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Intellectual Capital management and 
reporting in the context of (Post) New Public 
Management 
Konstantinos Kalemis 
eRA-9
Structure of Presentation 
Introduction 
Definitions of terms used 
History of Public Management 
IC in universities and research 
organizations 
Discussion – Conclusion 
Questions
Introduction 
European universities have been immersed during 
the last decades in important transformation 
processes aiming to make them more autonomous, 
economically efficient and competitive. 
They have to demonstrate professional resource 
management and accountability in support of 
clearly defined and feasible goals, even more 
important during periods of financial crisis and 
budget cuts.
Definitions 
New Public Management is a term coined in 
the late 1980s to denote a new (or renewed) 
stress on the importance of management and 
‘production engineering’ in public service 
delivery, often linked to doctrines of economic 
rationalism (see Hood 1989, Pollitt 1993).
What is Intellectual Capital 
"Intellectual capital is future earning 
capabilities. It is about an opportunity in 
waiting, about sustainability, thinking ahead 
and adding value. Consequently national 
intellectual capital is comprised of the 
knowledge, wisdom, capability and expertise 
that provide countries with a competitive 
advantage over other countries and determine 
a country's potential for future growth."
IC Management and Reporting 
 IC Management and Reporting becomes a promising tool 
in times of reforming and transitions of national 
university systems, conducted with the aim to increase 
their autonomy and increase the quality of its outputs. 
 IC management and reporting can support universities in 
their transformation and management process and to 
improve the quality of the higher education system. 
 IC management and reporting thereby focuses on 
intangible resources and thus complements rankings, 
evaluations and quality management.
IC in universities and research 
organizations 
The NPM plan in UK 
Adapting management and reporting 
IC in companies to other types of 
organizations has gone two ways: 
1.The first deals with assessing 
intangibles aggregated at meso 
(communities, industries, etc.) and at 
macro level (cities, regions and 
nations). 
2.The second dimension, suggests 
using the IC framework at micro-level 
for public institutions.
The NPM as a draft plan for Universities 
The real test of the 
appropriateness of NPM 
is not at the output 
stage of reform 
(implementation, where 
most reforms currently 
fail), 
but at that of outcomes 
(end results of 
successfully 
implemented changes).
Arguments 
1. The first argument may be labelled the ‘stages of 
development’ thesis. 
2. Developing countries should concentrate on establishing 
more effective mechanisms of central control over functions 
such as staffing or finance, because this is the precursor of 
any eventual delegation (Holmes 1992; Nunberg 1995). 
3. The management of government in developing countries, 
runs this argument, is already afflicted by corruption and 
nepotism. Central controls and procedures are the only 
safeguard against further proliferation of such practices.
Public Administration 
• Public administration is both an academic discipline and a 
field of practice; 
• Public administration houses the implementation of 
government policy and an academic discipline that 
studies this implementation and that prepares civil 
servants for this work; 
• As a "field of inquiry with a diverse scope" its fundamental 
goal is to advance management and policies so that 
government can function;
..and the role of Universities? 
 "the management of public programs" 
 "translation of politics into the reality that citizens see 
every day" 
 "the study of government decision making, the analysis of 
the policies themselves, the various inputs that have 
produced them, and the inputs necessary to produce 
alternative policies”
… from the academic perspective 
 Defines the study of public administration as a program 
that prepares individuals to serve as managers in the 
executive arm of local, state, and federal government 
and that focuses on the systematic study of executive 
organization and management. 
 Includes instruction in the roles, development and 
principles of public administration; the management of 
public policy; executive-legislative relations; public 
budgetary processes and financial management; 
administrative law; public personnel management; 
professional ethics and research methods.
1980s–1990s 
 In the late 1980s, yet another generation of public 
administration theorists began to displace the last. 
 The new theory, which came to be called New Public 
Management, was proposed by David Osborne and Ted 
Gaebler in their book Reinventing Government. 
 The new model advocated the use of private sector-style 
models, organizational ideas and values to improve the 
efficiency and service-orientation of the public sector.
