An examination into the issues associated with the need for fundamental value shifts in public sector organizations if they are to sustain an adequate level of service provision whilst learning to operate with much smaller budgets. Huge reductions in public sector spending mean electorates will face a period of austerity, taxes will be higher and the availability of public sector services will decline. Prevailing public sector management philosophies are no longer applicable. To optimise future service provision with fewer resources will demand a total reformation in organizational thinking.The fundamental change required is necessary to ensure there is a genuine commitment within these organizations to more effectively fulfil their defined social role purpose. Proposed value changes include leaders more interested in service provision than sustaining their own high salaries, unions putting service delivery ahead of protecting their members' pensions and employees adopting an orientation of optimising performance by welcoming innovation and reducing bureaucracy.