a day ago
For public sector projects, it's about value—not just the product
Across the United States, governments are making record investments in infrastructure, healthcare, and IT systems—yet too often, these efforts fall short of delivering the promised impact. Compared to global peers, our public projects cost more and take longer, as they are often bogged down by bureaucratic red tape and a tendency toward short-term thinking.
The question we must ask is: Are we spending wisely, or just spending?
A recent study from the Brookings Institution found that 'the U.S. spends three times as much as other upper- and middle-income countries on certain transportation infrastructure.' Similarly, a report from the Commonwealth Fund highlighted that the U.S. spends nearly twice as much per capita on healthcare than the average OEDC nation, yet outcomes often lag. This pattern extends to IT procurement, where public agencies frequently invest in redundant, non-integrated systems that fail to deliver meaningful efficiencies.
The problem isn't a lack of funding. It's a lack of strategic allocation.
THE PITFALL OF 'PRODUCTS OVER PURPOSE'
Government agencies often prioritize buying products over solving problems. IT procurement is a prime example: Chief information officers (CIOs) are often overwhelmed with vendors offering new cybersecurity and management tools. But adding more tools doesn't always make systems better. Instead of asking, 'What can we buy?' decision-makers should ask, 'What problem are we solving?'
Successful CIOs create a structured discipline for vendor management. By setting clear roles, ensuring contract alignment, and preparing for potential crises, they shift from chasing quick fixes to building sustainable solutions. This is the mindset governments need to embrace.
THE HIDDEN COSTS OF THE 'USE IT OR LOSE IT' MENTALITY
A major roadblock in public sector spending is the 'use it or lose it' budgeting mentality. Agencies rush to spend their budgets before the fiscal year ends, often leading to wasteful purchases that don't align with long-term goals. This squanders public funds.
The issues we face are not a lack of resources or technology, but a failure to think long-term and prioritize impact over transactions. The prevalence of short-term decision-making in the public sector is rooted in systemic challenges. As mentioned above, the 'use it or lose it' budget framework pressures agencies to exhaust funds within fixed cycles, often prioritizing immediate expenditures over investments in sustainable, long-term outcomes. Reforming budget policies to encourage multi-year planning and flexibility could enable more impactful resource allocation.
For vendors and service providers working with the public sector, it's easy to slip into a cycle of mutual dependency that stifles innovation and progress. True disruptors recognize this trap and seize the opportunity to deliver meaningful value by confronting complex public-sector challenges with bold, inventive solutions.
The leaders who dominate the next era won't cling to comfort or familiarity; they'll relentlessly focus on measurable outcomes, agility, and the courage to consistently present decision-makers with thoughtfully designed solutions that clearly address unmet needs.
SHIFTING THE MINDSET
Policymakers and companies working on public sector projects need to redefine success—not as the completion of a contract but as the delivery of real, measurable improvements for the public. As such, public agencies must then move beyond simply 'spending budgets' and instead focus on creating lasting, scalable investments. If we want meaningful change, we must stop treating 'projects' as a short-term transaction and start treating them as a long-term opportunity to shape a more sustainable and forward-thinking governance model. The time for short-term fixes is over.
It's time to put value first.
