Every company in the world, no matter its size, location or industry, monitors, measures, tracks, and to some extent reports on key Financial metrics…not just because it might be required by law or regulators but because it makes business sense. If a company didn’t keep an eye on its finances and actively manage it, it would go south quickly.
Financial performance management has been done, honed and standardised on global basis over the past millennia. The terms, method and the approach to measure and report on financial performance of companies are generally similar around the world.
“Non-Financial” performance management on the other hand is still in its infancy. There is no global rule book, standard or method to manage your “non-financial” performance.
While Financial performance remains critical, Non-Financial performance is quickly rising to taking an equal role next to Financial aspects.
“Today, Financial management is the baseline.
Your stakeholders expect much more, they expect you to manage all Non-Financial aspects as well as your Financial ones.”
Each of the topics can impact the value of a company, regardless of its size, location, market. Whether it is publicly listed or not.
ESG (Environmental, Social and Governance) management is a very effective “Non-Financial” management framework as it covers all aspects of running a company:
- your impact on the Environment (and all companies have one); how you treat your employees, contractors, suppliers, customers; how much tax you pay, your capacity to innovate, how you manage your data, how you respond to crisis and much more (the “inside out” view)
- as well as the impact of all these factors on your company (the “outside in” view).
This double-materiality (how the company affects its stakeholders and outside world and how it stakeholders and outside world impact the company) adds a valuable Risk mitigation dimension.
The challenge lays in the breadth, depth and fluidity of “Non-Financial” management, especially in a world full of VUCA (Volatility, Uncertainty, Complexity, Ambiguity):
- What do I measure?
- How do I measure it?
- What do I report on?
That is a genuine challenge for most, if not all, companies.
Our approach is to leverage technology to help resolve that challenge. We are building the next generation of “non-financial performance analysis” solution. We are able to generate a picture of a company’s non-financial performance in a way that is complete, detailed, accurate and rooted in data. Because we use technology, it can also be done in minutes, on on-going basis and at scale.
With minimum effort in their part, we are able to provide our customers, the management team of the company, with an X-ray of their operations from head to toes. We highlight what the company does well and what it should improve on.
Are you ready to X-Ray your business?