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Mckunsey
&company
July2026
PublicSectorPractice
BuildingAmerica’s
innovationengine:AninterviewwithDavidLebryk
TheformerUSTreasuryofficialshareshowgovernmentcandeliverin
momentsofcrisisandhowAmerica’spublic–privatesectordynamiccanhelpfuelitsnexteraofgrowth.
DavidLebrykspentmorethan35yearsattheUSTreasury,servingsixadministrationsand12
treasurysecretariesandholdingnumerousseniorpositions,includingactingsecretaryofthe
treasuryin2025.From2014to2025,hewasthefiscalassistantsecretary,thedepartment’s
mostseniorcareerofficial.Duringhistenure,LebrykmanagedtheBureauoftheFiscalService’s$6trillionannualpaymentoperationandledtheefforttodeliver480millionCOVID-19
economicimpactpaymentsinrecordtime.Healsoledthedepartment’sfinancing,collections,andgovernment-widereportingoperations.
AsAmericamarksits250thanniversary,we’resittingdownwithpublic-andprivate-sector
leaderstoexploretheideasandopportunitiesthatwillshapethecountry’snextchapter:fromcompetitivenessandinnovationtoresilienceandinstitutionalrenewal.Inthisinterview,
McKinseySeniorPartner
TomDohrmann
talkswithLebrykabouttheingenuityandleadershipthathasenabledAmericatoovercomesomeofitsgreatestchallenges,whatmakes
public–privatepartnershipsocentraltoAmerica’sabilitytoinnovate,andwhypeoplearemission-criticaltomakinggovernmentwork—andworkbetter—forall.
TomDohrmann:AsAmericacelebratesits250thanniversary,whataresomeoftheuniquely
Americantraitsthathavecontributedtoourabilitytoinnovateandreinventourselvesovertime?
DaveLebryk:Iwouldfocusprimarilyontheintersectionbetweengovernmentandtheprivate
sector.GobacktotheManhattanProject,theinterstatehighwaysystem,theApolloSpace
Program—andmostrecentlytheresponsetoCOVID-19,includingOperationWarpSpeed.Whenthenationputsitsmindtoit,wecandoveryremarkablethings.
Isawthatrepeatedlythroughoutmy35-yearcareer.Whenacrisishit,thegovernmentactedasacatalystandwasquiteeffectiveinaddressinggenuinelytoughproblems.Thatmeantworkingateverylevelofgovernment—federal,state,andlocal—andwiththeprivatesector,academia,nongovernmentalagencies,andnonprofits.Whenthoseentitiescometogether,bigproblemscanbesolved.
Thatcollaborativedynamicisauniquefeatureofourcountry.Youhavetheprivatesector,fromindividualsworkingoutoftheirgaragestoorganizations—largeandsmall—innovatingand
creatinginavibrantway.Atthesametime,thegovernmentisconductingandfundingimportantresearch,oftenbasicresearchthatisfoundationaltoprivatesectorinnovation,andhelping
citizenswhentheyneedit.Thatintersectionofastrongprivatesectorandaneffectivepublicsectoriscriticaltoournationalsuccess.
TomDohrmann:You’vesaidinthepastthatthegovernmentdoesn’thaveaninnovationproblem;ithasaninnovationadoptionproblem.
DaveLebryk:Ioftenaskthequestion,“CouldthegovernmenthaveproducedtheiPhone?”Andasimilarquestion,“CouldApplehaveproducedtheiPhonewithoutthegovernment?”Andtheanswerisnotobothquestions.ThebasicresearchthatwentintotheiPhonecamefrom
government-fundedwork,sothereisagreatdealofinnovationbeingdrivenbythepublic
BuildingAmerica’sinnovationengine:AninterviewwithDavidLebryk2
BuildingAmerica’sinnovationengine:AninterviewwithDavidLebryk3
sector.
Atthesametime,governmentoperatesinsilos—andsilossometimesgetabadname.Buttheycanbesilosofexcellencewhereverygoodworkisbeingdone.Inmyworldofpayments,wherewewereresponsibleforissuing75millionbenefitpaymentspermonth,wehadgreatexpertiseinthatsilo.Wewerereallygoodatmakingpayments;Iwouldsaybestinclass.Butwewerenotparticularlygoodatroutinelylookingoutsidethesilotoexaminedifferentandbetterwaysof
doingourwork,andwehadtobeveryintentionalaboutmaintaininganoutwardfocus.
WhatIlearned,oftenthehardway,isthatwhenyouaretryingtoimplementnewtechnology,itisoftenmoreeffectivetodoitoutsidethesilo.Youseethisintheprivatesectorafairamount;
small,agile,cross-cuttingteamsthatarelookingatproblemsdifferently.Governmentdoesn’tdothataswell.Leadersshouldmoreregularlyask,“HowdoIexploreandassessanewidea?HowdoIsetupteamssotheyareunencumberedbythedaytodayandcantest,incubate,and
deploynewtechnologywiththegoalofscalingit?”
