How might we dramatically improve business and government
interaction?
Design Prospectus from the Australian Centre for Excellence in Public
Sector Design November 2012
72% of businesses say the time they’re spending on ‘red-tape’ has increased in the last two years
(National Red Tape Survey, ACCI 2012)
Two-thirds of Australian company directors believe that the Federal Government does not
understand business (Director Sentiment Index 2012, AICD)
Australian Centre for Excellence in Public Sector Design
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The Australian Centre for Excellence in Public Sector Design will assist the Australian Public Service
(APS) to meet the challenges of delivering innovative, practical solutions to today’s complex
problems and to explore new methods in solution formulation, development and delivery. The
Centre will inspire creativity, innovation and a more citizen-centric approach through consultation,
collaboration and co-design (Charter, May 2012)
Milestones
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May 2010 - Management Advisory Committee report ‘Empowering Change’ released,
including recommendation for the establishment of a Centre
April 2011 - APS 200 Project on Public Sector Innovation reports to Secretaries Board
June 2011 - Launch of the APS Innovation Action Plan
December 2011 - Secretaries Board Decision to proceed with establishment of a pilot Centre
for Excellence in Public Sector Design
January 2012 - Call for Expressions of Interest for CEO for the Centre
May 2012 - Secretaries Board agreement to the Charter and overseeing Board for the Centre
June 2012 - Appointment of CEO, Ms Jane Treadwell
July 2012 - Commencement of Centre operations
August 2012 - Consultation and research on the problem areas facing government
September 2012 - Inaugural meeting of the Centre’s Board and decision on the area for
project exploration
October 2012 - Research, interviews and first cross-agency Insight Workshop exploring
business-government interaction
December 2012 - Secretaries Board and Centre Board make a decision on the Design
Prospectus
January 2013 - Commencement of full design phase of the project
Australian Centre for Excellence in Public Sector Design
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At a glance
This is an opportunity to better understand the business and government relationship
and how things could be made better.
The Australian Centre for Excellence in Public Sector Design (the Centre) was asked by its Board to
scope projects within the problem area of government and business interactions to demonstrate the
value and benefits of design thinking and design methodologies.
Government and business have a complicated, messy, and highly variable relationship. This has led
to much frustration and unnecessary costs, including opportunity costs, on both sides. The focusing
question is, therefore, “How might we dramatically improve business and government interaction?”
Following a design approach, an Insight Workshop1 to rapidly generate ideas was held with
representatives from 26 Departments/Agencies on 30 October 2012, along with desktop research
and one-on-one interviews with a mix of stakeholders. A primary challenge space – ‘buried in
bureaucracy – ease my burden’ was identified. Two key sources of pain (‘pain points’) were
identified within the challenge space and it is expected that others will emerge during the proposed
further fieldwork research. The two pain points described in this prospectus are: ‘I don’t know – how
do I find out?’ and ‘Tell me, hear me, let me have a say’.2 The research to date has also identified
some insights of immediate value, including an area of possible further design-led exploration within
the APS (see section titled Immediate Value).
What is the proposal?
This Design Prospectus seeks financial and staffing contribution from all government portfolios in
order to conduct qualitative research, specifically ethnographic3 research, and apply some early
stages of the design approach in and with Australian businesses. This will allow the APS to better
understand the business and government interactions and identify preliminary insights for further
exploration. Ethnographic research will generate a real understanding of the ‘lived experience’ of
businesses and their interactions with government and help to create more compelling solutions
that will connect with users.
As an example, an international not-for-profit organisation called the Kafka Brigade has proven the
utility of ethnographic research in tackling the wicked problem of ‘bureaucratic dysfunction’ to
reduce government ‘red-tape’ and help businesses and bureaucracies to work better. We propose to
explore the relevant elements of the proven Kafka Brigade methodology and other related
1
An Insight Workshop is conducted with people from multiple organisations with specific experiences or
knowledge of aspects of the ‘problem’. It generates a composite picture of the context, issues, ‘actors’,
barriers and possibilities under consideration
2
A further issue area around roles of government and business was also identified, touching on issues of
uncertainty and changing expectations about respective responsibilities. It is not proposed that this area be a
primary focus of the project, however it is expected that the outputs of the project will reveal insights that
could inform future deliberations by relevant agencies.
