The framework discussed here is derived from outcomes theory - the general theory of identifying, prioritizing, holding parties to account for, attributing and contracting outcomes. Outcomes theory includes frameworks such as the ones that have been discussed above in addition to a set of principles. These principles can be used to predict the issues that are likely to arise from a public sector PBR system set up in a particular manner.
A number of outcomes theory principles are discussed below and the predictions they make for what will happen in the lastest round of reforms to the New Zealans system are discussed.
Principle: The less you specify exactly what an agency will do the more you have to monitor at a lower level what they are doing.
The 2013 New Zealand reforms include the provision for ’multi-class outputs classes’. In the past a feature of the New Zealand system was the attempt to keep tight control of the spending that took place under each grouping of outputs (and an output class) and there was a very limitied ability for agencies to move money between these classes. This obviously restricted flexibility in the agencies reponse. The 2013 reforms introduce the possibility of multi-class output classse which can fund a range of different activities. According to the outcomes theory principle, if control agencies wish to maintain control of what agencies are doing, due to the reduced specification of classes they will need to spend more effort ’peering into’ what an agency is doing. This will raise the question of how they negotiate their suggestions for what the agency is doing.
Principle: The more you require cross-agency collaboration the less individual accountability there can be.
The New Zealand 2013 reforms are designed to encourage cross agency collaboration. This pricniple will predicte that the more collaboraiton the less individual agency accountability.
Principle: The less standardization of structure you have the more difficult it will be for auditors to ’peer into’ a department.
The 2013 reforms reduce the requirements as to hwo departments should report. It is now described as telling the story about ’what you’re going to do’.
Principle: The wider the scope to the use of funding the less control you will have over the way that funding is used.
These principles let us make the following predications.