1980s–1990s 
 Some modern authors define NPM as a combination of 
splitting large bureaucracies into smaller, more 
fragmented agencies, encouraging competition between 
different public agencies and encouraging competition 
between public agencies and private firms and using 
economic incentives lines . 
NPM treats individuals as "customers" or "clients" (in the 
private sector sense), rather than as citizens. 
WHY ? 

Today… 
 because businesses see customers are a means to an end 
(profit), rather than as the proprietors of government (the 
owners), opposed to merely the customers of a business (the 
patrons). 
 In New Public Management, people are viewed as economic 
units not democratic participants. Nevertheless, the model is 
still widely accepted at all levels of government and in 
many OECD nations.
The field in academia 
One of the proposed models uses five "pillars": 
• Ethics in public administration serves as a normative approach to 
decision making. 
• Policy analysis serves as an empirical approach to decision making. 
• Public budgeting is the activity within a government that seeks to 
allocate scarce resources among unlimited demands. 
• Human resource management is an in-house structure that ensures 
that public service staffing is done in an unbiased, ethical and values-based 
manner. The basic functions of the HR system are employee 
benefits, employee health care, compensation, etc. 
• Organizational Theory in Public Administration is the study of the 
structure of governmental entities and the many particulars inculcated 
in them.
NPM Results for Universities 
 Interdependence of objects and their attributes. 
 Goal seeking - systemic interaction must result in some 
goal or final state. 
 Inputs and Outputs 
 Regulation - a method of feedback is necessary for the 
system to operate predictably. 
 Differentiation - specialized units perform specialized 
functions. 
 Equifinality - alternative ways of attaining the same 
objectives (convergence). 
 Multifinality - attaining alternative objectives from the 
same inputs (divergence).
Acknowledgements 
In the frame of the Project "Quality Assurance in Higher Education through 
Habilitation and Auditing" initiated by the Executive Agency for Higher 
Education and Research Funding of Romania (UEFISCDI) and co-funded by 
the European Social Funds (Sectorial Operation Programme Human Resources 
Development 2007-2013) a series of Mutual Learning Workshops (MLW) has 
been organized in Bucarest Romania, as a mean to bring together international 
experts and practitioners aiming to draft a Blueprint for IC Reporting for 
universities. 
Members of that team where: Karl-Heinz Leitner (Coordinator), Susana Elena- 
Perez, Jan Fazlagic, Konstaninos Kalemis, Zilvinas Martinaitis, Giustina 
Secundo, Miguel-Angel Sicilia and Kristine Zaksa. This paper reflects on the 
MLW suggestions.
References 
 Aucoin P 1995 The New Public Management. IRPP, Montreal, Canada 
 Barzelay M 2000 The New Public Management. University of California Press, Berkeley, CA 
 Bontis, N. (2004), “National intellectual capital index. A United Nations initiative for the Arab region”, Journal 
of Intellectual Capital, Vol. 5 No. 1, pp. 13-39. 
 Borins, S. (2002), “New public management, north-American style”, in Mclaughlin, K., Osborne, S. and Ferlie, 
E. (Eds), The New Public Management: Current Trends and Future Prospects, Chapter 13, Routledge, 
London. 
 Elena, S. (2007), “Governing the university of the 21th century: intellectual capital as a tool for strategic 
management: lessons from the European experience”, Doctoral thesis, Autonomous University of Madrid, 
Madrid, 17 July. 
 Leitner, K.-H. and Warden, C. (2004), “Managing and reporting knowledge-based resources and processes in 
research organizations: specifics, lessons learned and perspectives”, Management Accounting Research, 
Vol. 15 No. 1, pp. 33-51. 
 Moore M H 1995 Creating Public Value. Harvard University Press, Cambridge, MA 
 Rembe, A. (1999), Invest in Sweden: Report 1999, Halls Offset AB, Stockholm. 
 S. N. Mishra, Anil Dutta Mishra, Sweta Mishra, Editors; Public Governance and Decentralisation: Essays in 
Honour of T.N. Chaturvedi, Mittal Publications, 2003, ISBN 8170999189, 9788170999188 
 Sanchez, M.P. and Elena, S. (2006), “Intellectual capital in universities”, Journal of Intellectual Capital, Vol. 7 
No. 4, pp. 529-48.
