,76 23,37% 1,68 2,34 Increase company profits Million (Rp) 10 5.543 441.369 5.831 83.544 106.19 18.93% 10.52 1.89 Reduce company operational costs Million (Rp) 10 169.056 305.555 23.423 91.002 13,86 29,78 1.39 2.98 International Journal of Current Science Research and Review ISSN: 2581-8341 Volume 08 Issue 10 October 2025 DOI: 10.47191/ijcsrr/V8-i10-47, Impact Factor: 8.048 IJCSRR @ 2025 www.ijcsrr.org 5398 *Corresponding Author: Violita Indar Pramuthia Volume 08 Issue 10 October 2025 Available at: www.ijcsrr.org Page No. 5392-5405 Table 3. Customer Persepective The weighting of the customer perspective performance indicators in Table 4.11 is based on the importance of each indicator to the success of the company's long-term relationships with customers. The indicators "improving a clearer offering" and "increasing the number of loyal customers" are each given a weighting of 10%, as both directly impact satisfaction, loyalty, and potential business growth. A clear offering demonstrates the company's commitment to transparency and good communication, while the number of loyal customers reflects its success in building stable, longterm relationships. Meanwhile, the indicator "reducing customer complaints" is given a lower weighting, at 5%, due to its more reactive nature than the other two indicators. While important for maintaining customer image and satisfaction, this indicator is considered a risk control measure, not a primary driver of customer growth. Therefore, its lower weighting reflects its complementary role within the overall customer service strategy. These overall weightings indicate that the company emphasizes the importance of good communication and long-term relationships with customers as key to business sustainability. • Internal business process perspective The following is an internal business process perspective from the Balanced Scorecard at PT Rimau Tangguh Perkasa Central Kalimantan for 2023 and 2024. In the Balanced Scorecard approach, the internal business process perspective focuses on improving the quality of resources, simplifying operational processes and improving marketing more efficiently which can support the achievement of value for performance at PT Rimau Tangguh Perkasa. Table 4. Internal Business Process Perspective Performance indicators unit Weig ht Target Realization achievement value (%) 2023 2024 2023 2024 2023 2024 2023 2024 Improve clearer offers % 10 100% 100% 65.38 % 100% 65.38 100% 6.54 10 Increase the number of royal customers people 10 1 Buyer (PLTU) 2 Buyer (PLTU) 1 Buyer (PLTU) 2 Buyer (PLTU) 100% 100% 10 10 Reduce customer complaints % 5 5% 5 0 (no compla ints) 0 (no complai nts) 100% 100% 5 5 Performance indicators unit Weight Target Realization achievement value (%) 2023 2024 2023 2024 2023 2024 2023 2024 Increase the number of effective and efficient marketing % 10 100% 100% 65% (Domestic PLN) 65% (Domestic PLN) 65% 100% 6.5 10 Improving the quality of resources and technology people 5 4 4 2 4 50% 100% 2.5 5 Improve the monitoring system process in business processes % 5 6 SNI standard 6 SNI standard 6 SNI standard 6 SNI standard 100% 100% 5 5 International Journal of Current Science Research and Review ISSN: 2581-8341 Volume 08 Issue 10 October 2025 DOI: 10.47191/ijcsrr/V8-i10-47, Impact Factor: 8.048 IJCSRR @ 2025 www.ijcsrr.org 5399 *Corresponding Author: Violita Indar Pramuthia Volume 08 Issue 10 October 2025 Available at: www.ijcsrr.org Page No. 5392-5405 The weighting of performance indicators within the internal business process perspective in Table 4.12 reflects the company's strategic priorities in ensuring operational sustainability and efficiency. Indicator weights within the internal business process perspective are assigned based on their priority level relative to achieving the company's operational objectives. The effective marketing indicator receives the highest weighting (10%) because it directly impacts market expansion and revenue growth. The human resources quality, technology, and monitoring system indicators each receive a weighting of 5%, as they support operational efficiency and sustainability. This weighting reflects the company's primary focus on market growth while maintaining internal quality and compliance with standards. • Growth and learning perspective The following is a growth and learning perspective from the Balanced Scorecard at PT Rimau Tangguh Perkasa Central Kalimantan for 2023 and 2024. In the Balanced Scorecard approach, the growth and learning