Glossary
Glossary of Key Performance Measurement Terms
The following definitions are based on commonly used language in management and performance measurement literature. Please note, however, that some of these terms are used differently by different governmental entities and organizations. Following most definitions are examples that may help to increase the consistency with which these performance measurement terms are used.
Benchmark: A standard against which past or future performance can be compared. Benchmarking traditionally focuses on measuring products, services, or practices against the "best practice" in an industry or field (i.e., best in class or world). More broadly, benchmarks also could include previous objectives, previews years' performance, performance levels achieved by other organizations such as other states or a national or regional average or ranking, statutory requirement or professional standards.
Cost-effectiveness measure: A measure of cost per unit of outcome. Example: an agency's cost to keep teen parents in school through graduation to prepare them for work, or average cost to incidence of social disease.
Efficiency measure: A measure of cost or the amount of other resources per unit of output (also known as productivity). Example: cost per inspection or cost per client (not necessarily reflecting the efficiency of agency operations, which could be an output or outcome depending on goals and objectives).
Explanatory factors: A variety of information about the environment and other factors that might affect an organization's performance. These can be either conditions substantially outside the control of an agency, such as environmental and demographic characteristics, or factors over which an agency has some control, such as staffing patterns. Example: weather conditions for road maintenance, percentage of students with English as a second language for education, or quality of source water for water service.
Goal: A broad statement generally describing a desired outcome for an agency and/or its programs. Example: the Department of Transportation will help insure the safe transportation of the motoring public.
Input measure: The amount of financial and nonfinancial resources that are applied to producing a result such as a product or service. Example: two of the most common governmental inputs are expenditures and the number of employees for a particular program.
Mission: A concise statement of the unique, fundamental purpose of an agency and its programs. Example: A mission statement identifies an agency's public purpose, services, priorities among services, and beneficiaries of services. In short, it identifies what an agency does, why, and for whom.
Objective: A measurable statement about the end result that a service or programs is expected to accomplish in a given period of time. Objectives flow from goals, the purpose of a program, or the agency's overall mission. For example, by the year 2000, the Department of Transportation will reduce the number of fatal accidents per million vehicle miles by 10 percent.
Outcome (also called effectiveness or impact) measure: A measure of the extent to which a service has achieved its goals or objectives, and as defined, met the needs of its beneficiaries . Example: the percentage of participants in a job training program who got a job in their field; percentage of customers satisfied with taxpayer assistance services; measles cases per 1000 population; full accreditation by a recognized organization.
Output measure: A measure of the number of units produced, services provided, or people served by an agency or its programs. Example: the number of home health care visits provided to the elderly; the number of read improvements completed; the number of immunizations provided.
Performance measure: A quantifiable, enduring measure of outcomes, outputs, efficiency, or cost-effectiveness. In general, measures should be related to an agency's mission and programs, and should not merely measure one-time or short-term activities. For example, development of a statewide plan by 1999 is not an “enduring” measure of an agency's performance.
Performance target: A level of performance that a service or program is projected to accomplish in a particular year, consistent with objectives. For example, the Department of Transportation might set a performance target of 0.9 fatal accidents per million vehicle miles in the year 2004.
Program: A group of related services or activities undertaken to achieve a common purpose that are provided or administered by an agency and accounted for in its budget.