Chapter 7: What Characterises the Discussion of Performance Measurements in Public Value Accounting and What Are the Challenges?

Currently, we have a limited understanding of public value (PV) in general – how it is created, delivered, and reported on – and more specifically about the usefulness of output indicators in relation to PV. Public value accounting (PVA) can be positioned as an emergent research area that takes a special interest in strategic matters of PV creation and its relationship to output indicators in terms of performance measurements. Our purpose in this chapter is to contribute to the discussion of PVA by addressing previous research on the use of performance measurement as a management tool and its relation to long-term PV by addressing the research question: What characterises the discussion of performance measurement within PVA and what are the challenges? To answer this question, we reviewed the literature on PVA and public value management (PVM). The review suggests that there is a challenge in balancing short-term output with long-term PV, and in order to manage this challenge, PVA in relation to the tools used for performance measurements requires either completely new management accounting tools or at least a substantial revision of the existing ones. We also address the importance of including different stakeholders at different levels – individual, organisational, and societal – as well as including the study of power in terms of different stakes and interests of stakeholders in relation to PVA.