![]() ![]() These findings imply that no matter how well public-sector leaders conceive their aspirations, what drives ultimate success-or failure-is how well they manage the effort to implement them. In fact, more than 70 percent of them result from insufficient attention to the way organizations pursue their goals. McKinsey’s research shows clearly that bad ideas are not necessarily responsible for these failures. In the public sector, the failure rate climbs to nearly 80 percent as a result of its particular challenges, such as the breadth and diversity of its stakeholders missing investments in capability building fear, given the high risk of failure (there are few if any alternatives when the delivery of public services lapses or fails) myths about the applicability of transformation (see sidebar “Myths of public-sector transformations”) and the time horizons of political mandates. Seventy-four percent of all private-sector transformations fail to meet their targets, take too long to realize them, or cannot sustain them in the long run. McKinsey’s work in both the private and public sectors has taught us that there is a science to leading effective transformations. With specially designed transformation training, an organization can learn and develop the right skills to succeed not only in the transformation but also beyond it. The ability to execute a transformation is a learned skill, and capability building is a crucial pillar for ensuring successful execution. Myth #3: Execution capabilities must exist before the transformation. ![]() This approach ensures that the transformation’s impact lasts beyond specific leaders and administrations. Successful transformations overcome this obstacle by mobilizing the broader organization and focusing on improving its health (for instance, how it operates). ![]() Higher leadership turnover and structural challenges (such as regulation, oversight, and competing interests) make momentum for change difficult to sustain in the public sector. Myth #2: Public-sector transformations cannot sustain their impact. All these matter in the public sector and can be both measured and transformed. In reality, transformations have not only financial goals but also nonfinancial ones, such as enhanced mission outcomes, an improved customer experience, increased employee satisfaction, and better organizational health. Myth #1: Transformations focus solely on the bottom line-not applicable in the public sector. ![]()
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