Posted: May 1st, 2025

discussion response 2

please respond to the following discussion response as a peer making a comment. There are financial and non-financial metrics measured to ensure a company stays on track financially and with customer service with patients and employees.

The non-financial metrics are company reputation, customer influence and value, competitiveness, and innovation (Patterson, 2024).

The financial metrics that need to be measured are gross profit margin, net profit margin, working capital and current ratio (Stobierski, 2020).

These two measures are different in that one measures numbers and the other non-quantitative and more performance measures. The two measures work together to form a brand because if the company has a large gross profit margin, then the company will have the money to advertise, which will increase the company reputation. Essentially, the two measures can benefit each other if they are both positive and can work against one another if they are negative.

Companies use measurement techniques to make sure they are doing well within the company and to measure goals and make sure they can achieve them, so it is crucial that the metric tools used are the correct ones for the job.  Performance measures are crucial for the company to make sure that all their employees are performing well.

The only way to truly understand how a business performs is to study the financial aspect as well as the human resource aspect to truly get a well-rounded metric on the company. If a company works well with the employees but not financially then the company will not be able to stay open.

Andrea Mendoza

Stobierski. (2020, May 5). 13 financial performance measures managers should monitor. Business Insights Blog.

https://online.hbs.edu/blog/post/financial-performance-measures

Patterson, L. (2024, March 5). Six non-financial metrics every marketer should measure. VisionEdge Marketing.

Six Non-Financial Metrics Every Marketer Should Measure