The UK Experience

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The Gov3 Foundation

World Bank Seminar – 10 May 2006, Washington DC www.gov3.org

What we will cover today

 Who we are

 Strategic Overview: knowledge economy and e-transformation

 A difficult journey – our UK and international experience: lessons learned

 Delivering citizen centric public services – where are governments going and how are they getting there? (inc UK and other country case studies)

 How Gov3 is trying to support governments

gov3 > who we are

Gov3 was launched in September 2004 by the core team in the UK’s Office of the e-Envoy

 Two organisations:

 Gov3 Limited:

 now one of the world’s fastest growing international public sector consultancy businesses

 worked on IT enabled transformation with 25 governments, across five continents, plus the European Commission and the UN

Staff and associates from across the world with senior ‘inside government’ experience of IT enabled change in the public sector

 The Gov3 Foundation:

Not for profit

Advisory Board includes Andrew Pinder, Richard Kerby (UNDESA), David

Molchany (CIO, Fairfax County), Danilo Piaggesi (IADB), Juhani Turunen

(Under-Secretary of State, Ministry of Finance, Finland)

Executive Director – Elizabeth Muller (formerly of the OECD)

Strategic Overview – Andrew Pinder

 Building a knowledge based economy – an e-Envoy’s perspective

 E-Transformation and Public Sector Reform

- why the two must be integrated

 The implications for good government of ICT enabled change

 Where are citizen centric service delivery and shared services leading to?

Most Government reform agendas are stuck in a vicious circle

“E” strategies are not mainstream to economic, social and public governance reform programmes – so they fail to achieve expected benefits

Mainstream programmes are failing to achieve their aims, because they do not embrace the transformational opportunities opened up by network technologies

UK experience – Graham Walker

First a definition of scope .…

ICT enabled public sector reform includes:

- modernising/transforming government infrastructure, processes, and communications

- improving service delivery to citizens and businesses

(through all channels not just online)

- improving public sector efficiency

- improving transparency and opportunities for citizen engagement

Effective Government…..not e-government

IT-enabled change in the UK > a brief history (1)

 1950s to early 1990s: computerisation of the public sector

Billions of expenditure

Some claimed operational efficiency gains, but:

No real change to citizens’ experience of government

No change to the “silo-based” bureaucratic delivery model

 Early to late 1990s: the Internet arrives!

 A thousand flowers bloom (3,000.gov.uk web sites to be precise)

Low levels of user take-up

Driven by IT enthusiasts in government – not by business strategy

IT-enabled change in the UK > a brief history (2)

 1999: Office of the e-Envoy established to develop a more strategic approach

 Three key targets:

 the best environment in the world for e-commerce by 2002

Internet access for all who want it by 2005

100% of government services online by 2005 with key services achieving high levels of use

 Very successful on the “e-economy”:

 the UK moves from middle-of-the pack to being one of the global leaders on all key benchmarks

 But much less progress at first on e-government:

E-agenda in most agencies run by the Head of IT, divorced from business strategy

 Low levels of citizen take-up, because:

No real incentives on departments

No functioning business model for joined-up, customer-focused delivery

IT-enabled change in the UK > a brief history (3)

 2003-2004: Mainstreaming e-Government

 Office of the eEnvoy becomes part of a broader “Delivery and Reform” team in the Cabinet Office

 Efficiency Review:

£21 billion pa of efficiency savings

 Only achievable through radical business transformation and high levels of service take-up through cheaper e-channels

 Directgov:

A multi-channel, citizen-centric service delivery vehicle which quadrupled egovernment take-up in its first year

Looks like a government portal, but actually is a fundamental change to the UK government’s business model for developing and delivering services

IT-enabled change in the UK > a brief history (4)

 20052006: “Transformational Government”

“Technology alone does not transform government, but government cannot transform to meet modern citizens’ expectations without it….

….the vision is not just about transforming government through technology. It is also about making government transformational through the use of technology”

 The strategy requires three key transformations:

1.

Services enabled by IT must be designed around the citizen or business

2.

Government must move to a shared services culture – in the front-office, in the back-office, in information and in infrastructure

3.

There must be broadening and deepening of government’s professionalism in terms of the planning, delivery, management, skills and governance of IT enabled change.

Some strategic observations…

 Even in a decentralised governments there is a need for central strategic vision and planning to provide a framework for effective e-transformation

 eTransformation is leading to some joining up of common functions but only limited integration of government departments and agencies

 There is a capability and capacity gap both centrally and in departments and agencies - focus on functions is helping

 Portfolio management of investments is essential but rare

 Business cases, measurement, and benefits realisation are vital tools for effective government - improving but a long way to go

 Public sector labour force restructuring is necessary but difficult to deliver

Lessons Learned – Good Practice

Mainstreaming…..more strategic fit outcome focus

 Shared governance and funding models

 Customer Group Champions

 Cross-government business case development, measurement, and benefits realisation

Releasing cash to the front line…biting the bullet on public sector labour force restructuring

 Professionalism and performance management

Lessons Learned – Bad Practice!

 Reform agenda remains fragmented in even leading edge countries

(supported by supra-national institutions!)

 Ignoring non-IT requirements and costs of organisational change

 Departmental silos resist cost accounting, benefits tracking and realisation

 Some Public Private Partnerships have been less effective than planned – eg inflexibility stifles innovation

 Market failure – poor public sector buyers and private sector suppliers

 Reluctance to do, or react to, market (citizen) research

1.

2.

3.

4.

5.

