Implementing Performance Measurement Systems in Local Governments: Moving from the “How” to the “Why”

Abstract

This paper examines how Performance Measurement Systems (PMSs) are implemented in local governments where the initial context is defined by equivalent external pressures and professional expertise, in order to address the question of “why” PMS implementation patterns differ from one setting to another. The study explored the reasons behind these different patterns in a context where local governments responsible for providing a local service implemented a PMS with the direct support of professional experts, and thereby it contributes to the extant literature in the field of PMS implementation. In order to achieve this purpose, the investigation analyzed three local governments (municipalities) that were required to implement a PMS because of external legislation requirements rather than by choice and is based upon a participatory case study approach involving interviews, observations and secondary data sources. Research was conducted through the theoretical lens of Old Institutional Economics to identify three PMS implementation patterns, here called formal compliance, shared vision and technical oligarchy. The role played by three factors, power, communication and an inclination to learn, is discussed in the results, as these three factors in particular may help to explain the heterogeneity in the implementation patterns observed.

Keywords:

• implementation process
• local government
• municipalities
• Performance Measurement System
• public services

Additional information

Funding

This work was supported by Agenzia per la Coesione Territoriale.

Notes on contributors

Tommaso Agasisti

Tommaso Agasisti is Professor at Politecnico di Milano, Department of Management, Economics and Industrial Engineering, and Codirector of I&PA – MIP Politecnico di Milano Graduate School of Business.His studies are in the field of Public Economics and Finance, Public Management and Policy, Public Administration, with particular reference to the educational sector. His research is published in several international peer-reviewed academic journals, in both fields of Economics and Education. He also served as consultant for Italian universities and public administrations.

Deborah Agostino

Deborah Agostino is Associate Professor at Politecnico di Milano, Department of Management, Economics and Industrial Engineering. Her research interests cover mainly two areas: performance measurement systems in the social media era and performance management in public service networks. Her publications can be found in Public Management Review, European Management Journal and Transport Policy.

Mara Soncin

Mara Soncin is a PhD candidate in Management Engineering at Politecnico di Milano, Department of Management, Economics and Industrial Engineering. Her dissertation concerns the evaluation of the performances of digital learning initiatives in higher education. Her research interests also involve school management and leadership and the use of econometric models for the evaluation of educational policies, in particular related to the introduction of digital technologies.