Non-financial performance indicators: if it matters, measure it!
Article Abstract:
Non-financial performance indicators are as important as financial measures in assessing the success of a company. Offering the products or services that the consumers want, ensuring the qualityof these commodities and delivering them on time are all non-financial ingredients of success. Glaxo Manufacturing Services has identified its own non-financial performance measures, including material waste, customer service,product launches, quality, health and safety, and workload. American managementexpert Tom Peters suggests other such indicators, among which are percentage ofcustomer orders processed without errors, new products per period, product defects, customer complaints, customer satisfaction, and suppliers' product quality. Non-financial indicators are effective because they deal with causes rather than effects, are hard to manipulate, can be calculated more rapidly, and are more meaningful to the workforce.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1993
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Benchmarking: compare and compete
Article Abstract:
Benchmarking pertains to the practice of assessing a company's performance against that of other firms. Knowing how its direct competitors are performing can help a company evaluate how well it is doing and how far it has to go to match the performance of industry leaders. Just as important is benchmarking against non-competitors because some operations of these companies may be better than those adopted by the competition. Benchmarking offers several advantages, among which are the recognition of the need to improve and the opportunity to learn from the knowledge and experience of others. Companies planning to embark on a benchmarking exercise can find some guidelines from such published materials as the Business Ratio Reports, or they may seek the services of business consultants, such as BDO Consulting. The development of a benchmarking system at Xerox Corp is discussed.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1992
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Working peer
Article Abstract:
Colin Sharman, Liberal Democrat life peer, has won the 2000 Founding Societies' Centenary Award. He discusses his career as a chartered accountant since the 1960s and his involvement with the development of new financial legislation in the House of Lords.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 2000
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