Director Essentials: Understanding Nonfinancial Metrics

In brief: To help ensure optimal performance in the companies they serve, directors must understand and use metrics—both financial and nonfinancial—that gauge the health of the company. This report presents a variety of key nonfinancial metrics in five important categories:

• Products and/or services
• Operations
• Talent and culture
• Market and reputational impact
• Resilience and sustainability

For each metric, this report explains why it matters, where it can be found, and how to interpret it. Aimed primarily at public company directors, this guide can also be useful for fiduciaries of nonprofits and privately owned companies.

This resource can help your board

• Understand important nonfinancial metrics.
• Learn why these metrics matter.
• Discover where to find these metrics.
• See how to interpret these metrics.

Most relevant audiences: board chair or lead director, nominating and governance committee members, compensation committee members, and new board members