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Performance measurement is an important element of local government modernisation as outlined in the fifth national social partnership agreement Programme for Prosperity and Fairness (2000). The agreement states that performance indicators will be developed 'which will identify best practice and encourage local authorities to improve their own performance levels.' Efficiency and customer satisfaction are highlighted as particular issues in need of attention. This paper provides an overview of national and international developments in performance measurement in local government. The term performance measurement is used in a generic sense in the study to cover the systematic monitoring of performance over time, using both quantitative and qualitative data. Following the introduction, Chapter 2 establishes a framework for the study. This framework emphasises the need to develop performance measurement for different levels of local authority performance and for different perspectives on performance. Three main levels of performance are specified: strategic; service programme; and team/individual. Three perspectives on performance are also specified: service delivery; emphasising customer expectations and needs; financial management, emphasising the wise and prudent use of public money; and human resource management, emphasising the important role of employees in delivering quality services. Chapter 3 examines experience with the development of performance measurement at the level of county/city-wide strategic priorities. At this level, the main emphasis is on creating performance indicators that focus on the strategic priorities of the county/city and of the local authority as a whole. Examples of measurement systems to facilitate the tracking of local social.

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