Posts Tagged ‘Government’

Government and Management Consultants

There has been a growing interest in the use of management consultants within government in the UK. Spending has increased significantly in recent years and comparisons are drawn between the fees charged by large consultancies and the wages paid to most public sector workers. However, the biggest question is: do the consultants provide value for money or is government spending being wasted?

In our view the answer lies somewhere in between. One of the most important factors in using external consultants effectively is to ensure they understand that government is not driven by the profit motive, whereas many of the models and tools that are favoured by management consultants were created in, or for, the commercial world. In the public sector it is important to distinguish between profitability and best value. The duty of any public sector organisation is to provide the best service it can for the funding that is available. Management consultants must understand this and not arrogantly apply management models that are designed to maximise profit.