Local governments are responsible for shaping the quality of life in communities. Being the most immediate level of authority to citizens, local governments are responsible for providing basic services like public safety, sanitation, local infrastructure, education, and health. Their role covers governance, allocation of resources, and sensitivity to community needs.

To fulfill this role effectively, local governments must adopt robust performance management systems that enable them to monitor progress, assess impact, and ensure accountability in service delivery. At the center of these systems are key performance indicators (KPIs)—quantifiable metrics that translate strategic objectives into measurable outcomes. KPIs can help local authorities track the efficiency of services, identify performance gaps, and make timely, evidence-based decisions. By providing clear benchmarks and real-time insights, KPIs empower governments to remain agile in the face of evolving community needs and increasing operational complexity.

In line with the growing need for effective performance measurement, The KPI Institute’s Top 25 Local Government KPIs – 2025 Edition offers a valuable resource that can support local governments in strengthening their performance measurement practices. The report features a curated selection of the most relevant and widely used KPIs across local governance, based on comprehensive research and global benchmarking. 

Covering core service areas such as budgeting, infrastructure, public safety, and citizen satisfaction, each KPI in the Top 25 Local Government KPIs – 2025 Edition is presented with a standardized definition, calculation formula, and practical application guidance. This edition serves as a helpful reference for municipalities seeking to enhance data-driven decision-making, improve service delivery, and align operational efforts with strategic goals. To provide a glimpse into the report, here are five of the top KPIs included in the 2025 edition:

1. # Recruit to hire ratio for job placements – Measures the proportion of referred applicants who are successfully hired through employment programs facilitated by the local government.
2. % Unemployment rate – Measures the percentage of the active labor force that is unemployed within the total active labor force.
3. % Online public procurement – Measures the proportion of public procurement orders completed electronically by government entities, compared to the total number of procurement transactions during the reporting period.
4. $ New school construction cost per square foot – Measures the average cost of school construction per square foot of developed area.
5. $ Ratio of reinvestment into the community – Measures the proportion of a local government’s total revenue that is reinvested into community development and public services.

The Top 25 Local Government KPIs – 2025 Edition offers in-depth articles, where you can discover new thought leadership articles that dive into the performance measurement concept framework, prevalent KPI use challenges, and 10 pragmatic tactics for more effective KPI implementation. It also features improved documentation templates with revised forms that now highlight the most important information of every KPI, making them simpler to comprehend, communicate, and incorporate into performance systems. All KPIs have been extensively reviewed and updated to address the most recent business trends, so the report continues to be a current and useful resource.

To explore the full list of KPIs and understand how they can support your local government’s strategic and operational objectives, download the Top 25 Local Government KPIs – 2025 Edition from the TKI Marketplace. A printed edition is also available for purchase via Amazon. Get your copy today!

The integration of artificial intelligence (AI) has emerged as a transformative force in the public sector, reshaping interactions between citizens and their governments. Across various touchpoints, from online information access to in-person services, AI enhances the citizen journey by analyzing data to deliver personalized services tailored to individual needs. AI-powered chatbots provide instant responses, while predictive analytics anticipate citizen preferences and streamline processes.

Moreover, AI drives digitalization efforts by automating routine tasks, facilitating data interoperability, and identifying patterns in citizen behavior. This paves the way for future readiness by enabling agile decision-making, proactive issue identification, and the adoption of innovative service delivery models. As a result, AI transforms governance frameworks, fosters data-driven decision-making, and enhances transparency and trust in government processes.

Global frontrunners in today’s dynamic landscape

The pursuit of strategic excellence in performance management continues to be a cornerstone for nations striving to deliver exceptional public services. Certain countries have emerged as frontrunners in this context, setting a high bar for strategic planning and execution. Most recently, Finland, Denmark, and Singapore, each representing diverse regions and cultures, have distinguished themselves as global leaders in government service provision, showcasing remarkable achievements across critical dimensions of public service performance.

AI-related initiatives

According to The KPI Institute’s (TKI) newest release, the 2023 Government Services Index, Finland, the ultimate global leader in public services provision, prioritizes citizen-centric design in online services, leveraging AI algorithms to personalize recommendations and enhance the user experience. Robust data security and privacy measures ensure that citizens’ personal information is handled securely, fostering trust in digital government initiatives. Through initiatives like the Place to Experiment and open government data policies, Finland promotes innovation and citizen engagement, contributing to continuous improvement in digital services and overall citizen experience.

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This excerpt is from the cover story of Performance Magazine Issue No. 30, 2024 – Government Edition titled “Lessons from global leaders: how AI is changing public service delivery.” Read the full article by downloading a free digital copy of the magazine via TKI Marketplace. You can also get your hands on the printed version by purchasing a copy on Amazon.