Trends

The importance of measuring non-financial factors

Allan Booth

It does not matter if a company is financially strong if they are showing a weaker non-financial performance. Thus, setting and evaluating these non-financial objectives is even more important. You can rely on Questica for your concerns about non-financial factors or any commercial or nonprofit financial topic. Since 1998, Questica has worked to make finances easier and better for public sector and non-profit customers. We manage over 60 billion in annual public sector budgets, and we want to help you. For more information, visit our website or contact us directly.

Not considering non-financial factors could signal trouble

Consider the possibilities and implications

Organizations of any size benefit from thinking about non-financial factors and objectives. If a company has strong sales now but poor customer service, that issue will compound and affect the bottom-line if left unchecked.

 

By tracking non-financial factors early, executives and managers make better decisions regarding needed adjustments. They can decide to continue for example, whether a customer service seminar is necessary. If the problem is drastic enough, they can even decide who should be let go. Additionally, measuring employee morale, engagement and turnover rate helps an entity understand when it needs to put more resources into its workforce or make changes to the organization’s culture.

 

All this non-financial information used in decision-making situations has very real implications for the financial health of an organization. Performance and productivity directly affect a business’s bottom-line. Also, engagement and satisfaction work towards building an organization people want to come and work for.

Invest in the right tools

Organizations using a decentralized tracking method, such as spreadsheets, may find it difficult to accurately measure multiple non-financial factors at once. Spreadsheets scatter information throughout different files. With so much duplicate and repeated data floating around, compiling necessary information becomes more difficult. A better option for businesses is to invest in Questica’s Budget and Performance software over a traditional Excel spreadsheet.

 

Establish and manage any measures you feel are important to your overall goals

Questica Performance helps your business establish and manage any measures you feel are important to your overall goals. The software allows your team to establish programs to locally organize the measures that will be tracked. Different measures have their own frequency, targets, and warning thresholds. Questica Performance helps to track data no matter which interval level of granularity an organization desires. You can establish different intervals of tracking depending on the measure in question. Questica’s system then provides feedback on how each measure is tracking toward the targets established by the organization.

 

A visual representation of each program or measure’s performance is available in a scorecard that offers drill-down functionality to the actual data for the period in question. You also set the due dates and owners for individual measures so that the system reminds users when their measures are past due.

 

Rely on Questica for reliable financial software that meets your needs

Whatever your concern, contact Questica today to learn more about the comprehensive software we provide and how we can help you. Questica provides resources to help you manage your finances and make the fiscal season less stressful for both commercial enterprises and non-profit organizations. Visit our website and view one of our whitepapers to learn more about the specific and personalized methods we use to help you get to where you need to be.

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