Performance Management Systems: A Conceptual Model and and Analysis of the Development and Intensification of New Public Management in the UK

This paper, builds on the view that too much attention in the management, management control and management accounting literatures has been given to ex post performance measurement as distinct from ex ante performance management. The paper builds on the conceptual models of Performance Management Systems (PMS) developed by Otley (1999) and Ferreira and Otley (2005). Three key developments are developed in this conceptualisation in relation to focus, context and culture leading to a ‘middle range’ (Laughlin, 1995, 2004; Broadbent and Laughlin, 1997) conceptual model of alternative PMS lying on a continuum from ‘transactional’ at one end to ‘relational’ at the other built on respectively instrumental and communicative rationalities. The conceptual model is then used to provide new insights into the development of the new public management (NPM) in the UK. This analysis demonstrates how the move in 1982 with the Financial Management Initiative, to the 1988 Next Steps and the recent developments through the Public Service Agreements and targets from 1997 are a progressive move from relational PMS to be increasing and progressive more transactional in form intensifying the nature, significance and power of NPM to control public services.