What governments can learn from pizza companies

There are many digital transformation lessons from the private sector that are applicable to all levels of government.

As local councils and state and federal government departments continue their digital transformation efforts, we will see an evolution in service delivery. But challenges will remain… challenges that appear remarkably similar to those that Australian and global retailers have been tackling for the past five years or so. Governments can learn a great deal from the retail sector in this regard, and in doing so save taxpayer’s money and deliver more effective and personalised citizen services.

Public sector service paradox

There currently exists a paradox in Australia, where government services are often slow, complex, paper based or involve numerous phone calls or standing in queues. But in the private sector, technology has transformed the lives of citizens in all other aspects of life, such that engagements have become fast, convenient, flexible and easy to use.

Digital transformation is everywhere — helping consumers when they’re ordering a pizza, watching movies, buying a service, saving energy, finding the right product, hailing a cab or an Uber, even keeping track of the time and the number of steps they take. Those consumers now have far more choice and control over how they engage with the private sector, but little choice over how they engage with the public sector. This means that governments all around the world are in catch-up mode.

The omnichannel journey

Retailers had a bumpy start to the omnichannel (or the multichannel as it started out). Nothing was connected and silos ruled the landscape. The biggest challenge they faced was how to tear down internal barriers and reorganise their businesses in a cross-functional way. They had to restructure to achieve the end goal of developing a single view of their business as well as knowledge of their customers.

This is just as relevant for government. The internal structures must evolve from fiefdoms to collaboration powerhouses, as it will be the people within who will make the technology deliver value, while saving time and money. For this to happen, digital vision, strategy and leadership from the top will be crucial. This is tricky, though, as according to a Deloitte University Press survey, 86% of government agencies find it challenging to manage the transition to digital in terms of departmental culture.

The ‘Holy Grail’ is to make sure that technology is on a single platform, that teams are upskilled and restructured, and that every interaction with a citizen is consistent and captured in that citizen’s record, regardless of channel used.

Seamless citizen (customer) journeys

So how did those retailers that got seamless journeys right do it? It didn’t happen overnight and there’s still plenty of room to improve. However, the best successes have come from those which have:

• focused on testing their sites and processes;
• continually reviewed their data analytics;
• been responsive when making improvements;
• enriched the customer experience;
• hosted focus group sessions with customers.

Government agencies do test policy, new ideas and opinion, but this should be extended to include learning from users of government services about what works well, what doesn’t and importantly, how they’d like to be able to engage with government in the future. Not just one focus group, but ongoing engagement — testing the planned journey, testing the prototype and obtaining user input before finalising the journey. Yet Deloitte University Press found that only 9% of government agencies had a high level of involvement of citizens when co-creating digital services. That seems very low when everyone is talking about ‘citizen-centric design’.

On average it costs $1 to $5 for every in-person interaction versus 50 cents for an online interaction, so it makes financial sense to pursue the latter. But while we know that Australians love the convenience of online, they have no choice if governments don’t provide it. As citizens and consumers are the same people, it’s no surprise that their expectations are not much different.

What’s most important for the public sector to remember as it digitally transforms service delivery is that it’s crucial to be consistent in the message, content and offerings. Wherever and whenever citizens engage with government, they must receive the same content and service regardless of platform or device.