The philosophy of central government this one and the last could be summed up as all things private are superior to the public sector. The obsession with measuring everything was imported from the private sector, the focus on efficiency over effectiveness was from the private sector, the idea that management consultants could benefit the public sector was based on their use in the private sector and it was those in the private sector who promoted the idea that what the public sector needed was more “business people”. If the salaries in the public sector were too low to attract these business people into management posts then they could be offered positions on the board. NHS Trusts have embraced this model from the private sector with great enthusiasm and have as many non executive paid part time board members as they do Directors.
This preoccupation with all things private has its origins in the public sectors desire to improve the quality of management. Things are changing but initially this involved sending senior managers to business schools where it quickly became apparent that things were done very differently in the private sector. This became the public sector could learn a lot from the private sector and then the public sector needs to become more like the private sector.
Whilst it would be ridicules to say the public sector has nothing to learn from the private sector it would be equally short sighted to claim the private sector has nothing to learn from the public sector. So this is my attempt to start to redress the imbalance and say what we do that the private sector may wish adopt.
1. Openness about pay-everyone knows what everyone else is paid. Thus avoiding a situation where two people doing the same job are paid vastly different amounts. Not only is this good practise it is against the law to pay women less for doing the same job.
2. Equal opportunities in recruitment-have targets and monitor progress and have a workforce that at every level reflects the local community.
3. A sense of responsibility to the local community-buying local and being green.
4. Accountability and openness-freedom of info
5. Ethics-“greed is not good” and you should pay your taxes however clever your accountants
6. Disciplinary processes- no getting rid of people just because their face no longer fits.
7. Good employer-annual leave, sick pay and pensions.
8. Recognition of trade unions
9. Socially responsible-job opportunities for disadvantaged school leavers and people with a disability.
10. Staying within budget-Local authorities are particularly good at this and one has never gone bust!
Of course it is important to recognise that the public and private sector are different and so not every business model or management technique is transferable nor should every business be expected to assume a community leadership role. And of course the public sector is not about making a profit but making a difference.
Blair McPherson is author of Equipping Mangers for an Uncertain Future published by www.russellhouse.co.uk