Analysis
of the performance
of the General Secretariat with the Ballance Scorecard
approach at the Ministry of
Home Affairs
Siti
Nur Azizah1, Amy Yayuk Rahayu2
Universitas Indonesia, Depok, DKI Jakarta, Indonesia1,2
Email: [email protected]1, [email protected]2
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ABSTRACT |
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Performance, Secretariat General, Balance Scorecard. |
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Efficient and
effective governance is critical to
ensuring good public services and achieving development goals. The Secretariat General is a very crucial part of every
ministry that is responsible for supporting the management and administration of the ministry.
The purpose of this study is to analyze the
performance of the Secretariat General of the Ministry
of Home Affairs using the Balance Scorecard
approach. This research uses qualitative research methods. Research data were obtained through interviews, observations, and documentation. The data obtained was then analyzed with the Balance
Scorecard. The results showed significant improvements in the performance of the General Secretariat. The financial aspect shows positive growth in financial and asset management.
From a customer perspective, service to stakeholders has improved. The internal process aspect recorded improvements in operational efficiency and productivity. Finally, from a growth and learning perspective, employee training and development initiatives and the application
of information technology have strengthened organizational capacity. |
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INTRODUCTION
Domestic
policymaking falls under the purview
of the Ministry
of Home Affairs
(MOHA), which exists to assist the
President in his role as head of state.
The task of the Ministry of
Home Affairs is responsible for formulating and implementing policies in the fields of politics,
general government,
regional autonomy, regional administration,
regional development, regional finance,
and population, following applicable regulations and laws. In addition, the Ministry of
Home Affairs acts as a support provider that has a substantial impact on all organizational
units within the scope of
the Ministry
The
General Secretariat (Setjen),
a division within the Ministry of
Home Affairs
Performance analysis can provide information
on how an
organization works, things that have
or have not been achieved, and things that
require improvement steps in the work
system. Performance is an organizational condition that is described as a whole within a certain period, including results or achievements that are influenced by operational activities in the organization, in managing and using the
resources owned
To
achieve measurable and focused performance
management, the Ministry of Finance started using comprehensive
performance measurement techniques in 2015. The Balanced Scorecard (BSC) approach was created in the early 1990s by Harvard Business School professors Robert Kaplan and
David Norton. Many large organizations around the world, including
the U.S. Department of Commerce, Incheon Airport, U.S. Army, FBI, Dubai Police, and other global companies, have adopted the
Balanced Scorecard (BSC) approach. As a tool for measuring work
achievement used by a business or
organization in the context of strategic
management, the Balanced Scorecard (BSC) is based on
a more holistic approach that sets
it apart from other strategic
management techniques. Using this approach,
the organization's strategy and mission
are transformed into more specific and
measurable goals and measures. The Balanced Scorecard (BSC), especially when used in the public
service sector, considers non-financial measures in addition to financial measures.
Previous
research by Biswan &
Alim (2021) on performance using a balanced scorecard approach showed that summarizing
perspectives into three perspectives - internal business processes, learning and growth,
and stakeholders (customers) - allows achieving Key Performance Indicators (IKU) based on balanced scorecards,
which in turn drives future performance
improvement and improvement by
Fitriandari et al.
According
to the results
of an investigation
conducted by Dwicahyani et al.
METHODS
In this study, a qualitative approach was used.
According to Moleong
Table 1. Operationalization of the Concept
|
Dimension |
Indicators |
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Paul R.'s Balance Scorecard Theory |
Custumer Prespectives |
1. Stakeholder satisfaction with the performance of the General Secretariat of the Ministry of Home Affairs. 2. Public retention of the performance of the General Secretariat of the Ministry of Home Affairs. 3. Public acquisition of the performance of the General Secretariat of the Ministry of Internal Affairs. |
|
Internal
Business Prespectives |
1.
Operational effectiveness carried out by the
Secretariat General of the Ministry of Home Affairs
in managing the internal organization of the Ministry of Home Affairs 2.
Quality of the process
of managing the internal organization of the Ministry
of Home Affairs to be
more developed 3.
