Many board members and senior executives are still in the dark about the overall health of their organizations because they lack high-quality, nonfinancial information. According to the second edition of the Deloitte Touche Tohmatsu survey, "In the Dark: What Many Boards and Executives Still Don't Know About the Health of Their Businesses," developed in conjunction with the Economist Intelligence Unit, 78 percent of the CEOs surveyed say that financial indicators alone do not adequately capture their company's strengths and weaknesses. Those surveyed admit they need information on nonfinancial performance indicators, but the ability of executives to monitor their performance against them remains inadequate.
The results of the second survey indicate that 57 percent of the companies surveyed are under increasing pressure to measure nonfinancial indicators, and that a growing number of companies are indeed creating significant value for their organizations by understanding their underlying performance drivers through the use of nonfinancial measurements. Customer satisfaction, innovation and employee commitment are identified as key drivers of performance among the companies interviewed. Further, 83 percent of respondents say that the market itself is increasingly emphasizing nonfinancial performance measures.
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