Many evaluators are convinced that Results-based Performance Measurement (RBPM) is an effective tool to improve service delivery and cost effectiveness in both public and private sectors. Successful RBPM requires self-directed and cross-functional work teams and the supporting infrastructure to make it work. There are many misconceptions and definitional problems related to RBPM. In the first place, defining the scope of performance measurement in the public sector is particularly difficult in some instances, largely because it is difficult to define the bottom line in public service. In the second place, the concept of RBPM is to include or cross over on important topics such as accountability and empowerment. A third issue is that the idea of RBPM is strongly linked with management and leadership culture, so that it is difficult to describe it without reference to leadership, empowerment, accountability, and advances in information technology. The basic tenets of RBPM can be defined as responding to a changing environment, meeting the challenge of the public interest, and reporting performance measures that capture management's response and the public's interest. RBPM allows organizations to look at their missions. The important element is relevant performance comparison through an integrated, comprehensive set of measures that flow from the vision and strategy of top executives. Although RBPM has been associated with downsizing, it is really a strategic repositioning that allows organizations to focus on strengthening their competitive positions. (Contains 7 figures, 2 tables, and 52 references.) (SLD)