International Benchmarking of Public Organizations: a Critical Approach

The measuring and valuation of the performance of organizations in the public domain continue undiminished as focal points of public interest. Output-oriented and efficient organizations in the public sector are considered self-evident. From the start, companies in the private sector have served as examples, since it is assumed that generally in that category of business there is a good insight in the cost price of the products the organization produces, the cost structure of the organization itself, customer orientation, and so on. Translating the insights gained in the private sector for the public sector seemed more a matter of time than one of problems to be conquered in the course of this transition (Heinrich and Lynn, 2000). Unlike the production in private companies, the production of organizations in the public sector is often difficult to identify, and it is even less easy to completely express it in (financial) ratios. This may be partly explained by the circumstance that the heterogeneity of products in the public sector is greater. A different and more dominant explanation for the measuring — and valuating — problem in the public sector is formed by the various values which together determine the appreciation for what is produced. In the public domain, not only efficiency and effectiveness are concerned, but also values such as accuracy, reliability, verifiability, safety, legal equality and democratic content. That diversity of values has its effect on the day-to-day internal management of public organizations.