Delivering Rapid Economic Progress CONFIDENTIAL AND PROPRIETARY Any use of this material without specific permission of McKinsey & Company is strictly prohibited

Governments across the globe, face common challenges in mobilizing for delivery Leadership Powerful stakeholders Silos: Federal vs. Local Inertia, motivation and speed of civil service Lack of delivery capabilities (e.g detailed planning) Insufficient funding Seelan

Performance management & problem-solving We have developed a 10-step breakthrough delivery methodology which has already delivered impact across the globe Participative process for creating detailed action and resource plans owned by stakeholders 2 3 4 5 10 1 Public feedback Labs Budget Roadmap Institutionalizing delivery Priorities and outcomes 6 7 8 9 Performance management & problem-solving Delivery unit(s) Capacity building Communicating impact Establishing a high performing Delivery System that turns plans into results 4 phases Priorities and outcomes Defining plans and creating ownership Delivery and implementation Institutionalising Priorities and outcomes Labs Budget Public feedback Roadmap “The 3-6 things that keep you up at night” “The people who can solve the problem are all right here” “A plan without a budget is a draft” “The days of government knows best are over” “If it’s not on paper, it doesn’t exist” Delivery unit(s) Performance management & problem-solving Capacity building Communicating impact Institutionalizing delivery “The engine room of implementation” “If it doesn’t get measured, it doesn’t get done” “Teach them how to fish” “If they don’t see it, they don’t believe it” “Making breakthrough impact the norm”

We have helped achieve big, fast, sustainable results that people can touch, see, feel In less than 6 months… Within 12 months… After 12 months… Chile 40% 30,000 Saudi Arabia Bhutan 13,000 20% Malaysia $500m Reduction in number of days to open a company from 27 to 16 days Sugar investment deal closed after being stalled 7 years 1.5 million Additional children enrolled in school in Punjab in 18 months Tanzania Pakistan Jobs created in 7 core export sectors in 4 years including agribusiness, automotive 15% 200k Reduction in street crime after years of increases New seats created for quality youth vocational education Morocco UK 24 million Informal workers eligible for social security for the first time Growth in government revenues since property tax redesign in 2 years Jobs created across tourism, craft and construction sectors 500% Thailand Angola Applied city innovation deli-very playbook developed for Bloomberg Philanthropies Reduction in stroke mortality in 2 years and £25 million projected cost savings over 10 years 5 cities 10% Increase in private investment London US

Publish Annual Reports Report International Standing Audit Results Achieving Impact alone is not enough, it needs to be communicated credibly … Publish Annual Reports Report International Standing Audit Results Independently Validate by International Panel Seelan

Display branding on all tangible evidence of delivery initiatives … and innovatively… Display branding on all tangible evidence of delivery initiatives Engage citizens to deliver & sustain impact Measure and communicate perceptions Leverage online and social media Seelan Measure and communicate perceptions Embrace pop culture

While every country is different, all successful transformation programs share the same DNA: What does this mean for Sri Lanka? 1 Prioritize reforms that are radical, deep and fast, and that the ‘people’ can touch, see and feel 2 Be careful though on chasing only quick wins; ensure some of these are catalytic 3 Lead by example, by showing strong vision and full commitment, and holding others accountable 4 Manage expectations by only making realistic promises. Credibility is your currency 5 Commit to regular engagement of the public to win their support e.g., via town halls, TV, advertisements, social media, periodicals 6 Remember the ‘people’ element. Technical changes must be accompanied by changes in mindsets and behaviours 7 Build executive firepower with a strong, “clean” team to deliver critical goals, with driven culture of high standards and rigorous performance management 8 Adopt trial-and-error mentality: it is a journey where success brings success and you learn as you go