As the year draws to a close, many leaders find themselves in a familiar ritual: closing the books, revising revenue goals and setting ambitious financial goals for the coming year. These practices are important. But after years of designing teams and advising organizations in various growth phases, I have come to the conclusion that the most valuable end-of-year ritual has little to do with money alone.
Instead, it’s about juxtaposing non-financial metrics with your financial metrics.
Revenue tells you where your business has landed. Non-financial metrics tell you why and whether the success you are pursuing is sustainable. They reveal the health of your organization from within, often long before that health appears on the balance sheet.
The quiet period between Christmas and New Year is an ideal time to take a step back and ask a different set of questions. Not alone. Did we get our grades? but what did it cost us to get there? And what kind of organization do we become?
Why financial figures alone are not enough
Financial measures are essential, but they are lagging indicators. By the time sales decline or margins tighten, the underlying problems, such as burnout, disengagement, inefficient processes or stalled innovation, have often been present for months or even years.
Non-financial figures, on the other hand, act as early signals. They help leaders understand whether the systems, culture and behaviors within the organization are aligned with long-term success.
Consider employee involvement. Teams that feel trusted, challenged and supported often do better work, collaborate more effectively and stay longer. Gallup survey shows that highly engaged teams deliver significantly better business results – including up to 23% higher profitability and 41% lower absenteeism – indicating that engagement metrics act as early predictors of future performance rather than simply being measured after the fact.
Or look at customer satisfaction. Loyal customers don’t just renew contracts; they deepen their involvement and/or refer others and become partners in growth. Operational efficiency, learning speed and innovation milestones similarly tell a story about whether an organization is built to adapt.
When these indicators are strong, financial results often follow. If ignored, revenue gains may be fragile or short-lived.
Making the intangible measurable
One reason leaders shy away from non-financial measures is the belief that they are too “soft” to track. But meaningful doesn’t have to be vague.
The key is to choose a small number of metrics that reflect what really matters in your context. A startup can track time-to-decision or experiment-to-launch cycles. A growing team can focus on employee engagement scores, internal mobility, or manager effectiveness. A customer-centric organization may prioritize retention, net promoter score, or qualitative feedback trends.
These metrics don’t have to be perfect or overly complex. What matters is consistency and intention. Even a quarterly survey or structured retrospective can reveal patterns that financial figures alone will not.
The same principle applies to individuals. Instead of just setting income or productivity goals, track energy levels, learning hours, or the quality of your working relationships. These non-financial indicators often predict performance more accurately than output alone.
Converting reflection into ritual
The end of the year offers a rare pause: a liminal space where urgency softens and perspective sharpens. Instead of jumping straight into next year’s goals, consider making reflection a conscious leadership ritual.
Start by assessing the non-financial signals from the past year. Where did the momentum naturally build? Where did friction occur repeatedly? Which systems supported your work, and which ones quietly deflated it?
Then, as you look ahead, intentionally set non-financial metrics in addition to your revenue goals. Ask yourself: If we are to succeed financially next year, what must also be true about our people, processes and culture?
Write down those answers. Review them every quarter. Talk about it as openly as you discuss financial performance.
A different kind of New Year’s resolution
New Year’s resolutions often fail because they focus on results without considering the conditions necessary to maintain them. Non-financial metrics flip that script, shifting the focus from pure output to the inputs that make great work possible.
In doing so, they provide a more human and ultimately more effective approach to leadership and work. They remind us that organizations are not machines that run solely on numbers. They are living systems shaped by trust, clarity, learning and adaptation.
As the year comes to an end, you can still set ambitious financial goals. Just don’t stop there. Combine them with measures that reflect the kind of organization (and leader) you want to be.
Because when you measure what really matters, the numbers tend to take care of themselves.
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