One more interesting idea from David Halpern's The Hidden Wealth of Nations:
"the growing use of subjective satisfaction measures may prove to be the single most important innovation in public services of the last decade."
Subjective satisfaction measures means asking people if they are happy with the services they are getting from government. By looking at the details of what citizens do and not like about their interactions with the state, the government can get a reality check about how it is doing, and which things it needs to improve.
The Canadian government did detailed studies of citizens' satisfaction with the service they were getting. The government was often surprised that the things that bothered and pleased people were not what the government workers providing the service thought it would be. For example, people were much more upset about the police not showing up when they said they would than about whether the police solved the crime. The Canadian government then set targets to improve consumers' satisfaction with government services, starting from this baseline. They evaluate agency heads on whether people are actually more satisfied with the service they are getting, not on whether the agency was satisfied that it followed its own procedures.