For performance indicators to be useful, a target or other basis for comparison needs to be provided to allow a judgement to be made whether performance is satisfactory or not.

Targets express quantifiable performance levels or changes of level to be attained. They can focus on overall performance or the factors which contribute to success.

There are many different ways of expressing targets or providing a basis for comparison to assess whether performance is satisfactory or not. In some cases, targets will be expressed as a number or a percentage. In other cases targets will be set to measure the quality rather than the quantity of services provided. Targets can also be set to encourage improved performance, that is, they are challenging or stretching targets.

Targets can be established with reference to past performance, performance achieved by other entities providing similar services or based on research of similar circumstances.

It is not always possible to set targets when a performance regime is being established. In this case the process to establish targets during the life of the contract should be included in the contract itself when data and/or experience are available to allow them to be set in a realistic way.

Targets may need to be reviewed and adjusted during the life of the contract to make them more relevant and useful. This should not be done to mask poor performance. Targets could be expressed, for example, as:

•  a specific number of clients assisted;

•  the percentage of clients satisfied with the service provided;

•  the number of interviews conducted with clients that met certain time and content requirements and resulted in an agreed percentage of clients moving to the next step in the process;

•  resolution of client enquiries being above an agreed percentage of all callers on a daily basis; and

•  response time for IT services being between an agreed time span.

Targets may need to be reviewed and adjusted during the life of the contract to make them more relevant and useful.

When establishing targets, care needs to be taken to ensure that a focus on achieving individual targets does not occur to the detriment of overall performance. For example, client inquiries can be answered within a two minute response target by not properly determining the full extent of the client's problem or by not resolving it. The use of a balanced set of targets can assist in measuring all aspects of performance. As well as measuring response times the acquiring entity could measure increases in complaints or the level of client satisfaction with the advice received.