3
Ethnographic research is based on observing people in their natural environment rather than in a formal
research setting and helps to disclose points of frustration and see patterns of behaviour in a real world
context.
Australian Centre for Excellence in Public Sector Design
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immersion/observational techniques in seeking to better understand the business and government
interaction challenge and to develop a core APS capability in the method.
What do you get?
 Insights into understanding business better through business segmentation categories and
descriptors described by business itself
 Ethnographic research offering rich intelligence about the ‘lived experience’ of business and
government interaction
 Insights into how competing tensions can be resolved, offering new options that do not
compromise one for the benefit of the other
 Pointers to APS internal ‘red-tape’ sources and reduction opportunities
 Increased design thinking capability and goodwill between business and government by
virtue of using an inclusive design approach
 An early demonstration of the value of design thinking
 Some key staff trained in applying design thinking to a critical problem area and further
capability building in this approach across the APS
 Project deliverables will include:
o A Report of Research Findings and Insights
o Ideas and concepts for quick adoption or prototyping for early outcomes, and target
areas for further design exploration. To be presented in Prototyping and Design
Prospectus(s) (as appropriate) and submitted for consideration and resourcing to
the Secretaries Board by no later than the end of May 2013.
Australian Centre for Excellence in Public Sector Design
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Ethnographic research is based on observing people in their natural environment rather than in a
formal research setting and helps to disclose points of frustration and see patterns of behaviour in a
real world context.
What is the required investment?
 A funding contribution from each government portfolio of $10,000 - $20,000
 Fully funded staff contribution to create a cross-agency team of 8-12 people4 to operate full
time for a period of five months commencing in late January 2013. The team members need
to have direct experience in dealing with business – policy development or delivery of
programs and/or services, or be adept change facilitators; and be keen to apply the design
approach and be trained in ethnographic research techniques
 Nomination of any specific industries/issues that should be explored in relation to the
challenge space
 Access to relevant intelligence, expertise, data and networks of interest in the
Department/Agency or its stakeholders
 Championing the project(s) in your sphere of influence.
What must happen?
 Nomination of project team members and contribution to the Centre prior to Christmas.
4
Supported by staff from the Centre.
Australian Centre for Excellence in Public Sector Design
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Some government measures to improve business/government interactions
Challenge space and pain points
Existing government
measures
COAG Seamless National
Economy
(High Level)
Standard Business
Reporting
business.gov.au
 Grants and
Assistance Finder
 Advisor Finder
 Business
Consultation
Ongoing reporting
 Best Practice
 Regulation
Report
Ongoing processes
 Regulatory
Impact
Statements /
 Post
Implementation
Reviews
Buried in
bureaucracy –
ease my burden
Y
I don’t know – how
do I find out?
Tell me, hear me, let
me have a say
N
Y
Y
Y
N
N
N
Y
Y
Y
N
N
N
Y
N
N
Y
Y
Y
Y
N
N
N
Y
Y
N
N
N
N
Australian Centre for Excellence in Public Sector Design
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We need to do this differently
The challenges identified to dramatically improve business and government interaction
are in areas that have been of long-standing concern.
These are also issues that are regularly explored. Public sector agencies routinely look at how they
can improve their services and stakeholder relations, and there are regular governmentcommissioned inquiries or reports into how things can be done better (or how a specific part can be
done better) as well as policy decisions to enact changes. Yet the challenges still remain, despite best
efforts at the Federal level (and matched by even more initiatives at the State and Territory level).
There have been:
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Over 800 consultation exercises as listed on business.gov.au’s Business Consultation site
(since 2007)
Major reviews including the Taskforce on Reducing Regulatory Burden on Business (2005-06)
and COAG’s Seamless National Economy Processes (2008-on)
Formal engagement processes with business representatives (e.g. Action Agendas, Industry
Councils, Advisory Groups and Boards).
There is room for new approaches, outside of the realm of traditional inquiries, reviews, taskforces,
committees, boards and formal consultations. Approaches that provide an integrated investigation
across agency responsibilities, look at the underlying needs and provide an array of promising
options for prototyping: options that may be able to break the dichotomy of choices such as cost
reduction or better services.
