The performance information system should be…

Focused

• Is the performance information focused on the core aims and objectives of the organisation?
  
  
• What actions could the performance information provoke management to take? (If the answer’s none then don’t collect the information.)
  
  
• Why is the information being collected?
  

Appropriate

• Do stakeholders receive the performance information they need?
  
  
• Is it the right information presented in the right way for each group of users?
  

Balanced

• Do measures cover all significant areas of work in the organisation?
  
  
• Are both financial and non-financial measures collected?
  
  
• Are indicators of future performance included as well as measures of past results?
  

Robust

• Can the system survive changes in personnel and changes in the structure of the organisation?
  
  
• Are there any key people without whom the performance information system couldn’t survive?
  

Integrated

• Are the results of the performance information system monitored and used as part of the business planning and management process?
  
  
• Is there consistent performance information at all levels of the organisation?
  
  
• Are performance measures for individuals and teams, consistent with measures for the organisation?
  
  
• Do people within the organisation ‘own’ the system?  Do they take notice of the results and use them? Did they contribute to its design?
  

Cost Effective

• Are the resources put into collecting performance information proportionate to the benefit of the organisation?
  

• What is the actual cost to the organisation of the performance information?  (Including the burden of form filling, and time spent reviewing the information.)
  

Each measure should be…

Relevant

• Does the measure attempt to capture success in one of the organisation’s objectives?
  
  
• What does the measure tell you about how the organisation is performing?
  

able to Avoid Perverse Incentives

• Does the measure encourage any unwanted behaviour?  (For example not reporting mistakes.)
  
  
• Could you improve performance against the measure without improving performance in real life?
  
  
• Does the measure allow innovation?  For example, does the measure discourage changing the way a service is delivered?
  

Attributable

• Can the measure be influenced by the organisation’s actions?
  
  
• Is it clear where accountability for the measure lies?
  
  
• Is there an estimate of the degree to which the organisation affects the measure?
  
  
• Could a SMART (Specific, Measurable, Achievable, Relevant, and Timed) target be set against the measure?
  

Well-defined

• Can the measure be expressed clearly, so that it is easy to understand?
  
  
• Does the measure have an unambiguous definition, so it can be collected consistently?
  

Timely

• Does the measure provide information in time for action to be taken?
  
  
• What’s the lag between the event and information becoming available?
  
  
• Does the measure provide information frequently enough to track changes and take actions?
  

Reliable

• Is the performance measure accurate enough for its use?
  
  
• Has the measure been checked by appropriate specialists?  (for example statisticians,  social researchers, accountants or scientists.)
  
  
• Is the measure responsive to change?  Will it show significant changes in performance?  Will the measure change because of random ‘noise’ rather than actual performance?
  

Comparable

• Does the measure allow comparison with past performance?
  
  
• Does the measure allow comparison with other organisations delivering a similar service?
  

Verifiable

• Given the documentation could an objective outsider come up with the same results?
  
  
• Does documentation exist so that the process behind the measure can be validated?