Implications of non‐financial performance measures in Finnish banks

The inadequacies of traditional management accounting (MA) information indicate a need for management to find proper measuring tools for emerging non‐financial performance (NFP) in the highly competitive financial services, as well as in the manufacturing industry. Thus, the role of MA in measuring the performances of emerging NFP has been receiving increased emphasis in the increasingly important service industries. Considering the shortcomings of the traditional MA information system, particularly the measurement of new emerging NFPs, this empirical research is an attempt to investigate the role of MA in non‐financial as well as financial performance measurement (PM) in selected banks and financial institutions (BFIs) in Finland. The study demonstrates that the role of MA in non‐financial PM is insignificant. However, management is paying more attention to its measurement. This study identifies three different aspects of NFP: profit‐driven NFP; NFP for long‐term competitive advantage; and independent NFP (those not linked with the profitability of an organisation).