The shift from performance measurement to performance management in local government: do performance measurement systems support the drivers of performance data use?

Purpose The authors explore how performance measurement systems have evolved over the past 20-plus years to support the drivers of measurement system maturity, outcome measures and benchmarking, which contribute to performance data use in local government. Design/methodology/approach The authors use a case study of three municipalities in the United States to determine how performance measurement systems have changed from their FY 1994–95 operating budgets to their FY 2021–22 operating budgets, focusing on the selected departments of fire services, solid waste and human resources. They also conducted interviews to explore organizational context. Findings The authors find mixed results regarding the ability of performance measurement systems to support the drivers of performance data use in local government. While the municipalities have made some progress in transitioning from output to outcome measures, they continue to rely upon ad hoc approaches regarding measurement system maturity and benchmarking. Practical implications The authors provide several recommendations based on their findings, including that the academic community has an opportunity to provide training to local officials to help them create more robust performance measurement systems. Originality/value The authors provide clear evidence that more research is needed on the drivers of measurement system maturity, outcome measures and benchmarking to better understand why some local governments embrace these drivers while others do not.