Without getting into how hard or easy it is for government agencies to change (recognising there's a diversity of views), any change should, necessarily be for the better.
The wrong changes could lead to massive costs and organisational failures, so identifying the right type of changes (as near as possible) is a necessary first step once an organisation has reached a point where it recognises and accepts it need to make changes.
Fortunately there's lots of people thinking about this around the world, and in the US, over the last six months, a group of 900 people, spearheaded by Jonathan Opp and Chris Grams and as a joint collaborative effort by the MIX, Saba, and the Enterprise 2.0 Conference, have conducted a Management 2.0 hackathon (inspired by software hackathons) to consider how management and organisations will need to adapt to survive and thrive in the 21st century.
Entitled The Management 2.0 Hackathon: Using the inspiration of the web to hack management, the process resulted in the blog post (linked) and the marvellous report embedded below.
The report is available for download under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 United States License.
I strongly recommend that you take a look at the report and consider circulating it to your senior leadership team. It may provoke new thinking and support your organisation's efforts to identify and implement the right changes to ensure your organisation remains relevant, influential and effective into the future.