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The Dilemma of Big Organizations: Public vs. Private Sector Dynamics
Big organizations, whether in the private or public sector, tend to develop similar dynamics over time, leading to bureaucratic stagnation and inefficiency. Companies like Google face challenges reminiscent of government institutions, where innovation becomes difficult as original leaders step back and internal processes hinder progress. Unlike the private sector, where dynamic startups can emerge and create new solutions quickly, the public sector lacks the same ecosystem for innovation, primarily due to rigid civil service structures that stifle external talent and new ideas. Consequently, meaningful change in government relies on political forces to mandate reform, as the internal civil service is often incapable of self-initiated transformation. To foster innovation in public institutions, it is essential to dismantle ineffective systems and introduce new entities that can attract fresh talent from outside the bureaucratic framework.