I am definitely defining "value" and "performance" by one's ability to generate profit. The government is, fundamentally, a business. That business is operated based on taxpayer's money. I want this business to operate successfully and be financially responsible for their operations. The success of their operation is contingent on the performance of their parts. Each division in this business needs to generate a "profit." In the same vein as we allocate money to research & development, we do it with the anticipation of this R&D investment translating into future revenues for all of us, thereby resulting in a "profit."
Look at the balance sheet of any business. In the vast majority, human resources will be the #1 expense. You can reduce equipment, downsize facilities, eliminate assets, etc. but that will never match the available cost savings from re-allocating human resource dollars. While I am not advocating laying off half the government staff, why not look into more efficient use of human resources? The government has spent countless dollars hiring consultants from Deloitte, KPMG, PWC, etc. to run cost savings reports but how many of these reports get implemented? Hardly any...why? Because it's too much work. It actually requires restructuring. It would actually require individuals to change job positions. Take on more responsibility. All of these are met with internal resistance. Even if it's implemented, it's up to the individuals to accept the change in direction. It is indeed a frustrating conundrum.
Now let's take a look at efficiencies of public vs. private. As mentioned, private sector is innately concerned about value and performance as it relates to profit. Privatization is not the answer to every situation but it can give the public options. Options to choose. This is capitalism. It's in their best interest to maximize efficiency. Small and medium sized businesses simply can not sustain any "fat". They may do so for other personal or business reasons but if we're talking about profit-and-loss (P&Ls), you can't keep showing deficits year after year and there's only so many tax credits you can get back to cover for it. The bottom line is simply that, the bottom line. This government "business" keeps showing losses year after year. If you had the choice, would you invest in this business?