How to analyse data other than financial statements

Some general measurements of non-financial performance are gather by almost every business. It is reasonable to start by looking at them under the headings:

• markets and marketing
• people and the labour market
• operations and management. 

There are two types of customers - new (not loyal) and old (typically fiercely loyal). 

• What % of customers are repeat; what % are new?
• Of the 'old' customers, what % are commited and loyal? And what % are passive?
• What's the cost per head of gaining new customers?

In addition there are some standard - but important - ones:

• Market share 
• Gross profit margin
• New product sales as a % of total sales. 

Business with harm HRM approach:

• recruitment cost per new staff
• graduate trainee retention rate
• customer calls handled per hour 
• lateness for work as a % of days worked. 

These all relate to quantitative rather than qualitative data.

Soft HRM approach:

• annual ratings of job satisfaction 
• diversity statistics at senior management levels compared with junior staff
• promotion data broken down into internal v external 
• training £s spent per employee.

Everything that can be measured is measured - and always has been. This is because customers want their goods delivered to the exact specification at the right time - and partly because operations embodies the highest-cost part of the business process. In other words if costs are excessive here, the competitiveness and perhaps survival of the organisation will be put at risk. 

All companies will measure:

• managing quality 
• managing waste 
• productivity 
• managing time
• managing growth.