Balanced Scorecard Institute

Oct 13, 2025 by thesweetdesigns.com 47 views

Performance Analysis of the Office of Cooperatives and Micro, Small and Medium Enterprises of North Sumatra Province Using Balanced Scorecard

Introduction

Cooperatives and Micro, Small and Medium Enterprises (MSMEs) play a vital role in the economy and employment sector. In North Sumatra, MSMEs are not only a source of informal employment but also a driving force for local economic activity. However, the province lags behind in terms of respecting local wisdom compared to other provinces. The North Sumatra Cooperative and UMKM Office recognizes the importance of MSMEs and aims to improve their performance. This study uses the Balanced Scorecard method to analyze the performance of the North Sumatra Cooperative and UMKM Office from four perspectives: financial, service users, internal processes, and learning and growth.

Background of the Study

Cooperatives and MSMEs are the backbone of the economy and significant employment contributors. In North Sumatra, the existence of MSMEs is not only a place of informal absorption but also a driving force for local economic activity. The province is rich in cultural heritage that has the potential to be developed. However, academics consider the lack of local characteristics raised through MSMEs, so that North Sumatra is lagging behind in terms of respecting local wisdom compared to other provinces.

The North Sumatra Cooperative and UMKM Office recognizes the number of MSMEs spread across various economic sectors. Unfortunately, the data regarding the exact amount of cooperatives and MSMEs in North Sumatra is not yet available. This is because the existing data does not cover the cooperative and MSME industry. To understand the performance of the North Sumatra Cooperative and UMKM Office comprehensively, this study uses the Balanced Scorecard method by analyzing the performance of four perspectives: financial, service users, internal processes, and learning and growth.

Methodology

This study uses the Balanced Scorecard method to analyze the performance of the North Sumatra Cooperative and UMKM Office. The Balanced Scorecard is a strategic management tool that helps organizations to measure and manage their performance from four perspectives: financial, service users, internal processes, and learning and growth. The study involves cooperative managers and MSMEs in the evaluation of the service users perspective, employees of the North Sumatra Cooperative and UMKM Office in the evaluation of the internal processes perspective, and employees of the North Sumatra Cooperative and UMKM Office in the evaluation of the learning and growth perspective.

Results

The results of the study showed excellent performance (92.42%) from a financial perspective. However, from the perspective of service users, its performance is quite bad (52.8%). Evaluation of the perspective of service users is carried out by involving cooperative managers and MSMEs, without significant differences based on gender, education, age, and tenure. From an internal process perspective, its performance also shows poor results (58.86%). Evaluation in this perspective is carried out by involving employees of the North Sumatra Cooperative and UMKM Office, and also does not show significant differences based on sex, education, age, and working period. Evaluation in the perspective of learning and growth involving employees of the North Sumatra Cooperative and UMKM Office also does not show significant differences based on gender, education, age, and working period.

Discussion

Although the analysis results from the four perspectives show various results, the overall performance of the North Sumatra Cooperative and UMKM Office is classified as good (64.54%). This shows that good performance in a financial perspective can be a support for improving performance in the perspective of service users, internal processes, and learning and growth.

This study provides several important points that need to be considered. First, the need for a greater focus on improving service quality to meet the needs of service users. Second, the need for more effective and efficient development of internal processes to increase the effectiveness of service operations. Third, the importance of developing capacity and learning for the North Sumatra Cooperative and UMKM Department employees to improve competence and professionalism.

Conclusion

By paying attention to the aspects that have been described, it is hoped that the North Sumatra Cooperative and MSME Office can continue to improve its performance, strengthen the role of MSMEs in encouraging economic growth, and play an active role in preserving and developing the potential for local wisdom of North Sumatra.

Recommendations

Based on the findings of this study, the following recommendations are made:

The North Sumatra Cooperative and UMKM Office should focus on improving service quality to meet the needs of service users.
The office should develop more effective and efficient internal processes to increase the effectiveness of service operations.
The office should develop capacity and learning for its employees to improve competence and professionalism.

Limitations of the Study

This study has several limitations. First, the study only focuses on the North Sumatra Cooperative and UMKM Office, and does not include other cooperatives and MSMEs in the province. Second, the study only uses the Balanced Scorecard method, and does not include other performance measurement tools. Third, the study only involves cooperative managers and MSMEs in the evaluation of the service users perspective, and does not include other stakeholders.

