Crafting performance measurement systems to reduce corruption risks in complex organizations: the case of the World Bank

Abstract

Purpose The purpose of the paper is to explore an emerging challenge for large public‐sector bureaucracies: developing information and performance measurement systems that support anti‐corruption efforts. Design/methodology/approach The paper is an analytical framework linking functions and contexts of performance measurement to anti‐corruption requirements. The framework is used to explore a case study of the World Bank's ongoing efforts to strengthen anti‐corruption information systems in Indonesia. Findings The paper finds that a range of organizations are increasingly turning to performance measurement systems to fulfill several functions related to organizational integrity: to hold organizations accountable for reaching publicly stated standards of fiduciary responsibility and corruption control; to identify vulnerable operational points in multi‐faceted public enterprises; and to facilitate organizational learning regarding “what works”. Yet corruption is difficult to measure, and corruption vulnerabilities often arise from informal practices, insufficient incentives for enforcement or adherence to standards, and managerial blindspots. Enhanced information systems need to be coupled with effective and multi‐directional accountability arrangements in order for performance measurement to contribute effectively to corruption control. Practical implications The paper shows that improved information systems and a reassessment of managerial incentives and attitudes are both essential in order to reduce organizational vulnerability to corruption and to the public backlash that follows in the wake of corruption scandals. Originality/value The paper focusses on an emerging area of performance management likely to gain increasing visibility as large bureaucracies attempt to institutionalize public commitments to high anti‐corruption standards

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