ISO 37005:2024
Clause 4: Understanding indicators – ISO 37005:2024

ISO 37005:2024 4.2: Structure of indicators

What does 4.2 require?

Indicators describe, may be either quantitative or qualitative, and serve to judge performance. Under the ISO 37000 principles, a good governance indicator gives assurance that the organization behaves responsibly within its social, environmental and economic setting, and a footing for accountability and assurance linked, as relevant, to what the governing body decides, what the organization does and what stakeholders expect. Its structure builds up in levels according to scope: a quantity OF a quality; that, BY or PER a particular ISO 37000 principle over time; that, BY context (economic, social or environmental) or PER accountability (decisions, action, stakeholder expectations); and that, BY context combined with, alternatively to, or without PER accountability, in either order. At its simplest an indicator is a quantity OF a quality or attribute with either a BY or a PER, the two being interchangeable, context meaning ISO 37000's natural environment, social and economic system; customer acquisition cost by market segment per sales channel is the worked example. Any measure behind a purpose-linked indicator stands for an underlying condition and always carries some uncertainty, which is a source of risk and shifts as new data arrive.

Maintained by Gerard Blokdyk

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