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Reports to Parliament

Preparing Performance Indicators - A Practical Guide

The Public Sector Management Office (PSMO) has prepared a document entitled "Preparing Performance Indicators - A Practical Guide". The Guide is a substantial update and expansion of an earlier document of the same title produced in February 1994. The new enhanced document has the following features:

  • The Treasury Department and the Office of the Auditor General are coauthors, with PSMO, of the publication. The Guide encompasses the perspectives of these agencies.
  • The Guide features material on the latest developments in performance management in the WA public sector.
  • The notion of "cost effectiveness" has been introduced. Examples of cost effectiveness indicators are provided as well as an explanation of the differences between cost effectiveness and cost efficiency.
  • Advice on Weighting of Outputs and the relationship between Outputs and Outcomes.
  • A description of the Performance Management Framework is provided.

Performance Indicators provide an indication of how well agencies are doing in achieving their desired outcomes or objectives. They are a means to measure, monitor, evaluate and improve performance. The Guide provides Chief Executive Officers and managers with a practical tool for developing Performance Indicators. It is supplementary to other guidance on Performance Indicators offered by the Office of the Auditor General and to documentation on Output Based Management released by Treasury during 1996.

The Guide contains the following parts:

  • Description of the conceptual framework for Performance Indicators and the steps to develop them.
  • Definitions that provide a common understanding of the terms used in the Guide.
  • A step-by-step guide to developing Performance Indicators.
  • Model statements from which users can develop their own Performance Indicators, with examples provided to illustrate the approach in action.
  • Helpful hints for developing and using Performance Indicators

Additional information on:

  • The "Performance Management Framework".
  • Information about the monitoring of the policy development and advice function.
  • Information on useful documents on Performance Indicators and a list of sources for further assistance.
  • A checklist of key management questions.

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