More public, than private, sector leaders are willing to change business operations to deliver cost efficiencies, according to KPMG. A higher proportion is also inclined to increase public/private sector integration and ensure their organisation is ready for major business changes.
KPMG’s annual survey of 3,000 senior executives suggests that public sector bosses have accepted the need to adapt, in the face of budget cuts and ongoing publicity about reduced funding. Almost two-thirds identified the need to ‘change business operations’ as a hot topic for concern – compared to just 43 percent in the private sector. 28 percent are looking to seize opportunities for greater interaction between the public and private sectors and 1 in 3 are also in the process of preparing their organisation for changes to the way they operate. This compares with 1 in 4 elsewhere.
The data goes on to show that 19 percent believe their organisation is adapting to take into account changing customer and stakeholder behaviour. This figure is marginally higher than the 18 per cent for industry as a whole.
Alan Downey, partner and head of KPMG’s UK public sector practice, says: “Deficit reduction and the need to restore public finances to health hang over the public sector, so it is encouraging to see a thirst for change. Our survey results certainly suggest that public sector leaders are more cost conscious than their private sector counterparts, and more willing to contemplate major changes to their business models.