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Utilities
As governments around the world embark on significant policy reforms and structural changes, the public sector is poised to experience a notable boom in interim management needs. This shift is particularly pronounced in regions undergoing local government reorganization (LGR) and decentralization efforts. Experts predict that the demand for interim managers and subject matter experts will skyrocket, driven by initiatives like the replacement of traditional county and district councils with new unitary authorities.
The implementation of LGR initiatives requires a massive overhaul of the existing governance structure. This involves integrating new systems, managing policy changes, and ensuring continuity of service delivery. The sheer scale of these reforms necessitates specialized skills and flexible resources. According to Barry Pirie of the Public Services People Managers Association (PPMA), "You often underestimate the level of resources needed… It's not about more resources necessarily, but the right resources and skills to deliver that high level of change" [1].
Anthony Lewis, Director of Tile Hill, further emphasizes the opportunity this presents: "We can emerge from LGR with a robust, resilient, and ambitious set of professionals leading the sector forward" [1]. This period of transformation offers interim leaders a unique platform to make a lasting impact on local government and shape the future of public service delivery.
Interim managers play a crucial role in driving change within the public sector. Their expertise allows organizations to fill critical gaps in short-term skills needs, ensuring that projects remain on track despite ongoing structural adjustments. Some key roles interim managers are expected to fulfill include:
Globally, economic conditions are expected to evolve significantly in 2025. Real GDP growth is forecasted to slow down, with estimates suggesting a decline from 2.7% in 2024 to 1.8% in 2025 [2]. This slowdown could affect funding for public sector initiatives, making efficient interim management even more critical to manage resources effectively.
Inflation remains a concern, with core inflation anticipated to stay above 2.5% throughout most of 2025 [4]. However, supply-side forces, such as increased labor productivity and available labor, may help stabilize growth while managing inflationary pressures.
Technology plays a vital role in supporting public sector changes by enhancing service delivery and improving efficiency. Key technological trends include:
The interim boom in the public sector presents both challenges and opportunities. As governments move towards more agile and responsive governance models, interim managers are set to play an increasingly pivotal role. This shift not only helps organizations navigate complex reforms but also offers a chance for transformative leadership and innovation in public service delivery.
