This book is based on the premise that performance measurement is a critical component of performance-based management (PBM). A quality performance measurement system can provide valid and reliable knowledge about the cost, quantity, processes, quality, and results of services provided. Such information can be used by organizations’ internal and external stakeholders to make decisions or to guide actions. The literature, cases reviewed, and current research makes it clear that when done properly, performance measurement could be an effective tool for administration.