Themes in digital transformation

The Australian Government is currently investing billions in digital transformation projects. According to its Data and Digital Government Strategy, there are $9.68 billion in active digital government projects (as of June 2023) while as far back as 2020, the Federal Budget included over $3billion to invest in data and digital technology initiatives.

Digital transformations, from enhancing MyGov to the effective use of data to inform health policy, deliver obvious advantages to government via streamlined processes and significant cost and labour savings.

However, this does more than reduce wait times or simplify service delivery. Digital transformations can enhance the democratic process, empower populations and facilitate a more transparent and equitable relationship between a government and the public.

Why so many digital transformations fail

Digital transformations cannot rely on technological solutions alone.

They must blend organisational culture and cross-departmental cooperation with technical innovation to achieve the sustained momentum and immersion necessary for success.

Each project must also have a strong leadership team that drives its vision and manages the competing priorities of various stakeholders. This could mean getting hundreds, if not thousands, of people in alignment to ensure the program’s success.   

Unlike private enterprise where there is more room for experimentation, governments must ensure programs are equitable, spend public money wisely and apply proper governance. This affects the speed in which government departments can roll out digital transformation projects.

In addition, failing to complement digital transformation projects with robust communication and change management strategies that take stakeholders on the journey is putting entire projects at risk of failure.

The role of communications and change management in digital transformation

According to IBM, ‘Emerging technology and social forces are creating new customer experiences that result in changing expectations and demands and disrupt business models.’

As a result, it’s critical for public sector organisations to embed communication and change management strategies throughout each step of a digital transformation.                                  

Effective strategies assist in building trust and confidence with stakeholders and ensure teams are aligned with the wider project objectives. Whether these strategies are designed to increase buy-in with internal teams or aimed at communicating a change in policy or process to the wider public, communications should form the bedrock of any change digital transformation project.

We’ve looked at some of the key themes currently within digital transformation to determine how you can support them with effective communication and change management strategies.

Theme 1: The potential of AI

A recent IBM survey revealed that 75% of CEOs feel that their business’s competitive advantage depends on having the most advanced generative AI.

While AI’s complete potential is uncertain, firms such as Goldman Sachs predict generative AI will boost global GDP by up to 7% and productivity growth by 1.5% over the next decade.

These gains extend to the public sector where generative AI could unleash a new era of productivity within government, including managing resources, improving efficiencies, and enhancing public services.

According to a report by the Deloitte Centre for Government Insights ‘Generative AI, the technology’s latest iteration, has the potential to automate and accelerate countless repetitive tasks such as retrieving relevant information, communicating with others, processing information, analysing data, and offering informed advice. With this technology, government employees can have decades of policy knowledge at their fingertips, policymakers can compare policies across time and jurisdictions, and case workers can input and retrieve client information remotely.

While there are significant opportunities for government to effectively use generative AI, they must be balanced with ethical, fairness and safety considerations. Government must prioritise governance when determining the responsible use of AI within the public sector.

The communication opportunity: upskill and reskill through training  

The increasing use of generative AI will require entire teams and departments to be upskilled whether it’s purchasing teams, policymakers or front-line service delivery staff.

According to Boston Consulting Group, while 86% of employees say they’ll need training to incorporate AI into their role, only 14% have actually received it.

To address this skills gap, public sector departments need to invest in practical create channels for two-way engagement, maintaining transparency about the progress and challenges, and celebrating milestones to build a positive perception and maintain momentum.

Together, effective training and communications ensure that teams are informed, prepared, and motivated, facilitating a successful AI integration that enhances performance and innovation.

Theme 2: Data-driven decision making

While the importance of data is nothing new, the responsibility of the public service to adequately harness its data resources to deliver services, design policy and optimise budgets is becoming increasingly important. The quality, protection and use of data will play an increasingly significant role in government decision making.

The Australian Government recognises the importance of treating data as a critical resource. In its Public Data Policy Statement it states data is ‘a strategic national resource that holds considerable value for growing the economy, improving service delivery and transforming policy outcomes’.

Combined with AI and machine learning, data-driven decision making will help many governments make decisions in real time to manage ever-changing demands on public services.

The communication opportunity: data as a resource

As we increasingly move towards data-driven decision making, harnessing communication and change management strategies can assist in the transition to a data-centric culture.

Clear communication strategies ensure that everyone understands how to access, interpret, and utilise data while regular updates and feedback loops keep all stakeholders informed about data-informed updates to the project.

Meanwhile change management strategies including leadership buy-in, identifying data champions and providing targeted training programs for relevant stakeholders can build trust and reduce apprehension of your digital transformation project.

