Net Results of the Japanese NPM Movement at Local Governments since the Mid-1990s: Performance Budgeting, Total Quality Management and Target Based Budgeting

Abstract

Serious fiscal crisis has pushed Japanese local governments to catch up with the global trend of NPM reforms since the mid-1990s. While Performance Measurement and Total Quality Management have caused enthusiasm since pioneering efforts of reformist local governments, a closer look offers a somewhat different image. Relatively bigger organizations head towards a result-oriented decentralized management characterized by Target Base Budgeting and Management By Objectives. Smaller local governments apparently adopt Performance Measurement, but in reality, merely a slightly different version of traditional budgetary control. TQM is continuously advocated but is not necessarily effective. Some local governments succeeded in the introduction or implementation of new management tool because they sought to coordinate power with the organizational leadership, while others did not succeed because they failed to do likewise.