The Association of Chartered Certified Accountants says the public sector is under unprecedented pressure, with increasing fiscal constraints, rising demands, and evolving societal challenges call for a transformation in how governments deliver value to citizens.
According to ACCA’s latest report, A productive approach: Finance professionals improving productivity in the public sector, there is a critical role finance professionals play in navigating these complexities.
This study, which was based on six roundtable discussions across nine jurisdictions, introduces a 10-point plan designed to empower public sector organisations to align budgets with outcomes, optimise their delivery models and embrace technology and innovation.
The report frames its insights through the lens of the public service delivery chain, identifying three critical elements where finance professionals can drive productivity improvements:
Budget efficiency
Finance professionals must go beyond simply securing the lowest costs for inputs such as labour, supplies and capital assets. Instead, they should leverage budgets as strategic tools for decision-making. Multi-year budgets are essential to enable long-term planning, reshaping services, and achieving sustained productivity improvements. Strong governance and accurate data management underpin this approach, ensuring that budgets are realistic and aligned with organisational priorities.
Organisational productivity
The second stage of the delivery chain focuses on how public sector organisations convert inputs into outputs. Finance professionals play a pivotal role here by understanding operational workflows and identifying bottlenecks. This requires close engagement with delivery teams and an openness to incremental technological advancements. Finance teams can champion process improvements, support adaptability to changing demands, and foster a culture of collaboration within and across organisations to enhance operational effectiveness.
Effectiveness of outcomes and outputs
Ultimately, public service delivery must be judged by its ability to achieve desired outcomes for citizens. Finance professionals are instrumental in ensuring that resources are directed toward activities that deliver the greatest societal value. This includes advocating for early interventions that reduce long-term costs and exploring cross-sector collaboration to tackle complex challenges. The focus here shifts from cost-cutting to driving impactful results, aligning efforts with strategic goals.
Finance professionals are uniquely positioned to influence policy, prioritise impactful interventions, and redefine success in public sector productivity. By transitioning from cost-cutters to strategic enablers, they can help governments deliver not just more, but better – ensuring fiscal sustainability while enhancing societal outcomes.
Other key recommendations from the ACCA report include:
- Align budgets with strategic priorities to ensure that public resources deliver the maximum value.
- Leverage technology and data analytics to streamline processes and support evidence-based decision-making.
- Promote collaborative approaches within and across organisations to share resources, expertise and insights.
- Transition to preventative spending models that address policy issues at their root, reducing costs over time.
