Last Updated Aug 20, 2007 8:54 PM EDT
Tom Davenport from Harvard Business Online says more companies will work to figure out this relationship between non-financial measurements and financial measurements using what he calls "cause-and-effect reporting." He says some companies already have a good understanding of this relationship. Hilton Hotels, for example, found that a 5 percent increase in customer loyalty equals a 1.1 percent increase in sales the next year. Looks like it's time for more companies to revamp how they evaluate their businesses.