Nowadays, organizational culture has become very critical issue for public sector organization to achieve its goals in the organization. Public sector organization intends to provide better service to customer. The study aim to define a set of key characteristics of organizational culture that contribute to higher performance of public sector organization. Case study analysis along with qualitative method approach is employed in the research part. In order to get the objectives of the study, local governments from three different countries (Finland, Sweden and Norway) are analyzed. As discovered from case study analysis, these local governments have successfully constructed and implemented performance measurement and management system. Concurrently, they are practising performance driven culture key characteristics to deeply go their organizational targets without any difficulties. Although nearly key characteristics are adopting, one is still missing to encourage their employee motivation.