The second edition of “In the dark II: what many boards and executives still don't know about the health of their businesses” was released in Australia on 23 May 2007. 

The global survey of directors and senior executives, backed up by an Australian poll of leading Chief Financial Officers (CFOs), has again highlighted the growing importance of quality non-financial information, such as operational performance and customer satisfaction in predicting the overall health of organisations.

The survey highlights the change that is being forced at the top by the growing influence of the internet on customer behaviour as well the increased regulatory and shareholder scrutiny of non-financial risks.

The survey also highlights how some of the globe’s leading boards and their senior management are increasingly linking strong financial performance to a good understanding of the forward looking picture provided by a range of non-financial drivers.

The report reveals a critical disconnect between rhetoric and reality in the boardrooms and management circles of some of the world’s leading companies.

To test these conclusions in the Australian market, Deloitte conducted its own poll with CFOs from some of Australia’s leading companies.

The results the Australian poll supported the global research with 100 per cent of CEOs saying non-financial information is vital in predicting future performance and managing risk. 

Despite this, almost 50 per cent of respondents rated the non-financial information currently produced by their organisation as average or poor and not one CFO had access to excellent information.

If this is the case, how can CEOs, and indeed shareholders, be confident of the company’s financial future and its ability to manage the risks that lie ahead?

The answer is they cannot … while they’re in the dark.

Read the Deloitte media release