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Q: I have
a master’s degree in Public Administration and have worked
in government for 13 years, but I am thinking about making
the leap to the private sector. Any advice? Cynthia
Whitbred-Spanoulis, Virginia Beach, Virginia
A: Forget
everything you know.
OK, that’s
an overstatement. But your question reminds us of what
happened to a friend of ours.
About 15
years ago, she graduated from business school and took a
managerial job with a nonprofit organization devoted to
preserving wildlife. For about a decade, our friend liked
her job well enough. The people were interesting, the
hours flexible and the cause worthy.
But about
two years ago, she found herself at her wit’s end with the
organization’s bureaucracy, not to mention the slow arc of
her career trajectory and compensation. And so, armed with
a resume highlighting her managerial experience and
analytical skills, she applied to every consulting firm in
her city.
No one
would hire her. No one would even interview her. Finally,
in frustration, she got one firm’s vice president to talk
to her on the phone.
“He said
public sector hires never work out,” she told us. “They
can ‘cross the border’ into the business world, but they
never seem to grasp the culture.”
Now, we
doubt public employees never work out in the private
sector. Indeed, lawyers seem to flow well between the two
worlds, especially in industries like financial services,
pharmaceuticals and aerospace, where it’s valuable to know
your way through the maze of government regulations. But
we understand that VP’s view.
The
difference between how people think and operate in the
public and private sectors can be vast indeed. The reason,
of course, is competition. Public sector organizations
basically have none.
In 2003
then-Indiana governor Joseph Kernan said he wanted to
protect local jobs and terminated a state contract with an
Indian software company. He got cheers all around. But
businesspeople had to laugh. In the global marketplace,
low costs and superior performance make or break you. And
that changes everything.
Take job
security. In most nonprofit situations, as long as you
don’t screw up, you’re pretty much guaranteed lifetime
employment. First of all, unions make it very difficult to
remove anyone, even an employee who has zero interest in
improving the team’s results. But even when there aren’t
unions present, a ho-hum, “We’re all the same here”
culture prevails in the public sector. Rigorous
performance appraisals that differentiate between star,
average and poor performers rarely happen. They would be a
waste of energy. And so, everyone’s safe.
Competition also changes pacing. No doubt, over your years
enmeshed in government bureaucracy, you’ve developed
boatloads of patience. You’re used to people responding
slowly to requests for information or output. Maybe you’ve
even come to move unhurriedly yourself. By contrast, in
the business world, lack of speed has a consequence. It
can kill you.
Don’t stop
reading!
The good
news is that you very likely have two skills that will
help you on the other side. The first is the ability to
motivate people with very few tools—i.e. money—at your
disposal. Companies, of course, make it easier to reward
people with pay and stock options. But you will be ahead
of the game for knowing how to galvanize people using just
your own energy and vision.
Second,
you’ve surely picked up the art of bringing together
different groups, like, say, parents and school
committees. Such interpersonal skills will translate
perfectly in any business environment.
In working
for the public sector, you have indeed been living in
something of a foreign country. But the border isn’t
closed if you understand where you’ve been. We’d say make
the journey anyway. The change of scenery will do you
good.
Q: I’ve
just started my own business and would like to know how
much hardball to play during negotiations. I don’t want to
be taken advantage of. Name Withheld,
Columbia Falls,
Montana
A: You may
be new to business but you ask an age-old question.
When it
comes to deal-making, what is the right amount to leave on
the table? There is no exact number or percentage, of
course, but generally speaking, the answer is, enough to
make another deal another day.
Given your
new role as an entrepreneur, we’d guess you’re hoping to
build both a career and a reputation. And that just can’t
happen if, after every negotiation, the other person feels
taken to the cleaners. You’ll never get another deal sent
your way.
On the
other hand, you don’t want to give away so much that
you’re the one taken—for a fool. Your challenge, then, is
to find the middle ground between the two. And you
will—with experience.
Just
remember, like life, business is built on relationships.
Err on the side of fairness and you’ll be richer for it in
every way. |