Theme 3: Digital Transformation driven by CX

Government is taking inspiration from the private sector by recognising the importance of the customer experience (CX). CX refers to the steps an organisation takes to provide its customers with a superior experience throughout the journey.

Centering CX within digital transformation is more than a nice to have. Good CX enhances public trust and perception in government. This ultimately improves the relationship between a government and its citizens.

Whether it’s individuals paying for a speeding fine or a small business submitting a funding application, digital services enabled by streamlined CX deliver services that are inclusive, accessible and make life easier for citizens.

For example, following national COVID lockdowns, Services Australia processed 1.3 million JobSeeker claims in 55 days, a claim volume normally processed in two-and-a-half years. A recent digital transformation project whereby the agency had transitioned to a single, front-end interface simplified this process. Staff no longer had to switch between multiple systems, resulting in better service delivery, improved responsiveness for customers and better training of new staff members for internal teams.

The communications opportunity: Deeply engaging stakeholders

By centering, and deeply engaging, stakeholders, you can develop a comprehensive understanding of your project’s capability gaps and where digital tools and platforms can be used to add value.

Too often we see this engagement happening too late (or after something has gone wrong) and focused on the outputs and outcomes of a project, rather than speaking to the impacts and benefits to the end user.

Good CX design should be an ongoing, codesigned process that aligns with the business case of the project. Observation, testing and surveys can all be used to understand attitudes, processes and capability gaps. Put simply, waiting until a new technology, system or platform is being introduced to engage the workforce is too late.

Theme 4: Building community resilience

Disrupted supply chains, cybersecurity attacks and natural disasters affect entire societies and have the potential to negatively impact national security and social cohesion. Increased community resilience to these threats is needed to mitigate the risks with digital transformations a key factor in building this capability.

Governments worldwide are investing significantly in systems that ensure uninterrupted capability and service delivery in the face of resilience threats. System resilience has become a determining factor of a project’s success. In its latest report ‘Public sector digital trends 2024’, Socitm states that while public service organisations have traditionally focused primarily on cyber threats, 2024 onwards will see the focus shift to digital and IT’s contribution to mitigating community-wide risks.

‘…2024 will see a growing trend for public bodies to look to their digital supply chains, local partners, national bodies, and community organisations, to collaborate on digital solutions that help to build greater local resilience and community response to changing threats of all types.’

Building community resilience against competing threats requires a collaborative approach. Government departments cannot afford to operate within existing departmental boundaries and structures.

The communication opportunity: Address risk in your strategy 

All efforts in building community resilience should be complemented with a communication strategy that outlines how departments will communicate potential risk issues both internally and externally. It should detail the key stakeholders involved and how to communicate the risk information, changes and concerns that apply to each party.

In addition, the communication strategy should include robust community consultation that gives government departments, organisations or agencies the opportunity to gather local community feedback. Whether it involves public meetings, surveys, focus groups, or online forums, ensuring that the community’s needs, concerns, and aspirations are considered will lead to more inclusive and effective outcomes.

Theme 5: Embedding equity

Currently one in six Australians live with a disability, 28% live in remote and regional areas, and of the 22.8% of people who speak a language other than English at home, 3.4% speak English ‘not well’ or ‘not at all’ in the most recent census.

Confusing eligibility requirements, laborious procedures, and complicated forms     can all create barriers for those applying for government programs. As a result, simplifying these processes is critical to increase accessibility and inclusion across government services and make them more user-friendly for all citizens.

Whether citizens face barriers in language or location, governments have a responsibility to ensure equity and inclusion is embedded into all digital transformation projects by designing solutions tailored to specific needs.

Designing and implementing digital transformation projects through an equity and inclusion lens ensures all aspects of governance contribute to a fairer distribution of resources and opportunities and that governments can better serve their citizens, especially those in greatest need.

The communication opportunity: engage those with lived experience

As with any project, those who it will most affect should be consulted throughout the project to ensure it will achieve its aims. Communication strategies should be developed for each stage of the process to ensure feedback is captured and implemented. Monitoring and evaluating outcomes can provide valuable insights for future policy and decision-making.

Digital transformations are never truly ‘done’

There are no quick fixes or band-aid solutions. Innovation begets more innovation and as government departments overhaul legacy systems, the challenge is projecting what will come next.

As governments work to ensure digital transformation projects are successful, and serve the community, the importance of effective communication throughout the entire project lifecycle cannot be ignored.

Effective communication is crucial in driving the long-lasting impacts of digital transformations. It builds trust and confidence with stakeholders, ensures alignment with project objectives, and facilitates a smooth transition by addressing concerns and maintaining transparency throughout the process.

Instead, communications functions as an opportunity to achieve sustained   momentum and greater success in their digital transformation efforts.