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I’m confused with non-financial indicators.
I wanted to know whether it is true that key performance indicators (KPI) are measurements of achievement such as the passing rate of the college students of the critical success factors (CSF) where CSF are the goals that the company wants to achieve such as New revenue earned from new product.
But for the KPIs do I have to calculate the changes in the non-financial data of two years such as % changes or Number of complaints in two years, but the data given in the question is mostly monetary rather than non-monetary which befits non-financial data [such as the non-financial data given in question Jungle CO]
Is it also true that non-financial question are all different & as per question requirement we have to use the KPIs that is given in the data only?
Can you please explain the non-financial performance question JUNGLE CO?
You first paragraph is correct (although the question does not require you to actual mention KPI’s or CSF’s).
Every question is different and you have to make comments on the information given in the question.
In this question, note 4 of the question is giving the only non-financial information available and so you need to discuss sensibly (by comparing the figures for the two years) as to whether things are improving or getting worse.
As far as the financial information in this question is concerned, there are many more figures given and so your job is to calculate sensible figures or ratios in order to compare the performance between the two years.
Do study and learn from the examiners answer, and appreciate that only 7 of the marks are for calculations and so you would not be expected to produce all of the calculations as in the examiners answer.
My question is that both in financial & non-financial data we are doing the same thing such as calculating the % changes (in two years data) with its explanation of whether they are improving or not.
In non-financial indicators we only evaluate the % increase in two years but what can we do more like what other indicators can help us to evaluate the non-financial data?
Can you please also look into the question Preston Financial Services [Dec 2006]
Non-financial is like calculating is mostly monetary rather than non-monetary which is more of a financial data rather than non-financial? What to do say?
You can only use the information in the question and then comment on it.
Most of the information given in the question Preston Financial Services is non-financial data and is non-monetary.
Error rates, completion time, number of customers, market share, employee retention rate are all relevant as non-financial measures and all of them are non-monetary.
Have you watched my free lectures on performance measurement?
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