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Elements and Performance Criteria

1. Conduct a performance measure workshop
   • Assess list of stakeholders required to define the performance measures
   • Gather and collate candidate performance measures from a workshop
2. Establish the individual performance measures
   • Define key characteristics of the different type of performance measures used in PBC
   • Assess whether individual performance measures from the list of candidate performance measures are required in the PBC as strategic performance measures, key performance indicators or system health indicators
   • Establish the process for operating the performance measure, including application of business rules
   • Assess the averaging technique applied to the performance measure
3. Establish the individual payment curves for performance measures
   • Establish the performance levels for each performance measure, including the upper, mean and lower levels
   • Establish the payment curve for each performance measure
   • Apply weightings to each key performance indicator
4. Analyse and assess the agreed performance measure hierarchy
   • Implement the established the performance measures
   • Assess coverage of the performance measures against the Key Result Areas (KRA)
   • Determine and assess the risks associated with each of the performance measures
   • Prepare a performance measure hierarchy report

Range Statement

Range is restricted to essential operating conditions and any other variables essential to the work environment. Non-essential conditions may be found in the Companion Volume Implementation Guide.

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Performance Evidence

Evidence required to demonstrate competence in this unit must be relevant to and satisfy all of the requirements of the elements and performance criteria on at least one occasion and include: applying weighting to key performance indicators assessing Key Result Area (KRA) coverage of performance measures establishing an effective performance measure hierarchy establishing performance requirements for performance measures gathering and analysing data identifying statistical requirements for Performance Based Contracting (PBC).

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Knowledge Evidence

Evidence required to demonstrate competence in this unit must be relevant to and satisfy all of the requirements of the elements and performance criteria and include knowledge of: applying PBC principles effective communication techniques management and coordination of staff and stakeholders management of stakeholder expectation managing meetings and workshops performance measures hierarchy and their role in PBC.

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