Breaking Down Silos: Agile and Value-Driven Transformation in the Dutch Public Sector

The Dutch central government traditionally operates from a hierarchical top-down structure, characterized by clearly defined silos and managed by numerous directors and managers. While this approach once proved effective, it increasingly conflicts with modern agile principles and customer-centric methods.

Agile mindset and governance challenges

Today, many governmental organizations employ agile methodologies such as SAFe, particularly within ICT projects. Some are already moving towards value streams, establishing multidisciplinary teams around specific customer journeys. Yet, these initiatives frequently encounter obstacles at the governance level. Traditional hierarchical structures (Top Management Framework) often conflict with agile principles, hindering successful implementation in practice. This tension is visible when operational units increasingly demonstrate autonomy, while the management layer remains rooted in traditional governance, hindering effective agile execution.

Risks associated with handovers and fragmented chain management

One significant challenge posed by traditional government structures is the occurrence of handovers—transfer moments between teams or silos. These handovers often lead to reduced quality, inefficiency, and friction in the customer experience. Vertical silos optimize their processes individually without the necessary integrated alignment, leading to fragmented and suboptimal chain management. Consequently, this fragmentation impacts service quality negatively, harming overall customer satisfaction.

Attracting and retaining young talent

A further challenge is the difficulty in attracting and retaining young talent due to traditional hierarchical structures. New generations prioritize flexibility, collaboration, and meaningful work—qualities strongly supported by agile methodologies and value stream approaches. Persisting with outdated structures risks losing emerging talent and complicates recruiting younger professionals. Evidence of this trend can already be seen in the turnover rates among young employees within the government sector. Although employees might be satisfied with their job content, dissatisfaction grows due to a lack of flexibility, opportunities for collaboration, and limited possibilities to excel in their strengths.

Towards integral leadership and new roles

While many government organizations have begun embracing agile mindsets and value stream management, traditional governance structures often remain barriers. Integrated collaboration requires new forms of governance and leadership. Promoting integral leadership, in which executives adopt more facilitative roles, could offer a solution. Introducing roles like value stream managers and chain managers can also significantly improve collaboration and customer-oriented value creation.

Methods and practical examples

Modern methodologies, such as Lean and Agile, emphasize flow and minimizing handovers. Lean management, for instance, focuses on creating smooth value chains without waste or unnecessary handoffs. A practical example is the agile implementation within municipalities, where integrated teams handle end-to-end service delivery to citizens, demonstrably improving customer satisfaction and operational efficiency.

Conclusion

By abandoning outdated organizational structures, emphasizing horizontal collaboration, and strategically implementing new roles to guide these transformations, the government can better meet current and future societal needs. This shift will enhance organizational agility, appeal to young professionals, and deliver optimal outcomes for citizens and stakeholders.