Municipal Performance Measurement Models and Opportunities of Their Implementation in Lithuania ; Savivaldybių veiklos matavimo modeliai ir jų įgyvendinimo galimybės Lietuvoje
General characteristics and relevance of the topic. In 1995's issue of the scientific journal Public Administration Review Robert D. Behn (1995) referring to the analogy of the science of physics formulated three major questions which, in his opinion, scholars of public management should be concerned about in the 21st century. One of them was the measurement question: how public managers can measure the achievements of their agencies in ways that help to increase those achievements? After a decade the emergence of multitude of books and articles in scientific journals, changes in public sector organizations caused by implementation of models of performance measurement, performance management and quality management, governmental initiatives to implement performance measurement programmes just confirm the Behn insight on the importance of performance measurement in public organizations. For many years performance measurement as one of the major tools in the package of the New Public Management reforms has remained a significant 'management fashion' (Abrahamson, 1996) and scholars as well as practicians of traditionally more developed countries of the English speaking world and the Continental Western Europe are well aware of it. The fashion gradually comes to the post-communist Central European countries which recently joined the European Union or are in the way of doing so and which learn from the experience of more 'advanced" countries in different areas of public administration. Lithuanian public sector organizations, including municipalities, also take part in the experience transferring process and, although up to now performance measurement practices are poorly institutionalised or do not exist at all, it is likely that in the nearest future significant changes will take place in this area. Therefore, there is a great need for scientific research on public sector performance measurement of applicable nature that could provide guidelines for development of performance measurement systems, evaluate developmental opportunities and threats, and suggest prospective models. Research problem –performance measurement practices in public sector organizations and municipalities are not sufficiently analysed in the Central and Eastern European scientific literature on public administration though this topic is broadly examined by scholars of the Western countries (especially Anglo-Saxon). The topic of public sector performance measurement in Lithuania up to now has not been analysed in scientific dissertations. Goal of the dissertation is to examine the state and developmental perspectives of performance measurement in Lithuanian municipalities by applying results of scientific researches on performance measurement that were carried out in the municipalities of other countries. Tasks of the dissertation: 1. To carry out a historical overview of performance measurement practices in the municipalities of different countries and the analysis of scientific researches on the topic; 2. To develop performance measurement models that could become practically applied tools in improving performance measurement systems in Lithuanian municipalities; 3. To analyse the organisation of performance measurement systems in Lithuanian municipalities and the conditions to improve them; 4. To examine the dependence of performance measurement practices on different political, social, structural and cultural factors. Novelty of the dissertation is conditioned by its goal and tasks because municipal performance measurement practices is a new phenomenon almost never researched before in Lithuania. The researches of this dissertation are based on the methodology of action research which may appear non-traditional and innovative to the Lithuanian academic community dominated by positivistic tradition. The Local Governance Balanced Scorecard and the Municipal Performance Measurement Model developed in this dissertation are innovative models designed on the basis of the Balanced Scorecard, formulated by Kaplan and Norton in 1992 (1996, 2004), and the Common Assessment Framework which has been broadly implemented in public sector organizations as the means for evaluating quality management systems since 2000. The dissertation suggests an advanced concept of strategic management and performance measurement in the context of local governance, according to which all stakeholders should take part in processes of strategic management and performance measurement, and strategic development plans should include all goals and tasks, implementation of which needs initiative from stakeholders. Such approach to strategic management and performance measurement proceeds from the modern understanding of governance as a phenomenon opposed to government which has entrenched itself in the academic community of public administration in the last decade. The Local Governance Balanced Scorecard could be a tool to realize this approach. The Municipal Performance Measurement Model gives an opportunity to evaluate performance measurement practices that exist in municipalities. Self-evaluation of management systems according to the Municipal Performance Measurement Model can be the first step in realizing changes related to implementation of performance measurement systems in municipalities. Practical implications of the dissertation. Performance measurement systems are not developed in Lithuanian municipalities, managers and employees of municipalities lacks knowledge and skills to successfully organize performance measurement systems. Municipalities do not or almost do not apply strategic management and quality management models. Therefore, the material on performance measurement models and the experience of municipalities of different countries collected and summarised in this dissertation and the developed models of performance measurement may empower Lithuanian members of municipal councils, mayors, heads of municipality administration and employees to implement needed changes and provide with the necessary knowledge. Sources and methods of the dissertation. The dissertation is grounded on the action research methodology which is based on the pragmatic theory of knowledge. It is being argued that the pragmatic theory of knowledge following the epistemological approach, developed in the works of W.James (1995), J.Dewey (1981), J.Habermas (2004), R.Rorty (1979, 1982), differs from positivistic and interpretative theories of knowledge because under this epistemological paradigm the goals of scientific research and transformation of social reality are closely interrelated. After evaluating the action research approaches of K.Lewin, Ch.Argyris (Argyris ir kt., 1985), P.Checkland (Checkland, 1999; Checkland, Poulter, 2006) (Reason, Bradbury, 2001), a modified concept of action research, providing justification to the tasks of the dissertation and methods of their implementation, is formulated. It is argued that scientific research is the process of learning under which assumptions about social phenomena, their changes and the effectiveness of the methods of acquiring knowledge about social phenomena as well as the influence to the changes of social phenomena are formulated and tested, assumptions that are not approved by empirical facts are rejected, more accurate assumptions are postulated, etc. In other words, in the process of scientific research one learns by 'trial and error", by raising ideas and implementing them, making mistakes and avoiding their recurrence. Knowledge acquisition process in social sciences is also equated to the process of innovation creation and management, because namely discoveries and novelties - new theories, models and methods – that directly or indirectly cause positive changes in human lives, have great value in scientific cognition. Therefore, by developing this concept of scientific cognition it is possible to refer to the insights provided by the discipline of innovation management. In aiming to implement the tasks of the dissertation those research and data collection methods are used: modelling, expert survey, content analysis, e-mail survey. OVERVIEW OF THE DISSERTATION STRUCTURE The constituent parts of the dissertation are the following: introduction, theoretical and research parts, and conclusions. The first part 'The Theoretical Analysis of Performance Measurement in Municipalities' analyses the process of performance measurement and its opportunities in improving local government, evaluates the international experience in municipal performance measurement and examines the results of scientific researches on performance measurement. This part consists of four chapters. The first chapter 'The Concept and Context of Performance Measurement in Municipalities' formulates the descriptions of the major concepts and discusses the problems of term usage, analyses the peculiarities of performance measurement in municipalities, evaluates factors and motives that determine performance measurement practices in municipalities, overviews performance measurement practices and researches in Lithuania. In the section 1.1 it is stated that the meaning of the concepts 'performance measurement', 'productivity measurement', 'performance evaluation', 'performance observation' is similar and the definition of the chosen concept 'performance measurement' is presented. Other concepts fundamental for this work and terms denoting them are discussed. Aiming to simplify the understanding of the terms used in the dissertation the glossary of major terms indicating English terms and their equivalents in Lithuanian is made. The section 1.2 raises a question, how performance measurement practices in municipalities are similar and specific as compared to other public and private sector organisations. An assumption that the differences of performance measurement practices in different organisations are conditioned by organizational si