Abstract
Increasing demands are being placed on nursing administrators to manage the cost-efficiency and quality-effectiveness of the nursing service organization. One effective administrative tool that can be used for both internal management and external reporting of a nursing service organization performance is the performance management data system described in this article. While efforts are underway to build essential elements of a performance management data system, including the structure and content of nursing-sensitive databases and data management methods, no consensus has been reached. The author reviews the relevant literature and offers guidelines to take the nursing administrator through the process of developing a performance management data system. Beginning with a conceptualization of the nursing service organization as a system, the 5-phased process moves through data variable selection, data variable measurement, and data analysis to the final internal and external reporting of the organization's performance.