Article at a glance:

Organizing for effectiveness in the public sector

Public-sector agencies differ from private enterprises in having social rather than financial objectives, but there is pressure on both to be more efficient. Since the government often lacks a corporation's freedom to discontinue hard-to-provide services or to dismiss underperforming staff, it must find creative ways to improve its performance. Organizational redesign can help public-sector leaders create internal momentum for change even if agencies are insulated from market forces.

The take-away

Managers can make public-sector organizations more productive by clearly defining responsibilities and ensuring accountability for results. Since the government has no easily measured bottom line, it must create new ways to measure and review results. Staff members must also be helped to learn new skills.