NONFINANCIAL PERFORMANCE MEASURES
NONFINANCIAL PERFORMANCE MEASURES

Summary/Abstract: Nonfinancial performance measures have attracted significant attention in the managerial accounting literature. The purpose of this essay is to distinguish some of the reasons for growing attention for nonfinancial metrics in the literature and to identify the major characteristics of the nature of nonfinancial performance measures and their implementation. The paper provides brief overview of the literature of performance measures and the emergence of interests for nonfinancial metrics. The paper further identifies the key aspects of nonfinancial performance measures and their implementation, and provides evidence in literature of their practical use in industries. Furthermore, the paper itself presents some of the main benefits and drawbacks in implementing nonfinancial measures for evaluating organizational performance. Finally, the paper provides brief discussion on the possibility and the advantages of combining financial and nonfinancial performance measures in strategic decision-making.

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