HOW TO DEFINE A MINIMUM SET OF PERFORMANCE PARAMETERS FOR EVALUATING THE DISTANCE OF A BUREAUCRATIC ORGANISATION FROM AN OBJECT ORIENTED ONE:

THE CASE OF THE REGIONAL DECENTRALISATION WITHIN THE ITALIAN PUBLIC ADMINISTRATION.

 

M. Arnaboldi, G. Azzone, A. Savoldelli

Politecnico di Milano – Dipartimento di Economia e Produzione,

Piazza L. Da Vinci, 30 - 20133 – Milano, Italy

 

Abstract

The progressive shift from a slow and inefficient bureaucracy towards a lean and dynamic organisation is one of the topic joining numerous interventions of the last decade within the public sector administration all over the world.

For many years the bureaucratic model has been widely adopted, it has been the most suited form of governance in a "slow-paced society, in a age of hierarchy, in a society of people who worked with their hand, not their minds", characterised by a strong geographic communities (Osborne, 1992). Nowadays the environmental conditions of simplicity and stability which accompanied the development and the success of the Weber model (Hatch, 1999) has been definitely changed. Public Administrations are now swallowed up by a dynamic context, which evolves much more rapidly than in the past, in which the globalisation and the easy access to the information has created a new competitive pressure on institutions. In the same time, public organisations have to face a new demand, more diversified, determined by more exigent citizens in term of quality and extensive choice.

Though the administrative change has been faced in each country at different levels and with several methods (Klages, Löffler 1995) a common and fundamental characteristic is the presence of two different pressures: the decentralisation and the modernisation, as processes and procedures simplification.

In this framework, several managerial models such as Total Quality Management (Burke, Peppard 1995) and Business Process Reengineering (Bovaird, Hughes 1995; Halachmi, 1995) have been already experienced in the public context without any great success; this is mainly due to the lack of an effective evaluation of the existing performances of the public organisation with an adequate set of indicators, helpful for determining the right improvement path and the way for customising the private sectors managerial models for the public one.

The aim of this paper is to bridge the gap from the private managerial models and the public organisations establishing a set of performances indicators useful for both defining an improvement path within the organisation and customising the private managerial model to be implemented in a public organisation. This paper reefers to a 4 years research of the Politecnico di Milano funded by the European Commission within two European Projects: STEPS, EMPLOY.

This set of performances indicators will be discussed in the light of the Italian context where, despite to the significant improvement achieved at the legislative level, no major organisational changes have been yet accrued at any level of the Public Administration.

In Italy from the legislative side in fact, after almost a decade of reforms, the two pressures (decentralisation and modernisation) seems finally to coexists and its more significant expression from the legislative side are the "Bassanini Laws" (Terzi,1998), which confer on one side new functions and task to regions and local authorities (Bassanini 1) on the other side they define principles for streamlining control and decision processes. Particularly the decentralisation law transfers strategic task to Regions, Provinces and Communes, which has been performed up to now by the central level, so including in the reform the sussidiarity principle (in its vertical dimension) which states that "it's not due to superior government all for which the inferior (nearer to citizens) level is enough (Balboni, 1998).

Even if the decrees approval represents a huge unprecedented step towards the transformation of an high centralised organisation, far form the real need of the citizens, into a new system which can become tool and resource for the working and the improvement of the collective and individual life, up to now there are no evidences for the implementation of an actual organisational-functional decentralisation to ferry the organisation from the bureaucratic to a lean customer oriented management.

In this legislative context the paper wants to identify end evaluate a set of performances indicators useful for determining the positioning of a public administration in respect to a more objective oriented and more process focused organisation, and, in the same time, suggesting the major changes in a private sector managerial model to be successfully implemented in a public organisation.

For this reason a sample of eight Italian Regions. The regions are: Basilicata, Campania, Lombardia, Puglia, Sardegna, Sicilia, Toscana, Veneto. In the Italian case particularly attention has to be given to the Regions: besides the delegation of strategic tasks (till now performed by the central government), it is going to be implemented the transfer of offices regulating the local authorities financing (till now pertaining to the Ministry of the Interior). Regions are becoming consequently a fundamental crux within the new system, first of all putting themselves as a reference point for provinces and communes, through the definition of programming lines in keeping with the real territory needs, secondly they’ll become the primary joint for the offices performed by the central level as the Defence, the Justice, the National Economic Politics and Foreign Affairs- has been evaluated through a benchmarking analysis based on a theoretical framework which has allowed to rationalise the fundamental performances of the new organisational system.

The evaluation framework is built up referring to the principles derived from the MbO (Management by Objectives) and the Management by Process theory (Bartezzaghi, Spina, Verganti, 1999). In particular the theoretical scheme is articulated in three different levels: every general principle (first level) is identified by fundamental capabilities (second level) within the public administration management; these capabilities are then measured through comparative matrixes, which combine two different variables (third level) drivers of every specific capability.

In order to draw generalisation from the results the sample selection was made diversifying Regions in terms of dimension and geographical position, besides the data collection was carried out by direct interviews both to the management and the operative level.

The major results of the benchmarking analysis reported in the paper are:

·        the set of indicators aimed at identifying the distance of a public organisation from the new organisational system (more objective oriented and more process focused);

·        the major problems in implementing a private managerial model into a public organisation;

·        the most adequate improvement path for transforming a bureaucratic organisation into an Object Oriented one.