Recognizing the limitations of purely financial metrics, the management of VEN Ltd. intends to incorporate Non-Financial Performance Indicators…

Non-Financial Performance Indicators (NFPIs) are sustainable action-based indicators. For example, employee training will increase the profit & let them feel empowered, putting effort in research and development will result in a high brand image & high intellectual property rights. Hence for being sustainable rather being only profitable an organisation needs to include NFPIs as part of performance matrix in addition to financial performance Indicators. Although the scope of NFPIs substantially depends upon width and depth of organisation's objective, operations and strategies, but generically VEN Private Limited can consider- Human resources management Superior performance comes from superior processes. Who actually devise and execute superior processes to build an organisation with competitive advantage? It is the people (human resources) and their efforts. Hence human resources are a significant element for success of any organisation. If they performance well, then entire organisation automatically performs well; hence measures such as staff turnover, absenteeism, job satisfaction, and offer letter accepted shall be part of performance metrics. Product and service quality What make any business distinct from others, what are the sources of competitive advantage? It is substantially the value which its products or services capable to create for the users; and quality is important determinant of value. Simply saying quality is conformance to need to user. Hence the following performance measures, owning to quality shall be part of performance metrics What are the functions that product or service offers and how much value these are capable to generate?Where do our product stand in market in comparison that of competitors, especially rivals?Is product capable to generate further superior performance and scope of innovation? Brand awareness and company profile (brand equity) Non-financial performance measures consider the brand equity (value of the brand) as one of the significant performance measures. Brand value is largely based upon factors like customer's awareness & loyalty which includes consumer behaviour also perceived quality, stakeholder's expectation and organisation ability to meet them, and factors like patents and trademarks etc.