Economic Financial Health

In order to generate Public Value, in the sense of the improvement of the level of economic, social and environmental wellbeing of the reference community in which it works, every organisation must look after the state of the resources, that is to say, the level of health of the organisation compared to the starting conditions.

In other words, this creation process must also take into account aspects to do with the effective and efficient supply of services, against the quality and quantity of the resources available, in order to enable the possibility of a long-term and continuous creation of Public Value, with consideration for future generations.

Among the various categories of “resources”, those of fundamental importance underlying the Public Value Governance Model are the “financial” resources strictly linked to the administration’s “financial health”; a close scrutiny of the latter does in fact make it possible to intercept the symptoms of financial malaise and to prevent it from getting worse, thereby avoiding the creation of Public Disvalue.

It therefore becomes clear that the predisposition of specific signs of potential financial imbalance (so-called structural deficit) makes it possible to identify possible financial and institutional failure, before this can degenerate into a situation of financial pathology that is difficult to recover from (pre-instability) or even irreversible (instability).

Preventing financial and institutional default is of fundamental importance in order to guarantee the creation of Public Value, which is the supreme institutional mission of Public Administrations.
In other words this means that, a Public Administration creates Public Value when it is able to manage the resources available according to cost-effectiveness and in a functional manner to the satisfaction of the needs of society, or to be more exact of the users, of the stakeholders and of the citizens.