NPM and Performance Measurement: A Comparative Study of the Public Sectors in Ireland and the UK

Abstract

The use of quantitative, often non-financial, targets and performance measures by businesses and not-for-profit organisations has recently received increasing attention in the academic literature. In the public sector this has been particularly driven by the rise and influence of New Public Management (NPM), resulting in a shift from issues of policy to issues of management, and the break-up of traditional bureaucratic structures. One aspect of these changes is an increasing focus on quantitative measures of performance as a support for better decision making and more appropriate accountability in the public sector. Driven by the NPM agenda, public sector organisations have sought to develop targets that cover all aspects of an organisation’s performance. However, the extent to which such an agenda and focus has impacted varies between countries. This paper seeks to examine the possible role of quantitative targets and measures in public sector organisations in general and, through an exploratory study of annual reports, the nature and breadth of the usage of tar- gets and measures are examined in a comparative study of Ireland and the UK. What is found are significantly different intensities of application between the countries, with the UK applying such ideas in a much more rigorous manner than Ireland. Possible reasons for this are suggested.