Output steering in public organizations: about the use of a product approach and a process approach

Abstract

Focuses on managing performance in public, professional organizations, specifically those using output steering. Asks whether these organizations can use output measurement effectively in spite of the tool’s shortcoming. Outlines the positive effects of output steering as well as the “perverse” effects and derives three mechanisms that usually manifest themselves when output steering is used. Also deals with an alternative to output: a focus on throughput. Output steering focuses on an organization’s products; throughput steering focuses on the process of generating these products. Asserts that effective performance management implies that a manager and a professional use both approaches and make a creative use of the tension between the two approaches. They constantly move to and fro between a product approach and a process approach.