The strategic importance of performance measurement in business organisations: blending financial and non-financial performance measures.

Abstract

This study explores the strategic importance of performance measurement in business
organisations, accentuating the integration of both financial and non-financial performance
measures. The study took a qualitative approach and followed a systematic literature review
methodology informed by the Preferred Reporting Items for Systematic Reviews and Meta
Analysis (PRISMA) guidelines to ensure a robust and transparent process. This study thus
synthesizes existing literature on performance measurement frameworks that highlight the
benefits of a balanced approach that includes non-financial indicators such as internal
business processes, customer satisfaction, employee engagement, corporate social
responsibility, and stakeholder management. By examining various empirical studies and
theoretical models, this study illustrates how blending financial and non-financial measures
may enhance strategic decision-making, drive organisational performance, and foster
sustainable growth. The review concludes by reflecting on the implications for theory, policy
and practice, e that emphasised to practitioners on the need to seriously consider implementing
the integrated performance measurement systems that would align with organisational
objectives and stakeholder expectations that would reinforce the strategic role of performance
measurement in attaining sustainable growth and long-term success.