Innovation in the performance process of the
General Secretariat of the Ministry of Home Affairs |
|
|
Learning and Growth Prespectives |
1.
Human resource development, capacity building and employee competence through training, education, and other learning initiatives within the Secretary General of the Ministry
of Home Affairs. 2. Employee satisfaction, the level of employee satisfaction
with the work environment, compensation, recognition, and other aspects
of their work. 3.
Technology & Adaptation,
the ability of the Secretary
General of the Ministry of Home
Affairs in adopting new technology and adapting to changes to
improve efficiency and effectiveness |
|
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Financial Perspectives |
1. Efficient Use of Budget, Optimal use of financial
resources to achieve the desired
results at minimum costs by the
Secretary General of the Ministry of Home Affairs. 2. Profitability, the ability of
the Secretary General of the Ministry
of Home Affairs to generate
profits from its operations. 3. Revenue Growth, an increase
in the income of the Secretary
General of the Ministry of Home
Affairs from time to time |
Source: Processed
by Researchers 2023
RESULTS
Several
bureaus established the General Secretariat (Setjen), which is a division of
the Ministry of Internal Affairs. These bureaus include
the Bureau of Planning, Personnel,
Organization and Governance, Law, Finance and Assets, Administration, and General. Based on the
Regulation of the Minister of
Home Affairs Number 13 of 2021, the following is
the organizational structure of the
Ministry of Home Affairs:
Figure
1. Organizational Structure
of the Secretariat
General of the Ministry of Home
Affairs from the Minister
Source:
Figure
2. Organizational Structure
of the Secretariat
General of the Ministry of Home
Affairs and Functional Position Groups
Source:
Government
organizations, when carrying out their
activities by involving various parties such as communities, grantors, facilities, employees, funding institutions, the people, and
taxpayers, are expected to make a positive
contribution to meet the various
needs of these various stakeholders.
This contribution is primarily in the form of
the government's ability to manage
public funds in an efficient, economical,
and effective manner. Public sector performance cannot only be
measured by financial aspects because much of
the output produced by the
public sector is invisible. Therefore,
it is important
to develop performance indicators that do not depend
only on financial
factors, according to the study
As
an entity that funds its
operations through grants and communities,
the government must contribute significantly. Because it is difficult
for stakeholders to determine whether
a public organization is successfully achieving its goals
and objectives, there is much
discussion about how well they
are performing. The public undoubtedly wants every public organization
to successfully achieve its own
goals and objectives so that
they will not feel compelled to spend their
money on government initiatives that provide no
benefits.
Since society has little
trust in public or government institutions,
all public organizations must take responsibility for all their
operations and demonstrate a measurable level of success
One of the
performance measurements can be with
a balance scorecard approach. Paul R. in
his book Balance Scorecard Evolution explains that each
perspective affects each other and
four measurements are needed to assess
the performance of an organization
clearly and completely, so that the four
perspectives are described
as follows
1.
Customer
Perspectives
In this perspective, it explains that the
balance scorecard approach seeks to require employees to be able
to translate the vision and
mission into more specific measures.
This perspective should answer 3 main questions: who are the target beneficiaries, what do they
expect from the organization and how do
they assess the practice of
performing services
2. Internal Business Perspectives
In this approach,
the size of the internal business must come
from business processes that have a major impact
on customer satisfaction. Companies must be able
to determine the processes and
competencies that should be mastered
by their respective measures
3. Learning
and Growth Perspectives
According
to him, this
perspective is the foundation for the other
three perspectives in measuring the balanced scorecard,
with the three important roles of human resources, information and organizational strategy in achieving goals. Through a balanced scorecard approach, Kaplan and Norton illustrate that in business processes with a customer base, competitive success will continue
to change over time. Global competition will be tighter,
so companies need to make
efforts to improve and expand
capabilities by innovating. With innovation, whether in the form of
products, or more efficient system improvements, will be able
to increase the value of
an organization
4.
