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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