Chief Minister Andrew Barr said the government had been let down by areas in the ACT's public service as he announced a new ministry tasked with leading structural changes.
However, he has been quick to rule out any job cuts in the public service.
Rachel Stephen-Smith has been appointed as the Public Service Minister and will oversee changes in the public service, especially around its structure and how services could be delivered more effectively.
Mr Barr said the letdowns in the public service were around expenditure on ICT projects.
"I think there have been some areas where we feel we have been let down and we want to take a renewed focus on shaping the ACT public service to deliver the priorities that we've taken to the election and, indeed, priorities that have been identified across the Assembly," he said.
"There is need for a sharper focus there and we will need to make those changes."
The territory government was forced to abandon the introduction of a new human resources management computer system after spending nearly $78 million on it. The Auditor-General found the project was a "significant failure for the territory".
The ACT's new digital health record was also found to have been delivered with "ineffective financial management and cost control".
Mr Barr has flagged a significant shake-up of the ACT's public service but he said the changes would take time.
"There's a modernisation and innovation opportunity, we think, but it's work that needs to be done in collaboration with portfolio ministers and in consultation with the public service," he said.
"We're not announcing sweeping changes today but we are announcing an intent to look across the structure of the ACT public service to see how we can shape that in a way to deliver more services more effectively."
Ms Stephen-Smith said no jobs would be cut as a result of the changes. She said it could mean more jobs would be in-sourced.
"This is not about cutting public service jobs and we are committed to things like in-sourcing our cleaners at Canberra Health Services, ensuring that we grow our health workforce," she said.
"I've been involved in government in various ways for a very long time and I am absolutely committed to ensuring that taxpayers' money is used to the best possible effect for the people of the ACT."
"That doesn't mean cutting public service jobs, sometimes it will mean in-sourcing things that are not being delivered as efficiently and effectively by people outside the public service as they can from within the public service."
Mr Barr announced his new-look cabinet on Thursday morning.
