https://www.powermag.com/25-differences-between-private-sector-and-government-managers/
- There is very little personal gain in the government for taking risks on policy or programs and being successful in achieving the goals more effectively. However, there is potential for substantial criticism and other personal loss if the innovative attempt fails.
- The key reality to the private sector is market-driven competition, whereas the same in the government is almost always a legislated monopoly.
- Private sector managers worry about creating added value, that is, a product or service that can be sold competitively to the public. This requires the ability and skill to change, evolve, adapt, and improve constantly. Government is frequently quite different. Managers in the government often know what needs to be done and desire to do it but are facing restrictions of laws, regulations, and policies—often made years earlier for other circumstances—that prevent prompt action.
- Authority and responsibility in the government tends to be asymmetric while authority and responsibility in the private sector are more clearly balanced. Responsibility in the government can be enormous while authority is frequently quite limited.
- Authority in government may be ambiguous and unclear in some circumstances. In other cases, it is very clear and tightly restricted through laws, regulations, policies, and directives that leave little, if any, room for individual initiative.