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 access for millions of veterans. 

Federal technology environments reflect this reality — rooted in complexity, decades of legacy systems and layered compliance obligations. Ignoring these realities leads to solutions that sound good in PowerPoint presentations but fail in practice. 

Rather than treat government as a slow-to-modernize version of business, we should start by recognizing that government is operating under very different constraints — and the most effective support comes from those who understand and respect that context.

The right role for a private-sector partner isn’t to “transform government IT.” It’s to reduce friction, cost and risk. Rather than pushing bleeding-edge innovation for innovation’s sake, partners should focus on execution. They should make it easier to manage and sustain core technology operations with the stability and speed today’s agencies require.

Outcome over innovation

Most federal agencies are not the first adopters of new technology. And that’s not a knock — it’s a feature. Agencies need repeatable, secure, proven technology that integrates with their environments and budgets. The best thing private sector partners can do is make those systems easier to run, maintain and evolve.

That means reducing complexity, simplifying governance and leaning into secure, scalable platforms with well-established support. It means providing delivery mechanisms like managed services and as-a-service offerings that reduce internal burden, not just promise future-state improvement. Most importantly, it means delivering reliable results and measurable outcomes — not pitches for perpetual transformation.

That’s the kind of innovation that government needs: innovation in execution. The kind that allows agencies to do more with what they have today — not years from now.

What private sector partners get right

To be clear, there are things the private sector does well — and government should absolutely look to adopt the ones that make sense.

One is the use of service-oriented operating models. Mature commercial IT departments increasingly outsource non-mission-differentiating functions — like help desk operations or server maintenance — to managed service providers. This frees internal teams to focus on their unique value, while shifting operations to providers with the scale, tooling and talent to run them better.

Government can benefit from this same approach — but only if it’s rooted in accountability, not abstraction. Service-based delivery is not about handing off responsibility. It’s about building sustainable partnerships, anchored in service-level commitments and transparency. The goal isn’t just cost savings; it’s execution certainty.

Another is enterprise performance management. Federal agencies are under constant pressure to demonstrate value to oversight bodies, Congress and the public. The private sector has long invested in mechanisms to track performance, optimize throughput and identify underperforming programs. There’s an opportunity to adapt these tools for government use, especially when it comes to aligning IT investments to mission outcomes.

Finally, private industry understands the value of user experience. It’s not about making systems beautiful — it’s about making them usable, accessible and intuitive. Especially in government programs that serve the public directly, the quality of the digital experience can shape trust, engagement and equity.

It’s not about being “like business”; It’s about being effective

But government brings its own strengths to the table — many of which private industry would do well to emulate.

Where business prioritizes speed, government prioritizes stewardship. Where the private sector takes on calculated risk, government shoulders public accountability. That means procurement takes longer. That means technology must go through layers of security and compliance review. That means change is harder, but the consequences of getting it wrong are also far more significant.

And that’s why it’s so critical to bring in partners who understand those stakes — and build for them.

The truth is, government doesn’t need to think like a startup. It doesn’t need to adopt every new framework or chase every new acronym. What it needs are reliable partners — partners who understand that government success looks different and who can support that success without forcing agencies to conform to commercial models.

It’s about making things work better, without adding risk. It’s about managing services that free up time, energy and resources. It’s about bringing the best of what industry has to offer — without compromising what makes government work.

Because in government, success isn’t measured in margin. It’s measured in mission. And those of us who support that mission have a responsibility to treat it with the clarity, respect and reliability it deserves.

Rocky Thurston is the chief executive officer of DMI.