Performance standard
A performance standard specifies an expected or required level of achievement against which actual performance can be assessed. It can concern quality, time, cost, service or another relevant objective, rather than only a standard production cost. State the measure, target level, period and responsibility clearly, and consider whether the standard is achievable, equitable and under the manager’s influence. A standard can support feedback and improvement, but an inappropriate standard can encourage gaming or discourage useful effort.
Worked example
A service team must resolve 90% of eligible enquiries within two working days. Its actual result is 86%, a shortfall of four percentage points. Review enquiry complexity and exclusions before attributing the gap to staff effort.
Common mistake
Confusing a target level with the measure itself, or treating every performance standard as a standard cost.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | APM | Direct | September 2026–June 2027 |
| ACCA | MA | Direct | September 2026–June 2027 |
| FIA | FMA | Direct | September 2026–June 2027 |
