As in many western world’s economies, recession and a large state budget deficit in the 1990-ties called for public sector reforms in Sweden. In line with New Public Management, ideas and models from private sector practice were introduced to increase efficiency and create satisfaction for the citizen as a customer or consumer. Two decades later in light of growing discontent and criticism of the administrative burden in state agencies, interest has been directed at alternative management control concepts in the public sector. The issue of public value and whether reforms in line with Public Value Management could be an alternative is an emerging research field.
Beyond the issue of meeting the demands of efficiency and a satisfying service delivery to the citizen as a customer, this paper deals with the diverging perceptions of value creation inherent in New Public Management and Public Value Management, how differences are expressed as well as the implications, with examples from the museum sector. Research is based on interpretations of formal documents issued by the government, observations and interviews with museum directors, responsible for managing museums within the conceptual and legal framework for state agencies.
Previous research has indicated that differences between New Public Management and Public Value Management are expressed in notions such as orientation, accountability and output measures. For museums, market orientation and identifying the customer as a museum visitor has shifted the focus from collection management and their educational mission to measuring volumes and customer-satisfaction, with a risk of promoting a short term perspective.
Public Value Management opens up for a wider circle of stakeholders to be involved in the continuous deliberation about public value to be co-created for the benefit of society. For museums, suggested co-creators and actors in the center of the strategic triangle would include sponsors and donators as well as the tourist industry, local communities, researchers and ICOM, the international museum branch organization. It would allow the role and participation of citizens to expand beyond the narrow definition of being customers. Finally, it would include future generations to be considered to ensure a sustainable cultural heritage.
New Public Management has been integrated and deeply embedded in procedures, systems and control in governance. However, the findings of the study suggest that the diverging perceptions of value creation does not rule out that elements from both management concepts can be combined and complement each other. In the case of a museum, exhibitions and recreational offers, such as shops and restaurants, focus on creating value for the individual visitor and have the prerequisites for market-orientation in line with New Public Management. As regards conservation and educational activities the assignment could be regarded as co-creating public value in a long-term perspective, better suited for a management concept such as Public Value Management.
The study contributes to public value research by discussing different perceptions of value creation and deepening the understanding with empirical findings from the cultural sector.
Value co-creation, co-design and co-production in public services
