The Balanced Scorecard Design Proposal as an Approach in Performance-Based Budgeting at the Cabinet Secretariat of the Republic of Indonesia

Proceedings of ‏The 3rd International Conference on Research in Business, Management and Economics

Year: 2020

DOI: https://www.doi.org/10.33422/3rd.icrbme.2020.11.117

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The Balanced Scorecard Design Proposal as an Approach in Performance-Based Budgeting at the Cabinet Secretariat of the Republic of Indonesia

Henni Verawati

ABSTRACT: 

The research aims to provide suggestion on strategic maps and balanced scorecards that are appropriate for organization and use the balanced scorecard as an approach in performance-based budgeting. This research uses descriptive analysis method, namely collecting, classifying, and analyzing data which is then systematically described to make conclusions. The results of the study conclude that organizations need to make adjustments to their vision and mission as well as refine their implemented strategies by adding some strategic objectives that have existed before from the balanced scorecard perspective. Furthermore, organizations need to adjust the budgeting system that has been used by using the balanced scorecard approach so that the resulting budgeting can focus on activities that have an influence on achieving predetermined goals and targets which ultimately improve organizational performance.

Keywords: Performance-based budgeting; balanced scorecard; strategy map.