MAIN FINDINGS AND DISCUSSION
Key Performance Indicator (KPI) is the key to organisation’s success to achieve the vision,
mission, business strategy, objectives and targets. It represents a general indicator of performance to
an organisation where it is focuses on critical aspects of outputs or outcomes and reflects the critical
success factors (CSFs). KPIs is defined as a simple and effective measurement system that helps
organisation to explain and manage the services’ progress for customers aligned with the vision and
mission of the organisation.
Parmenter (2010) identifies some of characteristics of KPIs that most of the organisations
used in the public and also private sectors such as non financial measures, measured frequently and
acted by the CEO and senior management team. It is also measures the tie responsibility down to a
team, clearly indicate what action is required by the staff, have a significant impact and encourage
appropriate action.
The use of KPIs in effective performance measurement system is well established in other
industries especially in the private sectors. However, public sectors employ them to be a part of their
performance management system after it is being implemented by the private sectors. In Malaysia, it
