Agile Government: A Citizen-Centric Approach to Growth

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1 Agile Government: A Citizen-Centric Approach to Growth By engaging citizens and the private sector in policy and service design, GCC public institutions can have a powerful effect on the region s growth. 1

2 The Gulf Cooperation Council (GCC) has achieved in one decade what took most other nations several decades: making the leap from a resource-based to an emerging global economy. The region has grown at a staggering pace. Government policies have opened up markets to evolving resident and business demographics, more foreign talent and companies operating in the region, and new technologies. Facebook, Twitter, and other social media have led to more-engaged, connected citizens with more access to information. Today s citizens and private-sector organizations have clearly benefited from the region s improvement initiatives, including efforts to ramp up e-government services, but they are inevitably raising their expectations of government. People want transparency, have grown impatient with service problems, and are scrutinizing financial targets more than ever. They want to work together to make a difference, and they expect their voices to be heard. The government is not a power over the people. It is a power to serve the people. Therefore, the ultimate government s success is measured by its citizen satisfaction. His Highness Sheikh Mohammed bin Rashid Al Maktoum To meet these expectations and deliver on the economic diversification and manpower development promises set out in future visions, GCC governments will need to become more responsive, putting citizens and the private sector at the core of everything from process and systems to organization and culture. Developing an agile, citizen-centric government will be vital to the region s economic growth. Indeed, there is a strong correlation between agility in government institutions and a country s competitiveness (see figure 1 on page 3). In our 2013 GCC Citizen-Centric Government study, the region s current performance is largely viewed as mediocre (see sidebar: About the Study on page 3). On a scale of 1 to 10, with 10 being world-class, participants gave the region a 6.4 when asked how well citizens are engaged in policy making and service delivery. When asked how performance had evolved over the past five years, the region earned a 6.5. The region is poised to move from the league of rising stars to world leaders. As the GCC moves toward becoming more focused on the needs of its citizens, an agile government holds the key to sustained growth and development. Agility means quickly taking the right actions in a perpetually changing environment engaging citizens, understanding their needs, and partnering with the private sector to design citizen-centric policies and services. Citizen-Centric Policy Design Policy making is a cyclical process, and citizen and private-sector contributions can be important at every step. It all begins with identifying issues (while involving all people and organizations 2

3 in the process) and developing policy options and government objectives. The issues are best gauged through multiple communication channels, from workshops with members of internal policy think tanks to targeted surveys of business leaders and the general public. Almost 23 percent of our private-sector study participants say they are involved in one way or another in policy making, either before or during policy formulation, while 85 percent have a strong interest in being involved and believe they can add the most value in the early stages. Figure 1 When government agencies are agile, a country tends to be more competitive High Rising stars GCC average 1 World leaders United States France United Kingdom Switzerland Denmark Sweden Singapore Canada Australia Country competitiveness Low Laggards Low Government agility High 1 GDP weighted average of GCC performance in competitiveness and agility Sources: World Economic Forum Global Competitiveness Report 2009, Worldwide Governance Indicators 2009, Institutional Profile Database 2009; A.T. Kearney analysis About the Study A.T. Kearney s 2013 GCC Citizen- Centric Government study measures the level of agility of GCC governments and publicsector institutions. With input from leaders of more than 140 of the most advanced public and private organizations, the focus was on four dimensions: strategy, organization, processes, and systems. Study participants include agency leaders and senior-level civil servants and policy makers of ministries, service providers, customs, and municipalities. Initial results have been compared to global data on public-sector performance and benchmarked against international best practices. The study also examines the private-sector perspective on agility in GCC public institutions. Participants from more than 120 companies from various sectors were asked to rate public-sector performance in engaging citizens and private companies in policy making and service design, cite the enablers and obstacles incurred when dealing with government institutions, and recommend ways to improve citizen centricity. The survey took place through social media sites, including Facebook and LinkedIn. 3

4 All final policy recommendations are best determined after consulting with citizens and the private and public sectors about the various options. Public awareness campaigns can then be run via websites, private-sector forums, and other media, along with targeted communications campaigns. Ideally, new policies are formally announced to the general public before being implemented across all relevant departments and authorities. Finally and importantly, feedback from citizens is captured and reviewed against a country s own key performance indicators (KPIs). This is a crucial step as our findings indicate that nearly half of all GCC government agencies do not have processes or dedicated teams in place to capture citizens expectations. And of those that do, the information is not always reflected in government activities (see figure 2). A Saudi Arabian chamber of commerce offers a good example of how seeking input from citizens and the private sector can help shape public policies. In 2012, the Riyadh Chamber of Commerce Communication and Information Technology Committee launched an initiative to nurture the development of its local information and communication technologies (ICT) sector in Saudi Arabia. The committee wanted to move the ICT sector from one dominated by foreign players and dependent on imports to one driven by homegrown innovation to support Saudi ICT exports worldwide. Recommended initiatives were prioritized, and the role of various stakeholders in implementing these initiatives was defined. During the development process, a number of venture capital funds and private-sector companies were contacted to gather their opinions and identify bottlenecks that hinder the development of small and medium-size enterprises and startups in the country s ICT sector. The chamber also held a workshop with representatives from both the public and private sectors, including representatives from leading Saudi companies. The objective was to seek alignment on prioritizing initiatives, ownership, and implementation. Valuable feedback helped shape the new initiatives. Figure 2 Nearly half of GCC government agencies lack processes for capturing citizen expectations 22% 22% No dedicated team to review citizen and private-sector feedback Dedicated team to review citizen and private-sector feedback 22% 78% 33% 22% 0% No defined processes to capture expectations Most expectations captured; some reflected in activities Most expectations captured and reflected in activities Some expectations captured Sources: GCC public sector survey; A.T. Kearney analysis 4

