The advantages of non-financial measures include alignment of strategy and identification of strategy improvements, visibility of efficiency and effectiveness, drivers behind financial measures, identification of cheating and thus improved focus on long term rather than short term goals.

Why non-financial performance indicators are useful in measuring performance?

Companies need to track non-financial performance measures because they: Help capture strengths and weaknesses. ... These measures can reveal your core competencies and highlight other areas you didn't realize were suffering. Affect business performance.

What are the importance of non-financial resources?

Non-financial assets are important for companies, and they can be used as collateral when securing credit from financial institutions. They are included on the balance sheet, and financial analysts consider non-financial assets when evaluating the long-term viability of the company.