Government Transformation Strategy 2017 to 2020: has it been worth the wait?

Whitehall, London

By Steven McGinty

On 9 Feb 2017, and after over a year of delays, the UK Government finally published the Government Transformation Strategy 2017 to 2020.

It’s been a long time since the Government Digital Strategy was published in 2012. Therefore, it’s understandable that politicians, industry leaders and media commentators have been frustrated by the lack of a new strategy in 2016.

In January 2017, Iain Wright MP, chairman of the Business, Energy and Industrial Strategy Committee (BEIS) warned that the UK risked being left behind and losing its competitive advantage in the digital economy because of its ‘absence of clarity and strategic focus’.

Similarly, Stephen Metcalfe, chairman of the Science and Technology Committee, wrote a letter to digital minister Matt Hancock highlighting his disappointment at the lack of a government digital strategy.

However, now that the Government Transformation Strategy is here, what does it say and will it have a lasting impact?

A brief overview

According to Ben Gummer, Minister for the Cabinet Office and Paymaster General, the Government Transformation Strategy is:

“The most ambitious programme of change of any government anywhere in the world, by a government that has already done more to transform itself than any other.”

It sets out the government’s aim to build on the success of the 2012 strategy, and to not only focus on improving the citizen experience but to change the way services are delivered. The strategy states that the government will achieve this by transforming:

  • Whole citizen-facing services – ensuring an improved experience for citizens, businesses and users within the public sector
  • Full government departments – enabling organisations to deliver policy objectives more flexibly, improving citizen experience, and working more efficiently
  • Internal government – supporting the collaboration of government departments and delivering digitally-enabled change more effectively

However, the majority of the strategy is structured around five main objectives:

Business transformation

Government departments have made significant progress over recent years.  The strategy explains that lessons have been learned through this service transformation process, and that there is now cross-government agreement on the key areas that transformation must focus on. These include bringing policy development and service design closer together and recognising that government services are delivered through a variety of channels (online, telephone and face-to-face).

Grow the right people, skills and culture

Since 2012, government departments have been recruiting digital, data and technology specialists to improve their digital capability. However, the strategy accepts that the public sector is working in a competitive market and that recruiting and retaining staff is likely to remain a challenge. Embedding a new culture is also identified as an important enabler of change, with several goals highlighted, including increasing civil servants’ knowledge of digital and improving digital experts’ understanding of government.

The Digital Academy, which was formed in 2014 by the Department for Work and Pensions (DWP), will be transferred (by the end of 2017) to the Government Digital Service (GDS) to create nationwide training opportunities for civil servants.

Build better tools, processes and governance for civil servants

Civil servants vary widely in how they work, including the digital technologies they use and their approach to policy development. The new strategy explains that the government will create a better working environment by developing common and interoperable technologies that can be shared across government and adopt a more agile working environment.

Make better use of data

Data is vital for providing services that meet the needs of citizens. However, the strategy emphasises that the government must earn the public’s trust in managing data safely, securely, and ethically.

Create shared platforms, components and reusable business capabilities

The government has already had some success in introducing shared platforms, such as GOV.UK – a publishing platform which brought together over 300 government agencies’ and arm’s length bodies’ websites within 15 months. The strategy outlines the steps to be taken to encourage the development of new technologies, including leaving large single contracts with IT firms – a practice which is deemed a barrier to providing better technologies for civil servants – and purchasing from a wider variety of suppliers, such as SMEs.

From digital to transformation

It’s important to note that the strategy’s title has changed: from a digital strategy to a transformation strategy.

Jane Roberts, strategy director at Kable, suggests that this reflects the government’s realisation that digitisation is not a process with a defined end date, but a ‘constant dynamic ongoing process.’ Government, says Roberts, now understands that digitisation involves more than just moving services online, and that whole scale change is needed, from encouraging civil servants to work more collaboratively (including sharing cross-governmental data), to digitising back office processes.

