Types of Performance Measures

There are four types of performance measures:

1. Workload or output measures. These measures indicate the amount of work performed or number of services received. Workload or output measures indicate what was done but not how well it was done. Example are:

• Number of potholes repaired;
• Number of garbage carts collected; and
• Number of invoices processed.

2. Efficiency measures. These measures show the relationship between the work performed and the resources required to perform the work. Efficiency measures are often expressed as unit costs. Examples are:

• Cost per pothole repaired;
• Cost per garbage cart collected; and
• Tons of garbage collected per crew (or worker).

3. Effectiveness or outcome measures. These measures reflect the quality of work performed. They tie together work, resources and results. Examples are:

• Water meters read per day with less than 1 percent error;
• Number of invoices processed without error within two days of receipt; and
• Number of cold patch pothole repairs that last for three months.

4. Productivity measures. These measures add efficiency and effectiveness. Productivity ties together work, cost, resources, and results. Examples are:

• Unit cost per effective meter repair (effective meter repair means that the meter was not returned for further repair within six months);
• Unit cost of effective cold patch pothole repair (effective cold patch pothole repair means that the patch held up for at least three months); and
• Cost of successful hires within 60 days of vacancy (successful hire means that the hire satisfactorily passed the probation period).