Operationalizing public value in higher education: the use of narratives as an alternative for performance indicators

Abstract

More than 25 years after Moore’s first introduction of the public value concept in 1995, the concept is now widely used, but its operationalization is still considered difficult. This paper presents the empirical results of a study analyzing the application of the public value concept in Higher Education Institutions, thereby focusing on how to account for public value. The paper shows how Dutch universities of applied sciences operationalize the concept ‘public value’, and how they report on the outcome achievements. The official strategy plans and annual reports for FY2016 through FY2018 of the ten largest institutions were used. While we find that all the institutions selected aim to deliver public value, they still use performance indicators that have a more narrow orientation, and are primarily focused on processes, outputs, and service delivery quality. However, we also observe that they use narratives to show the public value they created. In this way this paper contributes to the literature on public value accounting.

Public value accounting and the use of performance measurements as a management tool in a context of various assessments

“…Pollanen et al , 2017; Rajala et al , 2018) and, hence, quantity rather than quality (Pollitt, 2018). In line with Salemans and Budding (2022), we argue that this way of working with PMM becomes an obstacle for steering towards public value creation. Moreover, both previous research (Johnsson et al , 2021) and our results imply that PMs must be developed to better fit the specific context of the operation.…”

“…While strategic goals seem to express public value thinking, we do not know the extent to which stakeholders are involved in defining them (Bryson et al, 2014). In line with Salemans and Budding (2022), we argue that the information PVA delivers will be enriched by such feedback. As Curuana et al (2023) argue, assessing the influence of PM based on different stakeholders and their decision-making process would make interesting studies, as would investigating the effects of PM in relation to how problems of public value are framed and how decisions are taken.…”

“…PVA takes a special interest in strategic matters of public value creation and its relationship to accounting processes of performance measurement and management (PMM) (Höglund et al , 2021b). Research on PVA has been limited so far (Steccolini, 2019) and there is a call for empirical studies (Bracci et al , 2019; Salemans and Budding, 2022). We find this surprising, as research has shown for some time the importance of strategically envisioning long-term value creation in relation to performance measurements (PM; Moore, 1994, 1995; Spano, 2009).…”

Introduction to the special issue: “Performance measurement systems in universities: Threats or opportunities for governance?”

“…Similarly, Salemans and Budding (2022) analyze the unsuccessful efforts of Dutch universities in incorporating outcomes (or the public value dimension) in performance management and measurement. While all the higher education institutions analyzed aim to deliver public value, they still use performance indicators that have a narrower orientation, and are primarily focused on processes, outputs, and service delivery quality.…”

“…Our editorial aims to formulate some critical considerations on the expected and actual use of performance measurement (and management) in public universities, also based on results emerging from the four articles included in this special issue (Biondi & Russo, 2022;Pilonato & Monfardini, 2022;Salemans & Budding, 2022;Tandilashvili & Tandilashvili, 2022), providing some reflections on the need for research to promote rethinking PMS in search of a mode of assessment of public value creation.…”