New Public Management Is Dead--Long Live Digital-Era Governance

The "new public management" (NPM) wave in public sector organizationalchange was founded on themes of disaggregation, competition,and incentivization. Although its effects are still workingthrough in countries new to NPM, this wave has now largely stalledor been reversed in some key "leading-edge" countries. Thisebbing chiefly reflects the cumulation of adverse indirect effectson citizens' capacities for solving social problems becauseNPM has radically increased institutional and policy complexity.The character of the post-NPM regime is currently being formed.We set out the case that a range of connected and informationtechnology–centered changes will be critical for the currentand next wave of change, and we focus on themes of reintegration,needs-based holism, and digitization changes. The overall movementincorporating these new shifts is toward "digital-era governance"(DEG), which involves reintegrating functions into the governmentalsphere, adopting holistic and needs-oriented structures, andprogressing digitalization of administrative processes. DEGoffers a perhaps unique opportunity to create self-sustainingchange, in a broad range of closely connected technological,organizational, cultural, and social effects. But there arealternative scenarios as to how far DEG will be recognized asa coherent phenomenon and implemented successfully.