Performance measurement and management systems of local authorities in Italy: rise, fall and possible renewal

The distinctive feature of local authorities should be the creation of public value in a financially sustainable way. The relevance of this function explains the wide and deep reform process launched by the Italian lawmakers over twenty years ago and aimed to make local authorities more efficient. Under this reform, suitable performance measurement and management systems assume a central role. However, empirical evidence shows that, after an initial development of performance systems by local authorities, shortages, delays, contradictions and even setbacks are currently prevailing. The aim of this paper is threefold: first, it describes the evolution and the state of the art of performance systems of local authorities; second, it analyzes the critical issues at stake in this field; and third, it suggests some possible improvement solutions.