Deloitte: Federal Agencies Must Plan Reorganizations More Carefully

By Kalen Smith, Big4 Blogger

A new study from Deloitte and the Government Business Council has found that government agencies are considering reorganizing. Leaders of government agencies have stated a number of reasons for reorganizing. However, more than half are restructuring due to tighter budgets.

Reorganization is becoming necessary for many agencies seeking to continue delivering their services in a sustainable manner. However, the study found that nearly two thirds of the agencies lacked the resources or skills to implement a reorganization campaign effectively. More than 90% of the managers polled had participated in a reorganization. However, their staff are likely to need more insight and support than they can offer.

John Powers, global merger and acquisition consulting services leader of Deloitte, said that the reorganizations will have an interesting impact on many federal agencies. They are going to be forced to prioritize the features of their projects with limited funds. Agency leaders hope they can work on tighter budgets without compromising their ability to serve their clients effectively.

Powers said that federal agencies face a number of challenges as they move towards reorganization. However, many government divisions have responded with successful reorganization models that have helped them create more effective and increasingly sustainable models.