1 The presumed relationships between accountability processes and performance in the UK’s private finance initiative (PFI) Good Governance – Contributing to Better Performance, IPA/CIPFA, Croke Park Conference Centre 10 December 2006 Copyright I. Demirag Dec2007 Professor Istemi Demirag, Management School Queen’s University Belfast
24
Embed
1 The presumed relationships between accountability processes and performance in the UK’s private finance initiative (PFI) Good Governance – Contributing.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
1
The presumed relationships between accountability processes and
performance in the UK’s private finance initiative (PFI)
Good Governance – Contributing to Better Performance, IPA/CIPFA, Croke Park Conference Centre
10 December 2006
Copyright I. Demirag Dec2007
Professor Istemi Demirag,Management School
Queen’s University Belfast
2
Purpose of the Paper
To explore and theorize the nature of the ‘problematic’ relationship between accountability and performance
To identify some of the mechanisms that may link accountability and performance in the case of Private Finance Initiative (PFI) in the UK
3
Conceptual Frameworks for Accountability
Accountability A complex, abstract and elusive concept
‘the giving and demanding of reasons for conduct‘
Management of Expectations
Internal (relating to organisational hierarchy) or external (relating to diverse interest groups)
5
Conceptual Frameworks for Accountability
Formal forms of accountability:
Discursive or communitarian accountability
Traditional or contractual accountability
Managerial accountability
Parliamentary accountability
6
M.Dubnick’s Cultures of Accountability
Answerability cultures reflect hierarchical and other forms of structured social settings where individuals perceive themselves as responsible for reporting, justifying or explaining their actions to others.
Liability cultures represent settings where the individuals regard themselves as subject to a system of rules and laws that carry the potential for sanctions (positive or negative).
Blameworthiness cultures stress the sense of responsibility within a moral community where expectations are generalized rather than specific to individuals or their roles in society.
Attributability cultures focus attention on the roles that individuals play and the expectations associated with those roles.
7
Hypothesized Relationships
Given these variations in accountability cultures, it is hypothesized that an effort to impact on the performance of an individual or any group of individuals would be most effective if the appropriate amounts and forms of accountability mechanisms were applied to that individual or group.
It follows that inappropriate amounts and a misfit of accountability mechanisms and accountability cultures will result in less success in achieving improved performance through accountability or, worse still, what O’Neill terms “counterproductive” performance.
8
*AT
*
1BT *
2BT
B
A
Accountability0
A
1B
2BContrasting Views on the Benefits of Accountability
Performance
Pessimist
Optimist
Super-Optimist
Note: The following two charts are adapted from David Heald (Transparency, The key to better Governance 2007) Figure 1 assumes that transparency is mono-dimensional or, if it is multidimensional, it can be
measured by a well behaved index
9
1t Time0t
Nominal versus Effective AccountabilityAccountability
Accountability
Illusion
2t 3t
NT3
NE TT 00 ,
ET3
10
Conceptual framework for Performance
NPM reforms Assume that these will improve performance of public services
(See critiques by, Hood 1991, 1995). Inculcate new performance measurement based accountability
systems in an attempt to improve the quality of public services.
Performance is a problematic concept because it is hard to,
Define performance. Set performance standards Measure performance (i.e. output and outcomes) of a
programme (Humphrey, Miller, Scapens, (1993)
11
Operationalising performance in PPP/PFI contracts
Performance is considered to be a concept synonymous to value for money (VFM) and has been broadly defined in terms of the 3Es, economy, efficiency and effectiveness (Glynn, 1985; Glynn and Murphy, 1996).
12
PFI
Private Finance Initiative (PFI) is a form of PPP where the needs for projects and objectives can be identified and related to a single project with identifiable cash inflows and outflows and expected responsibilities – usually 25-30 years.
Thus accountability is either non-existent or in the future
(Accountability after lifetime!).
13
Characteristics of PPPs? A new phenomena?
Reducing public sector entity - Public sector responsible for services but not delivery - Relationships managed at relatively low level within public
sector entity
Six stages of PPPs, proposal, negotiation, contract, construction, operation and termination
- Very long term contracts and few sanctions, unequal power relations
Multiple private sector partners which may change over time with different interests