Choosing the Right Fabric: a Framework for Performance Information, describes the features of an effective performance information system and of good performance indicators. These are supported by the National Audit Office, Audit Commission, Office for National Statistics, HM Treasury, and the Cabinet Office. They are summarised in the following checklists. These checklists can be used to review the strengths and weaknesses of existing performance measurement systems or to assist in the design of a new system. The first list questions the aim and use of the overall system, while the second list should be used to check that the individual measures or indicators are sound.

The System

The performance information system should be:

Focused	Is the performance information focused on the core aims and objectives of the organisation?
	What actions could the performance information provoke management to take? (If the answer's none then don't collect the information.)
	Why is the information being collected?
Appropriate	Do stakeholders receive the performance information they need?
	Is it the right information presented in the right way for each group of users?
Balanced	Do measures cover all significant areas of work in the organisation?
	Are both financial and non-financial measures collected?
	Are indicators of future performance included as well as measures of past results?
Robust	Can the system survive changes in personnel and changes in the structure of the organisation?
	Are there any key people without whom the performance information system couldn't survive?
Integrated	Are the results of the performance information system monitored and used as part of the business planning and management process?
	Is there consistent performance information at all levels of the organisation?
	Are performance measures for individuals and teams, consistent with measures for the organisation?
	Do people within the organisation 'own' the system? Do they take notice of the results and use them? Did they contribute to its design?
Cost Effective	Are the resources put into collecting performance information proportionate to the benefit of the organisation?
	What is the actual cost to the organisation of the performance information? (Including the burden of form filling, and time spent reviewing the information.)

The Measures

Each measure should be

Relevant	Does the measure attempt to capture success in one of the organisation's objectives?
	What does the measure tell you about how the organisation is performing?
Able to Avoid Perverse Incentives	Does the measure encourage any unwanted behaviour? (For example not reporting mistakes.)
	Could you improve performance against the measure without improving performance in real life?
	Does the measure allow innovation? For example, does the measure discourage changing the way a service is delivered?
Attributable	Can the measure be influenced by the organisation's actions?
	Is it clear where accountability for the measure lies?
	Is there an estimate of the degree to which the organisation affects the measure?
	Could a SMART (Specific, Measurable, Achievable, Relevant, and Timed) target be set against the measure?
Well-defined	Can the measure be expressed clearly, so that it is easy to understand?
	Does the measure have an unambiguous definition, so it can be collected consistently?
Timely	Does the measure provide information in time for action to be taken?
	What's the lag between the event and information becoming available?
	Does the measure provide information frequently enough to track changes and take actions?
Reliable	Is the performance measure accurate enough for its use?
	Has the measure been checked by appropriate specialists? (for example statisticians, social researchers, accountants or scientists.)
	Is the measure responsive to change? Will it show significant changes in performance? Will the measure change because of random noise, rather than actual performance?
Comparable	Does the measure allow comparison with past performance?
	Does the measure allow comparison with other organisations delivering a similar service?
Verifiable	Given the documentation could an objective outsider come up with the same results?
	Does documentation exist so that the process behind the measure can be validated?