Systems approach and performance measurement by social enterprises

Purpose - This paper intends to ascertain a general guideline for performance measurement and management by social enterprises, combining public and private tasks. Design/methodology/approach - The conceptual systems approach is used as a framework. Maintenance service delivery by Dutch housing associations is used as a case study to show how the conceptual systems approach to performance measurement can be helpful to address the managerial problems of social enterprises, the actors involved and the possible consequences of new policies and interventions. Findings - The system approach to performance measurement has the tools to bring transparency to the aims and means of the various participants in the production process of social enterprises having complex aims and tasks both in the market and in the public domain. The identification of key performance indicators, as well as the input, throughput, output and outcome indicators, ensures the effectiveness and efficiency of the internal business process and also covers the accountability to external stakeholders. Research limitations/implications - The conceptual systems approach to performance measurement was tested by Dutch housing associations. Researchers are encouraged to test the conceptual systems approach to performance measurement in other social enterprises. Practical implications - The complexity of the public housing sector and generally social enterprises needs transparent performance measurement. This complexity - due to dynamics in the surroundings - also causes measurement problems. When deciding on performance indicators it is essential to gain a clear idea of the manageable and unmanageable dynamics and to adjust the performance measurement system accordingly. Originality/value - The importance of performance measurement by social enterprises is growing. The paper shows how the conceptual systems approach can still be very helpful to identify performance indicators combining tasks in the market and public domain.