Future Research Directions

This study provides several future research directions. First, the study can be replicated in other provinces to compare the performance of cooperatives and MSMEs. Second, the study can include other performance measurement tools to provide a more comprehensive understanding of the performance of the North Sumatra Cooperative and UMKM Office. Third, the study can involve other stakeholders in the evaluation of the service users perspective to provide a more comprehensive understanding of the needs of service users.

References

This study uses the following references:

Balanced Scorecard Institute. (2020). What is the Balanced Scorecard?
Kaplan, R. S., & Norton, D. P. (1996). The Balanced Scorecard: Translating Strategy into Action. Harvard Business Review, 74(1), 71-79.
North Sumatra Cooperative and UMKM Office. (2020). Annual Report 2020.
World Bank. (2020). Micro, Small, and Medium Enterprises (MSMEs) in Indonesia.

Appendix

This study includes the following appendix:

Questionnaire for Cooperative Managers and MSMEs
Questionnaire for Employees of the North Sumatra Cooperative and UMKM Office
Data Analysis Results
Conclusion and Recommendations

Note: The references and appendix are not included in the word count.
Frequently Asked Questions (FAQs) about the Performance Analysis of the Office of Cooperatives and Micro, Small and Medium Enterprises of North Sumatra Province Using Balanced Scorecard

Q: What is the Balanced Scorecard method?

A: The Balanced Scorecard is a strategic management tool that helps organizations to measure and manage their performance from four perspectives: financial, service users, internal processes, and learning and growth.

Q: Why was the Balanced Scorecard method used in this study?

A: The Balanced Scorecard method was used in this study to provide a comprehensive understanding of the performance of the North Sumatra Cooperative and UMKM Office from four different perspectives.

Q: What were the results of the study?

A: The results of the study showed excellent performance (92.42%) from a financial perspective, but poor performance (52.8%) from the perspective of service users. The performance from an internal process perspective was also poor (58.86%), and the performance from the perspective of learning and growth was also poor.

Q: What are the implications of the study's findings?

A: The study's findings suggest that the North Sumatra Cooperative and UMKM Office needs to focus on improving service quality to meet the needs of service users, develop more effective and efficient internal processes, and develop capacity and learning for its employees to improve competence and professionalism.

Q: What are the limitations of the study?

A: The study has several limitations, including the fact that it only focuses on the North Sumatra Cooperative and UMKM Office, and does not include other cooperatives and MSMEs in the province. The study also only uses the Balanced Scorecard method, and does not include other performance measurement tools.

Q: What are the future research directions?

A: The study provides several future research directions, including the replication of the study in other provinces to compare the performance of cooperatives and MSMEs, the inclusion of other performance measurement tools to provide a more comprehensive understanding of the performance of the North Sumatra Cooperative and UMKM Office, and the involvement of other stakeholders in the evaluation of the service users perspective.

Q: What are the recommendations of the study?

A: The study recommends that the North Sumatra Cooperative and UMKM Office should focus on improving service quality to meet the needs of service users, develop more effective and efficient internal processes, and develop capacity and learning for its employees to improve competence and professionalism.

Q: What is the significance of the study?

A: The study is significant because it provides a comprehensive understanding of the performance of the North Sumatra Cooperative and UMKM Office from four different perspectives, and provides recommendations for improving the performance of the office.

Q: Who can benefit from the study?

A: The study can benefit the North Sumatra Cooperative and UMKM Office, as well as other cooperatives and MSMEs in the province, by providing a comprehensive understanding of their performance and recommendations for improvement.

Q: What are the implications of the study for policy makers?

A: The study's findings suggest that policy makers should focus on improving the performance of cooperatives and MSMEs in the province, and provide support for the development of capacity and learning for employees of these organizations.

Q: What are the implications of the study for researchers?

A: The study provides a comprehensive understanding of the performance of the North Sumatra Cooperative and UMKM Office, and provides recommendations for future research directions.

Q: What are the implications of the study for practitioners?

A: The study provides a comprehensive understanding of the performance of the North Sumatra Cooperative and UMKM Office, and provides recommendations for improving the performance of the office.

Q: What are the implications of the study for stakeholders?

A: The study provides a comprehensive understanding of the performance of the North Sumatra Cooperative and UMKM Office, and provides recommendations for improving the performance of the office, which can benefit stakeholders such as customers, employees, and investors.