Agile government Responding to citizens’ changing needs “If you aren’t changing, you’re regressing. If you aren’t agile, you’re standing still and watching everyone else move further and further ahead of you.”

— Federal Deputy

2 Agile government | Responding to citizens’ changing needs Enabling agile governments

Leaders identified several elements that are critical to agility, namely: developing strong partnerships, investing in human capital, supporting and training leaders and investing in technology. It was also noted that there is a need for the public service to become less risk averse to become truly agile.

of participants believe that agility is achievable.

% More than 50 believe that partnerships are emphasize that the public critical – and that through believe that technology would service needs to become less have an overwhelmingly positive partnerships, we can create risk averse to be agile. the conditions for agility. impact on agility and that governments need technology investment.

stress the importance of mobility to improve conditions to encourage deployments into see leadership as a government from the private key to agility. and not-for-profit sectors and between levels of government.

3 Foreward CONTENTS

Introduction 5 In an increasingly complex and Over the course of 2014, the Public Policy Partnerships 7 interconnected world, where the pace of Forum and PwC worked with a panel of change is accelerating, governments know senior administrators across Canada to Leadership 10 that they must re-invent the ways they explore the concept of agility and what it do business. Whether this is through the means to today’s governments2. Together, Risk 11 partnerships they develop, the leadership we held round table discussions and over Human capital 13 techniques they employ or the skilled 45 one-on-one interviews. We learned workforce they seek out, governments that Canadian leaders are striving for Technology 14 are facing the challenge of managing in agility in their everyday operations, and uncertainty by focusing on becoming while they’re facing some challenges, Barriers 15 more agile in their operations. they’re also actively seeking opportunities and developing strategies to overcome Agile governments provide what citizens Conclusion 16 these barriers. want, when they need it, regardless of Appendix 17 external pressures and context. And This report provides a view of what public they’re able to do this because they’re service leaders think of agility, how responsive, flexible, creative and attuned they’re applying it in their organizations, to citizens’ needs. and what critical actions governments should consider undertaking if they’re With the Federal government’s release going to be truly agile in the new reality. of Destination 20201, the ongoing generational change at the leadership level in governments across Canada and as we’re in a federal election year, now is a good time to reflect on how governments can be more agile.

David Mitchell John Moore President and CEO National Public Sector Leader, Public Policy Forum PwC Canada

1 Destination 2020 was released by the Government of Canada in 2014 articulating the way that the public service is seeking to transform itself and how it can take advantage of new technolo- gies and innovation to serve in the best possible way.

4 Agile government | Responding to citizens’ changing needs Introduction

Much has been written about how the roles of governments have changed. In this fast paced, uncertain and yet connected world, governments need to adapt the ways that they manage.

Under the banner of “Public Service Accounting for the unique characteristics Next,” the Public Policy Forum has been of Canadian governments, the Public “Agility is having the considering what the critical areas of Policy Forum and PwC agreed that it was flexibility and courage to focus should be to assist governments in both timely and important to consider the reinvent yourself.” their change process. Key pieces of the concept of agility in a Canadian context. Forum’s recent work such as Flat, Flexible — Community College President and Forward Thinking and Changing Before we began our series of interviews the Game: Public Sector Productivity in and roundtable discussions, we identified Canada emphasize that Canadian leaders key elements that define agility: are open to and focused on the enablers 1. Adaptability – the ability to adjust of change. At the same time, PwC has and meet changing requirements been on a journey across the globe to understand how the notion of agility is 2. Innovation – the ability to generate impacting organizational change. In the and use new ideas, methodologies Netherlands, this is a government that and technologies is focused on outcomes, can cooperate and outsource, supports an active third 3. Collaboration – the ability to leverage sector3 and is societally conscious, internal and external knowledge and client and demand driven. In Australia, resources to enhance the mission agile public sector organizations have the capability to achieve competitive 4. Visibility – the ability to create and advantage through continuous adaption maintain transparency to enhance in an ever-changing environment 4. fact-based decision-making

