Public services: delivering the next generation of change...Public services: delivering the next...

Public services: delivering the next generation of change

2Public services: delivering the next generation of change

Responding to the digital age, particularly during an era of austerity, has provided public services in the UK with some stiff challenges – but it also provides a number of opportunities. Public services: delivering the next generation of change, a report commissioned by BT in association with Dods, investigates how technology, skills, and collaboration can power public services successfully and explores their future needs and ambitions.

Despite the challenges the public sector faces, rapidly evolving information and technology solutions continue to represent a major driver of efficiency, helping improve services while pushing down costs as collaboration between organisations opens up new economies of scale.

This report demonstrates that there is an ongoing appetite and opportunity for technology to help transform public services and drive efficiency savings. It identifies a number of areas where change can happen, particularly in mobile working and improving collaboration within and between organisations. It also highlights where the sector needs to do more, particularly around encouraging a culture of innovation. Public services: delivering the next generation of change is based on a recent survey of 394 local government officials in the UK, as well as interviews with senior leaders of public sector transformation in the UK and abroad.

Introduction


The effect of the financial constraints public services face was reflected in our survey – 87 per cent of respondents listed efficiency savings as a high priority within their organisation, compared to the next highest category, providing better public services (69 per cent). Only 25 per cent of respondents felt that investing in employees was a high priority. (Figure 1)

Those we questioned remain largely convinced that digital technologies can help save money at the same time as improving their internal business processes and customer-facing functions. Seventy five per cent said that information and communications technology (ICT) has already enabled a transformation of services in their organisations.

Respondents referenced virtually every strand of service delivery as having been improved by technology. From payment systems which allow customers to pay for everything from sports pitch bookings to fishing licenses, along with access to housing, education and health services. The improved availability of planning applications online also featured strongly, along with the creation of apps for specific services such as missed bin collections.

Indeed, accessing public services is easier than ever before. A generation ago, we settled our council tax bill via a cheque in the post; we dropped into the town hall during lunch hour to view a planning application; we rang the switchboard to report a new pothole. The digital age has fundamentally shifted that paradigm.

Even some of those who believe ICT has not enabled a transformation of services accepted the principle, if not the implementation, of service delivery through digital methods. One said technology could lead to a worse service, “mainly because the thinking behind it is poor, not because of the technology itself.”

Drive for efficiency

Efficiency savings

I don’t knowHigh priority Somewhat a priority Low priority Not a priority

Closer working with other organisations

Investing in employees

Economic growth

Providing better service

Figure 1: Which of the following are priorities for your organisation?

87%

69%

54%

25%

43% 45%

43%

25%

30%

4%0.6%0.8%

2%

3%

11%

11%

24%

7% 6%

5%

1%0.3%

0.3%

0.8%

1%

Delivering services online (digital by default)

30% 50% 3%4%14%


I don’t knowStrongly agree Agree Disagree Strongly disagree

Social media skills 7% 39% 43% 6% 6%

12% 47% 30% 5% 6%Shared services

6% 41% 41% 8% 4%Culture of innovation

7% 49% 36% 5% 4%Information technology literacy for all staff

7% 52% 31% 4% 6%Data analysis skills

23% 57% 18%2%

1%Customer service skills

When assessing the current levels of ability of their staff and organisations, respondents were on balance happy that they possess the right skills to deliver digital services. Across all six digital skills they were asked about (customer services, shared services, social media, data analysis, IT literacy and a culture of innovation), on average only ten per cent of respondents strongly agreed that they existed at sufficient levels in their organisation – although an average of half (47 per cent) agreed they were present. Around a third on average, however, disagreed that sufficient skills existed across the areas identified, with just five per cent strongly disagreeing.

Delving deeper, the figures reveal a perception that digital skills are present in some areas more than in others. While 23 per cent of respondents strongly agreed that sufficient skills existed in customer services, this was almost double the next category, where just 12 per cent strongly agreed their organisation had sufficient shared services skills. Other areas had still lower levels of strong agreement that public sector bodies had sufficient skills – social media (seven per cent), data analysis (seven per cent), IT literacy for all staff (seven per cent) and culture of innovation (six per cent). (Figure 2)

Figure 2: To what extent do you agree that these skills exist at sufficient levels within your organisation at present?


