Issue

Comment

Developing a suite of balanced performance measures

Generally, a balanced suite of performance measures will consist of measures that can be measured objectively and those that require some level of subjective judgement; the latter will often be related to the quality of contract deliverables.

Subjective measures, in particular, should be expressed in unambiguous language to reduce the risk of misinterpretation and disputation.

Setting and refining performance measures

In many situations the initial performance indicators and standards will be indicative in nature, based on the best available information at the time. Contracts should generally include a process for reviewing and revising the indicators and standards of performance during the life of the contract as both parties gain experience about measures that work in practice.

Setting incremental performance measures

Consider setting a core group of performance measures that will be regularly reported, and then specify additional measures that will be provided on request, for example, when the core indicators suggest problems in performance. This approach reduces the day-to-day work load, while preserving the acquiring entity's access to more detailed performance measures, if needed.