From a Guardian article written over 8 years ago:
a public service and a business are inherently different beasts and asking one to behave as the other is like asking a fish to ride a bicycle.
The base reason is quite simple. Business survive on cash; money is their bloodline. Public service’s survive based on the people’s will; the governments or communities sponsor public services.
By nature, businesses have to attract more profits; failing to do so means the business dies. By nature, services have to please most members; losing majority popularity means the service loses funding, the only thing supporting it.
While it’s easy to blur the line between the two and believe that servicing the community is part of the business or that doing business is just a part of doing public service, they should not be mixed so easily.
Businesses are hierarchical, not democratic, and wages, terms and conditions are set by the executive and subject to the market.
Although there is some form of hierarchy in all forms of organization, businesses intentionally partition decision making away from portions of the business in order to meet market demands and unequal distribution of responsibilities and reward. This translates to the leader making the most decisions and being rewarded the most while the actors who hold the least responsibility get rewarded the least. Contrast this to public service where the entire organization is beholden to the wants of a community, leading a majority of the decision making, creativity, and responsibilities away from an executive branch to more of a community bulletin board.
When everyone is more similar than dissimilar and the incentive is pleasure not profit, why you’ve created a small communist society. But don’t take that word so negatively in its connotation. In many small groups, communism is a very preferred method of governing. For instance, within a small family or a house full of roommates, treating everyone as equal despite their output can be a very rewarding experience, full of love and understanding. This is not dissimilar from a service, whose goals are never to profit outside of its vision but rather to sustain and maintain what it was set out to do.
Contrast this with businesses, which also benefit from focus, sustenance, and maintenance, but also are willing to make decisions outside of its original vision in order to sustain profits, growth, and the company’s life. While the will of the people make a public service live, a business cannot survive on appreciation alone. Businesses, for the most part, live in a capitalist world in which the market decides what survives and what dies. So not only should businesses strive for more, in terms of profits and growth, they must always strive just to survive, because there is no base of taxpayer money or community goodwill (for the most part).
If public services are communal or communist and businesses are hierarchical or capitalist, how do we so easily blur the lines between the two?
This is because when operating or experiencing a public service or business, there will always be pros and cons unique to each side. Without realizing everything comes at a cost, people imagine the best of both worlds, particularly just for their personal experience. What many fail to realize is that the best of all things comes at a major cost, most of the time in the form of impossibility.
I want to make a business that doesn’t turn away anyone! I have a product or sale for EVERYONE.
This attitude alone drives away a lot of clients. Some clients like exclusion, some like to conform. Not every restaurant can be the Cheesecake Factory and support a menu of 500 items; most restaurants end up going out of business from a lack of focus or finances. The expensive places cannot cater to the lower income population and the affordable places cannot cater to the high income populations. From income, to background, to culture, to belief, there’s always a reason for people to prefer one thing over another.
I want to run our public service like a business! Let’s not settle for zero-sum and let’s grow this operation!
This attitude often upsets governments or communities that began as sponsors of something they wanted to becoming customers of something being held hostage from them. Despite understanding that everything costs something, public services are meant to be inclusive to such a degree in which a normal business may not be able to function, public taxes or community donations are required to keep services alive. Examples include art and music programs, which may not produce an immediate profit but are desired by communities. Other examples include college sponsorships, which are very different from college loans, and waste management services which are very different from junk collectors. Services are meant to be for all, with very little cost or commitment from the benefiters.
There are times in which a business will perform a public service and there are times in which a public service will contract out a business. A difference in philosophy should not stop these two parties from working together, it should actually encourage them to work together and focus on their strengths and weaknesses.
In a future post, I’ll cover how World of Warcraft guilds are actually a business, not a public service.






