Aric, an accountant at Play-Off Company, feels like something is amiss in his organization. He says, “I feel like I just finished reading a book that is missing most of the pages. I know the ending but have no idea what happened before. I know where all of the characters ended up, but I don’t know why! I’m missing important parts of the story!”
Aric’s frustration is common in companies that only focus on financial measures. While financial measures are important, they rarely tell the whole story of performance. Nonfinancial measures are important complements to financial measures that are often more timely and help managers identify how the organization achieved financial performance.
Nonfinancial measures alone, however, are often insufficient. To increase timeliness of information needed for decision making, Aric and his fellow accountants develop nonfinancial standards. They can then compare actual nonfinancial performance to these standards via variance analysis. This helps Play-Off managers better understand their business and communicate goals to employees.
To offset the overwhelming volume of nonfinancial measures, Aric considers several performance measure frameworks. Implementing one or more of these frameworks helps organize performance information, recognize and communicate relationships among measures, and tie these measures to organizational goals. Aric also needs to recognize the trade-offs between financial and nonfinancial measures that result from limited resources.
Do you face the same issues as Aric? Is there too much focus on the financial aspects in your company? Do you feel like you’re missing important performance information? The Accenture Academy course Applying Standards to Nonfinancial Performance Measures uses a real-world, case-based scenario to help you apply nonfinancial measures in your organization. You will be able to differentiate nonfinancial measures from financial measures, apply nonfinancial standards to budget and planning decisions, and perform nonfinancial variance analysis. Collectively, this nonfinancial perspective improves the timeliness of information and decisions, ultimately helping you and your company achieve organizational goals.
Accenture Academy offers proven, cost-effective learning solutions for a more versatile workforce and a more agile organization. We provide a flexible learning approach that helps your people be more versatile and your entire organization be more agile in the marketplace. Curriculum includes Supply Chain Management, Finance, Procurement, Analytics, Leadership & Management and Specialty Skills.