Situation analysis can be defined as the systematic collection and evaluation of present and past data with the aim of;
• Identifying internal and external forces that may influence the performance and choice of strategies in an organization, and
• Evaluation of the organizations current, future strengths, weaknesses, opportunities, and threats
The greatest problem facing the public sector is fiscally constrained environment. The public sector faces a challenge in delivering services in such an environment. The recent global recession served only to worsen the situation. Either due to the reduced public revenue, recession, and increased levels of state debt became part of the wider problem. Public debt is still expected to increase thus reducing the net worth of the public sector.
Efficient management of public physical and financial assets would be beneficial for the long-term fiscal position. Furthermore, improving the level of infrastructure and asset management is the key aspect to growth of the public sector. There is the need for a monumental shift in the methods the public sector goes around with its business. The focus should be on the effectiveness, innovation, efficiency and developing an expectation, that value for money in the public sector should be a usual thing than expectation. The other sector involved in the public sector is the local government.
The main challenge for local authorities is to balance between the demands for high levels of service and their affordability. They must endeavor for productivity and efficiency through shared services with central government to achieve greater productivity (Delloitte).
There is new attention on how the public sector is preparing its policies and how evaluation is conducted. For pubic sector to make an impact, decisions need to be taken based on well-informed visions. Decisions must be taken to build platforms, which would execute and monitor outcomes and have an impact on the public sector role (Arotake).
The other problem, which the public sector is facing, regards its delivery strategies. Complexity of the industrial society concerning its volumes of activities and production methods has a consequence on the public sector. The monumental reason is that the public sectors do not have a monopoly in control of the society. The media oriented society is keener on seeing reliability, transparency, and accountability having an impact on the management of the sector. All administrators should be able to identify themselves with clear objectives, transparent processes development, adopted checks, and balances and on accountability and communication (Arotake).
Programs that support awareness of risks that might undermine efficiency measures and adversely affect service results. Therefore, they provide assurance that key risks are better managed should be focused. This ensures that change initiatives will be well governed and managed, and hence the entities would deliver effective and efficient terms in the medium term. The other solution is to encourage public private partnership. This would provide learning and experience on how to manage public sector risks. Financial management in the public sector should support and motivate better planning and decision making across the sector. Fraud management in the public sector should be encouraged (Arotake).
Better use of information should be encouraged to support good decision-making. To deliver good services in a fiscally constrained environment, better information about performance and how it can make good decisions and hold people liable must be provided. Review the reporting of information in various subsectors within the public sector (Arotake).
The public sector and its policy advisors should prepare adequate policies and measures of evaluation, which can ensure good development. Either there should be elaborate, effective, efficient with impact, and adapted for complex and ever changing society. It must have elaborate new collaborations model with different stakeholders and private partners in order to safeguard the public sector positive impacts. Public private partnership is the new model, which should be established as a means of service delivery (Delloitte).
Public Private Partnership
This form of collaboration is the best to improve the synergies of the public sector. Nonetheless, the partnership must be within the principals of the laws or policies of the prevailing state. The implementation of this partnership will take the form of; privately financed projects that are repaid by the state privately financed projects, which require public sector revenue for support and privately funded projects, which are paid by the end users (Arotake).
Public sector faces a lot of problems, but the main challenge is on the fiscal application. Since it is a non-profit making institution, the sector is always faced by this challenge. Moreover, there are other challenges such as inefficiencies and ineffective management practices. Delivery of strategies is also another challenge that faces the sector due to complex structures met in this delivery. To mitigate on some of these problems, programs that support awareness of risks that undermine the effectiveness and efficiency must be encouraged. These programs would ensure better management of the sector and reduce wastage. Information flow in the sector should be enhanced to allow efficient decision-making. Finally, public private partnership that is a form of collaboration between the two sectors should be encouraged. This brings about synergy and efficiency in the public sector. Furthermore, this is the best solution for the problems facing the public sector.