Reforming social services in Hong Kong: The role of contracting and performance management in the non-profit sector

Contracts and performance management, along with the concept of consumerism, have become the fundamental metaphors for New Public Management (NPM) and key changes in the public service. 'Doing well while doing good' and finding generally acceptable accountability measures for social services have become the perennial aspirations of planners, service providers and funders. This article examines the contingent factors and rationales behind the quality movement and recontracting exercise in reforming the delivery of personal social service programs in Hong Kong within the framework of New Public Management (NPM). It explains the use of long-term relational contracts rather than the standard business contracts between the government as funder and non-profit organisations as service providers. It also deals with the complex relationships among quality issues, quality standards, consumerism, accountability, performance indicators, and performance management. © 2008 National Council of the Institute of Public Administration Australia.