What government can learn from the private sector — without becoming it

The April executive order "Ensuring Cost-Effective Commercial Solutions in Federal Contracts" requires agencies to adopt commercial-off-the-shelf solutions to the "maximum extent practicable." Combined with the creation of the Department of Government Efficiency, there’s renewed pressure for government to operate more like the private sector. 

In theory, that might sound reasonable. But in practice, the comparison is not only unhelpful; it’s often misleading. It ignores the fundamental difference between the two sectors: government missions are defined by mandates, not markets. To meet current mandates, the government and its industry partners need to reevaluate and redefine their partnerships.

Navigating new terrain: cross-sector collaboration 

Government agencies don’t choose their customers, and they don’t operate with the same financial incentives or risk tolerance as private enterprises. A failed software rollout at a startup might cost market share, whereas a failed rollout at the Department of Veterans Affairs would affect healthcare ...