Better government decision making through the integration of non-financial information.
In this paper we research the integration of non-financial information for decision making of managers in government. Therefore is explored how the integration of non-financial information leads to more inclusive decisions. Inclusive meaning the societal performance is included in the decision-making process by managers. Civil society is focusing more and more on common societal goals and its requests for comprehensive and sustainable societal solutions. A tendency of shifting interests both in civil society and governments is noticeable. Expectations seem to shift to cooperation, to openness, to commitment, and to connectivity. A shift in focus from short-term output to a long-term outcome is apparently taking place. Therewith value indicators have shifted from being merely financial and budget-oriented to being outcome, societal value performance indicators, expressed in aspects of environment, health, living context, education and meaningfulness. Linking outcomes to organizational activities as a basis for effective governance is a complex topic. It is often referred to as ‘an ongoing challenge’ to be able to demonstrate an understandable and explanatory connection between public sector activities and societal outcomes. Only linking outcomes and activities are not sufficient to understand well the governance creation of public value. Stakeholders hold government more and more accountable for the public impact in respect of their own operations as well as administrative/governing responsibilities in relation to a public policy area or jurisdiction. A new reality seems to be emerging, whereas governments are facing a reality of being responsible instead of taking control. In order to be a responsible government and so creating public value, governmental objectives and goals should be in line with its stakeholder’s needs.
The definition of the outcome performance indicators and so making non-financial performance measurable should gain a more inclusive insight, known as integrated information. Integrated information is defined as the information about how an organization’s strategy, governance, performance and prospects, in the context of its external environment, lead to the creation of value in the short, medium and long term. Hypothesized is that the improvements of societal performance will be the result of measurement and review of the integrated performance information. As a condition the government’s internal and external reporting environment should therefore be conducive to understanding and articulating government’s strategies: it should support driving performance internally and measure and demonstrate if, and how the execution of activities affects the public impact. In this paper we will show, based on case studies and supported with references from academic theories, how integrated performance information enables better long-term management decisions what eventually will lead to improving societal performance of governmental organizations.Lees meer