Pitfalls in choosing non‐financial measures

Abstract

Investigates how organizations pick which non‐financial measures to use to enable managers to know what requires attention, and what can be ignored for now. Lists out in a table format these essential differences between financial and non‐financial measures. Stresses there are two potential pitfalls: first is the tendency for non‐financial measures to run down with use; and, second, stresses the importance of looking at internally‐generated criteria in the light of external values. Confirms that reiteration of essential differences is a strong reminder of the ease in which non‐financial measures can multiply.

Citation

Kippenberger, T. (1996), "Pitfalls in choosing non‐financial measures", The Antidote, Vol. 1 No. 1, pp. 28-29. https://doi.org/10.1108/EUM0000000006395