PERFORMANCE CONTRACTS AND GOAL ATTAINMENT IN GOVERNMENT AGENCIES

Public sector reforms introducing performance contracts provide a unique opportunity to investigate goals set for government agencies and factors affecting goal attainment. The article maps the set of goals contained in performance contracts for Danish government agencies in 2000, 2005, and 2008. Performance contracts are found to reflect the complex character of agency goals with performance goals ranging from project initiation to reducing case work time or increasing productivity. The article also analyzes factors affecting goal attainment. Agencies with a large percentage of goals focused on project initiation and production exhibit higher levels of goal attainment. Also, goal attainment improves as agencies and ministries gain experience with performance contracts. For practitioners, it is relevant that contracts target a wide variety of goals and over time focus increasingly on results. Contracts serve to focus agency attention as three quarters of all demands are met. A crucial factor seems to be whether agencies are in control of formulating and meeting goals. Efforts to improve the contract regime may thus concentrate on enabling government departments to secure ambitious and relevant performance goals.