With a two-dimensional concept of 'New Public Management' as its point of d
eparture, the article points to the development of a specific Danish model
of NPM at the local level of government. In the municipalities the market-o
riented NPM dimension has been almost absent and the managerial dimension h
as been interpreted and translated into a 'governance'-oriented model that
combines decentralized self- and user-governance from below with centralize
d goal-steering from above. This combined model institutes new governing ro
les including a new leadership role for elected councillors as central goal
-steering decision and policy makers. Rather than strengthening the local c
ouncillors, the new leadership role has turned out to be problematic for th
e elected councillors. The problems inherent in the new institutional role
as goal-steering decision makers are discussed and arguments are put forwar
d in favour of a more 'governance' and less NPM and government-oriented rol
e for elected councillors. What seems to be needed is another new role that
stresses local councillors as co-governors and guardians of an inclusive a
nd democratic form of local governance.