Increasing numbers of systems of indicators are created for the purposes of "performance management". These systems are a form of New Public Management that emphasises results and impacts obtained, as opposed to older forms of management based on the allocation of resources and the control of outputs.
Managing performance rather than resources
In the spirit of performance management, operators are endowed with greater autonomy in the use of their resources. In return, they commit themselves to clearer objectives as regards the results and impacts to be obtained. They have to measure their performance in order to evaluate themselves and submit periodic reports. This new balance between decentralisation and performance measurement is at the base of many developments in public administration [See footnote].
In many European regions, the administrative culture has remained impervious to decentralisation and to performance management and the development of result and impact indicators is generally considered to be difficult. Programme managers are more familiar with resource and output indicators. Cultural changes are, however, slowly but surely taking place in certain countries, under pressure from administrative reforms initiated by national governments. The monitoring and evaluation of programmes co-financed by the European Union has been a factor encouraging performance management in terms of results and impacts.
[Footnote]For example, the US Government Performance and Results Act (GPRA) of 1993 made the use of new indicators compulsory through the entire government administration.