The introduction of best value in local government, the Performance Assessment Framework (PAF) in the NHS and in social services, the NHS Wales Performance Management Framework (PMF), and Public Service Agreements (PSAs) in central government have emphasised the importance of having good performance indicators (PIs) as part of performance management in the public sector. To complement the national sets of PIs, public sector organisations are expected to set their own PIs and targets, and to monitor and publish their performance.
The Commission has extensive experience of developing and using performance indicators. This paper on The Practice of Performance Indicators sets out the lessons that have been learnt. It is aimed at helping managers and practitioners in local government, the NHS and central government to develop their own set of balanced and focused indicators. It describes ways to ensure that PIs are robust and well framed.
Indicators should be used within a wider framework of performance measurement systems, performance management and overall strategic management of services. This is described more fully in the Audit Commission paper Aiming to Improve: The Principles of Performance Measurement.
Included in this management paper:
- The different users and uses of performance indicators
- Developing effective performance indicators
- Types of indicators
- Criteria for robust performance indicators
- Making indicators work