Performance indicators need to be selected on the basis that they measure something that is important in achieving the contract deliverables and are not necessarily those activities or processes that are easy to measure. The performance regime should be reviewed periodically to ensure its ongoing relevance.

The following two case studies discuss the development of performance indicators.

The performance regime should be reviewed periodically to ensure its ongoing relevance.

Case Study: Specifying appropriate performance indicators

For the supply of cleaning services, it may be easy to measure hours worked but the important measure is whether the cleaning undertaken meets agreed hygiene standards.

For the provision of professional advice, it is easy to measure that the advice has actually been received and the time taken to produce it, but it is important to measure whether the advice provided is useful. To do this the acquiring entity will need to set measures that will assess the usefulness of the advice. These could include:

• Does the advice address the issues or questions posed?

• Was the advice timely?

• Did it take account of all the relevant facts?

• Was adequate consultation undertaken?

• Is there evidence of research conducted and analysis of findings? Does it include realistic, achievable recommendations?

It can also be important for performance indicators to be established that provide information on future performance-these are generally called lead indicators. Lead indicators should demonstrate whether the desired results will be achieved within the agreed timeframe and also provide early warning of any possible problems.

Lead indicators should demonstrate whether the desired results will be achieved within the agreed timeframe and also provide early warning of any possible problems.

Case Study: Specifying lead indicators

The acquiring entity could measure the number of clients participating in information sessions as this gives an early indication of the number of clients who might then attend courses to improve their employability.

The acquiring entity could use an indicator to measure changes in complaint levels which may be an early warning that the level of services to clients has declined.

The acquiring entity could require information on spare capacity (for example, computer disk space, number of trained call centre operators available for casual rostering) as a lead indicator of the ability to meet peak service loads.