Journal of Engineering Science and Technology (Apr 2016)

A HYBRID BALANCED SCORECARD AND SYSTEM DYNAMICS FOR MEASURING PUBLIC SECTOR PERFORMANCE

  • TRI GUNARSIH,
  • CHAIRUL SALEH,
  • NUR SYUKRON D.W,
  • BABA MD DEROS

Journal volume & issue
Vol. 11, no. Sp. Iss. on ICE & ICIE 2015
pp. 65 – 86

Abstract

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Performance measurement on an organization whether it is a profit or nonprofit, has to be conducted in order to evaluate plan attainment. This measurement is considered incomplete as the performance of a company is not only based on financial perspective, but also other perspectives. Balanced Score Card (BSC) is a performance measurement method using four perspectives: financial, customers, internal business processes and learning and growth. BSC measurement can be applied on profit and non-profit organizations. BSC focuses on causality (cause and effect) which is based only on linear correlation. This situation is the weakness on BSC because it cannot continue to the specific forward step that can predict the future activities. In this study, BSC is combined with System Dynamics (SD) that can identify the interaction among four perspectives and also related variable through a causal loop design model. Hybrid modelling design between BSC and SD gives an effective and interesting contemporary study. Then, the model performed with 2012 data input and performance forecasting until 2017. The result obtained for the financial perspectives related to fund absorption from 2013 until 2017 consecutively 100%, 100%, 85%, 72% and 100% with the most influential variable of tax and non-tax by 44.3% and the smallest variable effect is levies variable with 0,08%.Perspectives toward customers related to the efficiency and effective value by 50%, 43%, 43%, 48%, 49 % to customer dissatisfaction variable 48.09%, and 12.03% of customer's satisfaction. Internal business process perspective relates to the value of the total effective capacity by 80%, 71%, 69%, 71%, and 70%. With the most influential variable is the productivity and innovation for 50.77% and 1.94% variable staff morale. The last perspectives is learning and growth effective value for 50%, 44%, 56%, 47%, 46% with the most influential variable is the skill level of workers 27.98% and the smallest effect is variable retention of the worker is 8.07%.

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