Performance measurement refers to the development of indicators and collection of data to describe, report on, and analyze performance. Government policy and implementation refers to the development of public policy decisions about the issues government chooses to address, the strategies it employs, the resources it commits, and the actions it takes to carry out these decisions. This element encompasses the full cycle of planning, budgeting, implementing, and evaluating government operations. The reasons these three governance elements are important for improving communities are straightforward. A government's basic approach to policy and implementation, including its budgeting, planning, and operational functions, must be competent for the government to be able to be a positive influence on the community, and not just a resource drain.
Performance measurement is needed to determine whether results are achieved.
And citizen engagement helps assure they are results that matter to the people of the community. Another term used in this paper from time to time is performance management. These linkages, along with examples from nine communities that have demonstrated some effective form of linkage, are described in sections V and VI of this paper.