Having spent time in both the government and the private sector, I'm interested in the topic of what lessons from business management are applicable to governing. As much as I hope the public sector could learn from the private, I've pretty much come the belief that government really can't operate like a business and there is no need pretending it can or should.
John Steele Gordon does a good job of summing up some of the barriers to applying business principles to government endeavors in his Wall Street Journal column, "Why Government Can't Run a Business." I look at the DC Metro systemas an example of the absurdity of trying to achieve a profit or even a break-even point in a government enterprise.
Metro is constantly under fire for being in the red. But let's be honest - they are selling a product that few really want to buy. I just don't have 45 minutes to sit in traffic when I can jump on the train, arrive at my destination in 1/2 the time and get work done while en route. Even more compelling for taking Metro, my train fare is much cheaper than gas and parking in the city. But given the option, I would much rather be in my own car driving to and from work. Hike my fare to cover actual cost of service and I'm back in my car lickity-split.
Recently the DC metro added new features such as signs telling me when the next train will arrive. I love this new feature, but am I willing to pay a little extra for it like I do extra channels on my cable or extra minutes on my cell phone? No way.
It's fascinating to watch the Obama Administration's approach to governing unfold, especially since the economic situation has led it on a path to active involvement in the management of some private sector enterprises. I eagerly awake the HBS case studies.
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