The Centre’s design approach will also work to ensure that the experiences of both ‘sides’ of the
interaction are considered and ensure that the public service ‘dark matter’5 (the history, the
intangibles and interplay of the different elements of the current systems) is not forgotten. Without
understanding these aspects, it will be harder to design changes that ‘stick’ or integrate with
people’s way of doing things, or inspire them to try something new.
Internal forces for change
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-
5
External forces for change
Tensions requiring change
Government policy, initiatives,
consultation processes
Parliamentary inquiries
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Fiscal constraints
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Consultation vs collaboration
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Communication vs
understanding
Ongoing systematic reporting
(e.g. Productivity Commission,
Office for Best Practice
Regulation)
Government commissioned
reviews
Cost pressures
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Technological changes and
opportunities (e.g. NBN,
cloud computing)
Economic structural changes
(changing government
priorities and areas of need)
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Cost vs service
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Changing business models
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Certainty vs flexibility
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Changes in expectations by
users
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Compliance vs trust
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Regulator vs partner
-
Dan Hill, “Dark Matter and Trojan Horses: A Strategic Design Vocabulary” 2012
Australian Centre for Excellence in Public Sector Design
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The design process
Seeking
November 2012
Analysing
Synthesising
May 2013 – A Report of
Research Findings and
Insights
Design and/or Prototyping
Prospectus(s)
Prototyping
Scaling
To break through the fog of ‘wicked problems’ requires a different approach, a design
approach which iteratively traverses the five stages from seeking to scaling and which:
 Values the citizen – seeks to understand what truly matters to them and, creates and
delivers solutions with people for people
 Appreciates the context – understands and appreciates the contextual environment in which
the problem operates
 Challenges the status quo – reframes the problem in terms of positive and measurable
outcomes: how might these be achieved in a different way?
 Experiments with possibilities – experiments, tries and tests possibilities and options with
users and stakeholders
 Is concrete – in the representation of the problem and potential better solutions, and
communicates them clearly
 Employs – the creative and rational thinking of multidisciplinary teams.
Australian Centre for Excellence in Public Sector Design
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…only when you engage deeply with the subject matter will it reveal its
nature and inform you on how best to tackle it
The proposed design approach – working differently OR a third way?
This Design Prospectus seeks a financial and staffing contribution for the early stages of the full
design approach. The primary focus will be to use ethnographic research to achieve a deep
understanding of the ‘lived experience’ of business/government interaction from a business and APS
frontline perspective. This will encompass inviting the business community to define its preferred
segmentation categories for better engagement. Preliminary analysis and synthesis of research
information and insights will also be undertaken to target areas for further design exploration, and
generate ideas and concepts for early adoption or prototyping.
Ethnography is a research method based on observing people in their natural environment rather
than in a formal research setting. When ethnography is applied to design, it helps to disclose points
of frustration and see patterns of behavior in a real world context that then helps to create more
compelling solutions that will connect with users.6
For example, an international not-for-profit organisation called the Kafka Brigade7 has proven the
utility of ethnographic research in tackling the wicked problem of ‘bureaucratic dysfunction’ to
reduce government ‘red-tape’ and help businesses and bureaucracies to work better. We propose to
explore the relevant elements of the Kafka Brigade methodology and other related
immersion/observational techniques in seeking to better understand the business and government
interaction challenge and to develop a core APS capability in the method. This would be achieved by
training the team formed to work on the challenge space and comprised of staff from the Centre and
investing Departments/Agencies.
The expected design outcomes and products:
 Insights into understanding business better through business segmentation categories and
descriptors described by business itself as a first step to better engagement
 Ethnographic research offering rich intelligence about the ‘lived experience’ of business and
government interactions
 Insights into how competing tensions can be resolved, offering new options that do not
compromise one for the benefit of the other
 Pointers to APS internal ‘red-tape’ sources and reduction opportunities
 Increased design-thinking capability and goodwill between business and government by
virtue of using an inclusive design approach
 An early demonstration of the value of design thinking
 Some key staff trained in applying design thinking to a critical problem area and further
capability building in this approach across the APS
 A Report of Research Findings and Insights
6
American Institute of Graphic Arts, “An Ethnography Primer”, 2011
Kafka Brigade has offices based in Amsterdam and Delft (NL), Cambridge (USA), Budapest, Northern Ireland
and Wales.
