Over the past two decades, Italy’s administrative reform has institutionalized evaluation to improve program effectiveness, staff productivity, and results-driven accountability. Yet, formal compliance with mandatory procedures, judicially sanctioned managerial accountability and lack of cross-agency coordination, coupled with cultural separations among analysts and evaluators, are some of the ambiguities observed in the implementation of performance measurement regimes. Building upon the New Governance Theory, the Behavioral Public Administration and the literature on the use and influence of evaluation on decision making, this chapter examines the Italian evaluation policy and its undesirable effects. Drawing on participant observation and in-depth interviews with government officials, public managers, policy analysts and experts of performance measurement, possible pathways for future improvement suggest moving public organizations toward a more horizontal and cooperative network governance. To tap into complementarities between performance measurement and program evaluation throughout administrative agencies and staff, the entire range of evaluation designs could be employed in a more participatory and democratic fashion.