Week 5 - non fin performance measures

Question 1

What are non financial performance measures?

Answer 1

Non value adding tasks, or things that can not be easily quantified but still contribute to org goals.

Question 2

Give some examples of non value adding tasks.

Answer 2

Efficiency
Tech change and responsiveness to this
Accountability & transparency
Gov, political & IR changes

Question 3

How do they contributed to org goals?

Answer 3

Accountability
Promotes improvements
Provides info for decision making
Ensure company goals are achieved

Fin and non fin indicators complement each other and should be used in conjunction

Question 4

.When would you use financial indicators?

Answer 4

To measure:
Budgets
Targets
As lag indicators
When quantitative indicators are needed

Question 5

When would you use non financial indicators?

Answer 5

When a balanced view of operations are needed

When lead indicators are required.

Question 6

What are financial measures

Answer 6

provide performance info in terms of dollars or ratios and compare budgeted against actual.