Public sector organizations play a critical role in governance and service delivery in Mongolia. However, improving performance, responsiveness, and public trust remains an ongoing challenge. Addressing these issues requires a systematic approach that fosters continuous improvement and better alignment with citizen needs. Business excellence frameworks offer such a pathway by providing a structured method to assess organizational strengths and gaps, align strategies, and enhance service delivery.

The Development of Demonstration Companies (DMP) project Enhancing Public Sector Productivity through Performance Excellence in Mongolia was jointly implemented in Ulaanbaatar by the APO Secretariat and the Mongolian Productivity Organization from May to December 2025 to establish role models in business excellence application for wider replication. Four public organizations, the Office of the Governor of the Capital City, Second State Central Hospital, the Social Insurance Office of Chingeltei District, and the Social Insurance Office of Sukhbaatar District, participated and were guided by a resource person from Canada.

The project significantly enhanced the participating organizations’ capacity to apply business excellence principles, enabling them to conduct thorough self-assessments, identify capability gaps and corrective actions, and develop productivity roadmaps. Additionally, initiatives applying productivity tools such as process mapping, fishbone diagrams, and Pareto analysis resulted in a 20% reduction in patient admission time, a 21.5% reduction in complaint processing time, an 18.9% improvement in customer satisfaction, and improved service accessibility. By institutionalizing a performance scheme for public authority, the project laid a foundation for sustainable public sector productivity reform, enhancing citizens’ daily lives, well-being, and trust in government.