As per the Osborne and Gaebler, governments don't work well, since they are tall, sluggish, over-centralized, and preoccupied with diverse rules and regulations."We developed public agencies to guard the public against politicians and bureaucrats gaining so many powers or misusing public money. In making it hard to steal the public's money, we made it virtually unfeasible to administer the public's money... In attempting to control virtually the whole thing, we became so obsessed with dictating how things must be done - managing the process, controlling the inputs - that we ignored the outcomes, the results". Osborn and Gaebler suggest "Entrepreneurial Government": a government that can struggle and must compete with nonprofit agencies, for-profit businesses, and other units of government. 
Ten Principles of Reinvention (Osborne and Gaebler)

The Entrepreneurial Government must be:

1. Catalytic. Steering rather than rowing.

2. Community-owned. Empowering rather than serving.

3. Competitive. Injecting competition to service delivery.

4. Mission-driven. Changing rule-driven organizations.

5. Results-oriented. Financing outcomes, not inputs.

6. Customer-driven. Meeting the requirements of the customer, not the bureaucracy.

7. Enterprising. Earning rather than spending.

8. Anticipatory. Prevention rather than cure.

9. Decentralized. From hierarchy towards participation and teamwork.

10. Market-oriented. Leveraging change through the market.

The model of David Osborne and Ted Gaebler for Entrepreneurial Government has show the way to the initiation of the National Performance Review (NPR) by Vice president Al Gore in 1994.