Whether on the sports field or in the boardroom, the adage that ‘if you cannot measure something, you cannot control it’ is well known. It appears Local Government New Zealand has taken this piece of wisdom to heart with the launch of their Excellence Programme.

The programme aims to provide an independent rating of council performance that communities can understand. It is modelled on the format used by international ratings agencies, but with a focus on governance, financial decision-making, service delivery, and community engagement.

It is well-timed too, because the sector is coming under increasing scrutiny from central government. The Better Local Services Reforms, for example, noted with concern that council spending in recent years had tracked above consumer inflation.

To the time-poor voter, who may be unwilling to steep themselves in complicated measures of performance (quite rationally too!), this could be read as a sign that the sector as a whole is doing a bad job. But is it? Very little of council expenditure is made up by the same basket of goods and services that are used to measure consumer inflation.

Councils also perform a host of other tasks and services beyond roads, rats and rubbish, the effectiveness of which is impossible to assess by looking at expenditure alone. If a particular council keeps spending growth below that of inflation, does this mean they are managing their assets well, or consulting effectively? It is impossible to tell.

The Excellence Programme is, in effect, an information shortcut, allowing communities to make better informed decisions at the ballot box. Admittedly, it is early days yet. Only a small group of councils will be assessed in the first round, and the results will only be released after the upcoming local body elections.

But should the programme be adopted more widely, it has the potential to significantly alter perceptions about the sector. It could also change the tone of the dialogue between central and local government. After all, it is going to be pretty tough to use local government as a whipping boy should an independent report card show they are doing a decent job. Likewise, it gives councils little room to skirt accountability for poor performance.

If it works for sports teams and businesses, it should work for local government.