![]() Our research found that 70 percent of agile organizations rank in the top quartile of organizational health, which is a strong indicator of total shareholder returns, analogous to engagement and service levels in the public sector.ĭespite the promise agile methodologies hold for the public sector, certain characteristics can make government entities a difficult fit for the agile model. Agile methodologies recently applied in the private sector can help increase both performance and organizational health. A significant change from historical public-sector ways of workingĬompared with private-sector enterprises, governments can seem monolithic and slow moving. For public-sector leaders, the rewards of customizing agile ways of working for specific objectives could be higher productivity and better services to citizens. Indeed, because each level of a government organization-the central government, its agencies, and their teams-has different roles and priorities, the most effective core principles of agile will differ as well. 1 For more on implementing agile ways of working in government and overcoming common obstacles, see Jan Shelly Brown, Khushpreet Kaur, and Naufal Khan, “ Implementing agile ways of working in IT to improve citizen experience,” McKinsey, March 13, 2020. Agile principles and practices should be adapted to each level of the government and to overcome dynamics that can make change difficult. Some government bodies have already made substantial headway. Agile methodologies can transform how a government plans, operates, and delivers its products and services. In such demanding situations, the public sector would ideally be responsive and nimble. It is a daunting task, even for dedicated public servants and mission-driven entities. The shocks of the COVID-19 pandemic have underlined the importance of adapting policies, delivering cross-agency programs, and working effectively in teams-doing so better and more quickly, and often with tightening budgets. ![]() This article is a collaborative effort by Hana Dib, Amadeo Di Lodovico, Abdulkader Lamaa, Deepak Mahadevan, and Joydeep Sengupta, representing views from McKinsey’s People & Organizational Performance Practice and Public & Social Sector Practice.
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