8 Performance Indicators. The list below provides a selection of performance and progress indicators. These indicators are generally associated with the private sector.

However, management of the public sector is beginning to follow more closely private sector practices and procedures.

Requirements:

(a) Briefly explain why organisations use performance and progress indicators.

(b) Choose two financial and two non-financial factors from the list below and discuss how they could be used to assess success in both the public and private sectors. You should emphasise the differences and similarities between public and private sector usage of these factors and, where necessary, explain how they could, or should, be adapted for use by public sector organisations.

Financial Non-Financial Cash generation Market share Value added Customer satisfaction Profitability Competitive position Return on assets Risk exposure