Sunday, September 4, 2011

Governments Operating like Business

In short, no they shouldn't. However ... there are principles they need to follow in order to make good policies and decisions.

With the collapse of the Australian Governments Malaysia solution, there are a few things I thought would be no brainers and things that ANY professional organisation should have followed.

1. Check that you are not breaking any laws, contracts or obligations.
I know ... a bit of a Captain Obvious, but how can you spend millions of dollars, do deals with other countries and not check if you are in breach of the constitution, legislation or any human rights agreements you have signed?

2. Have an exit clause.
Ok, I am still happy that we are receiving more refugees, however, now that the deal is down the gurgler, we still have to take all 4000 refugees from Malaysia. There was nothing in the contract to say, if things go pear shape, we won't be out of pocket. Companies would never sign a contract when there is no way out and there is a possibility they may be out of pocket.

Work out you're ROI (Return on Investment). Is the deal worth it? Will we be better off after the deal? How much do we have to spend before we see a benefit? Is there a benefit? If the deal doesn't return on average a positive outcome, don't do it.

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