Public sector: developing administration effectively
The public sector faces tasks that closely combine financial management, digital transformation and social responsibility. The federal government, states, municipalities and public companies must provide services reliably, manage investments effectively and recognise risks at an early stage. At the same time, the requirements for transparency, resilience, sustainability and digital services are increasing.
The special fund for infrastructure and climate neutrality is intended to enable investments of 500 billion euros, including for modern infrastructure, hospitals, schools, daycare centres and digitalisation. A total of 100 billion euros has been earmarked for the federal states and local authorities from the special fund since 2025. These funds increase the pressure to act: projects must be prioritised, properly planned, economically implemented and transparently managed.
Consulting for the public sector: from target image to implementation
For us, consulting for the public sector means translating strategic goals into sustainable structures, resilient processes and effective management models. In doing so, we do not view the requirements of the public sector in isolation. The budgetary situation, regulatory requirements, political objectives, skills shortages and technological developments are all intertwined.
We support you in the further development of organisations, administrative processes and public investments. This includes target images for modern administration, sustainable transformation programmes, profitability analyses, organisational analyses and the implementation of digital administrative services. Our aim is to provide orientation, prepare decisions in a resilient manner and consider suitable risk management strategies at an early stage.
Make the difference: impact for public administration, citizens and business
&public organisations are often caught between a long-term mission and short-term implementation pressure. We help to manage this tension productively. To this end, our experts combine a strategic perspective with operational implementation experience and a clear view of the specifics of public decision-making processes.
Risk management in the public sector: management with foresight
Effective risk management in the public sector creates transparency regarding financial, organisational, technological and regulatory risks. It helps to set priorities, strengthen control mechanisms and document decision-making processes in a comprehensible manner. Structured risk identification forms the basis for this: only when risks are systematically identified, assessed and classified can suitable risk management strategies be developed.
With large investment programmes, information technology modernisation (IT modernisation), funding management or public investments in particular, risk management in the public sector is a central component of good governance. We review existing control structures, support you in identifying risks, identify weaknesses and develop risk management strategies that fit the tasks, size and maturity of your organisation. The topic area Corporate Governance & Compliance provides additional impetus.
Designing digital administration securely
The digitalisation of administration remains a key driver of modernisation. The Online Access Act & Amendment Act (OZG-Änderungsgesetz) came into force in July 2024 and creates the framework for the further end-to-end digitalisation of federal administrative services. For public institutions, this means that processes must be designed to be less media-intensive, more data-based and more user-oriented.
We provide support in the development of digital target architectures, process analyses, the introduction of new systems and the management of complex digitalisation programmes. In doing so, we keep an eye on data protection, information security, cost-effectiveness, risk identification and acceptance in equal measure. This results in digital solutions that are not only implemented, but remain controllable in the long term. Further perspectives on this can be found in the KPMG topic area KI & Digital Transformation.
Combining sustainability, infrastructure and transformation
Investments in infrastructure, climate protection and digitalisation will only have an impact if planning, financing, procurement and implementation fit together. Public clients must structure programmes in such a way that political objectives, legal requirements and practical feasibility are brought together.
Our teams support ministries, authorities, municipalities, universities, health and social institutions and public companies in the transformation. We provide support in strategy development, project management, funding processes, organisational design, financing issues, risk identification, control systems and the development of suitable risk management strategies. For sustainability-related transformation issues, the Sustainable Transformation division offers further specialist points of contact.
Our public sector expertise
KPMG has many years of experience in working with public sector organisations. We know the special framework conditions of public sector mandates: high accountability, complex stakeholder structures, tight budgetary constraints and the need to provide services reliably for citizens and the economy.
We support you in designing projects with foresight, security and precision. Feel free to contact us if you want to further develop your organisation in the public sector, better manage risks or effectively implement transformation programmes.
KPMG. Make the Difference.
