• http://dx.doi.org/10.18235/0009288

Cruz-Aguayo, Yyannu (2016). Setting Targets for Results: Target Setting Tool. IDB Open Data. https://doi.org/10.60966/88nx9soh

1. English

What is the Target Setting Tool?

An Excel-based target setting tool that operationalizes a simple cost–benefit framework for results-based financing programs. It helps teams translate program costs and benefits into realistic, measurable performance targets, with an example drawn from El Salvador (Salud Mesoamérica 2015).

What files and sheets are included?

The workbook contains: - Targets — indicator list and target-calculation engine. - Values — cost/benefit parameters used in calculations. - Census data — population structure (age/sex) used to size the target population. - Copyright — licensing and attribution.

Which indicators are covered in the example?

The El Salvador example includes, among others, Modern contraceptive prevalence rate (as shown on the Targets sheet). Each indicator row contains the inputs required to compute feasible targets subject to the program’s constraints.

What inputs does the tool require?

On the Targets and Values sheets, you will see fields such as: - Unit Value (vi) — monetary value per unit of improvement. - Value (20 yrs, 12% discount rate) — present value over a 20-year horizon at a 12% discount rate. - Target Population — population at risk/eligible (sourced from Census data). - Length of program (years) — intervention duration. - Total Cost — budget envelope for the target period. - Baseline/Trend — prior levels (for example, 2008 Level, 2011 Level, 2011 Level 95% CI, Trend).

How does the tool compute targets?

1. Sizes the eligible population using Census data by age and sex.
2. Applies costs and benefits from the Values sheet (including discounted value over 20 years at 12%).
3. Allocates budget across indicators to maximize benefits subject to Total Cost and program length, yielding a feasible target level per indicator.

How do I use it for evaluating El Salvador's health program performance?

• Review Census data for El Salvador to confirm population denominators.
• Update Total Cost, program Length, and Unit Value (vi) if newer estimates exist.
• Inspect the Targets sheet to see how the example indicator (e.g., Modern contraceptive prevalence rate) moves from baseline toward a computed target, given the budget and benefit assumptions.

Can I adapt the tool to other programs or countries?

Yes. Replace the Census data with the relevant population tables, refresh the Values (costs/benefits), and update the Targets to match your indicators. The same framework will recalculate targets consistent with your scenario.

What assumptions should I check before finalizing targets?

• Discount rate and horizon (default shown is 12% over 20 years).
• Unit values (benefits per unit change) and costing (program and marginal costs).
• Baseline and trend estimates and their confidence intervals.
• Target Population definitions (eligibility/coverage rules).

What are the tool’s limitations?

• It is a simplified cost–benefit model; it does not simulate dynamic spillovers or capacity constraints.
• Results are sensitive to unit value estimates, baseline accuracy, and the discount rate.
• Population denominators must be current; outdated Census data can bias targets.

How does this improve El Salvador's health program performance?

By linking budget, population need, and expected benefits, the tool produces transparent, defensible targets for El Salvador’s health priorities, supporting alignment between financing, service delivery, and measurable outcomes.

Where do the example data come from?

The El Salvador example uses the latest available sources at the time of the exercise (as documented in the workbook), including population tables on Census data and historical levels on the Targets sheet.

How should I document changes for auditability?

• Keep a change log of edits to Values (costs/benefits) and Targets (indicators/baselines).
• Version the workbook when updating Census data or discount-rate assumptions.
• Archive the sources used for unit values, baselines, and trends.

What is a target-setting tool and how does it work?

The Target Setting Tool, developed by the Inter-American Development Bank (IDB), is an Excel-based framework for calculating program targets using a cost-benefit approach. It combines epidemiological data (e.g., maternal and child health indicators, DALYs). - Economic data (e.g., GNI per capita). - Demographic data (e.g., census population by age and sex). The tool estimates realistic targets for health interventions by projecting trends, costs, and expected benefits over a defined program horizon.

How can I automate target setting in Excel?

The IDB tool itself is an Excel workbook that automates calculations through preloaded formulas for discount rates and program horizons. - Input fields for baseline values, confidence intervals, and costs. - Automatic computation of estimated targets based on historical data and intervention parameters. Users enter baseline indicators (e.g., contraceptive prevalence, antenatal care coverage), and the tool generates projected targets aligned with program goals.

--- ### What are the benefits of using digital tools for performance management? The dataset illustrates several benefits: - Consistency: Standardized framework avoids arbitrary target setting. - Evidence-based: Uses WHO, World Bank, and census data for reliable projections. - Transparency: Clear documentation of assumptions and sources. - Efficiency: Automates calculations that would otherwise require complex manual modeling.

What are the target-setting tools for non-profit impact measurement?

The Excel tool was applied to El Salvador’s Salud Mesoamerica 2015 initiative, showing how nonprofits and development programs can: Define measurable health outcomes (e.g., antenatal care, vaccination rates). Align targets with available funding and population needs. Track progress against internationally recognized indicators.