Performance indicators in higher education

Interest has been increasing in many countries in assessing performance of higher education institutions (and also departments within institutions). Two important reports in the U.K. in recent years have strongly advocated the use of performance indicators for this purpose. This paper argues that such indicators cannot be used in a meaningful way without a clear view of institutional goals. Problems of deriving such goal systems are discussed and a critical review of work done in this field is presented. Methodological problems associated with devising and using effective and useful performance indicators are described and research undertaken in this field outlined. Finally the authors outline the conditions under which they believe performance indicators may be used to give valid insights into performance of institutions (or departments).