Monitoring and performance indicators

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A monitoring framework

All organisations keep records and notes, and discuss what they are doing. This simple checking becomes monitoring when information is collected routinely and systematically against a plan.

Strategic aims and objectives and annual operational plans will indicate the broader areas and the more specific areas for monitoring. Funders and commissioners may ask for information that is not felt useful by the organisation, but there may be room for flexibility and negotiation.

Monitoring should be proportionate to the size of the organisation and level of funding.

What do you monitor?

Inputs: As well as monitoring expenditure, some organisations will monitor other inputs, such as staff and volunteer time.

Outputs: These will be specific products or elements of service provided by the organisation, such as advice sessions, training days or publications.

Outcomes: These are related to the changes or difference made as a result of the organisation’s outputs.

Impacts: These are related to longer-term or broader changes. These might be more difficult to monitor on a routine basis.

Read more about monitoring and evaluating outcomes and impact.

Setting indicators

Once a broad framework for monitoring has been set up, making clear the planned outputs and outcomes, some realistic indicators should be identified, against which information can be collected.

Indicators are specific, observable characteristics that can be assessed or measured to show the quality or quantity of aspects of the organisation, its resources, its process, or the results of its activities.

The most common indicators relate to outputs and outcomes, and you will need to distinguish between the two. [link to level 3 on monitoring and evaluating outcomes.]

Output indicators: these demonstrate the work the organisation does and show progress towards meeting its objectives.

Outcome indicators: these demonstrate changes which take place as a result of the organisation’s work, and show progress towards meeting specific aims.

You may want to set targets against your indicators, and your monitoring will demonstrate whether these have been achieved. Here are some examples of output and outcome indicators and their targets:

Performance indicators can be quantitative (numerical) or qualitative (related to people's perception or experience). They are usually developed when setting aims and objectives, although you can set them later on if necessary.

Things to consider when setting performance indicators

• What activities and services do you provide?
• What are you trying to achieve for each of your stakeholder groups?
• What would you expect to see at different points in the process and at the end that indicates you will achieve or have achieved your aims and objectives?
• What standards of performance achievement do you already have, for example requirements from funders, local authorities or regulatory bodies?

Your performance indicators should reflect the range of your activities and the perspective of the stakeholders interested in your work.

Remember when setting performance indicators that 'what gets measured gets done'. If you only set three performance indicators, this is what people will focus on and other areas of your operations may be neglected. Aim to set indicators which are both qualitative and quantitative and incorporate the breadth and depth of your work.

Examples of performance indicators

An after-school club might have performance indicators which include:

• The number of children who attend the club. This will be of interest to funders who want to see the number of children who benefit from their investment.
• The number of staff to children ratio. Parents in particular will want to know how many adults are keeping an eye on their children.
• The perceptions of children who attend. This will be of interest to a number of stakeholders. In particular, parents, children, staff and volunteers will want to know if the children enjoy the experience.
• The numbers of staff and volunteers who have been checked by the Criminal Records Bureau. This again will be of interest to several stakeholders, but is above all a regulatory requirement (see the legal requirements section for more information).

Source: Published with permission from Cass Centre for Charity Effectiveness. This material is taken from "Tools for Success: doing the right things and doing them right", published in October 2008. Download or buy your copy from Cass Centre for Charity Effectiveness.

Collecting monitoring information

Finding ways to collect monitoring information is a key part of monitoring and evaluation. Tools for collecting data can be grouped under four basic heads:

• surveys and questionnaires
• observation
• interviews
• keeping records and notes.

Questions to ask when choosing information collection methods

Before deciding on data collection methods, you should address a number of questions, for example:

• What depth and type of information do you want?
• How can you check the reliability of your information?
• How much time can you afford to spend?
• How much will it cost?
• How will you analyse the information?

Managing your monitoring information

Always bear in mind how you want to use the information before you start to collect it. This will influence what you collect, how you collect it, and how you store and process it. Make sure that everyone involved in collecting the information is using the monitoring tools in the same way, so that the information is consistent and there are no gaps. Small amounts of information may be stored on paper and analysed manually. However, many nonprofits now use computers to manage their information.

If you don’t resolve practical issues concerning how you manage your information, this can hold you back in terms of reporting and using monitoring information to feed back into organisational improvement and management.

Useful resources

The links below will take you to useful resources on information collection methods and basic research principles:

• Monitoring and Evaluation Resource Guide - Charities Evaluation Services
• Evaluation Support Scotland
• Proving and Improving

Further reading

• Using ICT to improve your monitoring and evaluation
• Storing information for evaluation

Useful links

The links below will take you to useful resources on indicators:

• Keeping on track: A guide to setting and using indicators - Charities Evaluation Services
• Your project and its outcomes - Charities Evaluation Services
• Proving and Improving

Have your say

Do you regularly use performance indicators? Are you realistic when it comes to setting them? Do you always monitor and evaluate your projects?

Share your experience on the Improving performance forum.