Business Standard

Can management skills carry over from private sector into govt? Not really

Unlike govt, the management of a private firm is often quite autocratic

government
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Illustration by Ajay Mohanty

Ajay Shah
In India, we know a lot about how to run a firm. But the transferability of knowledge from management of firms into management of government is quite limited. Governments suffer from weak feedback loops. The essence of government — the power to coerce — is absent in firms. The size and complexity of government is greater than what is found in the largest and most complex firms. The key ingredients of government — policy and negotiation — are not seen in firms. The world of policy and public administration is fundamentally different from the world of profits in firms.

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