So with public services dealing with the challenges of austerity, how much more room is there for ICT to continue to enable transformation in coming years? As we have seen, most public sector bodies seem to be grasping the nettle of “channel shift”, making more and more public services available online.

However, our survey revealed that the journey is far from over. Almost a fifth (19 per cent) of respondents reported that ICT has not yet enabled a transformation of their services. But this seems not to be the result of a lack of appetite – only three per cent of those surveyed said that delivering services online (digital by default) was not a priority for their organisation.

Those we surveyed are looking firmly to the future and are clear on the benefits that technology could bring. When presented with a list of future actions their organisation could undertake to improve the delivery of public services, on average only five per cent across the options said that the suggestions listed would be of little or no benefit. (Figure 3)

Top of the actions identified as being “very beneficial” were improving online services (48 per cent); enabling staff to work collaboratively; and enabling them to undertake mobile working (both 45 per cent). Providing assistive technologies and multichannel call centres scored slightly lower for the “very beneficial” rating (32 and 24 per cent respectively). But again, the numbers saying there would be little or no benefit from these actions were low, at around the ten per cent mark.

Not beneficial at all

I don’t knowVery beneficial Beneficial Neutral Not very beneficial

Room for technology enabled transformation

Improving online services 48% 38% 10%2%

1%

45% 41% 11%2%

0.5%1%

Enabling staff to be mobile

45% 48% 5%0.5%0.3%0.5%

Enabling staff to work collaboratively

24% 40% 22% 3%

3%7%Providing multichannel call centres

21% 43% 24% 3%3%

7%Automating operations

32% 48% 12%1%

6%Providing assisted technology

(telehealth and telecare)

Many of those surveyed went further, listing their own additional suggestions as to where they believe services can be improved by digital technology. Again, the list was varied, covering everything from data sharing to better communication through social and other digital media. However, the most prevalent suggestion related to skills improvements – both for staff through continuous professional development and for citizens who lack digital skills. One respondent

said: “We have a high population of older people and this tends to impact on the provision of services provided online.”

Again, the survey presented the six priority digital and collaboration skills which respondents were asked to rate. Across the categories, an average of only one per cent rated the skills as of “low importance”.

Figure 3: How beneficial would the following be in enabling your organisation to improve the delivery of public services?


Customer service skills scored top – with 99 per cent listing these as “very important” or “important”. But revealingly, the idea that all staff should be IT literate came a relatively close second, rated as very important or important by 93 per cent of those surveyed. The fact that digital skills are rated almost as highly as the much longer established culture of customer service demonstrates the fundamental significance which the digital revolution has attained in a relatively short time.

The other priority skills on the list that were rated consistently highly as either “very important” or “important” were culture of innovation (87 per cent), data analysis (83 per cent), shared services (74 per cent) and social media skills (70 per cent). The gap between these figures and the much lower ratings for the current existence of these skills within organisations starkly illustrates the skills challenge faced by public sector staff. (Figure 4)

The expectations of digital services we have as citizens, based on our experiences of online banking, shopping and social engagement, means public services have a high standard to meet. Only four per cent of those surveyed reported feedback from citizens rating digital services as either “poor” or “very poor”. On the other hand, only four per cent reported “excellent” feedback, with 34 per cent saying that comments had been “good”, a figure almost matched by “mixed” responses from the public, at 30 per cent. (Figure 5) This suggests that although public services are meeting the minimum standards expected of them by their citizens, they cannot rest on their laurels.

Figure 4: How important do you think the following skills are for improving the delivery of public services?

Low Importance I don’t knowVery important Important Neutral Slightly important

Social media skills 6%2%

0.8%27% 43% 22%

Customer service skills 76% 23% 1%

1%0.5%0.8%

Data analysis skills 32% 51% 15%

1%

0.3%Information technology

literacy for all staff 41% 51% 6%

0.8%0.5%1%

Culture of innovation 46% 43% 8%

4%4%1%

Shared services 32% 42% 17%

Figure 5: Overall, what kind of feedback have you had from citizens about their experience of using online services provided by your organisation?

Poor 2%

Very Poor 1%

Neutral 12%

17%I don’t know

34%Good

Excellent 4%

Mixed 30%


As we have seen, the local government officials who took part in our study are, on the whole, enthusiastic about the possibilities offered by technology to act as a catalyst for service transformation and efficiency. In addition, plenty of appetite remains to continue harnessing digital technology to unleash improvements and efficiencies. Such technological improvements go hand-in-hand with shared services – 94 per cent of respondents said enabling staff to work collaboratively would be either “beneficial” or “very beneficial”.