7
Australian Centre for Excellence in Public Sector Design
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
Ideas and concepts for quick adoption or prototyping for early outcomes, and target areas
for further design exploration. To be presented in Prototyping and Design Prospectus(s) (as
appropriate) and submitted for consideration and resourcing to the Secretaries Board by no
later than the end of May 2013.
To dramatically improve business and government interaction requires a deep understanding of the
context, frustrations, concerns and expectations from the business and APS frontline perspective
using the design approach in an explicitly experimental zone.
“It’s a nightmare doing business with Government” (Small business owner,
October 2012)
Australian Centre for Excellence in Public Sector Design
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THE CHALLENGE SPACE
The relationship between business and government is impacted by many
factors. Government operates in a range of roles, such as a regulator, a
policy-maker, a granter, a purchaser and an adviser. Some factors have
been highlighted by the Insight Workshop and will be explored. It is also
expected that others will be identified during the fieldwork research.
Buried in bureaucracy - ease my burden
The challenge is finding new approaches that break the trade-offs between certainty and flexibility;
compliance and trust; regulator and partner.
An effective regulatory framework is essential for a country’s economic success, international
competitiveness, development of industry, and for protection of the health and safety of its citizens
and the environment. Excessive and poorly designed regulation – ‘red tape and green tape’,
threatens business profitability, discourages investment, detracts from productivity and discourages
innovation. Ultimately it translates into higher prices and reduced choice for the broader
community.
The traditional ‘triple R’ approach of ‘review, recommend and respond’ is not achieving the
breakthroughs necessary as evidenced by the most recent business red-tape survey.
While governments have actively pursued regulatory reform, business expects more:


72.4% are saying that the time spent on regulatory compliance has increased
73.1% are saying that the overall cost of compliance has increased in the last two years.8
As an example, the stakeholder interviews noted that firms doing new things can be stopped or be
entangled by legislation/regulation that does not have the capacity for exemptions or exceptions,
even though the firm may be offering a valuable product/service – SmartVet is a case in point.9
Investigations also point to the impacts of bureaucracy for public servants – in tying them and their
resources up in doing activity that curtails their ability to assist businesses.
“Culturally, we don’t see industry as allies.” (Public Servant, October 2012)
“If we try to engage with industry in developing regulation we can be seen as biased.” (Public
Servant, October 2012)
8
Australian Chamber of Commerce and Industry (ACCI) National Red Tape Survey, October 2012.
The SmartVet device, which uses a paintball type gun to apply antiparasite medication to cattle falls within
the technical definition of a ‘firearm’ and therefore cannot be imported without meeting one of the specified
tests under the Regulations. However, by their nature, these items will have difficulty in meeting tests
associated with firearms, such as the requirement for a serial number or a safety catch. As a consequence of
the rigidity of the current Regulations, an innovative product developed by an Australian company cannot
benefit the Australian livestock industry but is providing those benefits to Australian industry competitors
through the product’s success in international markets.
9
Australian Centre for Excellence in Public Sector Design
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Improving the regulatory framework is challenging “but the rewards are potentially large (with red
tape reductions alone estimated to be worth some $12 billion in extra GDP).”10
10
Garry Banks, Chairman Productivity Commission, “Industry Assistance in a ‘patchwork economy’”, ACCI
Annual Dinner, Canberra 23 November 2011, p13.
Australian Centre for Excellence in Public Sector Design
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“Communication is often in the language of government rather than in the
language of firms” (Public Servant, October 2012)
The first cross-agency Insight Workshop identified the following early ideas:
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

More consistent and rigorous application of risk and proportionality based compliance
approaches (‘trust first’ and ‘earned autonomy’)
A ‘tell us once approach’ and a single source of truth for business and government
transactions
Simplifying and streamlining procurement, applying a more pragmatic risk management
approach (single tender template and process).
An opportunity exists for a different approach – a design approach – starting with ethnographic
research to gain a deep understanding of the causes of the problem, concerns and expectations in
business and government interactions.
Australian Centre for Excellence in Public Sector Design
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Pain points
Ethnography vividly identifies people’s ‘pain points’ and guides the way towards solutions. 11
The challenge is finding new approaches that break the trade-offs between reducing costs and
delivering responsive personalised services; communication and understanding; and consultation
and collaboration.
I don’t know – how do I find out?
