The fulfilment of organisational objectives is inextricably linked to effective performance management. Optimum levels of performance are generally not prescribed by public sector agencies (see, for example, the national Australian PPP guidelines published by Infrastructure Australia).
KPIs should be relevant, reliable and accurate (Partnerships Victoria 2003, p.131). Poorly defined KPIs can lead to failure (Evans and Bellamy 1995). KPIs should be reviewed regularly in conjunction with the private partner.