Every few years fads change in the centralisation versus decentralisation, as managers search for improvements in service delivery that also deliver cost savings. Most sensible people recognise that this combination of outcomes (better quality, lower costs) can only be achieved in rare circumstances (notably consumer electronics, personal computing).
The debate around centralisation / decentralisation can never be fully resolved. Both have benefits and costs. Often the costs from disruption, especially in the short-term far outweigh any benefits. The same is true of mergers.
But usually those who propose these restructures, mergers etc are not so much interested in the actual outcomes as the proposed outcomes. Boards like to suggest that there will be big savings (increases in shareholder value) from mergers which will result from ‘operational efficiencies’.
Now the moribund and outrageously incompetent Rees NSW Government is about to play the ‘proposed outcomes’ card in its desperate effort to come up with a credible Budget document:
A CHAINSAW is hanging over the NSW public sector with the State Government considering a plan to cut government agencies from 102 to 12.
Oh yes a ‘chainsaw- – makes it sound like there are a lot of savings on offer from this ‘historic’ restructure. Be sceptical, we’ve heard it all before.
One Comment
Funny thing about cutbacks and reorgs. In all my years in the Fed & NSW public service, through various razor gang raids, cutbacks and reorgs, I never heard a minister or departmental or divisional head say: Ok, so now we are going to let go of some of the things we used to do and by the way you will not be able to spend two thirds of your day drafting and re-drafting briefing notes for ministers to save them having to actually think during Question Time – it’s been decided that the reduced numbers mean that the Cabinet has decided reluctantly that you might have to spend more time serving the public and the nation rather than focusing on your Minister’s survival and re-election chances. Cutbacks – bah! humbug!