This article attempts to take stock of the first stage of the performance management reforms in Russia (2004–2013), identify the lessons learned both from domestic and international experience and assess prospects for further development of the performance management principles and tools going forward. The authors analyze the outcomes of the inconsistencies in application and review enabling conditions for implementation of the performance management approaches. The importance of linkages and a better integration of the performance management instruments and initiatives with other public sector institutional reforms (budget reform, civil service reform, etc.), is emphasized. Introduction of a program budgeting in Russia creates better conditions for the development of performance budgeting, linking the performance information with the budget process, planning and assessing of the outcomes, which opens a window of opportunities for the Russian Government to streamline the performance management system. The analysis of the past experience allows formulating recommendations and laying the foundation for more effective approaches to performance management in a changing economic context.