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Financial performance is unquestionably important, but as businesses became more modern, more competitive, managers started to see that a big part of what influences financial performance indicators are non-financial performance measures. Metapraxis (1998) highlight this saying that "Customer satisfaction (?) also has to exist before purchases are financially consummated." [1], which is only one of the examples that one could find as to why non-financial performance indicators influence financial indicators and why it is good business to measure them.
In many companies, like at Satcom, financial indicators are the rule of thumb to assess how well the business is doing...
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Common topics in this essay:
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- The statement of financial performance is based on data relating to past transactions and events. Hence the statement of financial performance is of no use to an investor’s decision making process.
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