Thursday, March 29, 2012

Government business model generation

Government has a diverse range of roles in helping make society a better place. But it only uses a couple of basic business models.  The main one looks something like:

collect independent revenue (e.g. tax) > use it to deliver something
(that aligns with the minister's priorities, and hopefully has a positive BCR)

In addition to 'policy' work (~delivering services to the minister), line departments are set up to do this - and that's about all their structures enable them to do.  Luckily, governments have the taxation authority that means this model will never break, though there's no guarantee it will be effective.

Having been referred to (via @carlscrase) today got me thinking.  In many cases it will be effective, but is it always the best way?  And when will it not be - how do we know that we should be thinking about creating a different business model?

John Baxter

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