Most innovations in public-service institutions are imposed on them either by outsiders or by catastrophe.

Institutions such as government agencies, labor unions, churches, universities and schools, hospitals, community and charitable organizations, professional and trade associations, and the like need to be entrepreneurial and innovative fully as much as any business does. Indeed, they may need it more.

The rapid changes in today’s society, technology, and economy are simultaneously an even greater threat to them and an even greater opportunity. Yet public-service institutions find it far more difficult to innovate than even the most “bureaucratic” company. The “existing” seems to be even ...

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