Effectiveness vs. Efficiency: Can Government Have Both?

Balancing effectiveness and efficiency in public service isn’t easy—but it’s possible. This article dives into the unique challenges governments face, from systemic inequities to reactive technology fixes, and offers actionable strategies for achieving both goals. Let’s rethink how we approach public service together.

When it comes to public service, the tension between effectiveness and efficiency is a constant challenge. A recent Harvard Business Review article titled “Government Should Be Effective, Not Efficient” explores this issue, making three key claims about the unique nature of public sector work:

  1. Government can’t choose its customers—it must serve all people.

  2. Incremental innovation is necessary because government can’t afford to fail.

  3. Public sector work creates value for others, while private companies capture value for shareholders.

As someone who has spent years navigating public sector systems, I find these points thought-provoking—but also overly simplistic. While the article’s core message resonates, the reality of public service is far more nuanced.

Let’s break this down.

Claim 1: Government Can’t Choose Its Customers

Governments aspire to serve all people, but systemic inequities often make this goal unattainable.

Biases—both structural and implicit—are baked into societal systems, including government. As a result, underrepresented and historically excluded communities frequently face barriers to accessing services.

Achieving true equity requires intentional investment in equity, diversity, and inclusion (EDI). This work isn’t just external; it involves reshaping internal policies, educating staff, and reallocating resources to address disparities. Without EDI as a cornerstone, the aspiration to “serve all people” remains unrealized.

Claim 2: Government Can’t Afford to Fail

The reality? Government does fail—often.

Public agencies are constrained by tight budgets, political scrutiny, and public perception. Unlike private companies, which invest heavily in research, development, testing, and marketing, public agencies frequently defer necessary improvements due to resource scarcity.

Technology systems highlight this challenge. Internal teams often recognize the need for upgrades, but these projects are delayed until systems reach a breaking point. By the time action is taken, agencies are forced into costly, reactive redesigns.

Adding to the complexity, systems are often built to reflect existing workflows—no matter how inefficient—rather than simplifying processes first. This perpetuates inefficiency and makes it harder to generate actionable insights from data.

A better approach? Simplify first, automate second.

Claim 3: Public Sector Work Operates Without Personal Gain

While public service aims to create value for the public, decisions are often shaped by political motivations and personal agendas.

These factors influence funding, priorities, and system design. Personal gain in public service may not always be monetary, but it often takes the form of political capital, legacy building, or public perception. Recognizing these dynamics is essential to improving government systems and outcomes.

Effectiveness and Efficiency Aren’t Mutually Exclusive

While I agree that government must prioritize effectiveness, efficiency doesn’t have to take a back seat.

Governments are often targeted by vendors offering overly complex technology solutions that create dependency rather than empowerment. By focusing on user-centered design and process improvement, agencies can build simpler, more efficient systems that deliver on their mission to serve.

Effectiveness and efficiency can coexist. Achieving both requires intentional leadership, thoughtful design, and proactive investment.

What Do You Think?

These are my reflections, but I’d love to hear your insights:

  • How does your organization balance effectiveness and efficiency?

  • Have you seen examples where proactive investment paid off—or where deferred decisions created challenges?

Looking to streamline operations while enhancing impact in public service? Explore how we can help align strategies and improve outcomes at Pinnacle Insight Partners. Let’s plan a better tomorrow, today.

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