Economics · Performance Management
Non-financial performance indicators are sometimes referred to as 'leading indicators'. What does this mean in the context of business performance management?
- 1They are inherently more important than financial indicators.
- 2They tell the firm that something has gone wrong after the event has occurred.
- 3They give early warning signs of future operational or financial performance problems.✓
- 4They are exclusively meant to be understood by non-financial operational staff.
Correct answer
They give early warning signs of future operational or financial performance problems.
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