Assessing impediments to NPM change

Purpose – When new public management (NPM) emerged in the mid-1980s, most governments such as New Zealand, Australia and Canada embraced it as a better way to provide public services. A more recent assessment of NPM would conclude that its appeal has faded. The purpose of this paper is to assess the serious impediments to NPM-inspired change. Design/methodology/approach – The literature is diffuse, and therefore its insights have been limited by the lack of synthesis. In this paper the authors set out to synthesize the main work already available. Findings – Change, such as breaking up large public sector hierarchies, or developing internal market-like competition and contracting out public services is indeed disruptive. Such change cannot be achieved without shifting decision-making processes, disrupting existing roles and working relationships and leaving some confusion and uncertainty among staff. Many of the changes feature numerous levels of ill-defined processes, ongoing multi-layered and complex decision making, and no easily agreed or clear path to resolution. Originality/value – The terms “wicked problem” and “disruptive innovation” are increasingly familiar to public managers and policy makers. This paper argues that managing NPM-style change represented yet another wicked problem in managing public organizations. The authors set out to synthesize the main work available, and in so doing, frame the various attributes of NPM-inspired change – five basic parts, five types of uncertainty and five fragmenting forces. The conceptual framework suggests hypotheses as the basis for further research.