Summary:

Purpose - The purpose of this study was to shed light on an alternative approach to managing
the public sector. The public sector must manage under budgetary constraints, and because
they are allocated state funds, they have to comply with the budget. We wanted to take a
closer look at the management control of a public agency, and research how the agency uses
leadership principles in their management control to contribute to increased performance.
Methodology – This research is based on a qualitative case study of NAV Contact Center.
The data has been collected through semi-structured interviews with three leaders and three
employees in NAV Contact Center.
Findings - This study is a result of the reform New Public Management not functioning
optimally. We have researched the management control of a public agency, and gone into
depth on how the management in NAV Contact Center uses leadership principles to improve
performance. This study show that positive leadership and Beyond Budgeting is an
approach that contributes to increased performance, and is by no means only feasible in the
private sector. The traditional budget and Beyond Budgeting can be nicely combined, as long
as it is replaced with other parameters and a pervasive culture. A combined version can
contribute to more efficient use of resources, satisfied employees and in turn give results both
financially and in terms of performance.
Implication - Our contribution to research is related to New Public Management and is an
addition to existing literature. By presenting new ways of managing performance within a
public agency without top-down control and hierarchy, we have contributed with adding new
insights and nuances on previous literature on balancing trust and control, positive leadership
and performance in the public sector. We have presented an example on how positive
leadership and the leadership principles in Beyond Budgeting contributes to improved
performance management. By focusing on the most important aspects within the organization
and emphasizing motivation and inner drive, performance management can be improved
without top-down control and detailed performance measurement, also in a public agency.