As title suggests
As title suggests
Hi Anonymous,
First of all, when talking about non-financial gains, it's important to begin by understanding company's strategy and strategic goals.
Afterwards, a company's portfolio manager together with senior management should prioritize qualitative factors that are important in achieving those strategic goals. Those factors will be used to evaluate the investment.
Let's assume that we are talking about an airline similar to SWA. We could formulate the strategy as: "Grow nationwide as an airline known for outstanding service and corporate culture".
Therefore, we can see already 3 qualitative factors here:
Thus, to summarize:
The approach is similar to what we are using, when creating Balanced Scorecard, and BSC has similar purpose - it helps to evaluate non-financial performance of a company.
- Tadeus