5. Velocity – the ability to recognize and respond with the requisite tempo to new circumstances and events5

3 Agile Government, PwC Netherlands, 2012 4 Casler, Zyphur, Sewell, Barksy, Shackloth, 2012. ‘Rising to the Agility challenge: Continuous adaptation in a turbulent world.’ PwC Australia. 5 http://www.pwc.com/us/en/public-sector/publications/agile-defense.jhtml

5 While these enablers resonated with on what agility is not. At the outset of Canadian leaders, they were eager to the project, there was some contention provide perspectives on how agility that governments’ requirement to rely should be viewed in a Canadian public on evidence-based decision-making sector context. When governments are was at odds with agility. However, this agile, they should be almost invisible was strongly rejected. Canadian leaders to citizens because the services they’re emphasized that responsive is good providing are seamless, tailored to needs reactive is not, and taking the time to and allow the population to move about respond appropriately can mean the their lives without obstacles–paying their difference between doing something right taxes, travelling safely, running their the first time and repeating the exercise businesses and using public transit. at significant cost. As such, in order to be agile, governments should be building To achieve this, Canadian leaders believe and developing evidence as a part of that governments will need to change the business-as-usual so that responses are way they think and the way they operate. grounded in fact6. Project contributors emphasized that the absence of market mechanisms that Being agile is also about knowing when provide incentives for the private sector governments don’t need to respond. to take risks or invest in new technologies Partnerships, which will be discussed and business models, should not be used in further detail next, can be a key as an excuse for public sector inactivity. enabler for governments. Balance is an They considered this to be limited important part of agility for Canadian thinking and not representative of how leaders–planning and anticipating, being the public service should be managed. responsive to current or emerging issues, While governments aren’t in competition and always cognizant of medium and with other organizations in most long term prospects. instances, they should consider how its regulatory powers and service mandate creates a competitive environment for other stakeholders. For example, the emergence of innovative technologies “For Canadian leaders, agility is the ability to be responsive, like Uber, which offers a ride-sharing flexible and creative, while being attuned to serving citizen alternative to conventional taxis, has needs. “ disrupted the industry in cities around the world. Canadian municipal governments — Former Federal who regulate the industry have been slow to adapt. In some cases, they have taken court action to ban Uber – a position that appears to demonstrate regulatory constraint rather than agility.

Project contributors also shared views

6 Civil servants aren’t the only ones taking this position; elected officials such as Michael Bloomberg–past Mayor of New York City–have begun to champion a fact-based assessment of government services. Bloomberg is reported to have told his officials: “in God we trust–everyone else has to bring data.”

6 Agile government | Responding to citizens’ changing needs Partnerships

Agility won’t be fully realized until governments are more open and engage meaningfully with potential partners

There are several reasons why partnerships offer an excellent way for governments to be more agile. They increase investment options, double human capital capacity, diminish the risk profile for government, contribute niche expertise and can accelerate the execution of change.

Increasing service capacity Project contributors acknowledged that discussions and agreements with A majority of Canadian leaders engaged potential partners are often drawn-out throughout our project agreed that and can become overly complex and governments can accelerate agility by bogged down in process. While the improving the way they engage with private and not-for-profit sectors can potential partners, particularly with often make decisions more quickly than regard to service delivery. Delivery government, laborious bureaucratic of services has historically been a processes can impede partnerships. Many mainstay of government. As the public checks and balances and accountability sector looks for ways to respond to measures, exist for a reason, but citizen expectations and make savings, governments can’t continue to operate in it’s acknowledged that governments a way that alienates potential partners. aren’t always well equipped to invest Risk aversion means that the public in the technologies to enhance delivery service rarely feels like it can share mechanisms. Many private and not-for- and debate ideas before they’re fully profit organizations can be more agile in formed policies and programs. Whether service delivery than governments. this is about real or perceived risks, it diminishes agility. Governments need to be more open, share information and engage with potential partners.

7 The scale of infrastructure development facing Canada in the near and medium term is almost overwhelming and the scale of public funding is unlikely to meet current or future needs. Canadian governments are competing with other jurisdictions with similar infrastructure challenges for private sector partnerships and funding and therefore need to better position themselves as partners of choice.

