Non-financial performance measure
A non-financial performance measure is an indicator not expressed in monetary terms — such as customer satisfaction, defect rate, or on-time delivery — that captures aspects of performance financial figures alone cannot reveal.
FrameworkBalanced scorecard
See it move
Financial measures such as profit and return on investment report what has already happened, like reading a rear-view mirror. Non-financial measures such as defect rate and customer retention track the drivers of future results — a rising defect rate today predicts falling revenue tomorrow. The balanced scorecard pairs both together across financial, customer, process, and learning perspectives.
Check yourself
A logistics company wants a leading indicator that will warn it of a likely decline in customer retention before the problem appears in the annual revenue figures. Which of the following best fits that requirement?