Thislastpiece—successfullyintegratingnewtechnologyintostandardworkflows—iswhere
mosteffortsfail.McKinseyhasdonealotof
researchaboutchangeinitiativesandintegration
,whichfailnotsomuchbecauseoftheunderlyingtechnologybutbecausesuccessfuladoptionandintegrationisinherentlyapeopleissue.Youcangettheunderlyingtechnologyright,but
howpeopleactuallyusethattechnology
isultimatelythedeterminingfactor.AndonethingI’veobservedingovernmentthatisnotwellunderstood:Thefrontlinesupervisoristheonewho
makesorbreakslastingchange.Youcanarticulateavisionattheseniormostlevel,butifyou
don’thavethefrontlinesupervisortranslatingthatvisiontotheemployees,changedoesn’ttakehold.
TomDohrmann:HowdidyoudriveinnovationattheTreasuryDepartment?
DaveLebryk:It’sgenuinelyimportantforseniorofficials,oranyoneinanorganization,tobe
outwardlooking.Forme,innovationwasalwaysabout:“Howcanwebealearningorganization,constantlyscanningthehorizonfornewopportunitiesandevaluatingwhatwecantake
advantageof?”
Thatsaid,therearedifferencesbetweentheprivatesectorandthepublicsector.Wecan’t
affordtofailfastinpublicsector.Weneedtoensurethatthemission-criticalsystemsdeliver
andthatimportantworkcontinuestogetdone.Governmentfailuresaredifferentfromprivate
sectorfailures;thestakesaremuchhigher;wedon’twantourairtrafficcontrollerstofailfast.Atthesametime,weneedtobethinkingconstantlyabouthowtodothejobbetter,todayandin
thefuture.
Oneofthethingswedid,andMcKinseywasagenuinehelphere,wasperiodicallystepbacktoscanemergingtrendsandthinkaboutwherewewereheadedoverthecourseofthenext
decade.Indoingso,wewouldidentifyahandfulofhigh-impactinitiatives,thenprioritizeandsequencethemcarefullytoensurewewerewellpositionedforthefuture.
BuildingAmerica’sinnovationengine:AninterviewwithDavidLebryk4
TomDohrmann:What’sanexampleofoneinnovationthatyou’reespeciallyproudof?
DaveLebryk:Thereareseveral,butonethatsticksout—becausewelookedattheproblem
differently,leanedintoemergingtechnology,andchallengedexistingprocesses—wasourefforttodigitizealargenumberofsavingsbondsrecords:overtwobillionofthem.Fiveorsixyears
previously,wepurchasedopticalscanningequipmentthatwaseffectivelyobsoletebythetimeweaccepteddelivery.Sowhenitcametimetoscaletheeffort,werantheprocurement
differently.Wegaveanumberofvendorssamplefilesandsaid,“Youhavesixmonthstoshowuswhatyoucando.”
Thefirmweultimatelychoseputtogetherasmallteamthatusedmachinelearningto
accommodatethenumerousformatsofsavingsbonds.Theirsolutionwasfaster,higherquality,andsignificantlylessexpensivethaneveryotherproposalandasignificantimprovementovertheoldapproach.Weendedupsavingtensofmillionsofdollarsandcompletingtheprojectatleastayearaheadofschedule.
TomDohrmann:WhenIthinkabouttheopportunityforAI,Ithinkofalloftheservicesthatwedointhepublicsector,fromrenewingadriver’slicensetoapplyingforsocialsecurityor
Medicare,toairtrafficcontrol.AndIlookattheseandsay,“Howcouldtheyworkbetter?”Thesearerealopportunitiestodramaticallychangethingsandincreasethespeedofadoption.
DaveLebryk:Iagree.Manyofthechallengeswefacearestructural.ManyofourITsystems,
someofwhichgoback50years,havebeenlayeredandcobbledtogetherinoftenunimaginableways.Changingthosesystemsisnotamatterofhavingagreatideabutamuchmore
complicatedundertaking.Thisiswheregreenfieldisoftenabetterapproach.
Whenyou’reworkingwithinanembeddedinfrastructureandentrenchedskills,therunwayfor
changeismuchlongerthanwhenyou’rebuildingsomethingneworrespondingtoapressing
need.Crisestendtomeanyouacceptmoreriskandbreaktherulesalittlebit.Thechallenge
thenbecomes:Canyoutakethoselearningsandapplythemintoyourday-to-dayoperations?Aharderthingtodo.
Wewouldalsobenefitfromusingtechnologytoimprovethecitizen’sexperience—andindoingso,strengthentrustingovernment.McKinseyhasdoneimportantworkonthis:
Thebetteryour
experiencewithgovernment,themoretrustyouhave
intheinstitution.Whetherit’stax
collectionorpassportapplications,orarangeofservicesdelivereddirectlytothepublic,weneedtodobetteratunderstandinghowcitizensusethoseservices.Flexible,user-centric
technologywouldmakeameaningfuldifference.
