Typically, the public sector concentrates on governance, stability, and service delivery while the private sector favours competition, innovation, and profit.
The public sector is increasingly looking to collaborate and partner with the private sector. Their mindsets differ but Mubesko believes that the gap can be bridged if one focuses on the benefits derived.
Benefits of a private-to-public sector transition include:
- Leadership Style: An approach which addresses the ability to influence results as opposed to direct leadership.
- Operational Efficiency: An area where profitable gains are made in the private sector, the application of commercial skills can help to reduce costs and accelerate service delivery.
- Strategic Risk Management: AI-led technology can deliver real-time risk management, and lead to faster decision-making.
The idea that the private sector has little to learn from the public sector is flawed. Although many South African municipalities are dysfunctional, there are pockets of excellence driven by outstanding leaders. Apart from offering a wider perspective of the public sector which can help the private sector to identify opportunities, Mubesko’s cross-sector track record presents benefit such as:
- Stakeholder Management: In a political environment typified by politics and protocol, engagement can be complex.
- Perspective: A greater understanding of regulations, public policy, IDP objectives, and challenges facing the municipality can present opportunities.
- Accountability: Municipalities awarded clean audits from the Auditor-General have mastered ethical leadership, effective governance and regulatory compliance. With vivid memories of Enron, Steinhoff International, Lehman Brothers, and FTX among others, the private sector can learn much from top-rated municipalities.
There is no question that the private and public sectors need to discover each other and collaborate. Their long-term success is intertwined. On the surface, the two sectors appear worlds apart, but Mubesko provides the bridge towards a partnership.
Nico de Kock
MD Mubesko Africa
mubesko.co.za
Mubesko Africa offers financial management and support consulting, asset accounting and modelling, and forensic investigation services to the public and private sectors.