Non-financial performance indicator
A non-financial performance indicator measures an aspect of activity or outcomes without using a monetary result as its primary unit. Examples include defects, response time, retention, safety and customer satisfaction. It can explain drivers of future financial results or outcomes important in their own right. Define the population, measurement method and comparators and consider gaming, uncertainty and data cost. Non-financial does not necessarily mean qualitative or objective.
Worked example
A complaint rate of 20 per 1,000 completed deliveries is numerical but non-financial. A narrative customer comment is qualitative information rather than the same type of measure.
Common mistake
Do not assume a non-financial indicator is automatically a leading measure, unbiased or comparable across different service conditions.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | APM | Direct | September 2026–June 2027 |
| ACCA | MA | Direct | September 2026–June 2027 |
| ACCA | PM | Direct | September 2026–June 2027 |
| FIA | FMA | Direct | September 2026–June 2027 |