If Transparency in Performance Measurement Becomes Mandatory: Towards Better Accountability?

Elisa Bonollo

doi:10.5539/ijbm.v13n7p58

Abstract

In most industrialized countries (including Italy), the increasing financial pressure on public organizations and the need for accountability have led to renewed attention on measuring public performance. In Italy, in 2009, the Legislative Decree 150 mandated all public organizations to introduce a ‘performance management cycle’ and publish a performance plan (a multi-year programming tool), a performance report (regarding the results obtained), and a document formalizing the model, the phases, and the timing of the adopted performance measurement system. This paper aims to understand whether transparency obligations in performance measurement correspond to a higher degree of accountability for stakeholders or whether they create greater bureaucracy. This study focuses on Italian public healthcare organizations since they need to be much more accountable towards their stakeholders on the results obtained in comparison to other public organizations. The empirical analysis conducted shows that the legal obligations for transparency in performance measurement are still important in a country with civil law like Italy—but they are not sufficient for improving accountability for stakeholders.

Highlights

Over the past decades, many studies have investigated performance measurement in public organizations (Arnaboldi, Lapsley, & Steccolini, 2015; Bouckaert & Hallingan, 2008; Ittner & Larcker, 1998; Johnsen, 2005; Modell, 2009; Rana, Hoque, & Jacobs, 2018)
To face the shrinkage of public resources allocated to the healthcare sector without reducing the quantity and quality of the services provided, it is essential for public local healthcare organizations (LHOs) to measure and control their performances, and report on the results for all their stakeholders
In 2009, the Italian national lawmaker introduced an obligation for public healthcare organizations to adopt the performance management cycle and prepare and publish a multi-year planning document, an annual report and a methodological document on their institutional websites

Summary

Introduction

Many studies have investigated performance measurement in public organizations (Arnaboldi, Lapsley, & Steccolini, 2015; Bouckaert & Hallingan, 2008; Ittner & Larcker, 1998; Johnsen, 2005; Modell, 2009; Rana, Hoque, & Jacobs, 2018). In recent years in Italy, as in other countries, the increasing financial pressure on public organizations and the need for accountability have renewed attention on public performance measurement. In 2009, lawmakers introduced a performance measurement system for all public organizations in Italy. This system requires public organizations to introduce a ‘performance management cycle’ with the aim to plan, control and report on performance. Public organizations are required to publish online the documents introduced for planning and reporting performance. This paper aims to understand whether transparency obligations on performance measurement correspond to a higher degree of accountability to stakeholders or whether they merely create more bureaucracy. This study focuses on Italian public healthcare organizations because, compared to other public organizations, they need to be much more accountable to their stakeholders on the results obtained with the resources used

Objectives

Methods

Findings

Conclusion