In this chapter, I explore the role of measurement in public sector and notfor-profit organizations and try to answer why we need performance indicators in those organizations. I discuss the challenges of measurement in a political context and the importance of measurement to facilitate learning and improvement. I also take a look at the limitations of measurement and its implications for the usage of performance indicators. The questions I address in this chapter include:
• Why do we need performance measures?
• What is the role of measurement in government, public sector and not-for-profit organizations?
• What can we really measure, and where are the limitations of measurement?
• What implications do the ...