WEBVTT 1 00:00:13.047 --> 00:00:18.057 In these last decades non-financial information has become more and more important for business 2 00:00:19.543 --> 00:00:29.170 I would say that there are two main aspects, two sides of the coin, from one side there is 3 00:00:29.171 --> 00:00:38.999 the basic fact that the financial performance is driven by operations and 4 00:00:39.000 --> 00:00:48.996 factual things and in this sense non-financial information can be considered the value drivers of financial final result. 5 00:00:50.081 --> 00:00:60.039 In this respect non-financial information are the so called "lead indicators" 6 00:00:60.040 --> 00:01:07.898 while financial information are the "lag indicators". Before we have the performance 7 00:01:07.899 --> 00:01:16.755 based on non-financial information and then we produce financial results. 8 00:01:18.081 --> 00:01:27.908 For instance the quality you provide to the customer, the time you react to the market, the time to deliver 9 00:01:27.909 --> 00:01:38.637 your service or product, the way in which you manage your operation and then you monitor it in several ways. 10 00:01:38.638 --> 00:01:47.266 All these are the facts that produce finally financial results. So managing the value drivers 11 00:01:47.267 --> 00:01:59.395 has became in the past decades one of the most important issues for competitive business and in this respect there has been 12 00:01:59.396 --> 00:02:10.024 a development also in management control systems to integrate non-financial information with traditional financial items. 13 00:02:10.025 --> 00:02:17.053 The other side of the coin is related to business reporting. Also in business reporting to stakeholders and shareholders 14 00:02:17.054 --> 00:02:27.876 non-financial information is becoming more and more important in order to understand the business model and the strategy of the business.