Municipal Performance Measurement in Practice: Which Factors Matter?

Performance measurement systems have two contrasting facets. On one hand, they assist managers to take rational actions; on the other, they disclose important information to citizens on their “value for money”. For political reasons the latter may prevail over the former, and this can undermine the validity, legitimacy and functionality of performance measurement systems for managerial action (Bouckaert 1993). Departing from the neo institutional theory, the purpose of this paper is to contribute to the understanding of the drivers that affect the use and implementation of managerially oriented performance measurement systems in municipalities, and how these drivers could affect the validity, legitimacy, and functionality of performance measurement itself. A multiple case study approach is used, with extensive document analysis and direct interviews in four municipality (two in Spain and two in Italy), that have successfully implemented performance measurement systems. Findings provide evidence to inform practitioners about the conditions under which the introduction and use of performance measurement systems in municipalities might be successful, identifying the important drivers of a successful implementation effort and help to increase municipal managers’ understanding of the factors that play a role in the successful implementation of a managerially-oriented performance measurement system in a municipal context.

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