Oliver James, Ayako Nakamura
INTERNATIONAL REVIEW OF ADMINISTRATIVE SCIENCES, 81(2) 392-411, Jun, 2015 Peer-reviewed
Coordinating organizations horizontally is a longstanding difficulty of public governance, often called departmentalism in central government systems. Several tools for horizontal coordination have previously been analysed but shared performance targets across departments have received relatively little attention. This article develops a control theory of shared performance target systems for horizontal coordination of departments consisting of 'director' (shared objective and target setting), 'detector' (shared monitoring of progress), and 'effector' (shared feedback to promote achievement of targets) components. The theory distinguishes between two kinds of shared targets: those promoting sequential coordination and simultaneous coordination among departments. The expectations of control theory are assessed for the Public Service Agreement (PSA) adopted in the United Kingdom. PSAs enabled a step change increase in discussion of shared policy objectives across departments. However, despite these benefits, the fundamentally separate broader ministerial and departmental accountability structures led to the setting of vague outcome targets, underdeveloped performance reporting, and fragmented delivery arrangements for shared targets.