Facts vs. Perception: Strengthening local government policy with KPIs
Managing a local government requires navigating various roles and responsibilities within a complex political landscape. Conflicting interests and priorities can complicate the effective use of KPIs. Anecdotes and isolated incidents are sometimes used to make political points, even when statistics tell a different story. KPIs are valuable for municipalities because they shift the focus from inputs to concrete outcomes and performance. This approach provides a clearer, more realistic view of the local government’s effectiveness, supported by more informed decision-making.
KPIs are measurable values that help organizations monitor and improve their performance.
To use KPIs effectively, it is essential to have a solid theoretical foundation. Local governments can make better decisions and craft more targeted policies by strategically using KPIs. Our in-company training courses equip your team with practical knowledge about KPIs, enabling you to enhance the performance of your local administration and make more informed decisions.
A common challenge is bridging the gap between objective facts and residents’ subjective perceptions. For example, crime statistics may indicate a decrease, yet residents might feel less safe due to a reduction in visible police presence. To develop effective policies, it is crucial to combine factual data with citizen feedback, ensuring a comprehensive understanding of the situation. Since KPIs measure only quantitative aspects, conducting qualitative research is essential to capture the full context and residents’ sentiments.
The 24 most important KPIs for local governments
By utilizing the following KPIs, local governments can not only better track their performance but also make targeted improvements that enhance the quality of life for residents. These indicators help identify areas for improvement and highlight opportunities to enhance services.
Child Happiness and Safety
- Safe and Supportive Environment: Percentage of children living in a safe, supportive home environment, as indicated by factors such as stable family structures, access to community resources, and low rates of child welfare interventions.
- Youth Support Need: Number of Child Protective Services cases and percentage of children needing youth support.
Education and Labor
- School dropout rate: Number of students leaving school early as a proportion of total students.
- Employment rate: Percentage of citizens employed compared to those who want or need to work.
- Employment: Number of available job positions and open vacancies relative to the total number of residents.
Economic and Social Growth
- Economic Activity: Growth or decline in the number of businesses and their turnover within the area.
- Poverty: Percentage of households living below the poverty line.
- Household Economic Stability: Percentage of households with income above a specific threshold (e.g., $100,000).
Health and Livability
- Health Level: Overall (mental and physical) health, measured by doctor visits, medication use, hospital visits, and absenteeism.
- Housing Availability: Amount of available housing space relative to demand.
- Community Development: Quality of housing and surroundings, including community development projects, green spaces, and recreational areas.
Safety and Public Space
- Traffic Safety: Number of traffic accidents measured per number of movements or square meters.
- Fire Safety: Number of fires measured in absolute terms or as a percentage of households.
- Cleanliness of Public Spaces: Percentage of public spaces free of graffiti, weeds, or litter.
- State of Matter: Percentage of streets, roads, and buildings that are poorly maintained.
- Noise: Number of decibels above standard caused by traffic, aircraft, neighbors, or events.
- Odor Nuisance: Number of resident complaints about unpleasant odors.
Demographics and Social Cohesion
- Migration: Percentage growth or decrease in residents due to immigration and emigration.
- Demographics: Number of births and deaths per 1,000 residents.
- Social Cohesion: Level of resident involvement in community activities and improvement efforts.
Efficiency of Administrative Processes
- Turnaround Time: Time taken to provide products and services from the moment of request.
- Duplication: Percentage of cases that have to go back into the process because of incomplete data.
- Incorrect Decisions: Number of times decisions have to be reversed due to errors.
- Decision Time Objections: Percentage of objections that are not processed within the decision period.
KPIs gain true value when analyzed across the right dimensions. Beyond time (e.g., year, quarter, month) and location (e.g., zip code, district), other factors like household type, family composition, and asset category can also be crucial. These dimensions provide deeper insights into the data, enabling more targeted actions.
Adhering to privacy laws is crucial when working with KPIs. Citizens data must be handled with the utmost care. To meet privacy regulations, techniques such as pseudonymization and anonymization should be employed. The aim is to use data responsibly for legal purposes and to promote transparency, not to increase resident surveillance.
Improve local government decision-making with KPIs
We encourage mayors and local officials to adopt a data-driven approach by integrating KPIs into their governance practices. By leveraging KPIs, local governments can operate with greater transparency and efficiency, thereby strengthening residents’ trust in government. Data-driven policy can lead to more effective decision-making, better process optimization, and clear accountability to the council.
KPIs offer essential tools for measuring performance and refining policies. They empower informed decision-making and drive targeted actions. However, it is crucial to complement KPIs with broader perspectives and a holistic approach to policy-making. We recommend that board members and policymakers use KPIs as part of an integrated governance strategy that balances data insights with human factors.
Practical tips for implementing KPIs
- Define clear and measurable KPIs aligned with strategic objectives.
- Engage all relevant stakeholders in KPI development and implementation.
- Utilize appropriate tools for efficient data collection and analysis.
- Stay flexible and open to adjusting KPIs based on feedback and changing circumstances.
- Provide continuous training on KPI usage and interpretation within the organization.
By following this approach, local governments can better leverage KPIs to enhance performance and govern more effectively, while maintaining a focus on the human and social aspects of policy.
Daan van Beek MSc, speaker, trainer and author of the BI & AI book 'Data Science for Decision-Makers and Data Professionals'. He is the CEO of the Passionned Group and you can follow Daan on Twitter.
