Impact of non-financial indicators on the company's performance

8. Conclusion

While working on this thesis and experience of internship in Translink helped to understand as to what extent use of non-financial indicators has become significant in measuring the performance of company.

Use of non-financial indicators in combination with financial indicators presents the wholistic report on the performance of organisation as they reflects even the company's intellectual capitals. And they are intangible resources involved in creation of value of organisation.

One of the principal non-financial indicators, customer satisfaction, plays a vital role. And majority or I would say almost all sphere of business had taken this indicator on priority and enough resources are invested to work on this factors.

This factor results in increase in revenue owing to retention of customer and it works as means of advertisement as satisfied customer would share his experience with others and encouraging them to buy the same product.

Secondly, it allows us an organisation to get the first hand information of product and could be used to further improve the quality.

The grids of contractual and cognitive reading are opposed on a large number of points. Although it seems difficult to construct a unifying theoretical framework, another extension to this study is however possible.

It could consist in determining points of convergence between these two theoretical reading grids, some indicators being likely to be deployed at the same time for contractual and cognitive reasons. The study of these points of convergence would make it possible to deepen theoretical understanding of the role played by non-financial indicators in the creation of value.

Moreover scientific literature shows that use of non-financial crisis become extensively important in times of crisis situation as most of financial factors seem to be not accurate due to unpredictable situation. That's why, organisation base their strategy on the mixture of financial and non-financial indicators. Many researchers consider non-financial indicators as vector of future planning and strategy in an organisation.

Based on this study, I have accumulated few recommendation which could be beneficial for companies:

Firstly, it is recommendable to recognise the core non-financial indicators for management purpose as same set of non-financial indicators may not give the similar result in all sphere.

Secondly, Selecting a combination of financial and non-financial indicators and discussing the plan with senior managers to have their say and thereafter adopt a agreed upon plan.

Thirdly, it is highly recommendable to develop a report on intellectual capital as an additional component of financial statement.

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