Application of the Balance Scorecard as a Performance Measurement Instrument
- Implementation, Balance scorecard, Instrument, Measurement, Performance.
The concept of the Balanced Scorecard develops in line with the development of the organization. The Balanced Scorecard consists of two words: (1) scorecard and (2) balanced. In the initial stages of the experiment, the Balanced Scorecard is a scorecard that is used to score the results of executive performance. Through a scorecard, the scores the executive wants to realize in the future are compared to actual performance results. The results of this comparison are used to evaluate executive performance. The word balanced is intended to show that executive performance is measured equally from two perspectives: financial and non-financial, short-term and long-term, internal and external. Because executives will be assessed for their performance based on score cards that are formulated in a balanced manner, executives are expected to focus their attention and effort on measures of non-financial performance and long-term measures (Mulyadi, 2007). In subsequent developments, the Balanced Scorecard is not only related to the cards used to record executive scores. The results of the study in year 1 were that the implementation of the BSC in the BKKBN began in 2007 and until now has improved many improvements. BSC which was initially only applied to Echelon II levels, in 2009 was applied to echelon III and IV levels, then it has also been applied at the staff level. The implementation of the BSC in the BKKBN is approved to have many benefits, including providing organizational communication strategies from the highest to the lowest level, providing a measure of target for increasing employee budgets, providing feedback to improve performance, and increasing commitment to support and improve performance.