The public sector and its processes can be difficult to navigate and can require considerable
familiarity and experience that realistically most businesses cannot afford to build or obtain.
Businesses need confidence in knowing where to go for clarification, to understand the broader
policy context and decisions that may affect their specific industry sector and business activities. To
know whether there are services relevant to them (or not), what is negotiable and what is not,
whether they can do something and who can tell them authoritatively whether they can.
“As a small business you need to engage with lots of areas in the hope that you come across
someone that will take pity on you and help you” (External view, October-November 2012)
On the other side, it can be difficult for those working in the public sector to find out what is
happening within government and knowing the right contact. Information sharing and overcoming
organisational silos remain challenges that limit the abilities of public servants to provide a smooth
experience for business. If those in front-line roles struggle to remain up-to-date with the offerings
and obligations, then how can businesses be expected to do so?
Tell me, hear me, let me have a say
Business community engagement with government can range from information exchange,
development of understanding and skills, influencing policy and/ or services, to co-governance. The
importance of effective engagement is widely recognised, if not always well executed.
Increasingly citizens are seeking a greater role in the development of policies and services. Spurred
on by the greater capability and portability of communications technology allowing for “deepening
democracy and engaging the citizenry so that governments don’t just ‘consult’ their constituents,
but draw all those with the enthusiasm, expertise and relevant local knowledge into active
collaboration with them.”12
“Need to understand the mechanics of the day-to-day lives of small business owners.” (Public
Servant, October 2012)
Investigations point to concerns that the public sector is still not very good at listening, that it
doesn’t consult at the beginning of a process when changes can be effected, and is not transparent
about the purpose or end use of information collected. There is also an expectation by many
businesses that if they tell one part of government something, then the other arms will know it too.
11
12
American Institute of Graphic Arts, “An Ethnography Primer”, 2011
Gov 2.0 Task Force Report
Australian Centre for Excellence in Public Sector Design
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The first cross-agency Insight Workshop held to explore the challenge of business and
government interactions identified the following early ideas for relieving these pain
points:
 A capability for aggregating information, collaborating in real-time and for tracking
engagement, activity and requests across agencies from businesses
 Providing for on-demand business competency development using life long learning
approaches and latest technologies
 A library of Business Personas to increase understanding of business needs through the
business lifecycle.
To dramatically improve business and government interactions requires a richer and shared
understanding of policy and business outcomes, information needs of both parties, and mechanisms
for strengthening engagement to enable not only better consultation but collaboration and skills
development. This all has to be based on a much deeper understanding of the lived experiences of
business in dealing with government.
Australian Centre for Excellence in Public Sector Design
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Immediate value
Insights and ‘incidental goods’ will be derived and shared across the APS at every stage of the design
approach. In addition to the intended benefits identified the Centre will also look to accomplish
other useful outcomes for project contributors as a by-product of the design approach.
These by-products may include contributions to the capability and operating framework of the
public service and specific insights and promising options for consideration or immediate action by
individual agencies.
Wider enabling benefits
Providing a platform for a rich understanding of how public servants and businesses view each other
and their expectations of each other and their respective roles and responsibilities.
Building capacity for design and innovation in the public sector and participating agencies.
A ‘real-life’ use of design and innovation techniques in a non-critical environment with an explicit
experimental mandate (and therefore relatively lower risk), the lessons of which can be codified and
shared with agencies that may not be in a position to trial these newer and less understood
approaches to public sector administration.
Greater exploration of forming teams in an agile manner, for example using ICT and flexible spaces
innovations, which will provide intelligence about different project methods and working
arrangements outside of the more structured traditional taskforce approach.
Specific ideas
Initial project investigations have uncovered a number of insights and ideas that may be worth
application and exploration by agencies.



Customer service journeys and the use of personas (fictional representations of different
types of users within a targeted demographic) are common in service delivery in both the
private sector and in the human services areas of the public service. They are less commonly
used in the policy and business interaction areas of government, but potentially offer a way
of considering different categories of users when fuller consultation is not feasible or
possible (e.g. in Cabinet-related processes)
There may be advantage in following the example of the US Government which has issued
an instruction to all Federal agencies to undertake user testing before introducing new
complex or lengthy forms to ensure that the forms are not unnecessarily complex,
burdensome or confusing, and identify ways to reduce burdens and increase simplification.
