Successful implementation of e-government programs, policies, and effective service delivery to citizens is faced with many obstacles related to operations, technology, and human resource management, amongst others. The changes brought about due to introduction of Information and Communication Technology require changed work patterns, work styles, and overall management of performance. In this context, five key issues have been identified. These are identification of new performance measures, creating an environment for innovation, teamwork, fostering employee empowerment, and developing new competencies. A theoretical framework for performance management in e-government departments and agencies is proposed. A model for delivering improved service to citizens has also been developed.