Sustaining Public Value Through Microfinance

Managers create public value through two main processes: a production process and a legitimation process. The former concerns the delivery of services to the organization’s clients. The latter concerns the policies and procedures which members of the organization follow, in terms of fairness and accountability (Moore 1995:53). In this scheme the manager of an organization that produces public value is in the centre of a strategic triangle, whose vertices are: the organization’s value proposition; its authorizing environment; and its operational capacity (Figure 11.1). The organization’s operational capacity enables it to engage in the production of value, conditional on its ability to gain legitimacy and support from its authorizing environment.