INDICATOR DEVELOPMENT

INTRODUCTION

Indicators play a crucial role in measuring performance, tracking trends, and informing decision-making across industries such as healthcare, business, public services, and policy development. However, poorly defined indicators can lead to misinterpretation, misleading comparisons, and unintended consequences such as gaming and perverse incentives.

This one-day course provides participants with a clear framework for developing reliable, valid, and meaningful indicators. The session covers the difference between numbers, metrics, and indicators, as well as key principles such as validity, reliability, sensitivity, specificity, and standardization techniques. Participants will also explore common issues in indicator development, presentation methods, and assurance processes.

This John Varlow | Training and Consultancy course will cover:

✔ Understanding the differences between numbers, metrics, and indicators
✔ Exploring the principles of good indicator development
✔ Ensuring reliability and validity in indicator construction
✔ Understanding sensitivity, specificity, and related statistical errors (Type I and Type II errors)
✔ Recognizing the role of data quality and accuracy in indicators
✔ Learning indicator construction methods (simple vs. compound measures)
✔ Applying direct and indirect standardization methods to adjust indicators
✔ Discussing presentation methods and the challenges of ranking
✔ Understanding gaming, perverse incentives, and unintended consequences
✔ Exploring assurance processes and available support for indicator development

COURSE OBJECTIVES

By the end of this one-day course, participants will:

✔ Differentiate between numbers, metrics, and indicators and their respective roles
✔ Understand what makes an indicator reliable, valid, and meaningful
✔ Learn how to assess sensitivity and specificity in performance measures
✔ Recognize how data quality affects indicator effectiveness
✔ Construct simple and compound indicators and know when to use each
✔ Apply direct and indirect standardization techniques
✔ Identify the challenges in presenting indicators and ranking data
✔ Recognize the risks of gaming and perverse incentives in indicator use
✔ Understand how to assure and validate indicator development processes

TRAINING METHODOLOGY

This session is interactive and discussion-based, combining theoretical knowledge with real-world applications. Participants will:

✔ Work through case studies on indicator design and misuse
✔ Engage in discussions on the strengths and weaknesses of common indicators
✔ Apply standardization techniques in practical exercises
✔ Explore best practices in indicator development and presentation

By the end of the session, participants will have a clear understanding of how to develop, assess, and refine indicators for effective decision-making.

WHO SHOULD ATTEND?

This course is designed for professionals who need to develop, interpret, or improve performance indicators in their field. It is particularly relevant for:

✔ Policy Makers & Public Sector Professionals working with national and local indicators
✔ Healthcare & Epidemiology Analysts developing quality and performance measures
✔ Business & Data Analysts tracking operational performance
✔ Quality & Compliance Specialists ensuring reliable and meaningful indicators
✔ Researchers & Academics working with performance metrics and evaluation
✔ Anyone responsible for reporting and monitoring key performance indicators (KPIs)

Pre-requisites:

✔ Basic numeracy skills

COURSE OUTLINE

1. Understanding Indicators & Their Role

✔ The difference between numbers, metrics, and indicators
✔ How indicators inform decision-making and performance monitoring

2. Principles of Good Indicator Development

✔ Characteristics of a reliable and valid indicator
✔ Understanding sensitivity and specificity in performance measurement
✔ The impact of Type I and Type II errors on indicator effectiveness

3. The Role of Data Quality in Indicators

✔ How incomplete, inaccurate, or biased data affects indicators
✔ Best practices for ensuring high data quality

4. Constructing Indicators: Simple vs. Compound Measures

✔ When to use single vs. composite indicators
✔ Methods for combining multiple measures into a meaningful indicator

5. Standardization Methods in Indicator Development

✔ Understanding direct and indirect standardization
✔ When to apply standardization techniques to improve comparability

6. Presenting Indicators & The Problem with Ranking

✔ Best practices for visualizing indicators effectively
✔ The limitations of league tables and rankings in performance comparison

7. Gaming, Perverse Incentives & Unintended Consequences

✔ Recognizing how performance targets can drive unintended behaviors
✔ Case studies on gaming, misreporting, and manipulation of indicators

8. Assuring Indicator Development & Available Support

✔ How to validate and assure indicator methodologies
✔ Understanding available resources and expert support for indicator development

DURATION

⏳ 1 Day

This course provides a structured and practical approach to indicator development, equipping participants with the skills to design, assess, and refine indicators effectively.

CERTIFICATION

Upon successful completion of this course, participants will receive a John Varlow | Training and Consultancy Certificate of Completion.

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