DESIGN OF BALANCED SCORECARD AS PERFORMANCE MEASUREMENT
(Case Study of the Al-Muttaqien Large Family Savings and Loans Cooperative)
Destiana Putri Joana Sifa
Study program Accounting , Faculty of Economics and Business Widyatama University
Jl. Cikutra no. 204 A, Sukapada , Cibeunying Kidul , Bandung City 40125 [email protected]
ABSTRACT
The purpose of this research is to design a balanced scorecard as a performance measurement tool. BSC is a management tool used to enhance an organization's ability to improve performance from both financial and non-financial perspectives.
The type of research used is qualitative with a case study approach. The research results obtained are the performance of the KEBAL cooperative, which is measured by financial ratios, indicating good fund management but still needs to improve profitability. Furthermore, the design of the balanced scorecard method results in 3 strategic sub-objectives with 4 performance measures in the financial perspective, 3 strategic sub-objectives with 3 performance measures in the customer perspective, 2 strategic sub-objectives with 2 performance measures in the internal business process perspective, and 2 strategic sub-objectives with 7 performance measures in the growth and learning perspective. Thus, it can be concluded that performance measurement using a balanced scorecard is more detailed in terms of its financial aspects, and performance measurement from non-financial perspectives is obtained.
Keywords : Balanced scorecard, cooperative, performance measurement
1. INTRODUCTION
Background Behind Problem
In Law no. 25 of 1992 concerning Cooperative the explained that , cooperative aim advance well-being members in particular and society in general as well as follow build economy national in frame realize an advanced , just and prosperous society based on Pancasila and the 1945 Constitution . Statement This , implies that , increases _ well-being member is the main program cooperative through service his business . Well-being member Can obtained from management or performance cooperative the good one . Then, to achieve management or performance Which Good from side financial nor non - financial necessary measurement Performance is a measurement action carried out on various activities in the value chain in companies as well as in cooperatives. Measuring tools that are able to measure the performance of an organization from a financial perspective and non-financial, namely the BSC balanced scorecard is a management tool used to boost the organization's ability to improve performance, because it can help managers to measure and evaluate
operating performance in company (Nikmah & Goddess, May). This method is very complete in assessing cooperative performance so that it can describe it in full and in detail how is the performance cooperatives and make it easier for cooperatives to see weaknesses and advantages (Nikmah & Dewi, May).
2. THEORETICAL BASIS 2.1. Balanced Scorecard
Balanced scorecard describe exists balance between objective period short And period long, between size finance And No finance, between indicator lagging And indicator leading , And between perspective performance external And internal (Kaplan & Norton, 2000).
BSC methodology, is a technical analysis designed for translate statement mission And strategy business company to in goals specific and measurable, as well as to monitor company performance within achievement its aims (Tobing, 2007)
2.2. Balanced Scorecard Concept certain criteria , which are classified into four different perspectives, namely:
1) Financial Perspective
According to Kaplan (Kaplan, 1996), when a company carries out financial measurements, the first thing it must do is detect the existence of the industry it owns.
2) Customer Perspective
The customer perspective allows companies to align various important measures of customer satisfaction, loyalty, retention, acquisition and customer profitability with their target market segments (Hermanus Djo & Dharmadiaksa, 2019).
3) Internal Business Process Perspective
According to (Hery, 2017) through this process will makes it possible for companies to find and retain customers in market Which has targeted. Matter the can done with measurement to all activity Which done by company Good manager nor employee For create something product Which can provide certain satisfaction for customers and shareholders.
4) Growth and Learning Perspectives Perspective growth And learning is How We can increase And create value in a way continously,
especially in relationship with ability And motivation employee.
2.3. Performance Measurement
According to (Sinaga et al. , 2020) , measurement performance is action measurements carried out on various activities in the company's value chain. Results measurement the used as bait come back in effective and efficient form of action and will provide information about implementation achievements something plan And point in where company need adjustments on planning and control activities.
According to (Hartati et al., nd) measurement performance aim For motivating employee so that can reach target organization And obey standard behavior Which has set previously, so that produce action Which desired by organization.
