Department of Resources cont… Effective Performance Indicators / Targets The criterion is a commonly used methodology to determine if performance “SMART” indicators/targets contain a range of characteristics that allow for the effective delivery of outputs. The following five characteristics of a performance indicator, which are collectively known as the criteria, are defined below: “SMART” Performance indicator criteria Description / characteristic Considerations factors Specific Clear and concise to avoid Does the performance indicator misinterpretation of what is to contain jargon or unexplained be achieved. acronyms? Are the objectives and performance indicator directly related? Could a reasonable person understand the meaning of the performance indicator? Measureable Can be quantified and results Is the performance indicator able can be compared to other to be measured and be data and able to show trends achievable in a timely manner? if measured over time. Achievable Practical, reasonable and Is there an action that the people credible given available who are being measured by the resources and expected performance indicator could do to conditions. change the end number? Relevant (or Informative and useful to Is the performance indicator Realistic) stakeholders having regard to on facts? the content in which the entity operates. Is the data collectable? Time-bound Specifies a timeframe for Is there are period of achievement and measurement (i.e. monthly, measurement. quarterly, yearly)?
Department of Resources cont… Effective Performance Indicators / Targets The “SMART” criterion is a commonly used methodology to determine if performance indicators/targets contain a range of characteristics that allow for the effective delivery of outputs. The following five characteristics of a performance indicator, which are collectively known as the “SMART” criteria, are defined below: Performance indicator criteria Description / characteristic Considerations factors Specific Clear and concise to avoid misinterpretation of what is to be achieved. Does the performance indicator contain jargon or unexplained acronyms? Are the objectives and performance indicator directly related? Could a reasonable person understand the meaning of the performance indicator? Measureable Can be quantified and results can be compared to other data and able to show trends if measured over time. Is the performance indicator able to be measured and be achievable in a timely manner? Achievable Practical, reasonable and credible given available resources and expected conditions. Is there an action that the people who are being measured by the performance indicator could do to change the end number? Relevant (or Realistic) Informative and useful to stakeholders having regard to the content in which the entity operates. Is the performance indicator on facts? Is the data collectable? Time-bound Specifies a timeframe for achievement and measurement. Is there are period of measurement (i.e. monthly, quarterly, yearly)?
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