The ultimate performance measure is expressed in financial terms; however, it is often difficult to relate non-financial measures to financial outcomes. Which of the following may be reasons for apparent success in improving non-financial measures not translating into financial improvement?
A) Failure to utilise freed-up resources
B) Identifying incorrect critical success factors
C) Incorrect design of performance measures
D) All of the given answers

Question

Quizplus · Accepted Answer

All of the given choices can be reasons for apparent success in improving non-financial measures not translating into financial improvement. 
A) If resources are not properly utilised after being freed up, it can undermine the potential financial benefits of improving non-financial measures.
B) If critical success factors are not correctly identified, efforts to improve non-financial measures may focus on areas that do not have a significant impact on financial performance.
C) Poor design of performance measures may lead to efforts to improve non-financial measures that do not drive financial improvement.

The Ultimate Performance Measure Is Expressed in Financial Terms; However