TomDohrmann:SomehistoricalcrisesledtosomeofthegreatestmomentsinAmerican
government:theManhattanProject,thecreationofNASA,OperationWarpSpeed.Whatweretherulesyoubroketomanagecrisessuccessfullyduringyourgovernmenttenure?
DaveLebryk:TheEconomicImpactPayments,atthestartoftheCOVID-19pandemic,is
BuildingAmerica’sinnovationengine:AninterviewwithDavidLebryk5
somethingIwasveryintimatelyfamiliarwith.Thelasttimewetriedsomethingsimilar,ittookussixweekstogetthefirstpaymentout.Toputitincontext:Wewereheadingtoward20percent,30percentunemployment,andGDPwascollapsingdomesticallyandinternationally.Therewasanurgentneedtomovefast.
Itwasoneofthemostmemorablemomentsinmycareer:Weweregatheredinthe[treasury]
secretary’sconferenceroomwhenSecretaryMnuchinwalkedin,lookedatme,andsaid,“You’reresponsibleforgettingthosepaymentsoutintwoweeks.”Ithought,“Istheresomeoneelse
herehe’stalkingto?We’veneverdoneanythinglikethisbefore.”
Whatitreallymeantwasgettingtheseniorcareerleadership—me—andapoliticalappointee
togethertoworkcloselywiththeIRSandtheBureauoftheFiscalService,andwewereall
forcedtothinkdifferentlyabouttheproblem.Weissued80millionpaymentswithintendays
and163millionpaymentswithinfiveweeks—atimelinethat,toputitinperspective,wasfasterthanwegotoutthefirstpaymenttheprevioustime.Inthesecondround,wewereabletoissue110millionpaymentswithinadayofthepresidentsigningthebill.
Wematchedpaymentrecordsagainstexistingaccountstospeedupelectronicdelivery.We
increasedourcapacitybyrunningourcheckingproductionfacilitiessevendaysaweek,duringaperiodwhenverylittlewasknownaboutthevirusandmostemployeeswerenotcominginto
work.Andweissueddebitcardstomanypeople,includingthosewithoutabankaccount.
Itwasacollectivewilltogetsomethingdone,andtheresultswereextraordinary.The
remarkablethingisthatthe163millionpeoplewhoreceivedpaymentsdidn’thavetodo
anything.Thepaymentssimplyshowedupintheirmailboxorbankaccount.Andinthethird
round,throughtheChildTaxCreditprogram,weissuedpaymentsthatbysomeestimates
reducedchildhoodpovertyby50percent.Whenyoulookatthatimpact,onboththeeconomy
andmillionsofchildren,youthink:Governmentcandobig,impactfulthingswhenitputsitsmindtoit.
TomDohrmann:IfyouthinkabouttheleaderswhohaveshapedAmerica’shistory,perhapsthebestknownleaderofthetreasury—whereyou’veservedasacareerofficial—isSecretary
AlexanderHamilton.Whatlessonsdidyoudrawfromhimandotherleaderstobesuccessful?
DaveLebryk:Earlyinmycareer,IwascalledintoameetingwithSecretary[Robert]Rubin,andheturnedtomeandaskedformyopinion.Ilookedaroundtheroomandsawsomeremarkablepeople,manyofwhomarehouseholdnamesinthefinancialworld,andwondered,“HowamI
goingtoaddsomethingofvaluetothediscussion?”MyrecollectionisthatIdidallright.ButItooktwolessonsawayfromthatexperience.
Thefirstwastoalwaysbeprepared.Youneverknowwhenyoumaybeaskedtocontribute.Thesecondwas,asaleader,it’scriticallyimportanttoactivelyengagepeople—includingyounger
staff—whendeliberatinganimportantissue.IhadnoexpectationthatSecretaryRubinwouldtakemyadvice,butIwasstruckbythefactthathewasdrawingfromawiderangeof
BuildingAmerica’sinnovationengine:AninterviewwithDavidLebryk6
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perspectivesbeforemakinghisdecision.Whenitcametimeformetolead,thatapproach
servedmewell.Throughoutmycareer,whenIwasfacedwithadifficultdecision,Iconsultedavarietyofsourcesbeforeacting.Itneverfailedme.
AnotherformativebosswasFrankNewman,theformerCFOofBankofAmerica.WhenIworkedforhimhewasapoliticalappointeeattheTreasury;heunderstoodthathistenurewaslimited
andthatsuccessrequiredfocus.Sohefocusedonthreeorfourprioritiesandwasvery
disciplinedinfilteringoutthenoiseinpursuitofthose.Andhewasenormouslyeffective:Five
piecesoflegislationthatwererelatedtodomesticfinancepassedduringhistenure,inlargepartbecausehestayedfocusedonahandfulofissues.
Finally,fromanotherearlymentor:the
roleofcharacterinleadership
.SeveralyearsafterthismentorlefttheTreasury,heofferedathoughtt
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