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ACCA Strategic Professional · Advanced Performance Management · Non-financial performance measurement

Zenith Couriers wants to add a non-financial measure of customer satisfaction to its performance dashboard. Management proposes using the number of complaints received per month as the only measure. Which weakness of this proposal is most significant from a measure-design perspective?

The main weakness is that complaints only capture customers who bother to report problems and show what has already happened. It gives an incomplete, lagging picture of satisfaction, so it should be supplemented with surveys, repeat business or net promoter measures.

  1. AComplaints data is always too costly to collect to be of any use
  2. BComplaints count only dissatisfied customers who bother to report, so it gives an incomplete and lagging view of satisfactionCorrect
  3. CNon-financial measures cannot be linked to strategy
  4. DComplaints are a financial measure and so duplicate existing reporting

Explanation

A complaints count captures only customers who choose to complain and reflects past events, so it is a narrow lagging indicator. Better design combines it with surveys, repeat-purchase rates or net promoter score. The other options are false statements about non-financial measures.

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