The public sector in North America as well as in parts of Europe is increasingly adopting a performance management system that includes goal setting, coaching, and the evaluation of an employee on goal attainment. The purpose of this article is three-fold. First, the extant literature on goal setting for individual employees is summarized in terms of its applicability to the public sector. Second, the importance of a context to goal setting and performance management in the United States and Italy is discussed. Third, coaching techniques, based on theory and empirical evidence, for increasing the probability of goal attainment by public sector employees are examined.