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Key Intangible Performance Indicators (KIPs) for Organisational Success: The Literature Review
Abstract
The paper reviews the concept and trend of Key Intangible Performance indicators (KIPs) for organisational success. Although KPIs are useful for tracking tangible performance drivers, KPIs cannot adequately measure intangible performance drivers. Therefore, organisations need to look for KIPs (which measure intangible drivers) in order to generate a complete picture of overall performance of organisations. Evidently, there is a significant shift of emphasis from measuring tangible to intangible performance measures in order to tap the full potential of intangible resources. It makes logical sense for organisations to unlock the intangible values for achieving and sustaining competitive advantage. In the face of globalisation, organisations need to transform themselves into highly competitive organisations 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. From the literature review conducted, it is found that there are many diverse KIPs drivers which impact organisational success. And the most important drivers identified in this paper are leadership, innovation, company image and reputation, and employee satisfaction.
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