Public Value

Public Value (English literally for " public value ") is the value proposition and benefits to an organization, the company provides. Public Value answers the question of what makes an organization valuable to society. The term was originally coined by Harvard management scientist Mark H. Moore. His concept aims at a value-added concept to the public sector analogy to shareholder value in the private sector. Public value is to give the management a guide, is funded by the business activities in favor of the common good. The public value concept includes through the focus on the value of public administrations also a fundamental criticism of the New Public Management and its emphasis on private sector efficiency criteria. Today, the term " public value " is no longer used only in the public sector, but experiences a wider use for all types of organizations, including non-governmental organizations and private companies.

Definitions

Public Value

Public Values are the ones who should have a normative consensus on 1 ) the rights, benefits and privileges to the citizen ( not ) claim; 2 ) the obligations of citizens to society, the state and each other; 3) and the principles on which governments and policy programs should be based offer.

Bozeman, 2007

Public value is value to the public. Value to the public is the result of reviews about how basic needs of individuals, groups and society as a whole are affected in relations with the public. Public value is thus value of the public, is thus derived from the experience with this. The Public is an essential operational concept of society: Everyone creates impact on the shared experience of the quality of the relationship between the individual and society or destroys public value. This social value creation takes place in relations between the individual and society, is rooted in the individual, is constituted in subjective evaluations based on basic needs, enabled by and realized in emotional- motivational states and experience intense practices and produced and reproduced.

Meynhardt, 2009

The definition that remains is equal to the success of managers in the public sector with the initiation and transformation of public enterprises so that their value to society in both the short and the long run is increased.

Moore, 1995

Public value is the combined view of society about what they considered valuable.

Talbot, 2006

Public Value Creation

Public Value is only created or destroyed when the individual experience and behavior of individuals and groups is influenced so that it has a stabilizing or destabilizing effect on ratings of social cohesion, the Community experience and the self-determination of the individual in the social environment. Public value that is created as a result of assessment processes that have a collective and social in this sense character and not be limited solely to the individual.

Meynhardt, 2008

Public Value Management in

The public value concept is not limited to the management science today. Thus, public value is increasingly viewed from a management perspective in various organizations, including private companies as important. This is also based on the idea that organizations always, even if they do not intend to create public value or destroy it. The loss of confidence in the economy highlights the relevance of such considerations for businesses. Public value measurements are used in organizations in the preparation of strategic decisions and securing a social acceptance and raison d'être. The St. Gallen Public Value researcher Timo Meynhardt derives from the findings of psychological research on basic human needs four dimensions of public value from:

Instrumental - utilitarian ( basic need for guidance and control of the environment )

Morally and ethically ( basic need for self- preservation and increase )

Political- social ( basic need for positive social relationships )

Hedonistic aesthetic ( basic need for avoiding unpleasure and pleasure ).

Along these dimensions of public value can be measured by surveys. The results can be plotted on a Public Value Scorecard and then used for management decisions ( see right column). If businesses, public institutions and non-profit organizations can better understand the impact of their core activities on the quality of social life and make appropriate management decisions. Here also the question of power plays an important role, as manager holistic understanding by a rediscovery of their social role and power can use in the sense of shaping, social force.

Orientation to Public Value plays an important role in non-profit organizations. Strategic management in the nonprofit sector is dependent on a definition of to be produced by the organization value. Since non-profit organizations have a social purpose, purely monetary value concepts are not suitable here. Therefore, a focus on the creation of public value provides an important strategic guidance for non-profit organizations.

Examples of the use of public value in practice

In practice, the public value concept was particularly taken by public broadcasters. These are forced to justify their funding from public funds with their welfare contribution. The BBC has taken this a pioneering role and carry out new programs a Public Value Test. In Germany, ARD and ZDF and ORF in Austria use similar methods to determine the public value of new broadcasting formats.

The German Society for Bathing Foundation awards a biennial Public Value Award for the public bath. This is to public swimming pools are excellent, creating a special public added value. So the fact is taken into account that public pools are not purely economic enterprises, but also create value for society in several dimensions. The valuation is based on a variant of the Public Value Scorecard.

The Federal Employment Agency uses public value in order to understand their contribution to society, which goes far beyond the mere fulfillment of tasks and make them usable for management decisions. An empirical study has shown that a special value contribution of this organization is seen in its contribution to social peace in Germany. This value contributions are not captured adequately by conventional controlling systems. In the interest of public welfare enterprise core competencies such as initiative and innovation particularly important for managers of the federal agency.

FC Bayern Munich uses the public value approach to capture in a structured way, the challenges related to the social role of the association, associated with the growth of a global entertainment brand. For a football club, which is particularly exposed, and is regarded by many people as an example of great importance for one's own identity, such questions are particularly important. Various public values , such as " appeal as a brand " and " Mia san Mia" available at Bayern partially each other in areas of conflict. The structured collection of social value can be used as management information for strategic decisions.

When Mutual Group, Fresenius Medical Care, the Public Value Scorecard is used in addition to the Balanced Scorecard. Through the inclusion of an external point of view, the company wants a better understanding of the social benefits of health services that are provided by private providers win. In a pilot project for the public value of the dialysis clinics of the company in the UK was determined. The company wants to use the knowledge gained in the positioning to stakeholders.

The German schools abroad see in the public value concept, a way to capture their value holistically and in several value dimensions. Thus, the contribution of this organization is provided to the community to the center.

Differentiation from other concepts

Shared Value: Michael Porter and developed by Mark Kramer Shared Value approach is based on the idea that organizations can realize benefits in many areas, even at the same time take advantage of them, even of society. Unlike public value but this approach deals only with economic value and are companies with the sole focus on win-win situations, no orientation for dealing with trade-offs.

Corporate Social Responsibility: Corporate Social Responsibility focuses primarily on the negative consequences of entrepreneurial activity and derives from a moral and ethical responsibilities of companies from different logic. The public value approach by incorporating a variety of value dimensions, holistic and does not limit corporate responsibility also on the avoidance of negative consequences a. For public value can be threatened and destroyed, but above all created. The public value approach will provide a relativism of values and also rejects the primacy of ethics.

Sustainability: Sustainability in business context emphasizes the long-term consequences of entrepreneurial activity, often with a focus on environmental factors. In the context of public value arise interesting questions: Provides environmental sustainability of public value? Or: How sustainable are created Public Values ?

Welfare economics: the common good economy would align economic action more to the public welfare and the common good balance also offers an appropriate tool to measure such contributions. However, in these measurements, certain public posts by a priori organizations are weighted more heavily than others and welfare contributions in certain dimensions are not recognized in the common good balance.

Public Interest: The indefinite legal concept focuses on the public interest, the relationship between the common good and individual interests and serves to weigh the benefit of the general public. Public value can be regarded as realized public interest. Not everything that is in the public interest creates or destroys public value.

Public Good: Public goods are defined by the exclusion of exclusivity and rivalry for a particular good. To what extent are accepted and appreciated about climate change or even a defined as a public good dyke socially ( public value ) is an empirical question and is subject to change.

Public Value

Definitions

Public Value

Public Value Creation

Public Value Management in

Examples of the use of public value in practice

Differentiation from other concepts

Further Reading