2.4. SWOT analysis
This SWOT analysis is one of the methods used for evaluate strengths , weaknesses , opportunities , and threats in business speculation (Dwi Fatimah, 2020). SWOT analysis is carried out by identifying various factors systematically to formulate a company strategy based on logic that
can maximize strengths and opportunities, but simultaneously can minimize weaknesses and threats. The SWOT Matrix produces four types of strategies as follows:
1) SO strategy uses the company's internal strengths to take
advantage of external
opportunities.
2) The WO strategy aims to improve internal weaknesses by exploiting external opportunities.
3) ST strategy uses company strengths to avoid or reduce the influence of external threats.
4) WT strategy is a defensive technique directed at reducing internal weaknesses and avoiding external threats (Syahrul Mubarrok, 2018).
2.5. Definition of Cooperative
UU no. 25 of 1992 concerning Cooperatives defines Cooperatives are business entities consisting of individuals or legal entities cooperative by basing its activities on cooperative principles at once as a people's economic movement based on the principle of kinship. So, if you look at the definition above, it can be said that it is a cooperative is a joint
business entity in which there is a group of people a with the intention of Which The same.
3. RESEARCH METHODS
Type study This use method qualitative with studies case. According to Creswell, qualitative methods are defined as an approach or search to explore and understand a central symptom. Case study or 'case-study' , is part of the qualitative method that wants to explore something case certain in a way more deep with involve collection diverse resources. The types and sources of data in this research are secondary and primary data.
There are some method collection data primary And secondary, on study This method collection data secondary Which used is documentation ( documentation research ) , observation
and interviews . Analysis data on study qualitative done throughout process study ongoing (Hermawan & Amirullah, 2016) .
One of the stages of version data analysis Miles and Huberman (1984) is a data collection. Testing validity and reliability
in qualitative research is called inspection validity data (Hadi, 2016) . Validity data on study This done with test credibility ( credibility ). Objective test credibility
data in study qualitative is regarding with degrees trust or degrees accuracy data in design study qualitative.
4. RESULTS AND DISCUSSION 4.1. Performance KSP IMMUNE
Moment This
Measuring KSP KEBAL's current performance This namely using financial ratio analysis. The results of measurements carried out using analysis f inancial ratios are as following:
Table 4.1 Cooperative Financial Ratios
The table above shows the average value of KSP KEBAL's liquidity ratio in 2017-2021, namely 186.53%. This value is obtained from the current assets formula divided by current liabilities.
That means every Rp. 1,- of current debt
will mature Which owned KSP IMMUNE guaranteed by assets fluent as big as 1.8653. If seen from standard, namely 150-200%, can be said to be the liquidity value that KSP has IMMUNITY is high. Then, on average during 2017- 2021 the value of the KSP solvency ratio IMMUNITY of 186.53%. This shows a number that is much higher than the standard which has been determined.
That means, for every Rp. 1, current debt will mature Which owned KSP IMMUNE guaranteed by assets smoothly as big as Rp 1.8653. Next, the average ROE value from 2017-2021 as big as 8.21%. It means, every Rp 1 capital Which owned by the cooperative can produce IDR 0.0821 profit (remaining business results) for KSP KEBAL.
However, the value is in below standard, namely >15%. This can happen because the ROE value is high generated every the year of course No reach standard Which c aused by mark the service is small, namely 1% and 1.5% per month or the same as 12% and 18% per year. On year 2017-2018 the numbers No too Far from standard Because 1% And 1.5% of service payments from members, 0.71%
goes into income thus generating greater profits than in 2019-2021. Which of the
1% and 1.5% of services received from members, only 0.005225 is enter to in income service. So that, profit Which generated down more drastic and the numbers are far from the predetermined standards. This happened because in the year In 2019, a policy was issued to change the amount of incoming service contributions from 0.71% or 0.0071 become 0.5225% or 0.005225. Matter This intended For increasing members' economic promotion.