Financial
Perspectives
From
a financial perspective, financial performance measures indicate whether a company's strategy, implementation, and execution contribute
to bottom-line improvement. What characterizes the financial perspective is profitability, growth, and shareholder
value. This perspective also looks at how
plans and operationalization can run properly or
not. In government organizations
can be measured
through budget realization and outputs achieved based on budget
implementation. In writing the Balance Scorecard
approach arises because of the
shortcomings of the results of
the usual performance evaluation, which still overrides
other financial and perspective parameters. So that the modernization
of the balanced
scorecard approach is expected to
be able to
improve processes while encouraging the organization and the resources
in it, as well as to assess performance
not only using one or two
perspectives. This dimension seeks to measure how the
performance process has been running so
that later it can be
known what factors are obstacles and other factors
become drivers
Figure 3. Balanced Scorecard Concept in Public and Non-profit Sectors
Source:
Balanced Scorecard step-by-step for Government
and Nonprofit Agencies,
Paul R.
Following
the Government Accounting Guidelines stipulated in Government Regulation No. 71 of 2010 concerning Government Accounting Standards, the financial statements
of the Ministry
of Home Affairs
have been prepared and presented
by the statement,
especially those related to the
financial side. The principles of solid financial management within the government
are the basis for the process of
preparing these financial statements. These principles are based on organizational
objectives that include various elements, such as sources of revenue
and regulations that limit their operations, which are the main characteristics that distinguish public sector organizations,
i.e. government organizations, from private sector organizations. The Examination Results Report (LHP) has been prepared by
the Audit Board of the Republic of Indonesia (BPK-RI), which contains an opinion
detailing their assessment of the
presentation of the Financial Statements. Following Law Number 15 of 2004 concerning the Examination
of State Financial Management
and Responsibility, an opinion is
a professional statement that communicates the examiner's views regarding the fairness of
the data contained in the financial statements.
An opinion is a statement that can be found
in financial statements. In
addition, guidelines for making and submitting financial statements are regulated in Minister of Finance Regulation Number
222/PMK.05/2016, which is an update of
Minister of Finance Regulation Number
177/PMK.05/2015. This regulation
can be seen
in the Minister of Finance Regulation Number 222/PMK.05/2016. To maintain the target of WTP Financial Statement Opinion, efforts have been
made to maintain
the quality of financial statements
as follows:
1. Build
a quality Internal Control
System (SPI);
2. Implementing
Internal Control over Financial Reporting
(PI) of the Ministry of Home
Affairs, as referred to in Minister of Finance Regulation Number 17/PMK.09/2019 concerning Guidelines for Implementation, Assessment, and Review of
Internal Control over Financial Reporting
(PI) of the Central Government; and
3. Implement
effective, efficient, transparent, and accountable financial management.
Measurement on a financial perspective can be seen
from the success of performance
from budget realization. The reason is, currently budget
planning is carried out on
a performance-based basis. Performance that must be
able to plan a budget and make
good use of it. The realization
of an appropriate
budget can be a reference for the success
of the performance
of an organization.
Based on the Performance Report of the General Secretariat of the Ministry of
Home Affairs, budget realization can be seen
in Table 2.
Table 2. Realization of the Budget of
the Secretariat General of the Ministry
of Home Affairs
for 2018-2021
|
No. |
Fiscal Year |
Target |
Realization |
% |
|
1 |
2018 |
Rp.372.345.886.000,- |
Rp.363.150.967.693,- |
97,53 |
|
2 |
2019 |
Rp.481.759.533.000,- |
Rp.470.206.582.339-, |
97,60 |
|
3 |
2020 |
Rp.418.058.405.000,- |
Rp.412.343.351.058,- |
98,63 |
|
4 |
2021 |
Rp.393.814.926.000,- |
Rp.391.368.438.603,- |
99,38 |
Source: Lapkin
Secretariat General of the Ministry of
Home Affairs, 2021 (processed)
In
addition, the assessment of the
results of the BPK-RI examination of the Financial Statements (LK) of the Ministry of
Home Affairs from 2019 to 2020 by obtaining WTP Opinions 2 times, namely:
Table
3.