But a number of barriers to collaboration still stand in the way of achieving the aspirations of those working within ICT. Happily, cultural issues – historically a major factor – seem to have been largely overcome as an obstacle to delivery, with this issue only identified as an extreme barrier by ten per cent of those surveyed. Similarly low levels were identified for political issues (only 16 per cent said it was an extreme barrier) and a lack of understanding of other organisations (15 per cent). These figures suggest that local public sector staff feel ICT is becoming more deeply embedded in the DNA of their organisations. (Figure 7)

At the other end of the scale, incompatibility of IT systems came top of the remaining concerns, with 30 per cent identifying the issue as an extreme barrier. The results may suggest that, despite the proven boost that digital technology can bring to cost saving initiatives, some bodies may still be shying away from bearing the upfront investment required.

Among the technological barriers, 93 per cent of respondents said that data sharing was a barrier to joint working, suggesting that there are plenty of opportunities for the development of strategies and technological innovation to improve the situation. In addition, 90 per cent of respondents said that a lack of time and resource was a barrier, as ongoing reductions in funding for councils and other public bodies still bite.

Barriers to success

I don’t knowNot a barrierSomewhat of a barrier

Moderate barrierExtreme barrier

Cultural barriers

Very effective

Somewhat effective

Neutral

Quite ineffective

Very ineffective

I don’t know

Not applicable

26% 30% 28% 10%

12%

59%

15%

9%

2%

2%

1%

5%

8% 22% 34% 26% 10%

Incompatibility of processes 17% 30% 28% 18% 6%

Leadership barriers

6% 20% 31% 35% 8%

Incompatibility of IT systems

10% 32% 38% 15% 5%

Lack of understanding of other organisations

7% 29% 31% 30% 3%

Lack of time / resource

7% 29% 31% 25% 7%

Data sharing barriers

20% 28% 32% 16% 3%

Political barriers

Figure 7: How significant are the following barriers to increasing collaboration between organisations?

Figure 6: How effective is the collaboration between your team and teams from other organisati ons at present?


ConclusionThere continues to be significant challenges facing the public sector. Since the financial crisis led to cuts in funding for public services, the mantra of the public sector has been to “do more with less”. The pressures on service delivery continue to rise with an ageing population, more demanding citizens and uneven economic growth across the country.

The report shows that respondents have attacked the task at hand with gusto – three quarters of respondents reported that digital technologies have helped transform their services. But it also leaves some unanswered questions.

Whilst the focus on efficiency savings and creating better public services is not surprising, are we seeing cost cutting or true efficiency in action?

What is more surprising is the relatively low importance on investing in people. With 49 per cent of respondents feeling there was more to do to develop a culture of innovation within their organisation, and 41 per cent of people feeling IT literacy of staff is insufficient, how do you best transform your culture to address the next generation of change?

Improving online services, mobile working and collaboration of staff may improve the delivery of public services but the thorny issues of data sharing, incompatibility of IT systems and processes remain barriers to joint working. How can we achieve better collaboration across the public sector?

Whilst doing more with less may have got public services through the past few years, it cannot be sustained. The transformation of services, enabled by ICT, is a key way to deliver improved services at a lower cost in the future.


Julian BoweryDeputy Director, Strategy and Communications, Department for Communities and Local Government, UK

The UK’s Department for Communities and Local Government is responsible for funding local government. It also runs digital platforms for planning appeals and major infrastructure applications in England and Wales, both through the Planning Inspectorate. In addition, it has responsibility for the Planning Portal, a nationwide service allowing the registration and inspection of planning applications.

The department runs regular events to share experience between local authorities to review customer journeys, design of services and methods of working. Bowery says that although councils retain responsibility for making their own decisions about online services, cooperation is growing. He says: “There is a lot more interest than five years ago in using common platforms and shared procurement processes. Common standards and interoperability have also come to the fore.”

Bowery remarks that more work needs to be done to bring citizens’ experiences of council digital services up to the standard of national government. He says: “A lot of the evidence from local government is that the reason people don’t use them is because a lot of them are

not very good.” He identifies two areas for improvement – cutting the amount of information on individual pages to make the customer journey easier and effectively linking to services which are provided by a third party.

