Performance Analysis of Waqf Institution Using Balanced Scorecard Analysis: Case Study at Laznas Yatim Mandiri

Abstract

This research aims to measure the performance of the waqf institution (LAZNAS Yatim Mandiri) using a balanced scorecard (BSC). This study uses quantitative and qualitative analysis or mixed-method by using a balanced scorecard (BSC). The Balanced Scorecard is used to measure performance from both a financial perspective and a non-financial perspective, which includes four main perspectives: (1) finance, (2) customers, (3) internal business processes, and (4) learning and growth. The study found that an overall BSC score of 85,6% shows that the performance of LAZNAS Yatim Mandiri is categorized as very good. From each perspective, customer perspective is the highest BSC score, followed by financial perspective and internal business while learning and growth perspective gain the lowest score. The BSC suggests a direction of priority to improve each strategic goal of perspective. Customer satisfaction becomes the first place, followed by waqf collection and distribution as the second priority. The next priority is employee satisfaction while keeping other strategic goals to be maintained. The findings of this study could help Islamic philanthropic institutions define their vision and strategy, as well as change their vision and strategy into specific activities, by implementing measures that are accurate and comprehensive, as well as providing information that is accurate and correct for managers to make business decisions.

Exploring Holistic Performance Indicators for WAQF Institutions in Malaysia

“…Based on the compilation from the prior literature on performance measurement in waqf institutions (Febriandika et al, 2022;Noordin et al, 2017;Arshad et al, 2018;Arshad & Mohd Zain, 2016), this paper has proposed a holistic PMS model in line with the Balanced Score Card (BSC) model by identifying the strategic visions from each perspective (i.e. Financial, Stakeholder, Internal Business Process and Learning and Growth) following with the proposed key performance indicators (KPIs) that may be suited with all authorized waqf institutions in Malaysia as shown in Figure 2.…”

“…Consistent with the prior studies (Arshad et al, 2018;Masruki et al, 2019), in evaluating the efficacy of PMS within waqf institutions, it is more appropriate to employ non-financial indicators rather than exclusively relying on financial indicators. To address the requirement for comprehensive PMS in waqf institutions, the utilization of the Balanced Scorecard (BSC) is proposed as a holistic performance measurement tool capable of realizing the institutions' vision (Febriandika et al, 2022). The Balanced Scorecard (BSC), initially proposed by Kaplan and Norton in 1992, has undergone various adaptations throughout time to remain relevant in response to evolving economic and business conditions.…”