This document discusses performance management in local governments. It begins by defining performance management and distinguishing it from related concepts like strategic planning and benchmarking. Performance management is described as the intentional application of strategies to achieve desired results through action, not just measurement. The document then reviews findings from a study of 66 cities and counties with reputations for performance management. It found these governments tended to have more extensive performance measures, link strategic goals to performance management, and have senior managers routinely review performance. However, incentives were no more common. Key elements of effective performance management are listed, and examples provided from the city of Coral Springs, Florida.