Finance functions in the public sector face a common and pervasive challenge – balancing competing demands of finance efficiency, compliance and control, and insight.

But public sector finance professionals need to lift their aspirations and demonstrate how they can contribute to success by focusing more of their time on providing insights into business performance. There has been progress in recent years. But only by demonstrating their capability and capacity as business partners will finance professionals earn their place at the top table.

Research by PricewaterhouseCoopers (PwC) examining the issues faced by finance directors across the public sector suggests that they often do not have a pivotal place at the top table. Finance directors believe that their boards have a mixed appetite for transparency of financial decisions and performance. This is a matter for concern considering the general drive across government and the public sector for a culture of greater accountability and transparency.

Research respondents were not generally seeking radical improvements to their finance functions with the short-term cost of change contributing to this thinking. It is questionable whether it is acceptable that public sector organisations, many of which are larger than the biggest FTSE 100 companies, can continue to have relatively modest aspirations for their finance functions.

Our findings highlight the need for strong support for finance professionals from the Government, executive and nonexecutive boards and senior policymakers. We believe that two essential leadership steps need to be taken. First, the finance director must address cultural challenges in their department and provide the necessary leadership to change it. Second, the leadership of public sector organisations also needs to welcome the finance function as a genuine business partner.

Our research into the issues facing public and private sectors reveals some common challenges. Private sector businesses are looking to cut through complexity and take out cost without heightening risk or jeopardising their ability to capitalise on opportunities. The public sector has similar issues and respondents said that they wanted to improve the capability of their functions.

Continuing tight finances are a big concern, coupled with the ability to provide the requisite level of value for money. At issue is the speed of change. While there is no race between private and public sectors, there will continue to be significant external drivers for change as well as competition for talented people, putting increased pressure on the public sector to move faster.

Finance in government and the public sector is at a crossroads and faces huge challenges. The economic climate means that now more than ever finance must speak up – and be listened to – by permanent secretaries, chief executives, boards and senior policymakers. However, a place at the top table will be earned only when finance professionals are seen not simply as scorekeepers but as business partners, adding value across the public sector.

— John Berriman is head of the Government and Public Sector Finance Practice at PricewaterhouseCoopers www.psrc-pwc.com

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