KPI: Does It Still Matter? A Case Study of Tertiary Private Sector Colleges in Sabah
Abstract
ey Performance Indicators (KPIs) have traditionally served as vital instruments for monitoring performance and guiding strategic planning in higher education. However, the higher education landscape in Sabah, particularly within the private tertiary sector, is undergoing rapid transformation, raising questions about the continued relevance of conventional KPI frameworks. This study aims to critically examine the relevance, application, and limitations of KPIs in private colleges across Sabah, with particular attention to how socio-economic diversity, geographical challenges, and evolving educational needs shape performance measurement. Using a qualitative approach, the study draws on perspectives from academic staff, administrators, and secondary policy literature to explore how current KPI practices influence institutional behavior and educational outcomes. The analysis reveals that while KPIs provide accountability and facilitate institutional comparisons, their overreliance on quantitative metrics often neglects equally important dimensions such as faculty innovation, student engagement, community impact, and graduate employability in local industries. The findings suggest that conventional KPI models do not fully reflect the realities of private tertiary education in Sabah, where institutions must balance financial sustainability with broader social and developmental roles. The study concludes by proposing a revised framework that integrates both quantitative and qualitative indicators to provide a more holistic and context-sensitive performance evaluation system. This reorientation not only enhances the relevance of KPIs in Sabah but also offers practical recommendations for policymakers and administrators seeking to reform performance measurement in private tertiary institutions.
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