Benjamin Franklin, one of the founding fathers of the United States of America, said, “Nothing is as certain as death and taxes.”
The world has changed a lot since his time but these words still (sting) true.
If ever we need a reminder of governmental power, these words do the trick.
It is a common refrain – where does our money go?
A veritable treasure is collected by way of taxes and yet national deficits and borrowings keep escalating.
It does not make sense.
We in our personal lives make budgets and live by them and we seem to manage.
Yes, things get a little out of hand sometime, but nothing as catastrophic as the national debt.
So, where does it all go wrong?
Wasteful extravagance some say, boosting self-interest say others, all overly simplistic epithets in my opinion.
I do not profess to be a pundit that I am not and wax eloquent about all that ails our political structure.
It would be better instead to take a long, informed look at how things are done and arrive at some informed conclusion.
So why are we in the red?
Correcting the wrong
That is easy, because we spend more than we earn and have been doing so for decades. The financial upheavals of the past few years and the ensuing recession have only highlighted the writing that has always been on the wall.
How do we get out of this mess?
We can correct the situation through self-discipline, sacrifices and time.
Not a very radical set of solutions but this what it will take. We have become a society that seeks instant gratification but patience and temperance is what is required to get us out of this vicious cycle.
What is the government doing to make things right?
Budget cuts have been announced.
The government is mulling over extending mixed ownership to more industries. Air New Zealand has been running successfully on this model for a while now and other industries could follow suit.
Public reforms
Another area that the government is actively seeking to implement reforms is to merge certain government departments in a bid to cut costs and avoid duplication of not only work but also infrastructure. The idea is to morph into a leaner more efficient version of its existing self.
We need a government mechanism that runs more efficiently and effectively.
It may be easier said than done.
Amalgamating departments and cutting out some jobs do not make a merger successful. The dynamics of people, processes and technology that exists in these departments has to be considered carefully.
They should be harmonised in order for the desired transformation to materialise.
How to mould people who may have different approaches to their work and enable them to perform synergistically?
Which of the existing processes should be retained in the newly formed entity; or should one think outside the box and introduce business process improvements that would imbue greater efficiency and effectiveness into the new form?
How we choose the right technology?
Any change is usually met with some resistance, as people are reluctant to leave their comfort zone.
Judicious management
People, Processes and Technology: The triumvirate that must be assiduously managed for a transformation to be hailed a success.
Bureaucrats & consultants working in the public sector, adept and able as they may be are a product of the very establishment that is undergoing regeneration. In my opinion, it would be better to also bring in professionals who are more in tune with the machinations of the private sector and can introduce the concept of accountability to handle the revamp, providing return on investment to wider group of stakeholders.
The rationale behind this is simple.
A fresh pair of eyes will likely comprehend the situation in a more pragmatic light. Advisors with experience in complex transformations of organisations in the private sector may be better able to appreciate the strengths while remaining mindful of the vulnerabilities of the departments, as they spearhead them into a more evolved version of their former self.
New consultants working in tandem with cache of advisors usually called upon by the government will inject an influx of ideas and would thus encourage taking more intrepid steps in the interest of the transformation as compared to the hackneyed solutions that tend to emerge when the vision gets jaded.
For the new consultants who come in, the goal of materialising the merger is singular and clear and they will work to attain it sans sentimentality or tunnel vision. These consultants handle such scenarios on a regular and on going basis as this is their specific area of expertise. From their vantage position they get to witness all the things that can and do go awry when a department undergoes change and can thus tap into their experiences and respond more effectively in a time of transience.
I would like to put back the focus where it rightfully belongs. Government needs to consolidate and its departments need to register an upswing in efficiency and effectiveness.
This is vital for the country.
Chandan Ohri is IT Advisory Partner at KPMG New Zealand, which is the Sponsor of the ‘Business Excellence in ICT’ Category’ of the Indian Newslink Indian Business Awards 2012.
