This manual presents the use of performance indicators as an instrument of municipal service delivery improvement. It was prepared based on the results of a service improvement initiative in the city of Komsomolsk (Poltava Oblast, Ukraine) under the auspices of the People’s Voice Project, which is funded by the Canadian International Development Agency (CIDA) and managed by the World Bank. Some of the main trends in the modernization of local governments in the era of globalization as well as the experience of Komsomolsk in using modern municipal management tools are presented. Performance management systems seek to increase the quality of municipal services and are presented in a way that combines efforts in strategic planning, program-oriented budgeting and facilitation of quality management systems based on ISO 9001:2000. Practical issues related to selection of performance indicators, development of main components of a performance management system, preparation of performance reports and their applicability in decision-making processes are described in the manual. This manual is intended for local government officials, experts and those who are interested in modern municipal management tools and approaches to municipal service delivery improvement.

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