Final answer:
The statement is true; Financial Performance Management often focuses on past financial data, which can overlook predictive or future indicators needed for long-term strategic planning.
Step-by-step explanation:
The statement that a limitation of Financial Performance Management is the tendency to focus on the past rather than future indicators is True. Financial performance management typically involves the analysis of a company's financial data from prior periods to assess its performance and make informed decisions. However, this approach can lead to a focus on short-term results and may not adequately consider predictive analytics or forward-looking indicators that are crucial for strategic planning and future growth. Companies need to complement traditional financial performance metrics with forward-looking indicators such as market trends, innovation pipelines, and customer satisfaction to get a more complete picture of their performance and potential.
To address this limitation, organizations can incorporate forward-looking indicators and forecasting techniques into their financial performance management practices. These may include market analysis, trend analysis, budgeting, and scenario planning, among others.