Top Ten Public-Private Sector Differences

1
Private Vs. Public Sector Management
1. Authority to revise the organization and key
positions 2. Continuity of leadership to
implement long range plans. 3. Excess funds
distributed as a bonus or salary increase. 4.
Objectives measured by results. (Profit) 5
Anonymity, isolation from the media.

• Structure may be influenced by outside and
  special interest groups.
• Time for accomplishment limited by the election
  process.
• Punished for operating below budget.
• Objectives measured by process. (Programs)
• 5. High visibility, pursued by the media.

2
Private Vs. Public Sector Management

• 6. Reduce costs by selectively cutting specific
  projects.
• 7. Rewards for achievement.
• 8.Selects Expert board to set general operating
  policies.
• 9. Operations geared to effectiveness.
• 10. Top management evaluated by overall
  effectiveness.

• 6. Reduce costs by across-the-board program cuts.
• 7. Punishment for failure.
• 8. Must educate a volatile board to the policy
  setting role.
• 9. Operations geared to efficiency.
• 10.Top management evaluated by dramatic
  incidents.

3
Public Sector
Private Sector
Products or Services
Ends
Products or Services
Means
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