by Prof. Dr. Thorsten Franz Harz-University of applied sciences, Halberstadt

19-eighties: Reagonomics/Thatcherism/New Zealand 19-nineties: begin of NPM in Germany, starting at the municipality-level (acc. to the Tilburg-model); spreading to other public institutions 2008/09: Financial- and economy-crisis; increase of criticism of the model 2014: Some objectives attained, missed and given up others 2

Collective term for different objectives, structures and instruments (not a specific reform concept) to describe the efforts to reform the public sector by implementing management-thinking to overcome inefficiencies of the old administrative system 3

Concentration on main tasks (task review, privatization, out-sourcing) and Economization of performance of (remaining) tasks 4

Transfer of management methods ( of private business sector)  MbO/agreements on objectives, output based and service-oriented management  Transparency of costs/performance measurement by reporting system, key figures, business accountancy, cost and performance accounting etc.  Implementation of competition and incentives  Collaboration with private investors (benchmarks etc.) etc. … and reduction of staff (esp. in Eastern Germany) 5

1. Focus on E-Government (e.g.: EGovG) 2. Impacts of demographic change (e.g.: future of rural areas) 3. New citizens/new society: transparency, participation, organizing and supporting civil society (e.g.: Citizens budget) 6

Reduction of tasks Reduction of staff (often down to a critical mass) More cost awareness Business accountancy and cost/Performance accounting in municipalities (and in some state authorities) More service-orientation, less authoritarian manner 7

Privatization can lead to a less sustainable, safe, cheap and broad supply of essential goods (> re –municipalization of municipal utilities) Agreements on performance often just means „paper“ Data-collection often means inefficient effort and bureaucrazy (e.g.: opening balance with arbitrarial assessment), which does not guarantee better political decisions Continuity of attitudes and behaviour of the staff etc. 8

Failure of NPM? 9

Thank you for your attention! 10