18 May 2007
Most of the UK's public sector finance managers have spent at least a year working in a private sector environment and the two are increasingly trading top staff, research has found.
Fifty-four per cent of senior finance managers in the health service, local and central government have at least one year's experience working for a private firm. Of these, a substantial proportion have spent considerably longer in the commercial sphere: 34% have at least five years' experience and 14% have ten years' worth.
The report, produced by Siemens Financial Services, says the figures illustrate the increasing mobility of staff between public and private bodies.
This trend is, in turn, being prompted by the growing need for commercial skills in the public sector, which has to meet demands for efficiency savings and negotiate complex business deals.
'The British public sector is actively attracting private sector skills to inform decisions, such as on direct provision versus outsourcing, and the structure of public-private partnerships,' the report says.
The study, published on May 14, found that for public sector finance chiefs, the efficient use of resources was now overwhelmingly the top priority, with 69% of respondents ranking it first in importance.
It also revealed that finance directors in public bodies are moving up the management ladder: 51% said their organisation's head of finance has a more senior position in the management structure than three years ago.
Andrew Haldenby, director of the free-market think-tank Reform, said this illustrated how effective financial management was critical to the success of the 'embryonic UK reform programme'.
'The changing fiscal context, with no political party now advocating a larger public-spending-to-GDP ratio, means that efficiency and value for money must now be embraced throughout public services rather than at the margin,' Haldenby added.
David Martin, head of public sector at Siemens, said the research demonstrated that finance directors needed to shift from their traditional roles as day-to-day financial custodians towards being strategic decision-makers. He said that was crucial, given the intense focus on achieving maximum efficiency and value for money in public services.
'Every organisation needs to work towards clear overall goals because, without that strategic direction, it won't perform effectively. Public bodies are moving in the right direction, but they are not there yet,' Martin added.
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