Islamic value to the modification of BSC model (a case study in evaluating company performance)

Abstract

Halal is the key word for the Muslim community in consuming goods or services. Providing halal products is the main focus for companies with the largest consumers from the Muslim community. Halal is not only from the ingredients but also from the process in its production. The purpose of this study is to design a model of performance measurement for a company in order to provide halal products. Balance Score Card (BSC) is used as a framework. BSC as a performance measurement system has advantages not only focus on financial aspect but also non finance. Islamic values are incorporated into four perspective of BSC. They are: Selection of sharia financial institutions in financial perspective, payment method by consumer in consumer perspective, number of product with halal certificate and menu clarify in internal business process perspective, then accuracy of payroll time in learning and growth perspective. The modified BSC model obtains 17 Key Performance Indicators (KPI). The model is applied in a culinary industry (restaurant). Structured questionnaires and scheduled interviews are used to collect the important data. The result show that these industry fail to meet 8 from total 17 KPI so performance achievement is only 70.81%, and only reach 22.58% in Islamic value aspect. This is recorded by the company as an input to improve their performance in order to compete in halal food business.