Purpose: Given the importance of quality assurance and the enhancement of curriculum in higher education institutions, it is vital to have a systematic process that measures students' performance objectively and effectively for continuous improvement of the programme/curriculum. The purpose of this study is to analyse the process of establishing an Outcome-Based Education (OBE) system in a business school of a private higher education institution in Malaysia. The importance and challenges of the OBE system are discussed, with some recommendations proposed for common issues. Methodology: Document analyses and observations were conducted on ten undergraduate programmes in the business school of a private higher education institution from the year 2015 to 2019. This methodology was employed to assess and discuss the processes needed for the implementation of OBE, and highlights the importance and challenges of having an OBE system in the business school. Findings: To ensure effective functioning of the process for implementing an OBE system, proper planning is required. Data from the OBE system and its utilisation are essential to achieve continuous quality improvement to the curriculum, and to offer assurance to the relevant stakeholders on the quality of graduates. Several steps were discussed in this study that provided guidance to other education institutions on the implementation of the OBE process. However, it is clear that the investment of time and effort is needed to ensure the smooth-running of OBE establishment and maintenance. Significance: This study provided essential guidelines to relevant parties for the implementation of an OBE system in education institutions. The OBE system is needed to measure students' performance objectively and effectively, while enriching the students' learning experiences. This study highlighted some recommendations to the management of the education institution, policy makers, accrediting bodies and academics on the implementation of an OBE system in the education institutions.