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Book chapter
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Reference no. BEP0991
Chapter from: "Cost Management and Control in Government: Fighting the Cost War Through Leadership Driven Management"
Published by: Business Expert Press
Published in: 2011

Abstract

This chapter is excerpted from ‘Cost Management and Control in Government: Fighting the Cost War Through Leadership Driven Management'. Government organizations spend enormous amounts. They employ a large percentage of the workforce. They have an undeniably huge impact on the national economy and wealth. Yet they are, for the most part, unmanaged. What passes for management is a combination of oversight and audit. Oversight is primarily reactive: offering negative feedback for failures and demanding additional rules and regulations to prevent reoccurrences. Audits look for ‘bright line’ discrepancies and clear violations to those rules and regulations. Working in tandem, these processes provide indignant sound bites and the appearance of management that is really mindless compliance to rules. Government operations are often criticized for ‘waste and mismanagement.’ Yet the current situation, unfortunately, can best be described as one of ‘unmanagement’ rather than ‘mismanagement.’ Government can run better. It can run much better. The purpose of this book is to look at how government can move from ‘rule driven’ to ‘leadership driven’ management. Specifically, it documents and discusses specific examples of successful cost informed decision making and cost management and control in government. It also delineates the requirements of such success and explores the special needs of transforming the management culture of government from its well embedded past practices to a new paradigm of leadership driven management. Society should be interested in better management in government, a huge component of the gross domestic product. Lower costs of government services mean that more services can be provided. For example, lower costs of national security mean that more security can be provided for the same budget. Similarly, lower costs of social welfare programs mean that more social welfare can be provided for the same budget. In the long run, of course, more efficient operations can result in reduced government debt and/or taxation, improving international competitiveness.

About

Abstract

This chapter is excerpted from ‘Cost Management and Control in Government: Fighting the Cost War Through Leadership Driven Management'. Government organizations spend enormous amounts. They employ a large percentage of the workforce. They have an undeniably huge impact on the national economy and wealth. Yet they are, for the most part, unmanaged. What passes for management is a combination of oversight and audit. Oversight is primarily reactive: offering negative feedback for failures and demanding additional rules and regulations to prevent reoccurrences. Audits look for ‘bright line’ discrepancies and clear violations to those rules and regulations. Working in tandem, these processes provide indignant sound bites and the appearance of management that is really mindless compliance to rules. Government operations are often criticized for ‘waste and mismanagement.’ Yet the current situation, unfortunately, can best be described as one of ‘unmanagement’ rather than ‘mismanagement.’ Government can run better. It can run much better. The purpose of this book is to look at how government can move from ‘rule driven’ to ‘leadership driven’ management. Specifically, it documents and discusses specific examples of successful cost informed decision making and cost management and control in government. It also delineates the requirements of such success and explores the special needs of transforming the management culture of government from its well embedded past practices to a new paradigm of leadership driven management. Society should be interested in better management in government, a huge component of the gross domestic product. Lower costs of government services mean that more services can be provided. For example, lower costs of national security mean that more security can be provided for the same budget. Similarly, lower costs of social welfare programs mean that more social welfare can be provided for the same budget. In the long run, of course, more efficient operations can result in reduced government debt and/or taxation, improving international competitiveness.

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