McKinsey and Company‘s government performance research hub has developed a database and benchmarking methodology that works to evaluate the efficiency and effectiveness of government spending in efforts to advance productivity.
The company said that the McKinsey Center for Government’s Government Productivity Scope aims to identify public sector productivity opportunities across healthcare, education, public safety, transportation and taxation.
The methodology also serves to measure the returns on government investment and drive potential changes that could either generate $3.5 trillion in annual savings by 2021 or boost the quality of public services with sustained spending levels, McKinsey added.
MCG utilized the Government Productivity Scope in a study that involves the 42 countries that account for 80 percent of the global gross domestic product.
The study found differences in the productivity of the participant countries in terms of their government spending and outcomes.
McKinsey noted the global public sector should build on functional capabilities in finance, commerce, talent management as well as digital technology and analytics in order to address challenges in productivity, cost and outcomes.