McDonagh was part of the
New Labour leadership inner circle for the
1997 general election campaign and was one of the inner-core deciding the official party position on specific issues. She was considered to have badly mishandled the party's
London mayoral candidate selection process, which resulted in
Ken Livingstone winning
2000 mayoral election as an independent candidate, leaving the official Labour candidate,
Frank Dobson, in third place, with subsequent disapproval amongst the party members. McDonagh later apologised for the mayoral electoral loss. After stepping down from the position of General Secretary following the 2001 general election, McDonagh took a short
Harvard University business course and became general manager of
Express Newspapers. She was a non-executive director of
Standard Life,
TBI plc, and CareCapital Group plc. She was chair of the Standard Life Charitable Trust. In 2013, McDonagh was appointed chair of the Smart Meter Central Delivery Body, which then became Smart Energy GB, an independent organisation that aims to inform consumers about
smart meters and their national rollout across Great Britain. ==Personal life==