Improving the Quality of Financial Statements of the
Ministry of Home Affairs
|
No |
Year |
Target |
Realization |
Achievements |
|
1 |
2019 |
Unqualified Fair (WTP) |
Unqualified Fair (WTP) |
100% |
|
2 |
2020 |
Unqualified Fair (WTP) |
Unqualified Fair (WTP) |
100% |
Source:
Lapkin Secretariat General of the Ministry
of Home Affairs,
2021 (processed)
These
findings indicate that financial management in the General Secretariat has focused on improving efficiency
and sustainable financial growth. This illustrates the organization's commitment to ensuring
that financial resources are utilized optimally, while enabling the development
of assets that support the
more effective implementation of the duties and
functions of the General Secretariat. With these significant
improvements in financial aspects, organizations can be stronger
in supporting the implementation of their duties and
providing better services to stakeholders
as well as society at large.
Based
on these results, the Secretariat
General's services to stakeholders have improved greatly
from the client side. The Ministry of Home
Affairs represented by BPSDM received a Public Service Index score of 4.07 in 2020, to get an A-grade,
which indicates Excellent quality. This indicates that the Service Unit has practiced all the
necessary components to provide high-quality
public services by the requirements
outlined in relevant laws and regulations.
The Bandung PPSDM work unit was evaluated
in 2021, and is currently still waiting for the
results of the evaluation assessment from the Ministry of
Agriculture in February.
Table
4.
Performance Achievement of the Public Service Quality Index of the Ministry of
Home Affairs
|
No |
Year |
Target |
Realization |
Achievements |
|
1 |
2020 |
4.20 (Excellent Value Category) |
4.07 (Excellent Value Category) |
100% |
|
2 |
2021 |
4.20 (Excellent Value Category) |
Still waiting for
the assessment results from the PAN and RB ministries |
|
Source: Lapkin
Secretariat General of the Ministry of
Home Affairs, 2021 (processed)
This
reflects the success of the
General Secretariat in increasing
stakeholder satisfaction which includes various parties, such as the community,
contributing institutions, and other related
parties. This improvement indicates that the organization
has managed to understand the needs and expectations
of stakeholders better, as well as build better relations
between the General Secretariat and the external. With
more harmonious relationships and better services, the General Secretariat can create a more
positive and supportive environment to achieve organizational
goals and make a more meaningful
contribution to society and all
stakeholders.
Meanwhile,
from the perspective of internal processes, the measurement of the Accountability Value of the
Ministry of Home Affairs is
LAPKIN Category A. LAPKIN Category
A is measured based on the
results of the assessment of the Ministry
of PAN-RB Evaluator Team on the Performance Report of the
Ministry of Home Affairs the
previous year. The purpose of the
evaluation is to determine the
amount of accountability or accountability for the results (outcomes)
of budget use to facilitate
the realization of a government that focuses on
achieving certain outcomes. Based on a letter dated
March 31, 2021 from the Minister of PANRB Number B/43/M.A.05/2021 regarding
the Results of the Evaluation
of Government Agency Performance Accountability
in 2020, the Ministry of Home Affairs
received a score of 73.88 (BB Category) for its Performance Accountability, which means an increase
of 0.58 points from the previous
year's value of 73.30. This information is based on a letter
sent by the
Minister of PANRB. The assessment results highlight the outstanding
achievements achieved by the Ministry
of PANRB in terms of the implementation
of results-oriented governance, the effectiveness and efficiency of budget
use to performance
achievements, and the quality of
bureaucratic culture development for performance. The following is an overview
of the results
of the evaluation:
Table
5.
