From performance measurement and management to value creation: an explorative case study in public healthcare

Performance measurement and management have become increasingly important for the efficient allocation of resources in public healthcare services. However, their implementation remains complex due to the multiple challenges faced by healthcare systems, including technological change, pandemics, and uncertain macroeconomic and political environments. This study investigates the relationship between performance measurement, performance management, and value creation within national health services. This study employs an exploratory case study in a leading national health service to understand the relationship between performance measurement, performance management and value creation. The results indicate a moderate level of democratic and participative performance management, alongside limitations in capturing value creation. They also identify four areas for managerial improvement that emerged from the interviews. Key areas include enhancing organizational alignment, optimizing efficiency and effectiveness, fostering stakeholder engagement, and increasing investments in technology, infrastructure, and human capital. This paper contributes to the performance measurement literature by addressing the gap in the application of Smith and Bititci’s (2017) conceptual framework within a complex and challenging public sector context, namely national health services. It also identifies four areas for managerial improvement that may strengthen the interaction between performance measurement and performance management, with potential implications for value creation.