Performance Review: Threats and Opportunities

Abstract

This paper explores the growth in interest in performance review in the local government context. It reviews the role which Central Government and the Audit Commission have played in bringing pressure to bear on local authorities to introduce review systems whilst recognising that pressure has also come from within councils. The accountability implications of the adoption of PR are considered as is the impact which the Citizen's Charter legislation is likely to have on local government. Our research has uncovered a number of useful performance review systems in a variety of councils which have been developed in response to specific local needs and circumstances. We are concerned that the Audit Commission's literature in this area, has placed undue emphasis on cost-cutting and as a result, has introduced confusion as to the role which performance review should play in councils. We also conclude that there is a serious danger that in the light of the Citizen's Charter, councils may abandon the development of appropriate internal review mechanisms in favour of the indicators which are to be published nationally as part of the legislation.