Reinventing from the roots: The role of local authorities in driving the evolution of outcome measurement systems
In a remarkable shift towards more efficient and effective governance, state and local governments across the nation are embracing performance management as a cornerstone of their operations.
One such initiative is taking place in Arkansas and the Coleridge Initiative, where secure, privacy-aware data-sharing systems are being built. These systems aim to foster collaboration among agencies while safeguarding sensitive information.
Meanwhile, in Tennessee, the Department of Finance and Administration has taken a proactive approach by creating a statewide learning agenda and a complete program inventory. This inventory maps every state program to its outcomes and level of evidence, enabling performance measures to be directly connected to budget requests for data-driven insights into successes and areas needing adjustment.
The future of performance management is not just about reporting requirements but driving impact. This was a key message at the 2025 Performance Counts Summit, hosted by AGA, which showcased creativity and innovation in government performance from leaders across the country.
Colorado's approach to managing federal recovery funds is a testament to this shift. They recognise that what works in one community may not work in another, and smart investments are informed by real-world results. Colorado aligned more than $3 billion in federal recovery funds with community priorities and built a public-facing performance dashboard for transparency.
In Alexandria, Va., department heads' performance contracts are tied directly to the city's strategic plan, making the connection between city services and community outcomes clear.
The examples provided demonstrate that performance management is an integral part of how these governments operate daily. Evidence, data, and collaboration are being used by leaders to improve outcomes for their communities.
Sarah Cunningham, Partner at Summit, Mary Goldsmith, National Federal Sector Director at RSM, and Robert Shea, CEO of GovNavigators, are among the innovators driving this change.
Jon Baron of the Coalition for Evidence-Based Policy highlighted the importance of targeted pilot programs and tiered funding models for testing new ideas before scaling them. This approach allows for the fine-tuning of strategies to ensure they deliver the desired results.
The challenge and opportunity lie in making these ideas the norm, not the exception. By following the lead of innovators in Tennessee, Colorado, Alexandria, and beyond, we can make performance management a driver of better outcomes for the people served. The federal government can also learn from the creativity, agility, and problem-solving seen at the state and local levels, and scaling these practices nationally could transform how results are measured and delivered.
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