Driving public sector productivity

Andrew Harding

People around the world depend on the public sector for vital services and the smooth administration of government. While the exact scope of what the state takes responsibility for delivering varies between countries, maintaining an efficient, well-run public sector is in everyoneโ€™s interests.

Governments should always seek to provide better services while controlling the tax take that funds them. That means that productivity enhancement is at the heart of high-quality public sector management, just as it is in the private sector.

Long-term trends are making the need for productivity improvements in the public sector more acute. As a UN report points out, we are entering an era when better medicines and smaller families mean populations are ageing. This means greater demand for things like healthcare and pension provision, combined with a smaller tax base to cover the costs.

Finance professionalsโ€™ expertise

Recent research by AICPA & CIMA, together as the Association of International Certified Professional Accountants, highlighted that government finance functions have a significant and innovative role to play in driving efficient, sustainable services that meet public needs. Finance teams employing new data technology can deliver resource efficiencies, cost savings, and economic development.

We could be on the cusp of a productivity revolution in the public sector. Digitisation is opening up new methods of delivering services like teaching and healthcare, which could lead to significant productivity gains. Our members are at the forefront of evaluating how these technologies are adopted so that the public sector is able to use the resources available to it in the most efficient manner possible.

The role of AICPA & CIMA

We are continuing our commitment to support accounting and finance professionals around the world as they strive to deliver high-quality public services. A great example of this is the way we are working with the UK government to undertake the transformation of a public service finance function with the goal of driving value for money for the UK taxpayer.

AICPA & CIMA conducted a series of facilitated workshops to determine the optimal structure and skills necessary for this transformation. The workshops encompassed the entire learning lifecycle and considered the specific needs of the taxpayer and the broader public service structure.

Drawing from the insights gathered during the workshops, AICPA & CIMA defined a finance structure that delivered value for money. The approach involved the implementation of blended learning solutions that would progressively enhance employeesโ€™ foundational knowledge and also develop their specialised skills. The implementation phase began earlier in the summer.

Because the demographic pressures the UN identified are not going away, driving public sector productivity will become increasingly important, and management accountants have a significant role to play in it. We can be proud that AICPA & CIMA members will be at the forefront of delivering effective and efficient public services into the future.


Andrew Harding, FCMA, CGMA, is chief executiveโ€“Management Accounting at AICPA & CIMA, together as the Association of International Certified Professional Accountants.

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