The closed-loop state and input observer is a pole-placement type observer and estimates unknown state and input variables simultaneously. Pole-placement type observers may have poor transient performance with respect to ill-conditioning factors such as unknown initial estimates, round-off error, etc. For the robust transient performance, the effects of these ill-conditioning factors must be minimized in designing observers. In this paper, the transient performance of the closed-loop state and input observer is investigated quantitatively by considering the error bounds due to ill-conditioning factors. The performance indices are selected from these error bounds and are related to the observer robustness with respect to the ill -conditioning factors. The closed-loop state and input observer with small performance indices is considered as a well-conditioned observer from the transient perspective.