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The ultimate performance measure is expressed in financial terms; however, it is often difficult to relate non-financial measures to financial outcomes. Which of the following may be reasons for apparent success in improving non-financial measures not translating into financial improvement?
A) Failure to utilise freed-up resources
B) Identifying incorrect critical success factors
C) Incorrect design of performance measures
D) All of the given answers
Non-financial Measures
Performance indicators that are not based on financial metrics, often used to track efficiency, quality, or customer satisfaction.
Financial Outcomes
The results of financial transactions and events, affecting the financial health and performance of a business or individual over a period.
Critical Success Factors
Key areas in which satisfactory results will ensure successful competitive performance for the organization.
- Recognize non-monetary indicators that might not directly correlate with financial performance.
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Learning Objectives
- Recognize non-monetary indicators that might not directly correlate with financial performance.
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