Finally, the average ROA value from 2017-2021 as big as 3.47%. It means, every Rp 1 Total Asset Which owned cooperative can produce Rp 0.0347 profit (remaining operating results) for KSP IMMUNE. Like case ROE, in KSP IMMUNE ROA even own mark Which Far more small from standard Which Already determined that is as big as >7.
Matter This Also caused by mark his services Which small that is as big as 1%
or 0.01 And 1.5% or 0.015 per month or T he same with 12% or 0.12 and 18% or 0.18 per year in 2017-2018. Then, 0.5225% or 0.005225 in 2019-2021. This means that there is a lack of cooperatives maximum in producing SHU.
4.2. Balanced Scorecard planning Designing a balanced scorecard as a
performance measurement for KSP KEBAL carried out by analyzing the internal and external conditions of KSP KEBAL first formerly through analysis SWOT Then results analysis combined to determine what strategy is needed using a SWOT matrix analysis. Next, in order to improve cooperative performance in accordance with the vision and mission cooperative, strategy is described in four perspectives balanced scorecard. This matter done so that cooperative can increase its performance No only from side just the finances. The f ollowing The strategy targets are generated from the SWOT matrix analysis that follows customized with four perspective balanced scorecard.
4.2 Strategic Goals and Performance Measurement
From the results the above design is carried out measurement performance on KSP is IMMUNITY
so can seen How KSP performance is IMMUNITY like including :
1) Perspective Finance
Revenue from 2017-2021 KSP IMMUNE Keep going experience decline. Matter This can become Wrong One f actor Which cause SHU Which will obtained by cooperative decrease.
ROA at KSP KEBAL in 2017 – 2021 respectively that is of 5.81%, 4.60%, 2.62%, 2.50%, and 1.84% which means in accordance with Deputy Technical Instructions Field Cooperative Number 15 of 2021 Concerning Guidelines Paper Work Cooperative Health Check , capabilities cooperative in use assets owned _ Enough healthy in 2017 , less healthy in 2018 , and not healthy in 2019-2021 .
BOPO at KSP KEBAL in 2017 – 2021 consecutively that is amounting to 29.58%, 36.04%, 52.74%, 48.04%, and 43.29%. Refer to the Deputy's Technical Instructions Field Cooperative Number 15 of 2021 Concerning Guidelines Paper Work Cooperative Health Check , capabilities cooperative in manage cost its operations to income operational are in the category Healthy from 2017-2021 .
Every KSP's capital capability is IMMUNITY the year
experience increase and decrease with number more from One so for 5 years final can said that KSP is IMMUNITY to have level independence Enough tall . 2) Perspective Customers
KSP IMMUNE every the year can interesting customer new.In year 2017 as big as 16.99%, year 2018 as big as 16.16%, in 2019 it was 15.53%, in 2020 it was 6.82%, and in 2021 amounting to 5.06%. Although the level of acquisition of KSP KEBAL is still experiencing increase And decline with presentation Which small can said that KSP IMMUNE own Power pull Which Good Because capable interesting customer new every year.
For know satisfaction KSP customers are IMMUNITY then writer do interview with a
number of member
cooperative . As a result , members feel satisfied with long service _ This provided by the cooperative . Member state that the officers service give service with kind , friendly , alert , easy contacted , space cooperative comfortable and clean .
KSP is IMMUNITY for 5 years from 2017-2021 has _ good trust _ from old customer however must improved
Again with do good service , convenience _ for member For get information , etc. _
Because customers
cooperative is IMMUNITY KSP members Alone .
3) Internal Business Process Perspective
From 2017-2021 KSP KEBAL has product new in 2018 , 2019, and 2020.
Although No There are many innovations carried out by KSP KEBAL unique Because different with other cooperatives _ so that can become Power attraction and opportunity for cooperative For increase its members and expand his business .
4) Internal Business Process Perspective
Productivity employees and management experience increase in 2018 then _ experience decline in 2019 – 2021. This caused from income continuous service _ decrease every the year whereas happen addition employees in 2019 .
Analysis promotion economy member new held in 2021 so the author 's data it could also just be promotional data economy members in 2021.
