Public sector performance improvement through private sector management practices: a satisfactory solution?

This paper examines the assumption that the injection of market discipline and private sector management practices will result in the transformation of public services. The present UK government looks for an opportunity to achieve synergy between the public and private sectors to improve the public service at lower public cost. However, the different cultural values and expectations of each sector and the competing demands of various stakeholder groups involved, present real hurdles for the achievement of performance improvement. This paper examines the Labour Government's attempts to modernise public services to establish the current context of the debate. This paper then presents the key differences between the public and private sector organisations and examines why private sector management practices may not in fact result in the transformation of public services. This paper suggests that, rather than imposing private sector management practices on the public sector, new approaches should be crafted to guide the development of solutions, which are fit for their specific purpose. A few potential alternative options that should be considered are presented.