5 Citizen-Centric Services By engaging and seeking input from citizens, services can be tailored based on a real understanding of what people want and need. One of the most important aspects of citizen-centric government is delivering quick wins removing a known bottleneck, for example while also considering the emerging needs of citizens and the private sector, their changing expectations, and new market dynamics. This allows government to quickly respond to its constituents. One noteworthy example can be found in Australia, where the Department of Human Services is working closely with its citizens to improve the way services are delivered (see sidebar: Australia Reforms its Service Delivery on page 6). Becoming citizen centric is accomplished in four stages, moving from citizen neutral to citizen aware to citizen motivated and finally to citizen centric (see figure 3). Performance in four dimensions is central to reaching the goal: Strategy. The organization has a clear, well-defined strategy for becoming citizen centric. Organization. The organization is citizen focused; dedicated teams review citizen feedback and performance is measured consistently against strategic objectives. Processes. Processes are designed to involve citizens and businesses and to anticipate their evolving needs. Systems. Citizen feedback is systematically captured and analyzed via social media and the Internet; communications with citizens takes place in real time. Figure 3 Governments move through four stages to become citizen centric Strategy Organization Processes Systems Citizen neutral Citizen aware Citizen motivated Citizen centric No clearly defined strategy for anticipating citizen needs No team to manage citizen relationships No collaboration or information sharing with other organizations No KPIs to measure service performance No process for receiving and analyzing citizen feedback No use of media, social media, Internet, or other mechanisms to communicate with citizens Citizen needs acknowledged Short-term strategy but no long-term vision Crisis-influenced decision making Limited resources to handle citizen concerns Limited collaboration and information sharing with other organizations Some elements of service KPIs measured but not systematically tracked Limited process for receiving and analyzing citizen feedback Limited use of media, social media, and Internet to communicate with citizens Citizens seen as primary strategic element Partial link between strategies and objectives Citizen service desk with clearly defined roles Collaboration and information sharing with other organizations Consistent tracking of some elements of service KPIs Well-defined process for receiving and analyzing citizen feedback reflected on organization effectiveness and efficiency Opportunistic use of media, social media, and Internet, mainly to communicate policies and services (push model) Citizens at the center of strategy Clear, consistent link between strategies and objectives Central citizen relationship team across divisions with well-defined roles Maximum collaboration and information sharing with other organizations Well-defined and disclosed service performance KPIs Optimized process for receiving and analyzing citizen feedback Continuous process improvement Systematic use of media, social media, and Internet to capture feedback (pull model) Integrated tools and systems for real-time communication with citizens Note: KPIs are key performance indicators. Source: A.T. Kearney analysis 5

6 Figure 4 illustrates where the GCC region is relative to Western Europe and Singapore. Countries are largely citizen motivated in the areas of strategy, organization, and processes but still not where they should be in terms of systems. Moving toward citizen centricity will largely depend on harnessing the power of the Internet to continually communicate with citizens, using tools such as online surveys to better understand citizen and private-sector expectations. As more people get connected, the Internet opens the door for faster, easier access to an even broader range of citizens. For example, the UAE launched a new education strategy in 2010 and, in a first for the Middle East, asked the general public for comments. The strategy was downloaded 14,000 times and generated more than 700 comments. Several workshops were conducted with rulers, experts, Figure 4 Most GCC governments are becoming citizen motivated Area Citizen neutral Citizen aware Citizen motivated Citizen centric GCC Western Europe Singapore Strategy Organization and structure Processes Systems Source: A.T. Kearney analysis Australia Reforms its Service Delivery In Australia, local governments are using blogs to interact with citizens, explaining issues and then soliciting feedback in a two-way conversation that allows agencies to tailor services to meet citizens needs. Australia s Department of Human Services started an ambitious program called Service Delivery Reform to deliver Medicare, Centrelink (disbursement of social security payments), and child support to its citizens. The goal was to better meet Australians social, health, and economic needs. The department worked with citizens to co-design the new delivery model. In 2010, the department ran a series of forums with customers, staff, and community groups across the country to develop the program s agenda. The forums provided insight into how people experience the department s services, the obstacles they face, and their daily frustrations. This was an important first step in improving service delivery. The reform package was guided by international best practices with a focus on how world-class services can be adapted to work for Australia. The first phase of the program has been successful, and the department plans to continue engaging the community to further shape services in phase two, which is now under way. 6