A number of agencies (notably the Australian Taxation Office) already conduct some user
testing but a similar instruction for the APS could provide an important symbolic gesture and
help keep the end-user in mind throughout the development of forms and information
requests
Like the business / government interface, the business/ research interface is likewise
complicated and difficult, yet is an integral relationship for driving economic growth and
making sure that public research funding is leveraged to the full extent. Business and
universities make initial connections and build relationships in myriad ways, however there
Australian Centre for Excellence in Public Sector Design
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is no single ‘front door’ like ‘business.gov.au’ to aid firms looking to engage with universities
for the first time.
An alert
The initial cross-agency Insight Workshop on the business and government interaction project raised
a shared concern about whether businesses (and indeed other stakeholders) are aware, and
accepting, of the limits of the Australian Government’s reach and responsibilities. This includes
awareness of and understanding of the Constitutional and legal limits of government power.
These concerns should also be viewed against the backdrop of other drivers for change – new
technologies, processes and trends – that are influencing what is possibleand expected of
government (and of businesses and intermediaries).The way the Federal Government operates and
‘designs’ programs and establishes relationships with business may be challenged and changed by
new platforms and technologies, by new understandings and shifts in thinking about what the public
sector should and can do.
There may be merit, therefore, in a small group of officials exploring these issues from a design
perspective. This could potentially avoid any reflexive legislative/regulatory responses to individual
issues and would also be a useful demonstration of design thinking applied to an early investigation
and policy thinking space, rather than further along in the service delivery design and
implementation space. The Centre would be happy to explore this further with central agencies if
agreed, and provide a report to the Secretaries Board early in 2013.
Australian Centre for Excellence in Public Sector Design
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What next?
The Centre has been established to demonstrate, in partnership with APS Departments and
Agencies, the values and benefits of design thinking and design methodologies in dealing with multiagency ‘wicked problems’. The problem selected by the Board for attention is:
“How might we dramatically improve business and government interactions?”
It is clear from existing research that much has been done by government, and yet the overall effort,
coupled with reports, public statements and statistics, strongly suggests that a different approach
could be beneficial.
It is proposed to employ qualitative research, specifically ethnographic research to better
understand the perspective of businesses. It will seek to also identify opportunities for better
solutions. The challenge space and pain points identified in the cross-agency Insight Workshop will
be tested and expanded during this fieldwork.
What is the required investment?
 A funding contribution from each government portfolio of $10,000 - $20,000
 Fully funded staff contribution to create a cross-agency team of 8-12 people13 to operate
full time for a period of five months commencing in late January 2013. The team members
need to have direct experience in the challenge space from a practitioner perspective –
policy development or delivery of programs and/or services, or be adept change facilitators;
and be keen to apply the design approach and be trained in ethnographic research
techniques
 Nominate any specific industries/issues that should be explored in relation to the challenge
space.
 Provide access to relevant intelligence, expertise, data and networks of interest in the
Department/Agency or its stakeholders
 Championing the project(s) in your sphere of influence.
Note that:
 Following the Secretaries Board meeting, the Centre will draft a project plan and discuss
resource transfers with the relevant Department/Agency with a view to the project being
established in early February 2013
 The Centre will be responsible for project management with oversight being through the
existing governance framework of the Centre’s and Secretaries Boards, supplemented by a
Senior Officer’s Reference Group
 Project deliverables will include:
o Business segmentation categories and descriptors
o Report of Research Findings and Insights
o Ideas and concepts for quick adoption or prototyping for early outcomes, and target
areas for further design exploration. To be presented in Prototyping and Design
Prospectus(s) (as appropriate) and submitted for consideration and resourcing to
the Secretaries Board by no later than the end of May 2013.
Australian Centre for Excellence in Public Sector Design
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Our foundation partners
Australian Government


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

Department of Industry, Innovation, Science, Research and Tertiary Education
Australian Taxation Office
Department of Education, Employment and Workplace Relations
Department of Immigration and Citizenship
Australian National University
Our foundation supporters
Australian Government





Department of the Prime Minister and Cabinet
Department of Finance and Deregulation
Australian Public Service Commission
IP Australia
Comcare
Australian Centre for Excellence in Public Sector Design
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