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APM

Non-Financial Performance Measurement - ACCA Advanced Performance Management (APM)

VIVA Subject Guide

In the previous two chapters we were looking at measures of financial performance. However, as we stated, it is important to have a range of performance measures considering non-financial as well as financial matters.

In general, financial performance is easy to measure (earning per share, profit, dividends, EVA etc) but these measurements do not tell managers why financial performance has improved. For example, sales might have increased either because prices has been lowered or the company has spent money developing a new, innovative product. In this chapter we will consider the various areas where performance measures are likely to be needed.

Note that although we might all like to think that, for example, customer service is a foundation for company success, it is not necessarily so. Some low-cost airlines have been very successful despite giving poor customer service. Good customer service, and the other non-financial qualities which are mentioned about below are not ends in themselves. They become important in profit seeking organisations only if the enable financial success.

In not-for-profit organisations, non-financial measures can be ends in themselves. For example, in a hospital patient service is likely to be a fundamental part of its mission.

Various authors have summarised the areas in different ways and the main approaches are summarised in this chapter.

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17 Comments

  1. asyjames
    Great information included in a short space of time. Might be worth re-recording as the quality of the sound is poor throughout.
  2. ammu88
    can u suggest past questions related to this topic
  3. kengarrettTutor
    For chapter 12, have a look at SD17 Q3 , MJ16 Q4
  4. pinkytoto
    Hello Mr Garrett,

    why are there 3 models saying what appears to me the same thing (F&M bldg. blocks/K&N Balance scorecard/the performance pyramid) is it that they are used in different industries

    Dec'09 Q1 whilst I generally had the non financial KPI's was there a specific model from the list above being use

    Thanks
  5. pinkytoto
    Good day could you say which pass papers and questions I can use as practice because the lecture did end abruptly

    Thanks
  6. Ryan
    Great work again big man - keep it up
  7. lizzy.kapambwe
    Thank you very much sir.The lecture was so helpful.
  8. kengarrettTutor
    Good. Thanks.
  9. Simon
    Ken,
    You said there were 4 models we need to be aware of....

    Nortons BSC
    F&M Building Blocks
    L&C Performance Pyramid
    ??

    Was there are fourth??
    Thanks,
    Simon
  10. kengarrettTutor
    Sorry, 4th one now not on syllabus! We chopped itf rom the end of yhe lecture but missed this reference.
  11. samuel
    what about performance prism?
  12. John
    https://opentuition.com/topic/p5-sept-2016-exam/
  13. samuel
    so helpful
  14. efie
    Helpful Mnemonics for F&Moon dimensions :
    Find - Financial Performance
    Cheap - Competitive Performance
    Quiet - Quality
    Flat - Flexibility
    'to'
    Rest - Resource Utilisation
    In - Innovation
  15. Olabisi
    Thanks so much
  16. reza
    Thank you
  17. shreya
    the way you explained performance pyramid was so helpful. thank you so much sir

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