Recent research in performance measurement has focused on the tension between two uses of performance information: ‘passive’, to ensure compliance, and ‘purposeful’, to improve services. This article presents an in‐depth study of two public sector organizations in England and shows that the main tension may actually lie between a combined purposeful and passive use, and an exclusively passive one. This tension was most pronounced between organizational levels, where a combined use was dominant among senior managers, and an exclusively passive one was prevalent among middle managers and frontline staff. This split was not intentional—instead, it reflected how people interpreted the role of performance measurement, suggesting that simply promoting greater use of information may not be sufficient for linking measurement with service improvement. This study extends the theoretical understanding of the dynamics of performance information use in organizations and generates implications for using performance measurement to improve service delivery.