The five roadblocks faced by all governments

Projects

Project 1 Project 2 Project 3

Project 4 Project 5

Time

Other KPIs

Identified problems; implemented fixes

The E-Services White Elephant:

Failure to make the make the fundamental changes to the way the develop and deliver services which are needed to ensure that e-investments result in real benefits rather than expensive white elephants

Digital exclusion:

Failure to engage citizens, leading to:

Social inequity

No critical mass for e-service take-up

Releasing resources for the front-line:

Failure to restructure the public sector labour market in order to turn eservices takeup into “cashable” efficiency savings which can be recycled into national priorities

Cost/benefit management:

Failure to establish and manage effective business cases for their investments in ICT-enabled change. No systems for benefits realisation

Delivery:

Failure to establish the government-wide governance and programme management systems needed to guarantee effective delivery.

The Gov3 Foundation

Citizen centric delivery

The UK and HK experience

www.gov3.org

Traditional “e-government” is not citizen-centric

 Thousands of government websites, all organised round structure of government not needs of customer

 Confusing customers – with agencies competing to provide similar services

 Replicating the offline offer, rather than exploiting the benefits of technology

 Incoherent or inadequate branding and marketing

 Absence of systems to learn about the customers government do have, so they can offer them targeted services

Putting a portal on top of this does not help!

UK and Hong Kong

 UK

 Lots of money spent on IT and websites

 Not using obvious assets to encourage use

 Fragmented knowledge and skills

 Not linked to public sector reform

 Usage of government websites flatlining

 Hong Kong

 Innovative PPP model

 Still significant take-up issues

Take-up in the UK

60

50 Buying online

40

Banking online

30

20

10

Government online

0

Q3

2000

Q4 Q1 Q2

2001

Q3 Q4 Q1 Q2 Q3 Q4 Q1

2002 2003

Source: National Statistics Omnibus Survey

Where we are going

 Citizens want more

 Younger citizens think differently and demand more

 Global business is setting the pace

The traditional way of delivering government won’t work in the future

We are moving to a citizen-centric public sector

Citizen centric delivery is critical

Start looking at the world through citizens’ eyes, not government’s eyes

The foundations of effective delivery

One place

Single service over multiple channels

Built for me

Killer application

A real brand

User demands

One stop e-shop

Web Walk in

Delivering information and services

USA, Canada and UK

Portal

UK online

USA –Firstgov

Help (Austria)

Canada

Clusters

Integration

Destination

UK Directgov

(Hong Kong

OSP)

Citizen centricity > results

UKonline & Directgov Unique Users

1,200,000

1,000,000

800,000

600,000

400,000

200,000

0

Ap ril

'0

3

M ay

'0

3

Ju ne

'0

3

Ju ly

'0

3

Au gu st

'0

Se

3 pt em be r '

03

O ct ob er

'0

3

N ov em be r '

03

D ec em be r '

03

Ja nu ar y

'0

4

Fe br ua ry

'0

4

M ar ch

'0

4

Ap ril

'0

4

M ay

'0

4

Ju ne

'0

4

Ju ly

'0

4

Au gu st

'0

Se pt

4 em be r '

04

O ct ob er

'0

4

N ov em be

D r '

04 ec em be r '

04 nu ar

Ja y

'0

5

Fe br ua ry

'0

5

M ar ch

'0

5

Ukonline Directgov

Source: UK EgU

United Nations benchmarking shows a wide spread of e-Government performance

1

Canada

0.9

Netherlands

0.8

Mexico

0.7

0.6

0.5

0.4

0.3

0.2

0.1

Cyprus

New Zealand

Estonia

Australia

Belgium

Germany

Sweden

Finland

France

Austria

Malta

Hungary

Phillipines

Norway

Ukraine

Poland

Japan

Turkey

Russia

Slovenia Thai

Switz

Italy

Portugal

Latvia

Bahrain

Jordan

Croatia

Spain

Lux

Slovakia

Lith.

Greece

China

Czech

S. Africa

Romania

India

Iceland

Brazil.

Ireland

Israel

0

0 0.1

0.2

0.3

0.4

0.5

E-service maturity 2

0.6

0.7

Source: United Nations e-Government Readiness Report 2004 . 1: e-participation index covering information, consultation and decisionmaking, 2: web-government index covering interactivity, transactions and networked presence.

0.8

0.9

UK

US

Singapore

Korea

Denmark

Chile

1

Critical success factors for e-Government

1

Citizen-centric approach

2

Integrated strategy

Legal, regulatory & fiscal framework

Employers

Access

I have easy and affordable

Access to ICT

Home Work

Community

Motivation

I see real benefits from use of ICT which are directly relevant to my life

Confidence

I have all the skills I need to use ICT, and I feel trust and security using it

Digital content service providers

ICT Vendors

Voluntary

& community organisations

Public Sector

Government as a market actor

Market enabling

3

Cross-sectoral partnership

The Gov3 Foundation

What we are doing

www.gov3.org

How Gov3 is trying to help

 As a business, we have:

 built a set of citizen-centred products aimed at overcoming the key barriers, delivered by people with a successful inside-government track record

Citizen-centric service transformation

Citizen-centric Digital

Inclusion Programmes

Citizen-centric refocusing of government resources

Benefit measurement and management

Governance and Programme Management

How Gov3 is trying to help

 As a the not-for-profit Gov3 Foundation, we have:

 Sought to promote direct peer-topeer networking between the “e-leaders” responsible for driving these changes in governments, eg:

“Beyond e-Government” – a six day immersive residential seminar for 50 leaders from across the developing world, held in Salzburg

“Information Society Masterclasses” at the World Summit on the Information

Society

The Gov3 Foundation

Thank you

graham.walker@gov3.net

www.gov3.org

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