We need to be aware that the value creation process for a business has changed dramatically and now is based in the achievement of non-financial measures.
Non-financial measures not only are in line with a firm's strategic objectives but they are, or at least should be, the prime means for achieving these objectives.
What do you think?
I would be interested to know if you have some examples of this?
Please refer to the attached file for the response.
NON-FINANCIAL MEASURES AND VALUE CREATION
Many business organizations commonly assess their business performance through measures such as sales, profits, earnings per share, return on investment, and other indicators that are financial or quantitative in nature. There is nothing wrong with these measures because they directly indicate results of a company's operations. However, other indicators are oftentimes ignored because they are not reflected in the company's financial statements. These are the so-called non- financial measures. What must be noted is that although they are not reflected as figures in the balance sheet, income statement, and statement of cash flows, these non- financial measures could have been indirectly influencing the financial indicators of performance.
Among the very significant non-financial measures that may indirectly contribute to the company's financial performance are the ...
This solution discusses non-fictional measures to achieve a firm's strategic objects.