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A private-sector solution to public-sector design

A private-sector solution to public-sector design
By Mary Schwarz and Lindy Dreyer
Lindy Dreyer
Senior Partner, Strategy and Transformation
Apr 1, 2025
2 MIN. READ

Federal agencies face mounting pressure to modernize digital services efficiently—balancing broad accessibility with fiscal responsibility. An agile, iterative approach can help leaders deliver value faster without leaving edge cases behind.

One of the biggest advantages private-sector organizations have is the ability to prioritize. Imagine a large automobile manufacturer that conducts market research and learns that 80% of its customers want to drive a blue car. To maximize return on investment, the company reallocates resources toward producing blue cars first—a choice that rarely raises eyebrows in the private sector.

Unlike private companies, federal agencies must serve everyone. That means accounting for edge cases so people can access services regardless of physical condition, environment, income, or tech fluency. Extending the car example, agencies must offer a full array of options to the public, in one way or another.

In many cases, the federal government takes an all-or-nothing approach to solving technology challenges. This can lead to inefficient solutions that take longer to implement and often cost more than they should.

What if agencies could split the difference—focusing first on the needs of the many, then iterating to serve the few? What if they could build the “blue cars” first, then incrementally add additional options?

This isn’t a far-fetched idea. Some federal technology initiatives are already taking this approach.

Maximizing value for spend

Under the GSA Customer Experience Center of Excellence, ICF partnered with the U.S. Department of Agriculture (USDA) to modernize a federal farm loans program. One goal was to reduce the loan processing backlog.

During initial observational research, we found that a digital-first solution would benefit most producers and loan recipients. At the same time, many producers valued in-person meetings with loan officers—particularly geographically isolated farmers, for whom these interactions were meaningful. This insight led to a hybrid approach to streamline the program.

By prioritizing a digital solution for most users, USDA reduced processing backlogs and achieved significant upfront savings—while preserving in-person options for those who needed them.

The farm loans modernization illustrates the value of a flexible approach to federal technology challenges. Rather than layering on more technology and increasing complexity, this approach delivers an efficient, cost-effective solution that meets a variety of needs.

This approach is especially relevant now, as emerging technologies—particularly artificial intelligence—continue to evolve. It also aligns with broader federal priorities to reduce spending through innovation. Focusing modernization efforts on core functionality first can help agencies avoid the significant upfront costs of large-scale implementations.

Here’s how it works:

  • Conduct targeted observation to understand key challenges in a service or process
  • Develop a solution that addresses the needs of the majority of users
  • Deploy a foundational product, then iterate in an agile environment using continuous user feedback
  • Expand and refine the solution over time to better serve edge cases

Taking a page from the private sector’s iterative approach does not mean leaving people behind. It means delivering essential services sooner—while ensuring taxpayer dollars are used as effectively as possible.

Federal agencies that embrace an iterative, agile approach to digital modernization can deliver essential services more efficiently—meeting the needs of the majority first, then expanding to edge cases as resources allow. This mindset helps maximize value, reduce costs, and advance mission outcomes in a rapidly evolving technology landscape.

Meet the authors
  1. Mary Schwarz, Managing Partner, U.S. Federal Government

    Mary is an expert in data-informed digital strategies with more than 20 years of experience. View bio

  2. Lindy Dreyer, Senior Partner, Strategy and Transformation

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