perspective aims to develop HR capacity, performance management and organizational culture so that it can support long-term growth and innovation at PT Rimau Tangguh Perkasa. Table 5. Growth and Learning Perspective The weighting of performance indicators within the internal business process perspective in Table 4.13 is based on each indicator's role in enhancing the company's long-term capabilities. Indicators within the growth and learning perspective are weighted based on their contribution to enhancing the company's capabilities. Efficiency and effectiveness, as well as employee training, are given the highest weighting (10% each) because they directly impact operational performance and human resource development. Meanwhile, the performance management system receives a lower weighting (5%) because its function is more as a supporting evaluation tool, rather than a primary driver. This weighting emphasizes the importance of efficiency and human resources as the company's top priorities. 5. Key performance indicator design results The results of the key performance indicator questionnaire serve as a validation tool and refinement of the KPI design to ensure it aligns with organizational needs. Its function is to test the feasibility, relevance, and acceptability of KPIs so they are ready to be implemented as a performance measurement tool. The data processing methods used in this study were the cut-off point and balanced scorecard methods. The first step was to calculate the average score for each question in the table below. Performance indicators Unit Weight Target Realization Achievement Value (%) 2023 2024 2023 2024 2023 2024 2023 2024 Improve efficiency, fairness and effectiveness % 10 100% 100% 90% 95% 90% 95% 9 9.5 Improve training for employees activity 10 4 4 2 4 50% 100% 5 10 improve the performance management system % 5 Implementation of 6 SNI standards Implementation of 6 SNI standards 6 Standards applied 6 Standards applied 100% 100% 5 5 International Journal of Current Science Research and Review ISSN: 2581-8341 Volume 08 Issue 10 October 2025 DOI: 10.47191/ijcsrr/V8-i10-47, Impact Factor: 8.048 IJCSRR @ 2025 www.ijcsrr.org 5400 *Corresponding Author: Violita Indar Pramuthia Volume 08 Issue 10 October 2025 Available at: www.ijcsrr.org Page No. 5392-5405 Table 6. Key Performance Indicator Design Results Persepektive KPI Measure Respondents Average 1 2 3 4 5 Financial Increase company revenue Percentage of revenue target achievement (Rp) 3 3 3 3 3 1,5 Increase company profits Percentage of net profit target achievement 3 2 3 2 3 1,3 Reduce company operational costs Percentage reduction in annual operating costs 2 2 3 2 2 1.1 Customer Improve clearer offers Percentage of sales realization from target (volume/tonnage) 3 3 2 3 3 1,4 Increase the number of royal customers Number of active fixed customers (PLN, export, etc.) 3 3 3 3 3 1,5 Reduce customer complaints Percentage of complaint reduction / number of resolved complaints 2 3 3 3 2 1.3 Internal Business Processs Increase the number of effective and efficient marketing Percentage of marketing distribution realization according to plan 3 3 3 3 3 1,5 Improving the quality of resources and technology Number of participants in technology/work competency training 3 2 3 3 3 1,4 Improve the monitoring system process in business processes Number of SNI/SOP standards implemented and complied with 3 3 3 3 3 1,5 Learning and Growth Improve efficiency, fairness and effectiveness Percentage of work process efficiency (time, cost, quality) 3 3 3 3 3 1,5 Improve training for employees Number of training programs implemented as planned 2 2 3 2 3 1.2 improve the performance management system Number of KPI management monitored by the system (manual/IT) 3 3 3 2 2 1.3 Then, we perform calculations using the cut-off point formula to determine the level of need for a criterion. We use the following formula: Calculation: 𝐶𝑢𝑡 𝑂𝑓𝑓 𝑃𝑜𝑖𝑛𝑡 = 𝑀𝑎𝑥 𝑆𝑐𝑜𝑟𝑒 + 𝑀𝑖𝑛 𝑆𝑐𝑜𝑟𝑒 2 𝐶𝑢𝑡 𝑂𝑓𝑓 𝑃𝑜𝑖𝑛𝑡 = 1,5 + 1,1 2= 1,3 Based on the Cut-Off Point calculation of 1.3, average values ≤1.3 will be removed or eliminated from the KPI indicator (shaded in red). The Cut-Off Point calculation then yields the selected KPI results, as shown in the table below. The Cut-Off Point calculation is the value limit or dividing point used to identify categories or decisions in a measurement or analysis. Its function is to assist decision-making in research, evaluation, and performance management. The selected KPI results are shown in the table below.