Views _ from the benefits that can be obtained member get it during One year during become member value more
big compared to with flower deposits provided by banks.
Results from interview para employee KSP IMMUNE Already feel satisfied with the comfort and cleanliness of their work space, salary and bonuses given, as well as job security at KSP KEBAL.
That KSP IMMUNITY employees and managers have Participate in employee training programs. Based on book report annual every the year KSP employees and managers are always IMMUNITY follow education and training held by the Ministry and the Cooperative Service Good level city nor province . This matter
showing that KSP
IMMUNITY is active in increase the quality of human resources that exist in the cooperative and are expected in the future can Keep going take advantage of existing training and education programs so , cooperative HR can Keep going increase the quality and can impact in a way directly into the service process for members _ cooperative .
KSP is IMMUNITY every time the year always program activity education cooperative for candidates _ member . Prospective members
cooperative This will introduced Formerly What That cooperative , what? KSP is IMMUNITY, how? rights and obligations as member cooperative . So , when There is candidate members who feel No suitable with the rules of the game in KSP are IMMUNITY allowed resign self become member . This program is very useful For continuity cooperative . Because of this program can selecting candidate which members want truly cooperate .
Attendance rate KSP members are IMMUNITY in RAT from 2017-2021 each _ the year is above 50% . This showing participation member in attend meeting annual is very good Because always fulfil quorum meeting which is one of them condition it's legal meeting member annual . In Regulation of the Minister of Cooperatives and
Small and Medium
Enterprises Republic of
Indonesia Number
19/Per/M.KUKM/IX/2015 concerning Maintenance Meeting Member Cooperative , quorum is minimum number of participants meetings that must be attended fulfilled For it's legal implementation meeting member .
5. CONCLUSIONS AND
RECOMMENDATIONS 5.1. Conclusion
From the research that has been done carried out , as follows possible conclusions _ writer describe :
a. KSP's performance is IMMUNITY walk from 2017-2021 is measured with analysis ratio finance Already Good in manage cooperative funds so that they can walk in a way productive and capable cover his obligations . That matter can seen from mark its liquidity and solvency reached 186.53 % in 5 years . However , on the other hand, KSP is not IMMUNITY yet maximum in increase the profit Good from his business capital nor from the assets shown with ROE and ROA values are below standard that is of 8.21%
and 3.47%. This matter because mark small service _ that is amounting to 0.0071 in 2017-2018 . Then , in 2019 it happened changes in which services are received more small that is of 0.005225.
b. With balanced scorecard design is obtained measurement more performance _ detailed from side financial and non- financial
including :
1) Perspective Finance , no only liquidity , solvency , ROE, and ROA. But can known , how enhancement income use sales growth formula that shows income service cooperative for 5 years happen decline in a way in a row . Besides That efficiency cost operational use the BOPO formula shows management cost operational cooperative to income its operations are in the category Healthy .
2) Perspective Customer shows that KSP has IMMUNITY Power good pull _ Because capable interesting customer new every the year . Then , members cooperative feel satisfied with the service is good , friendly , alert , easy contacted , space cooperative comfortable and clean . So that give rise to high trust _ from its members .
3) Business Process Perspective showing there is innovation products on KSP KEBAL in 2018-2020 .
4) Perspective Growth and Learning showing enhancement well-being
members , administrators , supervisors , and employees , as well enhancement quality members , administrators , supervisors and employees . 5.2. Suggestion
Following This is a possible suggestion writer give from research that has been done :
1) Research result measurement KSP KEBAL's performance shows mark High liquidity and solvency , however _ ROE and ROA values Still under standard . So that cooperative expected can Keep going increase its performance . Then , it is necessary done measurement performance from non- financial side for performance cooperative can be measured in a way whole .
2) For study next , from measurement performance that has been made need done development customized strategy _ with existing conditions _ Then include targets as well weight required value _ achieved and document the required data . Through development the expected implementation of the balanced scorecard can become
tool for cooperative For Keep going develop in accordance with vision the mission so that realization well-being together .
Reference
