This paper focuses on the strategic control systems of Italian universities. In this context, some aspects emerge that are peculiar to public agencies: strategy is deeply influenced by the principal (Ministry of Higher Education); financial resources, not necessarily proportional to results, are declining; and there is strong delegitimacy because of a perceived high cost to outcome ratio. This last factor has contributed to emphasizing the importance of accountability for results; moreover, it has stimulated a process of deep reform of the sector by the government. Governance, internal organization, service delivery methods, financing and even the accounting system: everything is quickly changing in the Italian Higher Education sector. Increased competition among universities also implies more stress on results. Institutions are given remarkable flexibility in management, in exchange of a strengthened accountability for the results through the medium-term plan, which is approved by the Ministry. Universities are required to set the targets on enhancing the quality of teaching and research, improving the operations, and their efficiency (Yamamoto, 2009). In this context, performance control systems are expected to gain increasing relevance. Our analysis aims to improve the understanding of performance control systems developed by Italian universities, by investigating whether and how they reflect their programmed strategy. In the first part of the paper we operate a segmentation of Italian universities: each entity is positioned on a segment, whose endpoints are respectively the university that strives for excellence in teaching and student service delivery, and, on the other side, the university which puts most of its efforts on research. This segmentation is based on data provided by universities: in fact, the Ministry required all universities to declare their objectives in the strategic plans for the period 2007- 2009, and to set priorities among the different strategic areas, each measured by specific indicators of performance. The results of this analysis were used by the Ministry in the fund allocation process, in order to stimulate effectiveness. We extrapolate programmed strategies by observing the weight assigned to each area and indicator. After segmenting the universities population, we analyse the performance control systems with reference to strategic goals. We consider social reports as a possible source of strategic performance indicators. Bearing in mind that social reporting provides main results in all fields of activities of public institutions and to all their stakeholders, we can argue that the indicators reported therein can represent a valid proxy for assessing the goals of the entity’s strategic control system; on the other hand, social reports may also be used as a mean for public legitimization. By analysing the performance indicators used in the social reports and their consistency with indicators adopted in the strategic plans, we want to assess which is the main purpose of social reporting in Italian public universities: whether control or public legitimization. R.D.Behn (2003) suggested that different purposes for measuring performance need different indicators. Based on similar assumptions, our research goes in the opposite direction: starting from an analysis of the indicators used, we try to understand which is the main purpose of performance measurement in social reporting.

Social reporting in Italian universities: strategic control or public legitimacy?

BERTONI, MICHELE;MODUGNO, GUIDO;VENTIN, GIULIA
2012-01-01

Abstract

This paper focuses on the strategic control systems of Italian universities. In this context, some aspects emerge that are peculiar to public agencies: strategy is deeply influenced by the principal (Ministry of Higher Education); financial resources, not necessarily proportional to results, are declining; and there is strong delegitimacy because of a perceived high cost to outcome ratio. This last factor has contributed to emphasizing the importance of accountability for results; moreover, it has stimulated a process of deep reform of the sector by the government. Governance, internal organization, service delivery methods, financing and even the accounting system: everything is quickly changing in the Italian Higher Education sector. Increased competition among universities also implies more stress on results. Institutions are given remarkable flexibility in management, in exchange of a strengthened accountability for the results through the medium-term plan, which is approved by the Ministry. Universities are required to set the targets on enhancing the quality of teaching and research, improving the operations, and their efficiency (Yamamoto, 2009). In this context, performance control systems are expected to gain increasing relevance. Our analysis aims to improve the understanding of performance control systems developed by Italian universities, by investigating whether and how they reflect their programmed strategy. In the first part of the paper we operate a segmentation of Italian universities: each entity is positioned on a segment, whose endpoints are respectively the university that strives for excellence in teaching and student service delivery, and, on the other side, the university which puts most of its efforts on research. This segmentation is based on data provided by universities: in fact, the Ministry required all universities to declare their objectives in the strategic plans for the period 2007- 2009, and to set priorities among the different strategic areas, each measured by specific indicators of performance. The results of this analysis were used by the Ministry in the fund allocation process, in order to stimulate effectiveness. We extrapolate programmed strategies by observing the weight assigned to each area and indicator. After segmenting the universities population, we analyse the performance control systems with reference to strategic goals. We consider social reports as a possible source of strategic performance indicators. Bearing in mind that social reporting provides main results in all fields of activities of public institutions and to all their stakeholders, we can argue that the indicators reported therein can represent a valid proxy for assessing the goals of the entity’s strategic control system; on the other hand, social reports may also be used as a mean for public legitimization. By analysing the performance indicators used in the social reports and their consistency with indicators adopted in the strategic plans, we want to assess which is the main purpose of social reporting in Italian public universities: whether control or public legitimization. R.D.Behn (2003) suggested that different purposes for measuring performance need different indicators. Based on similar assumptions, our research goes in the opposite direction: starting from an analysis of the indicators used, we try to understand which is the main purpose of performance measurement in social reporting.
2012
social reporting; legitimacy theory; stakeholder theory; higher education
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11368/2695001
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