Non-financial performance indicators
You'll learn what non-financial performance indicators are, why they matter alongside financial metrics, and how to use them to evaluate organisational performance comprehensively.
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In this lesson
- 0:00 Non-financial performance indicators explained
- 0:49 Why NFPIs matter to financial performance
- 1:25 Common challenges with non-financial metrics
- 2:11 Balanced Scorecard framework overview
- 3:01 Four perspectives of the Balanced Scorecard
- 4:28 Applying Balanced Scorecard to practice questions
- 6:01 Fitzgerald and Moon's Building Block Model
- 7:00 Six dimensions of performance measurement
- 8:08 Calculating operational gearing step by step
About this lesson
This video explores two key frameworks: the Balanced Scorecard, which integrates financial and non-financial success measures across four perspectives (financial, internal processes, learning and growth, and customer), and Fitzgerald and Moon's Building Block Model, designed specifically for service organisations. You'll discover how to identify critical performance dimensions, set appropriate benchmarks, and link performance measurement to reward systems. By mastering these approaches, you'll be able to prevent short-term financial decisions from compromising long-term profitability and understand how customer satisfaction, staff morale, and operational efficiency directly influence financial outcomes.
Duration: 10m
Transcript
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