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 ongoing publicity about reduced funding and budget cuts:
- almost two-thirds (63 percent) 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
- as many as 1 in 3 (32 percent) are also in the process of preparing their organisation for changes to the way they operate, a figure that compares to just 1 in 4 elsewhere (25 per cent).
However, only 22 percent in the public sector see ‘improving cash and working capital management’ as a critical priority and a mere 9 percent are ‘embedding sustainability in their business model’.
These are surprising statistics, given 40 percent of public sector respondents also believe that deficit reduction measures will have made a major contribution to improving efficiency and effectiveness within 5 years.
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.
“It may be a timing issue as the private sector has already faced up to the cost challenge and is moving on to other issues, whereas the public sector is only just embarking on what is likely to be a long period of austerity. Whatever the cause, one thing is clear – namely that there is more to be done if the public sector is to really succeed in a changing world.”
The data goes on to show that 19 percent believe their organisation is adapting to take into account changing customer and stakeholder behaviour – a figure that is marginally higher than that for industry as a whole (18 percent). More (13 percent) are also likely to react to regulatory change than their counterparts in other sectors (10 percent).
Full findings from KPMG’s 2012 Business Leaders survey can be viewed here.
Mike Petrook, KPMG Press Office
020 7311 5271 (t), 07917 384 576 (m) or firstname.lastname@example.org
Notes to Editors:
* KPMG’s Business Leaders Survey examines the views of 3,000 senior executives across the public and private sectors
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 11,000 partners and staff. The UK firm recorded a turnover of £1.7 billion in the year ended September 2011. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 152 countries and have 145,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.