Pursuant to a congressional request, GAO reviewed public and private sector managerial initiatives that have improved efficiency and reduced operating costs.

GAO found that: (1) fundamental changes in service delivery are occurring in the private sector, federal government, and state and local governments; (2) private organizations are developing approaches to better address the cost of programs and services; (3) the primary focus of the managerial initiatives is to enhance future productivity and to avoid future costs; (4) successful corporate restructuring is seen as a long-term process, rather than a quick fix; (5) successful organizational changes are planned and implemented as holistic efforts directed at long-term objectives; (6) integrated changes, rather than across-the-board approaches are far more likely to achieve desired results; (7) successful changes are marked by top management commitment and employees who are involved, informed, and free to innovate; and (8) organizational changes typically include a trade-off between allowing managers greater autonomy and flexibility in exchange for increased accountability for their performance.