What are non-financial measures?

What are non-financial measures?

Non-financial metrics are quantitative measures that cannot be expressed in monetary units. Outcome-based measures such as customer satisfaction, market share, category ownership, and new product adoption rate fall into the non-financial metrics.

What are some non-financial performance measures?

Typical non-financial KPIs include measures that relate to customer relationships, employees, operations, quality, cycle-time, and the organisation’s supply chain or its pipeline.

What is one example of a non-financial measurement?

Examples of non-financial performance measures are measures such as workforce development, product quality, customer satisfaction, on time delivery, innovation measures, attainment of strategic objectives, market share, efficiency, productivity, leadership and employee satisfaction Page 7 4 (Datar, Kulp, & Lambert.

What are examples of non-financial performance controls?

Examples of Nonfinancial Performance Controls

• Human Resources. Employee satisfaction. Average tenure.
• Marketing. New products launched. Customer satisfaction.
• Production. Number of defects.
• Purchasing. New products introduced by suppliers.
• Research and Development. New patents.
• Customer Service. Average complaint response time.

What is financial and non-financial measures?

Financial performance measurement focuses on the areas that will offer short-term success to a business. Non-financial performance measurement focuses on the areas that will offer a long-term fortune to the business or organisation. Shareholders are regarded as the primary addressee in such cases.

Which of the following is an example of a non-financial measure for customer satisfaction?

Two examples of nonfinancial measures of customer satisfaction relating to quality are​ (1) the amount of time it takes for the testing of new materials for a product and​ (2) percentage of units of products that fail soon after delivery.

What are financial and non-financial measures?

Financial performance measurement usually concentrate attention on the short-term success factors of a business. Whereas, non-financial performance measurement indicates deficiencies in those areas of business that can affect the long-term strategic success of an organization.

Why are non-financial measures important?

The advantages of non-financial measures include alignment of strategy and identification of strategy improvements, visibility of efficiency and effectiveness, drivers behind financial measures, identification of cheating and thus improved focus on long term rather than short term goals.

What are the examples of non-financial resources?

Examples of non-financial assets include tangible assets. Examples include property, plant, and equipment. Tangible assets are, such as land, buildings, motor vehicles, and equipment, as well as intangible assets, such as patents, goodwill, and intellectual property.