Results of the 2020 Government Performance Accountability Evaluation
|
No. |
Assessed components
|
Weight |
Value |
|
1 |
Performance Planning |
30 |
23,78 |
|
2 |
Performance Measurement |
25 |
18,54 |
|
3 |
Performance Reporting |
15 |
11,15 |
|
4 |
Performance Evaluation |
10 |
6,87 |
|
5 |
Performance Evaluation |
20 |
13,54 |
|
Value of Evaluation
Results |
100 |
73,88 |
|
|
Work Accountability Level |
BB |
||
Source:
Lapkin Secretariat General of the Ministry
of Home Affairs,
2021 (processed)
This
reflects the commitment and earnest efforts on the part
of the General Secretariat to improve the quality
of management of the organization's
internal processes. These efforts include optimizing various internal processes, reducing unnecessary bureaucracy, and increasing employee productivity. Thus, the General Secretariat succeeded in creating a more efficient work environment, which in turn will support
the organization in achieving its goals
and objectives better. This increase
in efficiency and productivity also has the potential to
lead to wiser
use of resources
and more effective planning in achieving desired results.
Meanwhile,
from the point of view
of growth and learning, the
results show that employee training
and development initiatives and the application of information technology have had a positive impact on increasing organizational
capacity. This is based on
the development variables submitted in supporting evidence, including:
1. Basic BJP Certification
for Election Working Group
2. Basic PBJ Training
and Certification for Election Working
Group
3. Summary
of involvement in capacity building programs or certificates
of participation (technical guidance, socialization, coordination meetings)
4. Planning
the performance of the Election
Working Group
This
means that the General Secretariat has succeeded in creating an environment that supports continuous
growth and learning for its
employees. Training initiatives give employees the opportunity
to continuously learn and develop
their skills, which in turn can
increase their productivity and contribution to the organization. In addition, the application
of information technology has also made a significant contribution in facilitating work processes and internal communication at the General Secretariat. This can improve efficiency
and collaboration among employees, as well as enable easier access to
necessary information. Thus, organizations become more responsive
to environmental changes and better
prepared to deal with challenges
that may arise in the future.
Overall, the results show significant
improvements in various aspects of the
Secretariat General's performance, indicating a positive step towards a more qualified and efficient domestic
governance in the future.
Efforts
to implement the Balanced Scorecard
(BSC) at the General Secretariat of the Ministry of
Home Affairs face several obstacles.
One of the obstacles faced is the lack
of adequate understanding of the concept of
Balanced Scorecard among staff and
management in the General Secretariat. BSC implementation requires a deep understanding of this framework, and this lack
of understanding can hinder the
implementation process. In addition, constraints are related to resources.
BSC implementation requires
a significant allocation of resources, including
time, effort, and finances. The General Secretariat may face budget and
staff constraints, which can be
obstacles in deploying the BSC effectively. Therefore, overcoming these obstacles requires commitment, awareness, investment, and hard work
from all parties involved in the BSC implementation process at the
General Secretariat of the Ministry of
Home Affairs.
CONCLUSION
The
research findings reveal notable advancements in the General Secretariat's performance across various dimensions, presenting a compelling narrative. Particularly noteworthy is the positive
trajectory in financial and asset management,
signaling the organization's dedication to efficiency and
sustainable financial growth. This development
positively impacts the General Secretariat's fiscal health and
resilience in the realm of domestic
governance. From a stakeholder perspective, the discernible improvement in service delivery reflects the organization's success in enhancing stakeholder satisfaction and aligning with
their needs, fostering stronger relationships. These relational strides are crucial for effective
governance and inclusive decision-making processes. Internally, commendable progress in operational efficiency and productivity indicates a strategic focus on organizational
optimization, reducing bureaucratic hurdles, and enhancing overall effectiveness. This not only contributes to a more agile
governance structure but also signifies
a commitment to growth and learning
through employee training and information
technology application. However, it is
essential to approach the study's
generalization cautiously,
as its focus is specific to
the General Secretariat.
Future research should explore sustainability, potential challenges, and unintended consequences, providing a comprehensive understanding and allowing for
broader implications in domestic governance. While celebrating the General Secretariat's strides, this research
serves as a stepping stone for future
studies to offer a nuanced understanding of organizational dynamics and contribute to the continual
evolution of effective governance practices.
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Copyright
holder: Siti Nur Azizah, Amy Yayuk Rahayu (2024) |
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publication rights: International Journal
of Social Service and Research (IJSSR) |
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