Firms may use nonfinancial performance measures to gain a more comprehensive understanding of their performance, to motivate employees, and to align employee behavior with organizational goals. Nonfinancial measures can provide insight into aspects of performance that are not captured by financial measures, such as customer satisfaction, employee engagement, and operational efficiency.
A hospital might use a variety of nonfinancial performance measures to assess its performance. Some examples might include:
1. Patient satisfaction scores: This measure can help hospitals understand how well they are meeting the needs of their patients and identify areas for improvement.
2. Clinical quality measures: Hospitals may track a variety of clinical quality measures, such as infection rates, readmission rates, and mortality rates, to ensure that they are providing high-quality care.
3. Employee engagement scores: Measuring employee engagement can help hospitals identify areas where they can improve working conditions and increase employee satisfaction.
4. Efficiency measures: Hospitals may track measures such as patient wait times, length of stay, and resource utilization to identify opportunities to improve operational efficiency.
5. Community health measures: Hospitals may track measures such as community health needs assessments, access to care, and health outcomes to understand their impact on the health of the communities they serve.