In a rapidly moving society the pressure on the public sector is growing to provide results that are important to local community. Therefore, performance measurement is becoming a vital tool for local government modernisation. The purpose of this paper is to develop the model of performance measurement system in municipalities that enables to disclose the peculiarities when measuring the performance and to ensure the utility and internal resources based on continual improvement in municipalities. The literature analysis revealed that municipalities are extremely complex and that various regulators and peculiarities should be incorporated into the formation of performance measurement model in municipalities. The formed performance measurement model suggests measuring the performance through external and internal environment, where the three main types of accountability are included. Developed performance measurement model is being implemented by applying six main stages. The findings of created performance measurement model highlighted the necessity to test empirically the applicability of created performance measurement model for municipalities. The type of the article: Theoretical article.

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Pecularities of performance measurement in state-owned enterprises -The case of Lithuania performance measurement; public economics; public organisations; public sector performance measurement; state-owned enterprise State-owned enterprises (SOEs) play a significant role in many economies. Consequently, this paper describes the key elements of SOE performance assessment and how they should be developed in order to improve the services and the quality of the products provided by SOEs. The analysis revealed that performance measurement is an indispensable tool for SOEs to improve public services. Interpretations of these results highlight the importance of considering the special features of public administration when creating, developing and implementing performance measurement in these institutions.

Public sector plays a significant role in the economy as well as in the market. Effectiveness and efficiency of management of public servants require clear principles, results based approach and control system. Performance measurement concept leads to transparent, results based management. It has been widely applied in private companies for decades and could be a solution for public sector as well. However, the implementation of the principles of performance measurement for public sector has its peculiarities and limitations. This study aims to define the main obstacles of effective performance measurement applicability in municipalities considering the institutional framework and regulation as the significant factors which shape the contexts and the content of performance measurement. Theoretical findings let us claim that the key success factors of performance measurement in the municipalities are political will and support, methodological assistance and expertise, clear performance measurement application strategy, high control of selectable parameters and equivalent allocation of funding. Results of qualitative research lead to the conclusion that issues related to clear understanding about what performance measurement and its purpose is, what benefits it can provide to municipal activities as well as the motivation and interest from different municipality's administrative units are significant as well. Scientific literature analysis, logical analysis and case study methods were applied.