A Framework for Assessing Incentives in Results‐Based Management

Many governmental results‐based management systems have not produced the expected positive effects. This article analyzes the reasons for this common disappointment by looking at three components of results‐based management—results‐specific information, capacities, and incentives—and concludes that incentives are often the least developed. It then synthesizes a simple framework for evaluating the efficacy of results‐oriented incentives. To be successful, results‐specific incentives must be tailored to fit four program characteristics: timeliness, political environment, clarity of the cause‐and‐effect chain, and tightness of focus. This framework suggests that some systems put too exclusive an emphasis on budgetary incentives and could be strengthened by emphasizing personnel‐system rewards, especially those that look beyond business models.