This thesis explores the suitability of using 'Balanced Scorecard (BSC) -a performance measurement model developed by Robert S. Kaplan and David P. Norton of Harvard Business School, USA' as a performance measurement framework for public sector organisations like UK Local Government Authorities. The research study was carried out using 'Case Study' method and the performance measurement model used for this study was a modified BSC model for'Non profit and public sector organisations' The test of the modified model of BSC was done on the London Borough of Tower Hamlets Corporate, Social and Housing Service Directorates. The testing of the model involved developing prototype 'Strategy Maps' and 'Scorecards' for all three service directorates and validating these through interviewing relevant officials. As each of the directorates were different in terms of service delivery objectives, stakeholders and performance measures or indicators, three sets of proto type strategy maps and scorecards were developed. The Strategy map included the vision, mission and strategic objectives of the organisation and directorates while scorecard showed the strategic objectives and their performance measures grouped under four perspectives of BSCService Users, Community and Stakeholders, Resource Management, Internal Process and Learning & growth. For validation of the proto type strategy maps and scorecards, senior officials of Tower Hamlets Council were interviewed. The analysis of the interview responses confirmed that the modified BSC model is suitable as a performance measurement framework for a local government authority like London Borough of Tower Hamlets. Some of the officials interviewed believed that if implemented properly, the BSC model can help achieve organisational alignment and inform next cycle of decision making. This may be an interesting area for further research.