Organisational Success

Abstract

Organisational success has become the focus of a growing body of research in the field. In this chapter, the authors argue that although Key Performance Indicators (KPIs) are useful for tracking tangible performance drivers, KPIs cannot adequately measure intangible performance drivers. They suggest that Key Intangible Performance Indicators (KIPs) are often the essential characteristic that drives the success of organisations. Top management should incorporate both KPIs and KIPs into success strategy in order to generate a complete picture of the overall performance of organisations. Evidently, there is a significant shift of emphasis from measuring tangible to intangible performance measures. Drawing from the Resource-Based View (RBV), superior performance is attributed to superior resources, and this helps explain why organisations should unlock the full potential of tangible and intangible resources and capabilities in attaining sustainable competitive advantage. In the face of globalisation, organisations need to transform themselves to be highly competitive in order to stay ahead of competition and at the forefront of their industries. The development and application of KIPs will be a strategic move to provide further insights and an impetus for continual improvement. The authors fill a gap in the resource-based literature by identifying four critical KIPs that influence the success of organisations, and they are leadership, innovation, reputation, and employee satisfaction.