Louise Kloot

Performance measurement and accountability in Victorian local government

There is a a great deal of literature on performance measurement and accountability in government. Governments around the world have invested large amounts to develop performance measurement systems, the results of which are mediocre at best. There is also a growing recognition that financial performance measures alone measure only limited aspects of an organisation’s performance. To improve performance measurement systems and accountability to different stakeholders, non‐financial indicators have been developed for the for‐profit sector. Prior research in the local government sector in the state of Victoria, Australia, showed low levels of accountability and very little performance measurement taking place. However, significant changes have been imposed on the sector, enhancing local and central accountability, making it more business‐like, and focussing on the need to measure performance. This research studied the extent to which performance measurement systems are currently being used in practice in Victorian local government, the factors which lead to the use of performance measurement and the extent of non‐financial indicators. The results revealed a substantial increase in the level of use of performance measurement in the sector, related to increased emphasis on accountability and organisational changes imposed on the sector by the state government. The performance of both people and programs is now being measured. Although there is an emphasis on financial and budgetary measures for financial accountability, the use of non‐financial measures in determining outcome accountability is increasing. Customer service and quality are two of the areas in which non‐financial performance measures are being developed.

Extending the application of stakeholder influence strategies to environmental disclosures: An exploratory study from a developing country

Purpose - This paper aims to provide insights into stakeholder expectations regarding the types of disclosures a firm should make, and if dissatisfied with the disclosure policy, whether it will use different intervention strategies in an attempt to induce the desired disclosure outcome. Design/methodology/approach - An inductive qualitative framework is used in the study. In-depth interviews, triangulated against relevant web site and media releases, are used to identify the salient stakeholders and the major environmental issues in Malaysia. Then an experimental approach is used based on role-playing whereby experienced participants are introduced to hypothetical vignettes that relate to environmental issues identified. Findings - The results indicate that the preferred form of disclosure is for the firms to “defend” the reasons behind the environmental event and/or explain what has been done to rectify the situation. With relatively few exceptions, the preferred strategies chosen by various participants align well with the influence strategies identified by Frooman. The findings confirm that although Froomans model is useful in predicting stakeholder influence strategies, its effectiveness is tempered by the level of significance placed on the event by the stakeholders. Research limitations/implications - Although based on a small sample, the results suggest that stakeholder theory has much to offer in terms of understanding management/stakeholder behaviour and corporate environmental disclosures. Originality/value - The paper extends the application of stakeholder influence strategies in the “environmental reporting” domain. Likewise, it attempts to address the scarcity of literature taking the view of a wide array of stakeholders and how they choose to influence the firm. Finally, it confirms that stakeholder theory can be extended to aid the understanding of events in non-western developing economies such as Malaysia.

Women and leadership in universities: a case study of women academic managers

Gender inequity at senior ranks in Australian public sector universities has long been recognised as a major problem. Universities are attempting to address the problem, through policies for recruitment and retention of senior women. This paper describes what happened in one faculty in a large university that has such gender equity policies when three women were appointed to head departments. At the end of a year, all three were gone. The women experienced a masculine‐oriented management culture, with little experience of feminine management values. The women and the men had different perceptions of management roles and different perceptions of alternative job opportunities. Gender issues became more visible to these senior women, but remained invisible to the men. Suggestions to improve the retention of senior women include nominating a change agent to provide support and encouragement for senior women, more transparent organisational processes and structures, and changes in hiring practices.

Performance measurement and accountability in an Australian fire service

Purpose – New public management (NPM) techniques have been widely adopted in Australian public sector organisations. NPM stresses the concept of accountability, and the importance of reporting mechanisms. Government and semi‐government authorities provide annual reports, but the usefulness of these annual reports in assessing operational in addition to financial performance is open to question. This paper aims to ask what performance measures are important in the context of the provision of fire services.Design/methodology/approach – Using content analysis, this study analyses and evaluates publicly available annual reports of fire services to determine operational and financial performance in the Australian state of Victoria, which has three different fire service organisations.Findings – The study finds that annual reports are based on financial results, some basic performance measures and narrative describing some operational results. Stakeholders are well served by financial reports, but find difficul...

Using Local Government Corporate Plans in Victoria

The Victorian state government has required local governments to publish their corporate plans and this paper explores the information provided by their corporate plans. These plans demonstrate diversity in the form and content, but several themes emerge. First, despite the purpose of corporate plans being to demonstrate accountability to the local community, the lack of performance targets reduces the usefulness of these plans for accountability purposes. It also explores objectives which are of major importance to the sector, such as local economic development, which is an issue difficult to control in the local area, being largely determined by federal and state policy. Other important objectives include financial and asset management together with emphases on the local community and accountability, issues which were the drivers of the state government’s reform agenda. This article assists those who want to enhance the practice of corporate (strategic) planning in local government.

Personal and interpersonal skills: The process of prescribing definitions in an accounting degree

Purpose – The definition of individual generic skills is problematic, despite the pressure for the development of such skills during accounting degrees coming from government and employers. This study aims to present definitions to allow academics to establish a point of reference when designing accounting curricula to encompass such skills. Design/methodology/approach – The skill classification of explicit curriculum content is straightforward, and is undertaken by using content analysis to record objectives and/or tasks that are clearly stated in the curriculum documents. The classification of implicit skills was developed by setting, as clearly as possible, internal criteria that are used to determine whether a task embodied a particular behavioural skill. Findings – The results show that not all 22 personal and interpersonal skills which should be developed during an accounting degree, according to the Australian professional accounting bodies, are in fact developed. The higher order and difficult skills of: think creatively and innovatively; handle conflict; handle challenges; handle change and empathy are not present in either the explicit or implicit curricula. Originality/value – Concepts and understandings of many of the behavioural skills are abstract and a range of interpretations exists. Although the definition of each skill presented in this study is not as extensive or exhaustive as a lexicographers compilation, this study is unique in that it offers clearer and more acceptable definitions for accounting educators to use than has previously been available.

Corporatized Public Land Development Bodies in Australia: Who Are the Stakeholders and Why Are They Important?

This study examines post-corporatization activities of public sector organizations, which are expected to act according to commercial principles, but, at times, are also asked to undertake projects that are not profitable: community service obligations (CSOs). Managers of government-owned corporatized entities in land development are interviewed, and a focus group at a state Treasury department conducted. We determine, when undertaking CSOs, who are the stakeholders, as perceived by management, and why they are considered important. The stakeholders are government, community, treasury (as separate from government) and the relevant private sector. Values, in addition to power, urgency and legitimacy, influence stakeholder prioritization.

Efficiency Improvements or Competitive Disadvantage

Knowledge is, arguably, the most critical organisational resource affecting an organisations ability to develop, and sustain, a competitive advantage in the marketplace. A focus on economic efficiency is suggested to result in an increase in skills, capacities, and quality of the human resources of organisations, and a substantial improvement in the organisations productivity overall. Economic efficiency is also often defined as ‘doing more with less’, leading to various cost cutting practices. This paper argues that three such commonly practised efficiency practices - process reviews; downsizing; and internal competition - may result, however, in a reduction of the organisations ability to learn and use knowledge, and therefore in the organisations ability to compete.