Prototype KPIs for rural infrastructure development: The practice of sub-district local governments

Purpose ‐ It is difficult to manage and measure the effectiveness of infrastructure development efforts of the sub-district local governments called Tambon Administrative Organizations (TAOs), the lowest level of local governments in Thailand. This paper aims to develop and demonstrate the applicability of key performance indicators (KPIs) based on the integration of balanced scorecard (BSC) and value chain approaches. Design/methodology/approach ‐ The processes of designing KPIs are described with emphasis of how to apply a value chain model into designing BSC's KPIs. Expert focus groups and case studies from various parts of Thailand were conducted to give an insight into the adaptation of the performance measures in infrastructure development of TAOs. Findings ‐ The application of a value chain model is critical for the design of practical BSC's KPIs because they can be conveniently embedded into existing practices. The case studies of prototype KPIs demonstrate the performance measurement of infrastructure development, which associates executive and operational views with the hierarchy of scorecards. Practical implications ‐ The prototype KPIs illustrate a quantifiable measure that the councils and staffs can use to communicate infrastructure development performance for target setting and accomplishment. Originality/value ‐ This paper addresses the key issue of how to design KPIs based on the balanced scorecard and value chain model. The integration of a value chain framework reflects the delivery process of infrastructure development.