Shouldn t a public or non-profit agency purchase management consulting services commercially from for-profit firms?
Some for-profit firms do offer services in the public sector, of course. But seldom are for-profit firms successful in the social services arena. In our experience for-profit consulting firms, large and small, typically propose approaches to public management problems that they have developed in the business sector. But the public sector has its own needs and problems. No less an advisor than Peter Drucker suggests that the non-profit sector has unique dimensions that do not lend themselves to for-profit approaches. Even among highly reputable and effective firms, the profit motives of for-profit consulting can work against the highest quality consulting service for the lowest price on government contracts. For-profit firms have radically different missions from PVI s. Their priority is to earn a profit for their shareholders. Typically they charge a healthy percentage as a line-item over and above the cost of the services. Their profit mission takes precedence over building the capaci
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