Abstract

Every public organisation faces the challenge of improving productivity. In this effort, productivity measures are essential managerial tools. However, the task of measuring service productivity has proven to be challenging. A key reason for the challenges seems to be related to the intangibility of services. The objective of this paper is to identify and apply a productivity measurement method satisfying the information requirements of public managers. The study is carried out using a qualitative case study approach. The paper consists of two parts: first, the current knowledge of the issue is examined by reviewing the literature on (service) productivity and performance measurement; second, an action research is carried out in the context of four case services of the City of Helsinki, Finland. A disaggregated approach to productivity measurement is applied. Three different measurement frameworks and methods are evaluated in light of practical criteria for measurement. Finally, a matrix method is chosen and applied in practice. As a result the paper provides more understanding of the process of applying the disaggregated productivity measurement approach in the context of public welfare services.