In addition, Roberts also highlights the need for digital services to be designed to cope with this dynamic process. This includes supporting the integration of new technologies – particularly those related to the Internet of Things (the use of internet technology to connect everyday items) – and responding to increased citizen demand for greater control over their personal data.

What does it mean for local government?

The Government Transformation Strategy makes no comment on the challenges facing local government. However, London Borough of Camden councillor, Theo Blackwell, suggests that the strategy leaves scope for a ‘digital settlement’ to be developed between central and local government. He observes that the strategy:

leaves the door open for this discussion to be starting and concluded in short order, kickstarted by elected mayors and combined authorities in May 2017, and building on the groundwork of the last two years”.

Mr Blackwell also sets out what needs to be done to achieve this digital settlement:

  • Support the ‘coalition of the willing’, as well as improvement – encouraging local councils who have already made progress with digital transformation to work together, as well as helping struggling councils to improve;
  • Open platforms and a new market for start-ups – enabling the development of platforms and smaller start-up companies;
  • Shared Resource – developing partnerships between local councils and central government, which fund digital initiatives jointly.

Missed opportunity

The strategy has also received a significant amount of criticism for its lack of detail and limited commitments. Independent digital analyst, Jos Creese, has described the strategy as:

“…a mix of re-packaged principles and refreshed ‘transformational government’ themes, coupled with some new but not revolutionary ideas.

Creese argues that there is a general lack of pace with government programmes, such as with GOV.UK Verify – an identity assurance platform that allows people to prove who they are when using government services. And – unlike Theo Blackwell – Creese believes that the lack of collaboration between central government and the wider public sector is a missed opportunity (particularly as 80% of public services are outside central government). In his view, the strategy should have addressed some of the fundamental challenges facing local services, such as healthcare and crime prevention.

Final thoughts

Although the Government Transformation Strategy has received a mixed response since it was first published, there are certainly positives which provide hope for the future. Firstly, it was important that the strategy was finally published to provide a clearer indication of the government’s future direction.  Secondly, in the coming months, the government will have the opportunity to provide greater clarity, and set out how they intend to achieve the praiseworthy objectives of the strategy and realise the full potential of digital transformation.


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Digital transformation in government: moving towards 100% digital

Mike Bracken, former Executive Director Digital for the UK Government, on a stage with the word 'Onwards' in the background.

Mike Bracken, former Executive Director Digital for the UK Government, speaking about  ‘The digital transformation of the UK Government ”  Image by gdsteam via Creative Commons

By Steven McGinty

On the 1st March, Companies House, the agency responsible for the UK’s register of companies, announced their intention to become a 100% digital organisation by the end of 2018/19. Over 80% of companies already submit their documents digitally, but the agency is keen to move this figure as close to 100% as possible, highlighting the cost savings and improved levels of service.

However, Companies House is not alone in its digital ambitions. ‘Digital by default’, the idea that digital services should be the most convenient option for people, has been a key policy aim of the UK government.

Digital Transformation programme

In January 2013, the government introduced its first significant venture into digital transformation. The programme, which involved the Government Digital Service (GDS) – the agency responsible for digital transformation – and eight government departments, set out to transform 25 major services in 400 days, with the aim of developing services that were simpler, clearer and faster to use.

By the end of the programme, in March 2015, twenty exemplar projects had been completed, including services as varied as enabling people to register to vote, making a claim for the Carer’s Allowance, and booking a prison visit.

“Death of the self-assessment tax return”

In the March 2015 Budget, the Chancellor, George Osborne, announced a major IT project, which he described as “a revolutionary simplification of tax collection”. At the time, 12 million people were completing self-assessment tax forms every year. But by early 2016 the government expected that five million small businesses and the first ten million individuals would have personalised digital tax accounts, bringing together all their tax details. By 2020, it’s expected that over 50 million individuals and small business will benefit from personalised digital tax accounts.

Although the project has generally been praised, Jamie Morrison, private client partner at HW Fisher & Company, has warned that – apart from the most straightforward cases – automation won’t improve the self-assessment experience. Similarly, Mark Abbs, a tax partner at London-based chartered accountant Blick Rothenberg LLP, has suggested that the five-year time frame might be too ‘ambitious’.