But he points to areas of good practice, including work that local government has done with the Department for Education to provide application processes for school places and free school meals. Both initiatives have driven high levels of engagement, he says. “I think these initiatives are more successful because they actually understand what the customer need is and get the mix right between the tech innovation and change innovation.”

Research undertaken by Bowery’s team has identified opportunities around data sharing to deliver better services. He points to an initiative bringing together funding and data from central and local public bodies to target 120,000 “troubled families”. He notes: “Data has been really powerful as an analytic tool and also allowing a case worker to know as much as the head of probation services.”

Case studies


Jefferson FonsecaDeputy Secretary, Science, Technology and Sustainable Economic Development, Florianópolis, Brazil, from January 2013 to March 2014

The city of Florianópolis, the capital of Santa Catarina state in Brazil, has improved public services by creating the “pró-cidadão” - a “one stop shop” for public services. Most of the services offered are available online or via telephone, and allow citizens to seek information, pay bills and provide documentation. Fonseca explains: “The “pró-cidadão” promotes the revision and improvement of work processes and routines, simplifying procedures, removing bureaucracy and establishing goals and performance indicators.”

By next year, Florianópolis aims to have 100 per cent of its public documents available online. In addition, the city is enabling easier access to data, making it easier for officials to cross-reference information and make better policy choices. The information will also be used through apps available to citizens on their mobile phones. Fonseca comments: “The idea is to decentralise services and improve the access to information by citizens and policymakers.”

The city has made some headway in allowing staff to work remotely, but Fonseca says results were mixed. He says: “We had problems concerning the security of data and equipment issues. We are trying to solve those problems, before we make a new attempt to transform

working arrangements.” The main challenge that authorities currently face, he continues, is to improve the transparency and security and data – it is currently developing a system of electronic signatures and digital certification.

Aside from security, another major challenge is cultural. One successful project saw the Brazilian Secretary of Science, Technology and Sustainable Economic Development work alongside the Finance Secretary and Florianópolis to create an online system for the creation of new companies. But he adds: “There is still a lot of resistance to cooperative work and concerns about interference between sectors. In addition, some workers resist training and change.”

Fonseca says there are still not enough trained professionals to work with new technology, and that the municipal government is yet to establish procedures to hire its own staff with digital skills. He says: “We work together with a private company but the ideal is that the municipal government has their own professionals, being totally independent. Florianópolis has a good technology structure, but still lack the budget and procedures to hire our own experts.”

Case studies


Nicolas ConsoHead of Unit for Innovation and User Services at the Secretariat-General for Government Modernisation in the French Prime Minister’s Office

Although French local authorities are autonomous, some of the online services they offer are created by the state, including registration on the electoral roll or asking for a copy of a birth certificate. The French government is encouraging all public services providers to adopt mechanisms to measure user satisfaction and publish the results. It provides its own “satisfaction kits” that local authorities can use, and every two years publishes a separate report on perceptions of the ease of interaction with government online services. Conso says: “The federal German government is going to take inspiration from our method to measure complexity from the perspective of German businesses.”

Tools created by Le Syntec Numérique, a union for the digital industry, show that 38% of respondents view e-government positively. Following a cross-governmental committee on the modernisation of public services, which reported in December last year, the French government has outlined the objective that within two years, half of the population will use online services. Specifically, each online service must increase its usage rate by 20 points during the period. Conso says: “The aim is to have a dashboard to allow us to measure usage of the main, emblematic services and also, in a more general way to measure satisfaction with online services and the usage of these services.”

Central government is also trialling the use of behavioural insight techniques (known as ‘nudge theory’), to gently encourage the French public to move online. One simple technique is to state the percentage of the population that already completes their tax returns online. Conso says: “Generally, people are reassured when they realise that other people have already given it a go. Our analysis has shown us that a lot of reassurance is needed to make people use this service for the first time.”

The biggest driver of cooperation between different public services, Conso believes, is to focus on the needs of the end user and galvanise energy around individual services. He points to the simplification of a benefits application form, which an applicant fills in just once, with details shared between all relevant departments. He says: “Once we made this ambitious promise, which was what the government wanted to do, all of the parties involved, social services, local authorities and central government became more joined up and created partnerships. That’s the idea, to forget organisations and to put ourselves into agile project mode and innovate on user services.”

Case studies

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