The document outlines the decentralized system of public administration in Norway, emphasizing the managerial flexibility of ministries and agencies, along with a consensus-driven decision-making culture. It details the performance management framework, highlighting the annual objectives, reporting requirements, and the ongoing dialogue between ministries and agencies. The framework aims to enhance efficiency but notes limited direct links between performance outcomes and funding allocation.

1. Norwegian Ministry of Finance
Norwegian Ministry
of Finance
Managerial use of performance management information in
Norway
Deputy Director General Astri Tverstøl
OECD/SBO Performance and Results Network, Paris, 26 November 2018

2. Norwegian Ministry of Finance
The Norwegian Central Government
Administration
15 Line
Ministries
(including MoF)
About 180 agencies
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3. Norwegian Ministry of Finance
Essential features of Norwegian governance
• We have a decentralised system of public administration in which ministries and
agencies have a high degree of managerial flexibility
• Most of the initiatives for efficiency improvements develop bottom-up, in a dialogue
with the ministry
• Each minister is responsible for carrying out the legislative decisions in his/her field
• …but there is a consensus culture for decision making in the Cabinet
• There are some formal requirements of performance management and reporting set
by MoF
• The line ministries are responsible for control activities concerning the ministry’s
budget execution and performance
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4. Norwegian Ministry of Finance
Performance information in the budget formulation
• Presentational
– All ministries present performance
information on all programmes (objectives
and achievements)
• Direct linked
– Hospitals
– Universities
• But this is an exception
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5. Norwegian Ministry of Finance
Managerial performance management in the budget
implementation
• All ministries
– set objectives and performance requirements in the annual letter of instructions to its subordinate
agencies
– allocate a budget to the agencies in broad envelopes for operations, investments and programmes
• The annual letter of instructions includes reporting requirements
– a standardized, annual report from agencies shall present a complete picture of the agency’s results
and annual accounts
– the two are rarely linked explicitly – a lack of information on efficiency
• Throughout the year there is an ongoing steering dialogue, technical contact and a close
professional dialogue between ministries and agencies
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6. Norwegian Ministry of Finance
Ministerial responsibility vs. management by objectives
The minister is politically
responsible to
Parliament for
everything that happens
within her remit
The Financial Management
Regulations require ministries
to focus on strategic
governance
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7. Norwegian Ministry of Finance
Ministry of
Finance
Customs
Administration
Statistics Norway
Financial Services
Regulator
Agency for
Financial
Management
Tax
Administration
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8. Norwegian Ministry of Finance
Setting performance targets in the Tax Administration:
lessons learned
activities
products/
services
user
effects
effects
on society
inputs
productivity
effectiveness
number of
inspections
value of tax
evasions
uncovered
perceived
risk of
detection

9. Norwegian Ministry of Finance
Summing up
• A devolved system of administration, based on trust and stewardship rather than
principal/agent
• A performance management framework is in place
– few examples of direct links between performance and funding
– an emphasis on managerial performance management
– the approach must be adjusted to the agency’s distinctive characteristics, risk profile
and materiality
• Throughout the year there is an ongoing steering dialogue, technical contact and a close
professional dialogue between ministries and agencies
• Performance management is also used for internal agency management
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10. Norwegian Ministry of Finance
Appendix: additional information
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