Designing spaces for public value creation

Abstract

The concept of public value has expanded the ambition of public organizations, encouraging them to create desirable societal outcomes together with stakeholders (Moore, 1995; Williams and Shearer, 2011). However, different tasks and different stakeholders prioritize different dimensions of value. Public organizations have to satisfy competing demands for optimal efficiency, maximum legitimacy, and utmost quality from diverse stakeholders such as tax payers, politicians, professionals, and clients (Hood, 1991; Noordegraaf, 2015). This confronts organizations with tough dilemmas. How can the public prosecution service combine a rapid response to injustice with careful legal proceedings? How can universities support the development of academic quality while maintaining outstanding facilities? How can a hospital combine the highest quality care with the lowest possible costs? How can elderly people be provided with customized care in the face of limited public means? Public organizations do not have the luxury of cherry-picking dimensions of value; they have to fulfill all dimensions at the same time to satisfy all their stakeholders (Talbot, 2010; Moore, 2013). Yet serving all dimensions of public value leads to constant choices and challenges for frontline staff, managers, and stakeholders, potentially leading to never-ending confusion and conflict. Public organizations so risk chasing all dimensions of value, but attaining none of them. We here approach the tension between the different dimensions of public value as an organizational design problem. How should the responsibilities for the different dimensions of value be allocated across the organizational structure? Where in the organization should the different dimensions be brought together? What management work is required to deal with the remaining conflict between the different dimensions? We suggest that organizations should design different types of organizational spaces where value is created, differing in the extent to which the different dimensions of value are separated or integrated.