How to create a good indicator?

A good indicator is a simple and reliable means of reflecting the status of what you are measuring. There are different evaluation methods that guide the creation of effective indicators. The SMART model is widely accepted as a frame of reference to create indicators.

Reference: Social & Human Capital Protocol

Things to consider

Data collection and metrics must be practical and affordable for the team in charge of field work.
Indicators should also be formulated to measure negative results, understood as those involving unwanted changes.
The different defining elements of an indicator (description, tools, use or methodology for calculations, etc.) must be documented in order to create a transparent process.
Indicators should be useful for accountability and also to share the process by encouraging learning among evaluated initiatives.

Types of indicators

Process indicator

Measures available resources, dynamics, or ways of doing things. This type of indicator is important in initiatives whose objectives are focused especially on knowing how the initiative has been developed, beyond the final results obtained.

Output indicator

Measures what is created by the initiative. It is a type of indicator that measures aspects such as objects, services, and the participants in an initiative.

Outcome indicator

Measures changes detected in the people and environment once the initiative is completed.

Impact indicator

Measures the results directly attributable to the evaluated initiative. This type of indicator differentiates, within all the changes detected after the process, which are because of the initiative we are evaluating and which are due to other external factors. To learn more about the Civímetro approach in regard to impact, take a look at Civímetro’s limitations.

KPIs