Performance Management in Indonesia Zakat Institutions

Abstract

Zakat management in Indonesia has developed significantly after establishment of BAZNAS (Indonesia National Board of Zakat). Number of zakat fund collected always rise each year even though it has not fulfilled the total potential of zakat collection. In order to escalate it, BAZNAS constructed National Zakat Index (NZI) to measure the macro dan micro development of zakat in Indonesia. Micro aspect deliberates institutional variables; however, there has no strategic objectives guidelines for zakat institution manager to contribute in NZI improvement. Therefore, this research applies Balanced scorecard (BSC) and Fuzzy DEMATEL approach to develop strategic objectives as well as the relationship.
 This exploratory research develops strategic objectives with BSC approach with aiming to help LAZs’ managers focusing on specific outcomes and reach better institutional aspect performance of NZI. The developed strategic objectives are fundraising, cost control, fund distribution, muzaki-mustahik satisfaction, muzaki-mustahik growth, community building, partnership, understanding zakat, sharia-based programs, institutional reporting, technology, knowledge management, and amil’s well-being. Furthermore, the relations are also explained in this research. Stakeholders perspective is the final aim of zakat institutions while Learning & Growth perspective become fundamental for the institutional development. Future researches can apply other data collection method and develop performance measurement which consists of outcome measure and performance drivers.