Financial metrics can also include those without dollars but instead use common financial ratios like Accounts receivable Turnover or Inventory Turnover.
In my scenario the budgeted financial ratios and non-financial metrics were an integral part of the budget and would be tracked monthly in the new year using budget control report variance analysis (e.g. actual training hours versus budgeted training hours), with manager explanations for variances.
In addition, some of these metrics are in fact checked weekly or DAILY. At one company we checked 4 KPIs daily at a 1 pm stand-up meeting with the GM and key managers, and at another specific KPIs were reviewed daily at a 20-minute am operations meeting.
>For example, if airlines did not care about tracking % on-time delivery and were late all the time with customers missing connections and such, then the team would miss the opportunity to consider that future revenues may be trending downward.
>It probably seems obvious that tracking % quality defects would also help management and not tracking it as an early warning system could allow a problem to turn into a crisis very quickly.
QUESTIONS
1. At a company where you work or have worked, do/did you have any goals posted for employees to meet that are financial or non-financial that could be related to or derived from budget data and that could be used for planning, control, motivation, employee or team rewards? Like what?
2. If not, what might be two or three that could be posted for your kind of business, that relate to this course, and that you could institute if you were a manager at that company? Provide at least two, please.