Process or Outcome?

Most likely, both are important, and the balance between them depends on what is being undertaken.

It is fair to say that the public sector tends to place far greater emphasis on adhering to processes, while the private sector is generally driven more by outcomes than by following a particular procedure.

To some extent, the difference is understandable. There is little room, and often little cultural appetite, for making mistakes within the public sector.  With high levels of accountability and scrutiny, systems are generally designed to ensure value for money, fairness, consistency and transparency.  Public bodies also tend to be large and complex organisations.

With budget certainty often extending several months, if not longer, into the future, the commercial pressures that drive rapid decision-making simply do not exist to the same degree. (It should be noted that this is not the same as saying there is plenty of money, or too much money. Rather, it reflects the certainty of receiving a defined budget, something no private business can enjoy while operating within an open market.)

Faced with cashflow pressures, competition, constantly evolving markets and, not least, unexpected international events, the need to move quickly becomes instinctive for business owners.

There is a danger in assuming that one approach is inherently better than the other. In reality, both sectors have something to learn from each other. There are certainly golden opportunities to modernise, simplify and accelerate processes within the public sector. Equally, the private sector, particularly businesses that are beginning to employ staff and generate significant turnover in excess of £250k per year, can learn valuable lessons from the public sector about the importance of effective systems and processes.

I have seen, and unfortunately been part of, decisions that were made far too quickly, only for the consequences to emerge later. At the same time, opportunities do arise where it is essential to put the “turbocharger” into action.

The world is not black and white. In the private sector, the ability to develop that instinct, or sixth sense, for when to invest in systems and when not to, and when to accelerate or slow down, is incredibly valuable in such a fast-changing environment.

Some people will naturally be better at this than others, but it is a skill that develops through experience and by continuing to meet and learn from people who are, or have been, in similar situations. This is where a mentor, whether formal or informal, can play a valuable role in helping a business navigate the challenges of growth and development.

Please do get in touch if you would like to continue this conversation. We are often asked to support organisations, charities and businesses to develop and strengthen their processes and governance arrangements, and would be more than happy to connect you with another organisation or business that has been through a similar experience.