We were given a paper to write about what metrics, financial and non-financial, that managerial accountants can use to make the company more successful. I have the financial aspect under control, however; I am stuck on some non-financial metrics. I am looking for a list of their names (so that I can do some research) and a short description.© BrainMass Inc. brainmass.com June 3, 2020, 6:21 pm ad1c9bdddf
Here is some info for you regarding non financial metrics:
Are non-financial metrics hard to define? Not really, says Suzanne Stroh, manager, Program Evaluation and Integration for the University of California at Berkeley. She will admit, though, that there are sometimes problems. The University of California began developing its performance measurement system in 1992. (Soon after, in 1993, the government mandated performance measurement for federal agencies when President Clinton signed the Government Performance and Results Act.) "Lots of times, performance management gets off track. An organization loses the point. It ends up asking, 'Why are we doing this?'" The solution is to build a good foundation, she says. "If you get a bunch of subject experts into a room, you'll get an amazing agreement on what it means to be successful in their functional area of expertise."
From there, Stroh says, the appropriate measures will follow. But the key is the first step: a complete and thorough agreement on what it means for an organization or department to be successful. The better and more complete the definition, the easier it is to define performance measures regardless of whether they are non-financial or financial. Beyond this, it is critical that the set of performance measures chosen supports the mission and objectives of the organization as a whole.
Are they hard to measure? When it comes to non-financial measures, numbers people may get a little uncomfortable-for the most part, they like absolutes, not gray areas.
Non-financial measures are notoriously hard to evaluate, since many of them consider time or occurrences. Getting a handle on these isn't always easy. Anyone involved in an implementation has probably heard the statement, "That's too hard to measure," or, "You can't measure that."
But according to Bogan, "If you can create a definition and measure it with ...