Which mistake do companies make regarding non-financial measures?

The choice regarding not linking measures to strategy is significant because aligning non-financial measures with an organization’s strategic objectives is crucial for achieving long-term success. When companies do not connect these measures to their overarching strategy, they risk misallocating resources and misinterpreting the data. Non-financial measures, such as customer satisfaction, employee performance, and brand reputation, can provide vital insights into how well a company is progressing toward its strategic goals. Without this alignment, organizations may collect valuable data without understanding its relevance or impact on their success, leading to poor decision-making.

The other options, while important to discuss in the context of non-financial measures, do not encapsulate the core issue of alignment with strategy as effectively. Measuring employee satisfaction, seeking customer feedback, or even addressing financial metrics is fundamental, but these elements become significantly more impactful when they are clearly tied to strategic objectives. Thus, the mistake of failing to link non-financial measures to strategy highlights a fundamental issue in how organizations approach their performance management in a holistic, strategic manner.