Institutional Learning and Change Initiative

The following text is drawn from World Bank (2004).

What are they?
Performance indicators are measures of inputs, processes, outputs, outcomes, and
impacts for development projects, programs, or strategies. When supported with sound
data collection—perhaps involving formal surveys—analysis and reporting, indicators
enable managers to track progress, demonstrate results, and take corrective action to
improve service delivery. Participation of key stakeholders in defining indicators is
important because they are then more likely to understand and use indicators for
management decision-making.
 

What can we use them for?

• Setting performance targets and assessing progress toward achieving them.
• Identifying problems via an early warning system to allow corrective action to be taken.
• Indicating whether an in-depth evaluation or review is needed.

Advantages

• Effective means to measure progress toward objectives.
• Facilitates benchmarking comparisons between different organizational units,
  districts, and over time.

Disavantages

• Poorly defined indicators are not good measures of success.
• Tendency to define too many indicators, or those without accessible data sources,
  making system costly, impractical, and likely to be underutilized.
• Often a trade-off between picking the optimal or desired indicators and having to
  accept the indicators which can be measured using existing data.

Cost
Can range from low to high, depending on number of indicators collected, the frequency
and quality of information sought, and the comprehensiveness of the system.

Skills required

Several days of training are recommended to develop skills for defining practical
indicators. Data collection, analysis and reporting skills, and management information
system (MIS) skills are required to implement performance monitoring systems.

Time required
Several days to several months, depending on extent of participatory process used to
define indicators and program complexity. Implementing performance monitoring
systems may take 6–12 months.

Source: World Bank (2004). Monitoring and Evaluation: Some Tools, Methods & Approaches. Washington DC, The World Bank. http://lnweb90.worldbank.org/oed/oeddoclib.nsf/b57456d58aba40e585256ad400736404/a5efbb5d776b67d285256b1e0079c9a3/$FILE/MandE_tools_methods_approaches.pdf

For more information:

• World Bank (2000). Key Performance Indicator Handbook. Washington, D.C.
• Hatry, H. (1999). Performance Measurement: Getting Results. The Urban Institute, Washington, D.C.