Processes and objectives related to building the organization's non-financial performance

Timeline:

Month 1: Finalize metric definitions and select data collection tools.

Month 2: Deploy initial surveys and monitoring systems to begin baseline data collection.

Month 3: Analyze baseline data and prepare a foundational report.

Phase 2: Integration and Action Planning (Months 4-9)

This phase focuses on integrating the non-financial metrics into our strategic planning and operational workflows.

Objectives:

Link Non-Financial Metrics to Financials: We will create a clear link between our non-financial performance and financial outcomes. For example, we'll model how a 5% increase in customer retention translates to a specific increase in revenue. This demonstrates the direct ROI of our efforts.

Develop Cross-Functional Action Plans: Based on our baseline data, we will form cross-functional teams to create actionable plans. For instance, if customer satisfaction is low, a team with members from sales, service, and product development will create a plan to address the root causes.

Address Conflicting Objectives: We must proactively manage potential conflicts. For example, a push to reduce time to market might conflict with the goal of increasing customer satisfaction if quality is compromised. We will address this by setting a core principle: "Speed without sacrificing quality." Decisions will be vetted against both metrics, and a balanced scorecard approach will be used to ensure we're not over-indexing on one metric at the expense of another.

Sample Answer

Our plan for moving forward involves a three-phase approach to build and implement non-financial performance measures, focusing on a stronger value proposition to drive future earnings. This plan addresses objectives, timelines, and potential conflicts.

Phase 1: Foundation and Data Collection (Months 1-3)

The first phase is about establishing a solid foundation for our non-financial metrics.

Objectives:

Define Key Metrics: Identify and clearly define the key non-financial metrics that directly align with our value proposition. These will include customer satisfaction, customer retention rate, employee engagement score, and brand reputation/market presence. We'll move beyond generic terms to create specific, measurable targets (e.g., "increase net promoter score by 10 points").

Establish Data Collection Processes: Implement systems to accurately gather data for each metric. For customer satisfaction, this means setting up regular surveys (e.g., post-service surveys, quarterly check-ins). For employee engagement, we’ll use annual surveys and pulse checks. For market presence, we'll monitor social media sentiment and press mentions.

Create Baselines: Collect initial data to establish a baseline for each metric. This is crucial for measuring future progress.