Blog: Craig Schiff: Using Non-Financial Measures Still a Challenge

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Using Non-Financial Measures Still a Challenge

More and more business executives, as well as their boards, are recognizing the importance of balancing financial measures of performance with non-financial ones. While financial measures give an organization an understanding of its past performance (past year, quarter, month, week, etc.), non-financial measures (customer satisfaction, innovation, quality, employee turnover, etc.) can provide greater insight into potential future performance. However, companies are still struggling to move forward with these types of measures. The reasons are varied, but include: lack of adequate tools to obtain this data, skepticism related to importance/accuracy of these elements, highly confidential nature of certain measures. For true performance management these obstacles need to be overcome. This recent study by Deloitte outlines some of the key issues.

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