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Performance measurement

Performance measurement is about understanding what we get for the money we spend. The NAO provides direct support to colleagues across government, helping them to:

  • develop performance frameworks and indicators
  • improve data quality
  • track performance and report to Board members and the public
  • use performance measures to improve or incentivise performance
  • link performance to resource allocation decisions
  • undertake organisational assessments.
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Guidance on this topic

A selection of our publications providing help and advice on this topic:

Public Audit Forum performance indicators

June 2011

In 2007, the five UK audit agencies (the Audit Commission, Audit Scotland, the National Audit Office, the Northern Ireland Audit Office and the Wales Audit Office) jointly launched a set of indicators for each of five corporate service activities - estates management, finance, human resources, ICT, and procurement. Two further services were subsequently added - communications and legal.

The latest (June 2011) version of the indicators and definitions which were available on the Public Audit Forum website are below.

Public Audit Forum performance indicators

Option Appraisal: Making informed decisions in Government.

26 May 2011

This review of the quality and use of option appraisal in Government is based on case examinations of over 50 impact assessments and business cases; surveys and interviews with over 100 economists, policy and finance staff; and analysis of relevant secondary sources. It is aimed at staff involved in option appraisal at working level or responsible for options appraisal within a department. There are specific findings which will be of interest to the Treasury and Better Regulation Executive.

Option Appraisal: Making informed decisions in Government

Performance Frameworks and Board Reporting II

13 May 2011

This paper summarises the results from an NAO review of performance frameworks and board reporting in twelve government departments and twelve Arm’s Length Bodies. NAO teams applied a maturity model to assess the quality of information that went to boards in late 2010. The review involved scrutiny of key documents, and interviews with and a survey of board members. The purpose of the review was to establish the strengths and weaknesses of current arrangements to baseline practices and promote future improvement.

Performance Frameworks and Board Reporting II

NDPB Performance Reporting to Departments

27 May 2010

The National Audit Office has published a survey report on the performance reporting arrangements between 41 NDPBs and their 12 sponsor departments.

Based on structured interviews with key NDPB and departmental officials, reviews and analysis of Corporate Plans, Annual Reports, Framework Agreements and Quarterly Performance Returns, the report examines:

  • NDPB performance frameworks;
  • NDPB performance in the last three years and methods for setting targets and benchmarking performance;
  • How Departments monitor performance; and
  • Relationships between NDPBs and sponsor departments.

NDPB Performance Reporting to Departments

Performance frameworks and board reporting

31 July 2009

The National Audit Office has published a best practice study on Performance Frameworks and Board Reporting.

Drawing on a range of literature, a survey of Government practice, and public and private sector case studies, the report shows how:

  • a review of  45 different monthly reports and 2,300 metrics led to 3 agreed strategic objectives and 73 key indicators.
  • Government Agencies used performance frameworks to promote a common view of success, to change performance culture, and to measure seemingly intangible outcomes.
  • private sector companies produce a 5% higher return on equity by validating their performance model.
  • to use our concise Maturity Matrix to assess your own organisation.

Performance frameworks and board reporting

Use of sanctions and rewards in the public sector

September 2008

This report contributes to the debate on incentivising public sector performance. It brings together the evidence on the effectiveness of sanctions and rewards (we commissioned Deloitte to conduct a review of the literature), summarises the results of our survey on their use in central government, and provides a practical guide on how to use them well.

Read full article: The use of sanctions and rewards in the public sector

Costing Perfomance: Departmental Strategic Objectives

Spring 2008

We commissioned some work with two volunteer Departments in Spring 2008 to assess the measurability, relevance and costability of Departmental Strategic Objectives - with a view to informing wider guidance on integrating financial and performance management and reporting.

Setting key targets for Executive Agencies: A Guide

November 2003

This guidance has been developed to help those involved in the process of agreeing targets for Executive Agencies set challenging targets that will help deliver the outcomes and the standard of service delivery the public expect. This publication was produced jointly by the NAO, HM Treasury and the Cabinet Office in November 2003.

Setting Key Targets for Executive Agencies: A Guide (PDF - 515KB)

Choosing the right FABRIC

2001

A joint publication by the NAO, HM Treasury, Cabinet Office, Audit Commission and Office for National Statistics summarising our common thinking on this subject, in particular the need for a good system of performance information to be Focused, Appropriate, Balanced, Robust, Integrated and Cost Effective.

Choosing the right FABRIC - a framework for performance information (PDF - 1.9MB)

 

Good Practice in Performance Reporting in Executive Agencies and Non-Departmental Public Bodies

2000

This report is about good practice in performance reporting by Executive Agencies and Executive Non-Departmental Public Bodies. Its purpose is to assist agencies to improve further their performance reporting by setting out guidance based on their own good practice in collecting and reporting performance information.

Good Practice in Performance Reporting in Executive Agencies and Non-Departmental Public Bodies

 

Corporate Services Performance indicators

A set of performance indicators covering five common corporate services:

  • Estates Management
  • Finance
  • Human Resources
  • Information and Communications Technology (ICT)
  • Procurement

All guidance is available on the publications page of the Public Audit Forum website (published July 2009).