A new 'public value framework' is the central recommendation of a report aiming to deliver better value for money for publicly-funded services.
Announcing the report by Sir Michael Barber the Treasury said it sets out a 'practical, new approach to the understanding of public sector productivity' and how it can be addressed in government.
The report aims to ensure that ongoing improvements in the delivery of public services become 'firmly embedded in daily working practice.'
Sir Michael said: 'There have been many efforts to make government more efficient in recent decades.
'Some of them have been very valuable but, once they are over, business as usual returns.
'The aim this time is to embed a new approach to productivity in the day-to-day working of government.
'That means changing how Treasury and departments work together to maximise public value.'
Chief Secretary to the Treasury Elizabeth Truss said: 'Great public services unleash technology, creativity and ideas that improve lives.
'We are already focusing on ensuring our brilliant public sector workers can lead in transforming what they do.
'Alongside that, we must ensure every pound of public spending is as effective as possible.
'Sir Michael’s report is a vital step as we aim to create a culture of public services that continuously improve.'