The institutional structural reform strategy is envisioned as a significant driver for reengineering and modernizing work systems at public institutions. Reengineering has become essential for building resilience against local and global issues, especially in time of crisis. Unfortunately, many government institutions that continue to use traditional strategies and mechanisms incompatible with political, economic, social, environmental and technological dramatic changes risk facing a high degree of uncertainty about institutional capacities in meeting public needs, particularly during times of crisis or dramatic change. In this context, the chapter proposes broad features and guidelines for institutional structural reform with a global perspective as a cornerstone toward sustainable development. Furthermore, it introduces new concepts such as initiative management, state survival bureaucracy and inclusiveness. It emphasizes the significance of digital governance as a component of the structural reform process, not only from a service standpoint but also as a smart engagement platform to enhance civic participation and decentralization.