29 October 2014 Insurance

Global reform needs thought and perseverance

Reform in both the public and private sectors will continue to be a huge challenge as leaders attempt to position their organisations to be more responsive, efficient and better prepared for a transformational future.

That was the message of the former Secretary of Defense Robert Gates, the keynote speaker at the PCI annual meeting in Scottsdale, Arizona.

Gates remarked that it is imperative for America’s national security institutions for defence, diplomacy and intelligence to reform and adapt in accordance with today’s realities and risks.

“This is a difficult proposition for these proud, tradition-minded organisations,” he said. “The challenges and crises may come and go, but bureaucracy is a return at all levels of government, and this includes structured traditions in the private sector as well.”

Gates added that any organisation above a certain size, especially those with strong institutional cultures, will have bureaucratic tendencies that present leadership challenges.

“I believe that the institutions that increasingly intrude upon and rule our lives can be made more efficient, cost-effective and user-friendly,” he said.

Gates emphasised that leaders in both the public and private sectors often face entrenched cultures that make real change difficult.

“Lower-level organisations may be resistant to change from the top, determined to preserve their piece of the cake and their status,” he said.

“Trimming organisational deadwood can therefore be as challenging in the business world as in the public sector.”

He said that, for most companies, success and self-preservation require that they work hard every day to innovate and change with the times to overcome sluggishness, poor customer service, and stifling layers of management.

“As a rule, companies that do not innovate and strive to reduce overhead costs and managerial layering eventually must confront the harsh realities of the marketplace,” he said.

“Having the right vision of change is one thing, but following through on that vision and achieving measurable results is where the going gets tough. It is always safer for the public bureaucrat, and too often the business bureaucrat as well, to say no rather than yes.”

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