How do organizations choose indicators?

Organizations ask themselves a number of questions to decide which performance indicators to provide in their reports.

  • What are the critical issues in my organization or industry?
  • What do our values, vision, mission, and policy statements suggest?
  • Which indicators are other organizations in our industry providing?
  • Which standards are available to guide my indicator choice?
  • Which indicators are important to my organization’s stakeholders?
  • Which data are available in our information systems?

Though the answers to all of these questions are important, organizations developing their first performance management system typically start with only the most important ones. Then, their systems can evolve over time through continuous improvement. More indicators can be added to their systems once they have some experience in reporting.