Development of Values-Based Performance Indicators for Organisations
Keywords:Core values; Values-based key performance indicators; Qualitative & quantitative indicators
This paper addresses the development of values-based performance indicators that can be used to measure organisational excellence. Core values considered in this paper are those defined in the Value-Based Total Performance Excellence Model (VBTPEMTM) proposed by Mokhtar et al. (2004) and Nooreha et al. (2001). The purpose of the development is to create a holistic measurement and management system that is designed to facilitate organisations in achieving performance excellence. The core values incorporated in an organisation should be intangibly connected to the significant facets of performance management criteria like leadership, objectives and strategy, culture, change management, resource management, productivity focus, innovation, best practices, employee focus, customer and stakeholder focus and performance results. All the core values related to each of these criteria are identified. This article focuses on the development of qualitative and quantitative indicators based on the identified core values assigned to each performance criterion. The value-based indicators can be used as a tool for baseline assessment of the organisations’ performance within the context of the model. The results of an empirical baseline assessment of two government-link companies (GLCs) using the VBTPEMTM framework is also illustrated.