Taejeah

What leads to an increase use of non-financial performance indicators?

Changes in sost structures;
Competitive environment; and
Manfacturing environment

Reasons for the continued growth on non-financial performance indicators are:

Concentration on too few variables
Lack of information on quality
Changes in cost structures
Changes in competitive environment
Changes in manufacturing environment

The non-financial performance indicators ar better indicators of future prospects.

Financial performance indicators tend to focus on the short term.

The give positive impression of what is happening now but problems can be looming. For example, failing quality will ultimately damage profitability.