Questions? 
Thank you 
kkalemis@primedu.uoa.gr 
eRA-9

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Intellectual capital management and reporting in the context of post new public management kalemis _e_ra9

  • 1. Intellectual Capital management and reporting in the context of (Post) New Public Management Konstantinos Kalemis eRA-9
  • 2. Structure of Presentation Introduction Definitions of terms used History of Public Management IC in universities and research organizations Discussion – Conclusion Questions
  • 3. Introduction European universities have been immersed during the last decades in important transformation processes aiming to make them more autonomous, economically efficient and competitive. They have to demonstrate professional resource management and accountability in support of clearly defined and feasible goals, even more important during periods of financial crisis and budget cuts.
  • 4. Definitions New Public Management is a term coined in the late 1980s to denote a new (or renewed) stress on the importance of management and ‘production engineering’ in public service delivery, often linked to doctrines of economic rationalism (see Hood 1989, Pollitt 1993).
  • 5. What is Intellectual Capital "Intellectual capital is future earning capabilities. It is about an opportunity in waiting, about sustainability, thinking ahead and adding value. Consequently national intellectual capital is comprised of the knowledge, wisdom, capability and expertise that provide countries with a competitive advantage over other countries and determine a country's potential for future growth."
  • 6. IC Management and Reporting  IC Management and Reporting becomes a promising tool in times of reforming and transitions of national university systems, conducted with the aim to increase their autonomy and increase the quality of its outputs.  IC management and reporting can support universities in their transformation and management process and to improve the quality of the higher education system.  IC management and reporting thereby focuses on intangible resources and thus complements rankings, evaluations and quality management.
  • 7. IC in universities and research organizations The NPM plan in UK Adapting management and reporting IC in companies to other types of organizations has gone two ways: 1.The first deals with assessing intangibles aggregated at meso (communities, industries, etc.) and at macro level (cities, regions and nations). 2.The second dimension, suggests using the IC framework at micro-level for public institutions.
  • 8. The NPM as a draft plan for Universities The real test of the appropriateness of NPM is not at the output stage of reform (implementation, where most reforms currently fail), but at that of outcomes (end results of successfully implemented changes).
  • 9. Arguments 1. The first argument may be labelled the ‘stages of development’ thesis. 2. Developing countries should concentrate on establishing more effective mechanisms of central control over functions such as staffing or finance, because this is the precursor of any eventual delegation (Holmes 1992; Nunberg 1995). 3. The management of government in developing countries, runs this argument, is already afflicted by corruption and nepotism. Central controls and procedures are the only safeguard against further proliferation of such practices.
  • 10. Public Administration • Public administration is both an academic discipline and a field of practice; • Public administration houses the implementation of government policy and an academic discipline that studies this implementation and that prepares civil servants for this work; • As a "field of inquiry with a diverse scope" its fundamental goal is to advance management and policies so that government can function;
  • 11. ..and the role of Universities?  "the management of public programs"  "translation of politics into the reality that citizens see every day"  "the study of government decision making, the analysis of the policies themselves, the various inputs that have produced them, and the inputs necessary to produce alternative policies”
  • 12. … from the academic perspective  Defines the study of public administration as a program that prepares individuals to serve as managers in the executive arm of local, state, and federal government and that focuses on the systematic study of executive organization and management.  Includes instruction in the roles, development and principles of public administration; the management of public policy; executive-legislative relations; public budgetary processes and financial management; administrative law; public personnel management; professional ethics and research methods.
  • 13. 1980s–1990s  In the late 1980s, yet another generation of public administration theorists began to displace the last.  The new theory, which came to be called New Public Management, was proposed by David Osborne and Ted Gaebler in their book Reinventing Government.  The new model advocated the use of private sector-style models, organizational ideas and values to improve the efficiency and service-orientation of the public sector.
