Key Performance Indicators in Group Leaders’ Management

Abstract

In modern competitive business environment, effective leadership is crucial to an organization's success. However, leadership is not a one-size-fits-all concept, but a multifaceted role that must be carefully followed, measured and evaluated in numerous dimensions. Key performance indicators (KPIs) are the essential tool for measuring leadership effectiveness and driving an organization towards its strategic goals. This paper presents findings of a preliminary research on the design and implementation of KPIs by Malaysian GLCs. It attempts to document the views and experience of CEOs of publicly-listed Malaysian companies in designing and implementing the strategy-based KPIs. The roles of stakeholders and the approach to balance between financial and non-financial measures were discussed. The CEOs indicated that with a well-balanced set of performance measure, they experienced benefits such as increased revenue, cost efficiency, increase communication, and link performance with compensation. The results of this study highlight the need to develop and prioritize performance indicators at the corporate and national levels to ensure successful institutional transformations and optimal utilization of public capital.