How to improve government efficiency — from the easy wins to the tough challenges
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COMMENTARY | It’s about more than cutting costs. Governments must build systems that work better for their constituents, and allow their employees the chance to shine.
In an era of shrinking government budgets and growing demands on public services, the spotlight on inefficient operations is increasingly glaring.
The public sector is under pressure to do more with less, but unlike companies, which run primarily on a profit motive, governments must balance a range of objectives — everything from societal welfare to political realities. This complexity can slow efforts to streamline operations, and it raises a key question: How can governments boost efficiency without losing sight of their core missions?
It’s a long-standing challenge. But with citizens expecting more from their governments — and often comparing them unfavorably and unfairly with the private sector where speed, productivity and innovation are constant goals — the stakes have risen.
As a chief operating officer in the private sector, I understand how business rewards performance and how that drives much of its efficiency and have wondered what it would take for governments to attain similar outcomes. Private employees know that failure has consequences, and that excellence is rewarded. In government, job security tends to be stronger while accountability seems to be weaker.
There are several possible solutions. A shift toward performance-based systems would significantly improve how the government does business, particularly if employees are given the tools and training needed to meet higher expectations. But accountability alone may not be enough.
Many government workers, the people closest to the day-to-day operations, need more autonomy. Too often public employees' hands are tied when trying to make improvements, stifled by layers of oversight and mired in bureaucracy.
Clerks, case workers and computer professionals who understand the challenges best usually don’t have decision-making power. They’re in the trenches but have little control over how battles are fought and won. Allowing them to take responsibility for results, while holding them accountable, would build a stronger culture of pride and responsibility in public service. That, in turn, could mirror the productivity found in the business world.
A critical part of the push for efficiency is smarter use of technology. Governments have made progress, though slower than industry at large. Many departments and agencies, for example, have missed the memo on going paperless. Doing so could save at least $725 billion, according to a McKinsey & Co. report.
Routine tasks like processing forms and back-office paperwork can be automated with data analytics and digital tools. Imagine the gains if public servants spent less time on mundane tasks and more time addressing the real needs of the people they serve.
Information, professional, educational, scientific and technical services are at the forefront of AI integration, while construction, agriculture, fishing and hunting and transportation lag behind, according to the Bipartisan Policy Center.
The government would be in that latter group, but could easily adopt similar tools, using them to reduce the time civil servants spend on routine matters. Freed from tedious tasks, workers could focus on more complex issues, where human input is critical.
This leads to a more proactive government. Rather than sending late notices for unpaid taxes, how about reminding citizens ahead of time or preventing fraud before it has occurred instead of addressing it after are examples of how governments could implement AI to gain greater efficiency — and build trust.
A government that acts as a helpful partner, instead of a bureaucratic authority, will boost public satisfaction and internal morale. Of course, structural complexity remains one of the biggest barriers to reform. Unlike corporations, where a CEO can make swift decisions, governments are bogged down by competing political interests and revolving leadership. Transparency requirements, while essential, can slow decision-making to a crawl.
Governments are also by nature risk averse. The political costs of failure are high, and public money is at stake. Betting on emerging technologies has not been the traditional role of government. But there is enough evidence now to start targeting improvements. Focus first on improving routine tasks, and the momentum for larger change will build over time.
In the end, improving government efficiency is about more than just cutting costs. It’s about building systems that work better for the people they serve and giving public employees the resources and authority they need to demonstrate just how good they can be.
Raghu Krishnaiah serves as the chief operating officer at University of Phoenix, where he is responsible for all operating strategy as well as corporate, tribal and government relationships; operational analytics, and business innovation.
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