Investment in digital transformation

As part of the 2015 November Spending Review, George Osborne provided £1.8 billion over four years to support digital transformation initiatives.  This included supporting the move towards digital tax accounts, mentioned above, and the introduction of a simple payment mechanism for all central government services.

In addition to this funding, UK Trade and Investment (UKTI) – which works with businesses to ensure their success in international markets – received £24 million to simplify their online services and ensure they can interact effectively with other government services.

More surprisingly, the GDS was given a budget of £450 million over four years – an increase on its previous £58 million a year. This news was particularly positive for those connected with the GDS, as there was concern that their budget (and influence) would be greatly reduced.

Challenges of digital transformation

The biggest challenge to the goal of ‘100% digital’ is that not everyone is able to access digital services (and to a lesser degree those who have access but need support). In 2015, the Office of National Statistics (ONS) found that 14% of households in Great Britain had no internet access, with 31% reporting that this was due to a lack of skills. Other factors for lack of access included the cost of technology (14%) and the cost of accessing the internet (12%).

Elizabeth Rust, in a 2014 Guardian article, highlighted that often those who are digitally excluded need to access government services the most. She offered the example of a jobseeker who lost his Jobseeker’s Allowance because he struggled to access the internet to apply for jobs, particularly as limited access was available at his local library.

This highlights the challenge of achieving ‘100% digital’, and is why although HM Revenue and Customs (HMRC) are now moving towards digital tax accounts, there will still be an option to complete self-assessment returns in the traditional way.

In the 2016 March Budget, George Osborne also provided £71 million of extra funding to support the digital tax roll-out. These additional resources will be used to extend the opening hours of customer service offices that deal with online enquiries and tax credits.  These improved services should be in place by 2017, enabling greater levels of support for users of digital tax records.

Conclusion

Digital transformation provides a major opportunity for improving government services and reducing costs. It’s not a case however of simply replicating existing customer journeys within an online environment. It requires organisations to put people at the heart of their delivery approach. And in turn, this requires significant internal challenge and change.

The ambition for digital transformation will only succeed if the government invests in digital skills, provides services that encourage people to use them, and supports individuals as they adapt to new digital services.


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Digital inclusion in practice: how Reading Room is helping social housing tenants go online

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In 2012, a Housing Technology report found that almost half of the UK’s adult population who do not use the internet live in social housing. The report’s contributors (including the Chartered Institute of Housing, the National Housing Federation and Peabody housing association) argued that digital inclusion gives tenants more choice and control and better access to lower-cost, better services.

For housing associations, the impact of developing a digital strategy to engage with their tenants can be substantial. The report estimated that social housing landlords could achieve annual savings of £340m in communications costs.

The benefits of digital inclusion for social housing landlords and their tenants is explored further in the latest “In focus” briefing from The Knowledge Exchange.

Social housing: the digital revolution

Increasingly, social housing providers and tenants are connecting online through media such as Facebook, Twitter and online chat services. Other housing associations are offering interactive features on their websites, enabling tenants to check their rent accounts or to book appointments.

But, as the Housing Technology report showed, significant numbers of people don’t have online access. For some, it’s a matter of poor broadband coverage, while others have concerns about access costs and data security.

Our briefing includes examples of how social tenants and their housing providers can benefit from greater digital inclusion, and highlights ways in which the barriers to going online may be overcome.

Reading Room and Catalyst:

Among the examples of best practice featured in the briefing is a case study of a collaboration between Reading Room – a digital consultancy which joined the Idox Group in 2015 – and Catalyst, one of the leading housing associations in London and the South East.

Reading Room has worked closely with Catalyst and its customers to create a strategic framework for the housing association’s digital development. Among the themes emerging from this framework are projects for:

  • Optimising Catalyst’s web platforms for mobile devices and making them more user friendly
  • Developing a plan to implement new online services
  • Training and developing internal teams with digital best practices, including content creation and customer service through social media
  • Engaging the business and creating a team of digital champions
  • Embarking on an innovation programme towards building smart homes

Once the work is complete, Catalyst customers will be able to report and track issues directly through a new web platform, while contractors can view available jobs and location data.

