What is a performance indicator?

A performance indicator is a specific metric used to assess success in achieving objectives or outcomes within a project or program. These indicators provide measurable, quantifiable data that allow organizations to evaluate their performance over time. For example, in a grant-funded program, a performance indicator could be the number of individuals served, the percentage increase in specific skills, or the level of satisfaction reported by participants.

Utilizing performance indicators allows grant managers and stakeholders to track progress, make informed decisions, and ultimately demonstrate accountability to funders and the community. These metrics are instrumental in illustrating the effectiveness and efficiency of the implemented initiatives. Their specificity and measurable nature differentiate them from other options, such as generic statements or qualitative tools, which lack the precision required for effective assessment.