Criteria for effective performance measures Relevant To the organisation's strategy and able to demonstrate progress towards achievement Well Defined Ckear and unambiguous, easy to understand both in terms of the definition of the measures and how it is calculated Comparable Those whose performance is being measured can influence the result by their own actions and are not dependent on the performance of others Contextual They cannot be misinterpreted - the assumptions and limitations of the measures are understood (HM Treasury, 2001)
Characteristics for good performance measures Focused No more measures than are necessary, clearly linked to and priortised in relation to the organisation's strategy Appropriate To the people who will use the information to improve performance - presentation tailored to different users Balanced To cover all areas of business and organisational activity - different types of measures to reflect different stakeholders' interests Robust Not dependent on ways of working and organisational structures - not sensitive to organisational changes Integrated Part of the business planning process and linked to individual and organisational success criteria Cost effective In terms of the cost of data collection and timeliness for use in decision making (HM Treasury, 2001)