The performance indicators, released by the Tertiary Education Commission yesterday, are the first national snapshot of how well taxpayer-subsidised New Zealand students measured up in four areas last year - successful completion of papers or short courses, completion of qualifications, progression from subdegree programmes to higher level study and the number retained in study.
The survey will be repeated annually.
From 2012, 5% of tertiary institutions' government funding will be linked to them meeting or exceeding student performance targets.
The University of Otago achieved the best results of New Zealand's eight universities for the number of students gaining qualifications and student retention, sharing first place with the University of Auckland for the number of students successfully completing papers.
Otago did not feature in the other category measured - the number of students progressing from subdegree programmes to higher study - as it does not have any New Zealand students studying at subdegree level.
Otago Polytechnic was the best-performing education organisation in the country for students completing degrees.
Of last year's degree-level students, 91% completed their qualifications, far exceeding the sector median of 70%, and topping the best university sector result of 78%, as well.
Otago, Aoraki and Telford Polytechnics all exceeded the sector median for the number of students completing papers or courses and completing qualifications at all levels.
However, the Invercargill-based Southern Institute of Technology was below the sector median in three of the four categories.
In a statement, Tertiary Education Minister Steven Joyce said the performance indicators were "another tool to assist taxpayers in assessing the value for money we are obtaining from our country's very large investment in tertiary education".
"They are a good snapshot of the respective strengths of the tertiary institutions, both at a sub-sector and individual institutional level."
But institution heads and sector spokesmen yesterday cautioned against trying to compare one institution directly against another, saying every institution was different and their results could be influenced by many factors, including the academic background of students, their age, their ethnicity, their socio-economic background, and whether they were learning on campus or from a distance.
University of Otago academic and international deputy vice-chancellor Prof Vernon Squire said it was gratifying the data confirmed Otago's position as a leading provider of education.
The university would continue with programmes to assist students complete papers and qualifications, including mentoring and peer tutoring, he said.
A successful intervention programme introduced to help Maori students with study difficulties would be extended to Pacific Island students, he said.
Otago Polytechnic chief executive Phil Ker said in a statement the polytechnic's's results were pleasing and sent a clear message to students and others about the quality of education offered there.
However, he said he had concerns with the way TEC had measured retention and progression to higher study across the polytechnic sector.
Many polytechnic level 3 and 4 programmes existed to prepare students for direct entry into the workforce and there was never an intention for those students to progress to a degree. Other subdegree and degree-level students were workers who enrolled part-time to upskill in a specific area and did not intend to complete a full qualification, he said.
Telford chief executive Jonathan Walmisley said he was not surprised by Telford's mixed results, as about 80% of its students were working and completing specific short courses. Many were older people returning to education for the first time since leaving secondary school.
"We're relatively happy [with our results], although we realise it is always a challenge to keep people studying and succeeding."
It is accepted that the lower the level of study undertaken, the more chance there is of students failing papers or dropping out.
Telford is merging with Lincoln University next year but will still continue to offer rural-focused courses at subdegree level.
Mr Ker, who is in China exploring education partnership possibilities this week, has also said Otago Polytechnic will continue to enrol students in lower level courses and qualifications.