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Future plans

Further down the line, Reading Room and Catalyst are working on plans to use the Internet of Things to create smarter buildings with sensors that can detect changes before they become problems, notify the repair company and update the customer automatically.

The collaboration between Reading Room and Catalyst highlights the exciting potential of technology for improving communications between social housing providers and their tenants, and for encouraging more people to reap the benefits of going online.


Members of the Idox Information Service can obtain access to the full text of the In focus briefing on digital inclusion and social housing here

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Digital transformation: rethinking the plumbing of government

Last summer, the Daily Telegraph reported on the Home Office decision to abandon its flagship immigration computer system. One respected IT contractor told the newspaper:

“I just don’t think the UK government should be allowed to buy IT at all. Maybe give them abacuses, but they could still get those wrong.”

Which might seem comical. But ditching one £350m system and commissioning another at taxpayers’ expense is no laughing matter. As Margaret Hodge, chair of the Commons Public Accounts Committee observed:

“Given its poor track record, I have little confidence that the further £209 million it is spending on another IT system will be money well spent.”

Unfortunately, the Home Office is not alone in its difficulties managing IT initiatives. And while private companies such as banks can encounter technological problems, public sector technology projects seem especially prone to failure. From the BBC to the NHS to the Department for Work and Pensions, publicly-funded organisations have acquired an unenviable reputation for implementing and managing IT.

According to the authors of a new book, Digitizing Government, the underlying challenge facing the public sector is to view digital transformation as being less about technology and more about organisational change. In short, they contend, it’s about “rethinking the very plumbing of government.”

In reviewing three decades of visions, strategies and initiatives, the authors attempt to understand why government has struggled to achieve technology-based public service transformation. The answer, they conclude, lies in “outdated management culture, processes, capabilities, an idiosyncratic procurement model and a supply chain that discouraged innovation and impeded competition.”

The book contrasts the closed, top-down, bureaucratic and paper-based approach of governments with commercial digital services that have emerged to provide an increasingly digitally-savvy public with fast, customised and personalised interactions.

The book’s authors go on to propose a “new normal” to remake public services for the digital age. Once again, they stress the importance of taking a broad view of digital transformation that requires: “…redesign and re-engineering on every level – people, process, technology and governance.”

Some of the proposed ideas take a common sense approach:

  • Use ‘lean thinking’ to move away from meetings, paperwork, discussions, bureaucratic rivalries, and towards more efficient and effective ways of delivering high-quality, timely relevant services to citizens and businesses.
  • Break down the silos separating services, such as policing, courts, the probation service and housing, to enable clustering of similar components together.
  • Bring in and cultivate the right skills.

Smart digital thinking applies not only to central government departments, but to local councils, our closest and most common interaction with government. According to the book’s authors, by adopting common ways of doing things – along the lines of Google, Apple and Toyota – local authorities, their residents, partners and suppliers would all benefit.

The book provides an example of this approach already being practised by the London borough of Hounslow. Rather than embedding new technology into old processes, the emphasis is on standardising processes, an approach that offers opportunities for process improvements and for information sharing across councils. Culture change is also at the heart of the support that Idox offers to the local authorities which buy its software and managed services – in areas such as online planning, environmental health and licensing – as efficiencies are unlikely to be achieved if existing processes are just replicated for an online world.

The authors acknowledge that the journey to digital transformation will not be easy, especially for organisations that are complex, use security concerns as barriers to agility, and have low levels of understanding of digital ethos.

But they make a strong case for digitising government, arguing that it offers the prospect of citizens benefiting from a more seamless approach to government services, and less wasteful administration and duplication of resources.


Members of the Idox Information Service benefit from access to a range of research and intelligence support, including a library of books on public sector policy and practice.