New public management (NPM), performance management or previous program budgeting, is a collective term for reforms of public sector organization and governance that includes using methods from the private business sector in order to increase efficiency, such as business plans, budget work and mapping of organizational processes.
The term NPM was introduced in 1991 by Christopher Hood and has become a global trend that has affected the public sector administration in many countries since then. NPM takes as its starting point that available resources are limited and focuses on increasing efficiency. Central is an effort to make everything measurable, so that management consultants, management and politicians at a distance can control the efficiency and quality of the business, without being in the core business themselves. They try to standardize quantitative indicators, criteria, checklists and algorithms for how the business should be managed.