Smaller is better!

Mar 07, 2024 Features / Columnists, Peeping Tom

---

Kaieteur News – The public sector can learn valuable lessons from the success of the private sector in leveraging technology. But more importantly, it can adapt the 80/20 principle to achieve greater efficiency and effectiveness within the public sector

Over the past few decades, we’ve witnessed a remarkable transformation in the local workforce. We have seen the adoption of technology leading to increased output, efficiency and productivity. Traditional sectors such as banking, insurance, and retail have significantly reduced their workforce while achieving greater success.

Forty years ago, insurance companies, banks, and major department stores employed thousands of workers to manage their operations.  In fact, once you had passes with good grades in five subjects at the GCE O’ Level examinations you could literally walk into any of these sectors and obtain employment.

Not anymore. With advancements in technology, these industries have been able to streamline processes, automate tasks, and optimize resource allocation, resulting in a significant reduction in their workforce. Despite this downsizing, these businesses are now more successful than ever before, thanks to their ability to do more with less.

Despite there being more banks and just as many insurance companies and much more shopping malls, technology has displaced thousands of potential workers. You go to pay your insurance premium or make a bank deposit and all the information concerning your account is now on a computer in front of the teller, rather than he or she having to go and rummage through cards in some backroom to find a card with the details of your account. The computerization makes the tellers’ work easier and saves you time.

However, the public sector has been slower to adapt to these changes. It is now more bloated than ever and still predominantly utilizing outdated processes.  By embracing technology and implementing the 80/20 principle, the public sector can achieve substantial improvements in output and efficiency, similar or even superior to that seen in the private sector.

The key driver behind the success of private enterprise has been the strategic integration of technology into their operations. Tasks that once required manual intervention can now be completed, using technology, in a fraction of the time.

There is no reason why the public sector cannot leverage technology to streamline its operations and improve service delivery. Under Bharrat Jagdeo there was a lot of talk about e-governance. But it started and ended at that: talk. It is only now that we are seeing some progress, slothful as it is, in providing improvements in services provided by the government, using technology.

There is no reason why passport applicants must line up to submit their applications. The country should have long moved to the point of submitting on-line applications. Better arrangements could be made for the payment of pensions and public assistance. By now all hardware stores, petrol stations and supermarkets should have been required by law to accept electronic payments.

The United Kingdom government launched the Government Digital Service (GDS) to lead the digital transformation of public services. This transition resulted in significant cost savings and improved citizen satisfaction.

Similarly, Estonia pioneered the concept of e-government, leveraging technology to deliver seamless and efficient services to its citizens. By implementing digital IDs, e-voting systems, and online tax filing platforms, Estonia has reduced bureaucracy, minimized corruption, and fostered economic growth.

But technology is not the only answer. The public sector can benefit from adopting the 80/20 principle, also known as the Pareto Principle. This principle suggests that 80% of results come from 20% of effort or causes. By identifying and focusing on the most critical tasks, processes, and initiatives, government agencies can achieve significant improvements in output and efficiency.

For example, instead of spreading resources thinly across all functions, agencies can prioritize initiatives that have the greatest impact on citizens’ lives. By reallocating resources to these high-impact areas, governments can deliver better outcomes with fewer resources.

But the 80/20 principle can also be applied to the size of the government’s workforce. The crucial aspect of applying the 80/20 principle lies in recognizing the vital 20% of employees who contribute significantly to workplace achievements.

There exists a notable discrepancy in output and efficiency among government employees, with a small subset, approximately 20%, responsible for about 80% of the output. By identifying this core employees within each Ministry, government agency, or corporation, can lead to effectively streamlining of operations, reducing bureaucratic inefficiencies and decreasing the bloated central government workforce.

By pinpointing these critical individuals within any government ministry or agency, targeted reductions can be implemented, resulting in substantial cost savings amounting to billions of dollars annually. This savings can then be directed to facilitating higher salaries.

But that is easier said than done. Who is willing to bell the cat: getting rid of persons over the age of 65, removing the sinecure appointees including those who are being employed simply because of past political service or their friendship with government, and removing the square pegs who are expected to fill the round holes in public administration?

(The views expressed in this article are those of the author and do not necessarily reflect the opinions and beliefs of this newspaper and its affiliates.)

---

• effectiveness, leveraging, Peeping Tom, public, significantly

---