2002 Volume 2 Pages 70-81
Over the past several years, the concept and practice of performance measurement (PM) has received considerable attention in prefectural and local governments in Japan. However, the rese impact has been fairly limited. For example, PM is often used as a template to find obsolete budget items or as a means to add performance data to longterm planning targets.
In addition, case study observations indicate that the full potential of performance measurement generally has not been recognized. For example, performance targets are not used as a key component in performance contracts between elected officials, such as governors/mayors, and their administrative leaders and managers. Responsibility and accountability often are not clear. Further, PM is not integrated with essential management processes such as the strategic planning and the budgeting process.
In principle, the full potential of performance measurement goes well beyond being a tool of government management. Indeed, all indications are that it has the potential to be a key management instrument for the network-based open systems organizations of the 21st century. Trends, of course, show that the traditional command and control model will be less appropriate not just for the public service, but for commercial service as well. Shortcomings of the traditional model of bureaucratic management include requiring permission from elected officials in parliament even for trivial changes in process or budget. Such practices consume much time and make it impossible for frontline managers to use their own judgment and respond to citizens’ needs in a timely fashion.
With a clear performance contract and targets, performance measurement makes it possible to delegate decision-making to frontline managers. PM rightly allows attention to be focused mainly on results and achievements, rather than on processes and procedures. This is a radical change for the public service in Japan, equivalent to a paradigm change or scientific revolution.
Japanese perfectural/local governments must carefully study and absorb the underlying implications of performance measurement. Otherwise, it will be used simply as a medium for presentation/communication and will soon be swallowed up as part of the budgeting or planning process.
