Leading a public department or agency is famously difficult, and it’s only getting harder. In a McKinsey survey of over 800 senior public sector leaders worldwide, we identified the trends that are most likely to disrupt delivery of government missions—from tighter budgets to tougher competition for talent to technological change (see sidebar, “About the research”). The good news is that many leaders are rising to these challenges and navigating the constraints of public sector institutions by honing in on six essential practices of leadership excellence (Exhibit 1). The most effective leaders are recognized for their character, courage, and values—and for the capabilities of setting clear direction and getting things done, despite an environment of flux.