Åge Johnsen

What Does 25 Years of Experience Tell Us About the State of Performance Measurement in Public Policy and Management

Performance measurement in public management is a contested issue. Performance indicators (PIs) have diverse functions for different stakeholders over the life-cycle of a public policy, and the search for better PIs is an ongoing effort. However, instead of seeing the running down, proliferation and strategic use of performance information as dysfunctional, these effects are probably the unavoidable outcomes of functional and effective performance measurement systems in open societies and competitive democracies. PIs may effectively create ‘creative destruction’ of the present political or managerial status quo. Thus, PIs in political competition may be as important as prices in market competition.

Balanced scorecard: theoretical perspectives and public management implications

In this study it is argued that positive agency theory is a relevant theoretical perspective in studies of the balanced scorecard in business management because agency theory addresses implementation and organizational control issues. If the balanced scorecard is to be applied also in public management, then positive agency theory should be complemented with political economy to incorporate possible implementation and organizational control issues related to political uncertainty, common agency and implementation ambiguity. It is argued that uncritical application of the balanced scorecard in public management could result in dysfunctions common in Soviet‐type, central planning. However, such dysfunctions could be reduced with certain modifications of the balanced scorecard in order to facilitate political competition to a relatively larger extent.

Performance auditing in local government: an exploratory study of perceived efficiency of municipal value for money auditing in Finland and Norway

Performance auditing, or value for money (VFM) auditing, has been a long-standing component of accountability in public administration. During the 1980s and 1990s performance auditing has allegedly been increasingly adopted in the new public management. While there has been much research on public management and performance auditing in central government, local government has been relatively neglected in the literature. Municipalities and counties in local government have an important role in public sector service production in most European countries, and especially in the Nordic countries. It is therefore surprising that performance auditing in this context has received so little scholarly attention. This study is aimed at filling some of this gap. The purpose of this comparative study is, therefore, to explore how performance auditing practices, including performance measurement, are used to assess and verify value for money in local government and to enhance the accountability of municipalities and counties. This study analyses how informants from both auditors and auditees in Finland and Norway perceived the efficiency of conducting performance audits in local government. Despite some problems related to the quality of the performance audit reports, the informants perceived performance audit to function as a useful, rational public management tool.

Distinctive research patterns on public sector performance measurement of public administration and accounting disciplines

Abstract This article explores distinctive research patterns of public administration and accounting disciplines concerning public sector performance measurement (PSPM). Our review shows that accounting researchers from Europe investigate reasons for limited PM use and factors explaining a rational or symbolic PM use, inspired by organization theory and institutional theory and conducting case/field studies. Public administration researchers from Europe and the USA prefer to study PM design and PM impact respectively, mainly using surveys in combination with various theories, like political theory. Public administration research from the USA examines the types of performance indicators in PM systems and contingent factors for PM design. Public administration research from Europe shows an interest in evaluating public sector reforms like Best Value and explaining learning processes for improvement. We argue that PSPM research could benefit from interdisciplinary efforts and intensified mutual communication between public administration and accounting.

Has Devolution Increased Democratic Accountability

This article examines the impact of devolution, the New Public Management and public management culture on accounting for democratic accountability in the first term of the devolved national assemblies and parliament in the UK. Although there is more openness, transparency, consultation and scrutiny with regard to budgets, accounts and performance as a result of devolution, there is extensive information overload. Thus, many politicians are highly dependent on the parliamentary division of labour and are reliant on experts and advisors functioning as buffers and filters of accounting information.

Auditors' understanding of evidence: A performance audit of an urban development programme

This article uses a case study to analyse two main dilemmas that performance auditors face when auditing complex interventions in governance. The first dilemma, concerning the performance auditors’ roles as improvement agents and independent controllers, is that the improvement agenda often implies interacting closely with the auditees whereas controlling requires independence. The second dilemma pertains to the auditors’ choice of pre-planned audit criteria which limit what evidence the auditors can document. This choice affects the auditors’ role of holding a government to account. It also affects the type of information divulged to stakeholders concerning the social intervention that is evaluated.

The life cycle approach to performance management: Implications for public management and evaluation

This article discusses how performance-management systems may be conceptualized as tools with a life cycle consisting of several stages. Studies on public-sector performance management generally concern the question of how management can design these systems or address dysfunctional effects when they are used. This article, however, argues that the research in this field should cover the entire life cycle of performance-management systems: it should focus on both their benefits and costs and needs to recognize a broader spectrum of actors involved in the life cycle than that normally associated with the hierarchical conception of principals and agents. The life-cycle approach facilitates a comprehensive mapping of the various performance-management stages and their contingencies from invention to assessment and re-design, including their interdependence. The framework enables policymakers, managers, evaluators, and researchers to better understand performance-management systems, to identify relevant research areas and to communicate the practical problems and solutions related to the systems’ specific stages.

Strategic Planning and Management in Local Government in Norway: Status after Three Decades

Strategic planning and management was introduced in the public sector more than three decades ago and has become a core component in many new public management reforms. Although strategy has been widely adopted in the public sector, the knowledge base regarding its practices and its impacts remains scarce, particularly outside Anglo-American countries. This article replicates an American and British survey by analysing the adoption and impacts of strategic planning and management in Norwegian municipalities. The results show that, in 2012, a majority of the Norwegian municipalities used strategic planning and management, and that the respondents viewed the impact positively overall. Municipalities that had chosen the strategic stance of prospector and had financial resources from positive net operating results margin adopted strategic planning and management more than other municipalities. Municipalities with a high degree of strategic management and high stakeholder involvement had better perceived impacts of strategic planning than other municipalities.

Accounting in politics: devolution and democratic accountability

This book looks at the effectiveness of the 1999 restructuring of the UK through the establishment of the Scottish Parliament and the Assemblies for Northern Ireland and Wales, considering the process of devolution and its consequences on the key mechanisms of accounting and democratic accountability. Many of the chapters in this book examine whether devolution is enhancing democratic accountability, or creating a fragmentary state with conflict and tensions between the Westminster government and the devolved bodies. The focus is on the financial mechanisms for democratic accountability both in the UK and in international comparator countries (New Zealand, Norway, and the US). This book examines the turbulent pattern of relationships between central and devolved government and explores whether the present arrangements for devolution in the UK represent an end game, or whether they may be merely a stepping stone to a more fully fledged federal state. It is argued that the main thrust of many of the financial reforms in the UK has confounded, obfuscated, and complicated the desire for democratic accountability.

Performance Audits and Supreme Audit Institutions’ Impact on Public Administration The Case of the Office of the Auditor General in Norway

Performance audit is widespread but contested. The “audit society” proposition holds that audits are rituals producing comfort, whereas the “mandatory audit” proposition in public policy presumes that audits have positive impacts. Common to both propositions is the lack of empirical evidence of audit impact. This article analyzes survey data of the auditees’ tendency to make changes as a consequence of Supreme Audit Institutions’ performance audits. Civil servants who had experienced performance audits responded that ministries and agencies tend to make changes, but instrumental, institutional, and political factors have an effect on the institution’s propensity to make changes.