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In every sector, there are few key performance indicators that are understood by most stakeholders in that sector. Similarly, in the urban sector too there have been a number of performance indicators related to urban management and service delivery that have been defined, measured and reported. However, most initiatives in performance management so far have been observed to have some key limitations, viz.

a)Different sets of performance indicators have been defined under different initiatives

b) Even for the same performance indicator, the definition may vary or the assessment method may vary, thus inhibiting inter-city or intra-city comparisons

c) Most measurement exercises have been externally driven (by agencies external to the agency responsible for delivery against those performance parameters), and therefore the key issue of ownership of performance reports

d) Most performance measurement initiatives have been one-off exercises and not been institutionalized, limiting the benefits of monitoring trends in performance over time

e) The process of performance measurement has not been taken further into Performance Management (Refer to illustration A)

All of the above means that systems for measuring performance and taking further action on them have not been institutionalized in urban agencies. It is therefore important that the basic minimum standard set of performance parameters are commonly understood and used by all stakeholders. Depending on the specific need additional performance parameters can be defined and used.

Measuring service levels of civic agencies implies measuring outcomes, and there by indirectly also reflects on institutional capacity, financial performance and other parameters. Service level parameters can be measured either from a utility manager’s / planner’s perspective or from a citizen’s or consumer’s perspective. Further, to facilitate comparison between cities / service delivery jurisdictions, and changes in performance over time, it is important that the performance levels are benchmarked, and monitored against those benchmarks.