7 teachers, parents, and students to validate and refine the strategy; the prime minister personally responded to some comments. From 756 written comments, the government gleaned 945 constructive suggestions, which were then linked to specific strategic initiatives. Social media can also be used to shape the service-delivery model. Public institutions around the world are demonstrating the success of this approach. One example: San Francisco residents use Twitter to report issues about government services, including the need for graffiti removal, road repairs, garbage pickup, and street cleaning. Facebook has 70 percent penetration in the UAE and 80 percent in Qatar. Much like companies use social media to listen to their customers one quarter of the search results for the world s 20 largest brands is derived from user-generated content governments are beginning to understand and listen to their citizens. Speed, Flexibility, and Responsiveness GCC countries have built a firm foundation of strategic visions and plans. Now speed, flexibility, and responsiveness are necessary to execute the plans while responding to citizen and private-sector expectations. The next leap of economic development, and another opportunity for the GCC to improve its competitiveness, will occur as a result of the government s ability to implement its strategy. Four goals in particular will be important: Design an organizational structure that allows decisions to be made quickly and implemented effectively. The organization structure should meet a country s long-term vision, strategic outlook, customer expectations, and economic dynamics. Avoid setting up multilayered management hierarchies that create excess administrative positions, are inefficient, and delay decisions. This will only reinforce the perception that the public sector takes a passive, reactive role hindered by inferior organizational principles rather than an active economy-shaping role (see figure 5). A good government structure has an unobstructed flow of information and clearly Figure 5 GCC governments are seen as being passive instead of actively shaping the economy Type of intervention Proactive (shaper) Korea Singapore France Activities Service design Policy shaping Anticipation Malaysia Reactive (doer) Lebanon Egypt GCC Service provision Transactional and back office Reaction Building capabilities Building know-how Integrating and innovating Coordinating complexity Stages of maturity Source: A.T. Kearney GCC Citizen-Centric Government study,

8 defined roles and responsibilities. Resources are allocated to meet citizens changing needs, and the culture makes room for improvements, especially by listening to and incorporating constructive feedback from citizens. We will continue to diversify the basis of our economy, increase job opportunities, improve the administration, and remove idleness. This requires the effective participation of citizens and the state, relying on God almighty. King Abdullah bin Abdulaziz, the custodian of the two holy mosques Develop skills by regularly training public servants, especially for customer service. A skilled and motivated staff tops the list to improve government performance (see figure 6). Greater investment should be made in establishing strong government-related education systems and creating opportunities for continued learning for public servants. The UAE, for example, invested in this area in 2005 when it established the Dubai School of Government to improve the quality of public administration and the effectiveness of policy making. More work can be done to increase public servants technical understanding of industry-specific needs. Another option is to establish a mechanism for continuous collaboration with the private sector to develop and test policies and service-delivery models before releasing them. This is especially important now that GCC countries are embarking on a journey of industrial diversification. Figure 6 Staff skills, transparency, and new processes can help the GCC become more citizen centric Percentage of survey participants Skilled and motivated staff Disclosure of information (transparency) Process reengineering Private-public partnerships Independent monitoring of governance Clear strategy Definition and tracking of key performance indicators Technology 0 10% 20% 30% 40% 34% 28% 26% 25% 23% 22% 21% 17% Source: A.T. Kearney GCC Citizen-Centric Government study,

9 Improve performance by measuring, tracking, and disclosing KPIs. Customer satisfaction KPIs are especially important for agencies dealing with citizens and the private sector. While GCC public institutions have made tremendous improvements in transparency and in measuring some aspects of their performance, many improvement opportunities still exist, particularly in the effective tracking and disclosure of relevant KPIs. In addition, using some of the best practices learned from global organizations, including rewarding high performers with financial incentives and with awards handed out in a public setting, could go a long way toward improving efficiency and establishing accountability. Reengineer and optimize processes to meet customer needs. Standardizing and streamlining government processes, eliminating unnecessary or overlapping tasks, and removing bottlenecks is crucial. Perhaps most important is a focus on enabling and supporting strategic goals, taking into account the capabilities and services that may be required in the future. Simply reshaping or automating an existing process might work in the short term but almost never works in the mid to long term. Planning the future organization and designing processes that can adapt to new demands is the ideal strategy. There is also a need for a mechanism to capture feedback from citizens and the private sector and a process to continuously analyze, aggregate, and identify opportunities to improve. Sustaining the Momentum The GCC has experienced rapid growth in a short amount of time, and this hyper-speed evolution has brought a wealth of economic benefits. However, making the next leap of economic development will require an agile, citizen-centric government. Forward-thinking public institutions will engage the region s citizens and private sector in policy and service design to deliver both an immediate impact and a longer-term growth advantage. Authors Bob Willen, partner, Middle East bob.willen@atkearney.com Maurice Zuazua, partner, Middle East mauricio.zuazua@atkearney.com Alessandro Massa, principal, Middle East alessandro.massa@atkearney.com 9

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