McKinsey and Company‘s government performance research hub has developed aÂ database and benchmarking methodology that works to evaluate theÂ efficiency and effectiveness of government spending in efforts to advance productivity.
The company saidÂ that the McKinsey Center for Government’s Government Productivity Scope aims to identify public sector productivity opportunities acrossÂ healthcare, education, public safety, transportation and taxation.
The methodology also serves toÂ measure the returns on government investmentÂ and drive potential changes that could either generateÂ $3.5 trillion in annual savings by 2021 or boostÂ the quality of public servicesÂ with sustained spending levels, McKinseyÂ added.
MCGÂ utilized theÂ Government Productivity Scope in aÂ study that involves the 42 countries that account for 80 percent of the globalÂ 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.