Performance systems are one tool available to central governments to improve the performance of sub-national service delivery. This paper provides a preliminary review of suitable metrics and mechanisms to reliably measure and monitor the efficiency and quality of public services that are provided by sub-national governments. This review aims to conceptualise the challenges associated with measuring public sector inputs, outputs and outcomes and implementing effective performance systems. Robust performance systems aim to measure both the efficiency and effectiveness of public services, as well measure cost efficiency, to better understand and remedy cost discrepancies across regions. Implementing qualitative mechanisms such as external inspections and user surveys are also useful in providing insights into consumer experience and well-being.
