Managing the Transition of Government to a Commercial Environment
Research and Insights
Managing the Transition
In recent years, governments have been subjected to pressures from their electors to become more efficient and effective. The Asia-Pacific region has seen significant changes in the way in which governments have viewed their responsibilities and many have started to restructure their operations to reflect their new way of operating.
If a government is going to be successful, the transition must be managed effectively. BH Barker Hoffmann (Asia-Pacific) has been assisting government, at all levels, to make these changes and to move through the various stages from what they were, to a more commercial environment.
Identifying the Correct Strategy for Success
Our strength in assisting government is in being able to customize our services to the specific need of each organization. Regardless of the level of restructuring or change required, we will design and deliver our services to suit the organization’s specific needs.
Since 1985 we have assisted governments in the region through three levels of restructuring:
- Accountability – Identifying organizational changes that need to be implemented to specify accountability.
- Commercialization – Introducing commercial management principles, practices and accountability.
- Corporatization – Establishing a separate legal entity to run a commercial business or undertaking.
Each level of restructuring requires different levels of advice and different interventions and solutions in order to guarantee success in the change process. The areas that might be covered include strategic management, structural change, and system review.
We use a multi-disciplinary team approach, where the local office draws on the experience of advisers experienced through their involvement in government restructuring in Australia, New Zealand and the Pacific Islands.
Focusing on the Organization’s Critical Outputs
Every government organization undergoing change must decide on its strategy and the critical outputs that it is responsible for achieving under its mandate from central government. An organization must have a clear idea of the initiatives that are needed in order for it to achieve its outputs. We can assist government organizations to develop and implement strategies by using the latest successful methodologies relevant to the public sector. Our assistance will result in you having:
- A vision of the future supported by values that can be cascaded down through the organization to develop a strong and relevant culture;
- corporate goals and objectives that are tied to the central government’s national strategic direction, its strategic goals and strategic priorities;
- efficient and effective operational and support units;
- effective organizational and management structures;
- effective management information systems that facilitate the delivery of services to users;
- competent managers and staff trained to deliver the organization’s services; and
- effective HR systems that enhance the morale and motivation of the workforce.
Achieving the Strategic Outcomes
The means by which the strategic outcomes are achieved will be determined by a detailed analysis of the organization and its needs. We will need to understand:
- your organization’s needs, its resources, operating environment and existing policies, practices and systems under which it operates.
- key stakeholder needs – that is, the needs of those people or organizations who are affected by the changes that will take place.
Managing the Critical Success Factors for Change
Since 1985, we have identified a number of factors that are critical to the success of government transition from one state to another whether it be from its current state to achieving greater accountability or through to commercialization or corporatization. These include:
- On-going government support during the formative and transitional periods;
- identification of the asset base and assessing liabilities to establish the factors impacting on the return on assets equation;
- maintenance of close working relationships and contacts with key clients and stakeholders;
- introduction and maintenance of an appropriate corporate culture throughout the organization;
- effective strategic communication plan that is used to ensure that internal and external parties understand the changes and the new corporate strategy;
- compliance with central government requirements – following the model prescribed;
- implementation of quality control procedures to ensure that the organization’s reputation for quality provision of services is maintained or enhanced;
- application of advanced technologies to operational and management systems;
- evaluation and feedback mechanisms that allow refinement of the changes;
- commitment of the organization to human resource development;
The identification and effective management of these critical success factors contributes significantly to the success of any change process.