Identifying Indicators for Performance-Based Contracting (PBC) is Key: The Case of Liberia

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About this resource

As Performance-Based Contracting (PBC) focuses on results, the identification and selection of indicators is vital. Indicators can be defined as “a set of key measures that help you define and track progress towards your objectives”. Using indicators for monitoring projects or health systems development is not new; attaching a reward and/or sanction to their attainment, however, is new.

Identifying performance indicators for PBC and setting targets, which will form the basis of pay, requires serious and sometimes protracted deliberations. This case study describes the rationale and the process followed in selecting indicators for the PBC of NGOs through the Rebuilding Basic Health Services project in Liberia. As such, the report endeavors to make a contribution to lessons learned about PBC design and implementation. The process of identifying indicators for PBC is not only a technical process but also a political one due to competing priorities of stakeholders, and time constraints.