1. www.gov3.org The Gov3 Foundation World Bank Seminar – 10 May 2006, Washington DC

2. 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

3. 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)

4. 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?

5. Most Government reform agendas are stuck in a vicious circle Mainstream programmes are failing to achieve their aims, because they do not embrace the transformational opportunities opened up by network technologies “E” strategies are not mainstream to economic, social and public governance reform programmes – so they fail to achieve expected benefits

6. 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

7. 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 (1)

8. 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 (2)

9. 2003-2004: Mainstreaming e-Government  Office of the e-Envoy 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 e- government 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 (3)

10. 2005-2006: “Transformational Government” IT-enabled change in the UK > a brief history (4) 21. Achieving the vision will require three key transformations: (1) Services enabled by IT must be designed around the citizen or business, not the provider, and provided through modern, co-ordinated delivery channels. This will improve the customer experience, achieve better policy outcomes, reduce paperwork burdens and improve efficiency by reducing duplication and routine processing, leveraging delivery capacity and streamlining processes. (2) Government must move to a shared services culture – in the front-office, in the back-office, in information and in infrastructure – and release efficiencies by standardisation, simplification and sharing. (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. 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. “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”

11. 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

12. 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

13. 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

14. The five roadblocks faced by all governments 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 1. 2. 3. 4. 5. Cost/benefit management: Failure to establish and manage effective business cases for their investments in ICT-enabled change. No systems for benefits realisation Releasing resources for the front-line: Failure to restructure the public sector labour market in order to turn e- services take-up into “cashable” efficiency savings which can be recycled into national priorities Digital exclusion: Failure to engage citizens, leading to:  Social inequity  No critical mass for e-service take-up Delivery: Failure to establish the government-wide governance and programme management systems needed to guarantee effective delivery. E-Transformation

15. www.gov3.org The Gov3 Foundation The UK and HK experience Citizen centric delivery

16. 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!

17. 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

18. Source: National Statistics Omnibus Survey % of Population Q3Q4Q1Q2Q3Q4Q1Q2Q3 Q4 Q1 2000 2002 2001 2003 0 10 20 30 40 50 60 Buying online Banking online Government online Take-up in the UK

19. 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

20. Citizen centric delivery is critical Start looking at the world through citizens’ eyes, not government’s eyes

21. User demands One place Built for me Killer application A real brand Single service over multiple channels The foundations of effective delivery

22. www.gov3.org The Gov3 Foundation How the OSP works

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24. WebPhone Walk in One stop e-shop Customer segmented clusters  Single service Delivering information and services in the way that people use them

29. USA, Canada and UK Portal Destination UK online USA –Firstgov Help (Austria) Canada Clusters UK Directgov (Hong Kong OSP) Integration

30. Citizen centricity > results Source: UK EgU

31. United Nations benchmarking shows a wide spread of e-Government performance Source: United Nations e-Government Readiness Report 2004. 1: e-participation index covering information, consultation and decision- making, 2: web-government index covering interactivity, transactions and networked presence. E-participation maturity 1 E-service maturity 2 Russia UK US Canada Australia Mexico Chile Austria Estonia Finland Czech Denmark Belgium France Germany Greece Hungary Iceland Italy Korea Lux Netherlands New Zealand Norway Poland Portugal Slovakia Spain Sweden Turkey Bahrain Cyprus China Slovenia S. Africa Jordan Latvia Lith. Romania Malta India Croatia Thai Singapore Israel Ireland Brazil. Japan Phillipines Switz Ukraine

32. Walk-in (including kiosk and intermediated Internet) Citizen-centric business management Citizen-centricity > easy to say, complex to deliver Transformed customer experience Lower cost Public policy outcomes  Citizen-centric channel management Governance Service-oriented IT architecture Key service delivery processes Enablers Internet DiTV Phone (and mobile devices) Mail Citizen-centric customer management Delivery vision Portfolio management Service proposition & design Marketing communication Customer needs intelligence Channel management strategy Skills and expertise Principles of citizen-centricity A compelling online offer Continuous improvement Customer focus Web-centric delivery Benefit realisation OUTCOMES Delivery architecture Performance monitoring

33. Voluntary & community organisations ICT Vendors Public Sector Digital content service providers Motivation I see real benefits from use of ICT which are directly relevant to my life 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 Confidence I have all the skills I need to use ICT, and I feel trust and security using it Access I have easy and affordable Access to ICT Access I have easy and affordable Access to ICT HomeWork Community Employers Integrated strategy 2 Market enabling Government as a market actor Legal, regulatory & fiscal framework Critical success factors for e-Government Citizen-centric approach 1 Cross-sectoral partnership 3

34. www.gov3.org The Gov3 Foundation What we are doing

35. 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 refocusing of government resources Citizen-centric service transformation Citizen-centric Digital Inclusion Programmes Benefit measurement and management Governance and Programme Management

36. How Gov3 is trying to help As a the not-for-profit Gov3 Foundation, we have:  Sought to promote direct peer-to-peer 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

37. www.gov3.org The Gov3 Foundation Thank you graham.walker@gov3.net