  • 14. 1980s–1990s  Some modern authors define NPM as a combination of splitting large bureaucracies into smaller, more fragmented agencies, encouraging competition between different public agencies and encouraging competition between public agencies and private firms and using economic incentives lines . NPM treats individuals as "customers" or "clients" (in the private sector sense), rather than as citizens. WHY ? 
  • 15. Today…  because businesses see customers are a means to an end (profit), rather than as the proprietors of government (the owners), opposed to merely the customers of a business (the patrons).  In New Public Management, people are viewed as economic units not democratic participants. Nevertheless, the model is still widely accepted at all levels of government and in many OECD nations.
  • 16. The field in academia One of the proposed models uses five "pillars": • Ethics in public administration serves as a normative approach to decision making. • Policy analysis serves as an empirical approach to decision making. • Public budgeting is the activity within a government that seeks to allocate scarce resources among unlimited demands. • Human resource management is an in-house structure that ensures that public service staffing is done in an unbiased, ethical and values-based manner. The basic functions of the HR system are employee benefits, employee health care, compensation, etc. • Organizational Theory in Public Administration is the study of the structure of governmental entities and the many particulars inculcated in them.
  • 17. NPM Results for Universities  Interdependence of objects and their attributes.  Goal seeking - systemic interaction must result in some goal or final state.  Inputs and Outputs  Regulation - a method of feedback is necessary for the system to operate predictably.  Differentiation - specialized units perform specialized functions.  Equifinality - alternative ways of attaining the same objectives (convergence).  Multifinality - attaining alternative objectives from the same inputs (divergence).
  • 18. Acknowledgements In the frame of the Project "Quality Assurance in Higher Education through Habilitation and Auditing" initiated by the Executive Agency for Higher Education and Research Funding of Romania (UEFISCDI) and co-funded by the European Social Funds (Sectorial Operation Programme Human Resources Development 2007-2013) a series of Mutual Learning Workshops (MLW) has been organized in Bucarest Romania, as a mean to bring together international experts and practitioners aiming to draft a Blueprint for IC Reporting for universities. Members of that team where: Karl-Heinz Leitner (Coordinator), Susana Elena- Perez, Jan Fazlagic, Konstaninos Kalemis, Zilvinas Martinaitis, Giustina Secundo, Miguel-Angel Sicilia and Kristine Zaksa. This paper reflects on the MLW suggestions.
  • 19. References  Aucoin P 1995 The New Public Management. IRPP, Montreal, Canada  Barzelay M 2000 The New Public Management. University of California Press, Berkeley, CA  Bontis, N. (2004), “National intellectual capital index. A United Nations initiative for the Arab region”, Journal of Intellectual Capital, Vol. 5 No. 1, pp. 13-39.  Borins, S. (2002), “New public management, north-American style”, in Mclaughlin, K., Osborne, S. and Ferlie, E. (Eds), The New Public Management: Current Trends and Future Prospects, Chapter 13, Routledge, London.  Elena, S. (2007), “Governing the university of the 21th century: intellectual capital as a tool for strategic management: lessons from the European experience”, Doctoral thesis, Autonomous University of Madrid, Madrid, 17 July.  Leitner, K.-H. and Warden, C. (2004), “Managing and reporting knowledge-based resources and processes in research organizations: specifics, lessons learned and perspectives”, Management Accounting Research, Vol. 15 No. 1, pp. 33-51.  Moore M H 1995 Creating Public Value. Harvard University Press, Cambridge, MA  Rembe, A. (1999), Invest in Sweden: Report 1999, Halls Offset AB, Stockholm.  S. N. Mishra, Anil Dutta Mishra, Sweta Mishra, Editors; Public Governance and Decentralisation: Essays in Honour of T.N. Chaturvedi, Mittal Publications, 2003, ISBN 8170999189, 9788170999188  Sanchez, M.P. and Elena, S. (2006), “Intellectual capital in universities”, Journal of Intellectual Capital, Vol. 7 No. 4, pp. 529-48.
  • 20. Questions? Thank you kkalemis@primedu.uoa.gr eRA-9