An important part of measurement and management of the efficiency and effectiveness of program service delivery is the use of KPIs. KPIs are quantifiable measures that can provide powerful analytic and management information.
KPIs can address both qualitative and quantitative measures of program performance. An organization needs to understand how well they are performing in delivering their program outcomes and how well they are in managing their inputs and outputs. See Inputs – Outputs – Outcomes in Tools.
Example of the creation of KPIs: When units of services rendered per service area are coupled with the revenue and expense line items of a service area profit and loss statement, revenue per unit and expense per unit of service is calculated. These KPIs are tracked and reported monthly, via a program or organization dashboard, and are used to analyze and to improve performance of the service area over.
Identification of individual KPIs is dependent on the unique characteristics of the service area under consideration.