Challenging the NPM Ideas About Performance Management: Selectivity and Differentiation in Outcome‐Oriented Performance Budgeting

29 Pages Posted: 6 Jul 2015

See all articles by Henk J. ter Bogt

Henk J. ter Bogt

University of Groningen - Faculty of Economics and Business - Dept. of Accounting

G. Jan van Helden

University of Groningen - Faculty of Economics and Business

Berend van der Kolk

IE Business School, department of Accounting and Management Control

Date Written: August 2015

Abstract

This paper shows how the performance budget of a local government organization, in this case a province in the Netherlands, can be attuned to the specific task characteristics of the programmes in these budgets. Three ways of alignment are suggested: differentiating between standardized and complex programmes; focussing on the politically most relevant programmes in order to avoid information overload; and distinguishing between the types of performance information in terms of the role of the province in the programme (facilitator versus executor) and the stage in the policy making cycle (policy development, policy elaboration or policy execution). These suggestions challenge the generally straightforward NPM rationale of performance budgeting, in which standardized outputs are directly related to resources. Our empirical research shows on the one hand that the redesigned programme budget based on the above principles received substantial approval of its users, i.e., the provincial councillors. On the other hand, as regards the use of this programme budget the picture is rather diffuse, i.e., the majority of the councillors indicate that they use the information rather intensively, but its formal use in official Council and Council committee meetings remains limited.

Keywords: NPM, performance budgeting, performance management, programme differentiation, the Netherlands

Suggested Citation

ter Bogt, Henk J. and van Helden, G. Jan and van der Kolk, Berend, Challenging the NPM Ideas About Performance Management: Selectivity and Differentiation in Outcome‐Oriented Performance Budgeting (August 2015). Financial Accountability & Management, Vol. 31, Issue 3, pp. 287-315, 2015. Available at SSRN: https://ssrn.com/abstract=2626649 or http://dx.doi.org/10.1111/faam.12058

Henk J. Ter Bogt (Contact Author)

University of Groningen - Faculty of Economics and Business - Dept. of Accounting ( email )

P.O. Box 800
9700 AV Groningen
Netherlands
+31 50 363 7191 (Phone)

G. Jan Van Helden

University of Groningen - Faculty of Economics and Business ( email )

Postbus 72
9700 AB Groningen
Netherlands
+31 50 363 3673 (Phone)
+31 50 363 3720/3673 (Fax)

Berend Van der Kolk

IE Business School, department of Accounting and Management Control ( email )

Calle Pedro de Valdivia 21
Madrid, Madrid 28006
Spain

HOME PAGE: http://www.ie.edu/business-school/faculty-and-research/faculty/berend-van-der-kolk/

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