Tailoring health care to Partnering to meet changing needs and reduce risk expectations

The Ministry of Health and Long-Term Care In 2003, the government, in partnership launched Community Health Links in 2012 as a targeted with provincial credit unions, Atlantic Central and the program to assist those 5% of patients who, due to their Nova Scotia Cooperative Council, established a CA$6 complex needs, account for two-thirds of health care million pilot project to meet the growing need and spending in a given year. Health Links allows family demand for small business financing. The program doctors, specialists, hospitals, home care, long-term care recognized that community-based credit unions, with and community support agencies to provide integrated local knowledge and a vested interest in growing small care to patients with multiple, complex conditions. businesses, would be an ideal vehicle through which to Health Links represents an innovative approach to deliver loans. caring for patients with complex needs–improving The government considers the program to be an outcomes, while delivering better value for money. excellent example of an agile public-private partnership Across Ontario, 47 Health Links initiatives are for several reasons: the government provides a guarantee already delivering health care to patients in need for funding which means there are no up-front costs; the of complex care. The Ministry’s emphasis on a “low risk to the government is restricted to 90% on term loans rules” environment has enabled the development and and 75% for lines of credit in the event of default and to continuous improvement of Health Links. An integral date, the loss ratio of the program has been an average of part of this innovation, partners from various sectors are 3-4%; and, credit unions are located across the province, providing input and direction in order to improve the including rural areas, facilitating province-wide roll-out. coordination and integration of care. As Health Links Credit unions are also already set up for lending, develops and matures, these partnerships will continue compliance and monitoring making the program to expand, providing many potential access points for very cost-effective. Over the life of the program, the patients in the health care system. In addition, patients government has worked closely with its partners and are being engaged in new ways to ensure that Health industry to ensure that the program is reflective of Links is tailored to changing needs and expectations. consumer needs, a key element of agile government. New streams have been added which reflect market change, including financing for new immigrants and social enterprise, both growth areas for the province. The success of the program is evident in the increase to a CA$33 million revolving program in July 2005, and in April 2014, an increase to CA$50 million to meet demand.

8 Agile government | Responding to citizens’ changing needs Bridging the elected official-public service but how we manage to work within the Bringing new skills and expertise to divide constraints of a partisan system that will government drive success. Public service leaders must The partnership which will impact most understand and respect the political Many best practices and cutting edge on government agility is the relationship agenda, work to be relevant to the developments in good management between the public service and elected political leadership and create sufficient are happening outside of government. officials. Canadian leaders stressed that space to achieve objectives and priorities. Partnerships provide a valuable means both groups have work to do to improve through which the public sector can the current situation. Information At the same time, elected officials need leverage innovation, without needing sharing has broken down, policy advice to better understand and respect the to make the investment itself. Many is being diluted by a lack of trust and role of the public service. The idea that governments across Canada are innovation and creativity are often stifled politicians can simply ‘do it alone’ without actively working with the private by a belief that failure is unacceptable. the advice and expertise of experienced sector, aboriginal groups and academic Therefore business as usual is easier and knowledgeable public servants is institutions to do just this, and federal- and less risky to manage than exploring detrimental to government agility. There provincial-territorial meetings could other options. All these factors establish should be a clear distinction between provide a useful means through which to significant barriers to agility. politicians setting the tone and direction share expertise. Partnerships also give of policy and allowing the public the public sector the opportunity to use From the public service perspective, service to develop options and plan already tested innovations and leap-frog leaders acknowledged that the field implementation. An agile government to the most up-to-date thinking when of politics is complex and some public means better service for citizens, which embarking on new initiatives. servants could improve their political should be the overwhelming focus for fluency and judgment. It was noted both groups. that political priorities will always exist

Immediate Roadside Prohibition

In 2010, the Government of British and driving has dropped significantly, challenges from criminal defence Columbia introduced strengthened with the amount of time required to lawyers and a constitutional challenge administrative sanctions under the process a driver under the IRP model to the B.C. Supreme Court led to part Motor Vehicle Act to tackle drinking taking much less time than that of the IRP program being suspended and driving on B.C. roads. The required for a Criminal Code case. in December 2011. The close working Government’s objective was to reduce As well, there’s been a significant relationship between the public alcohol-related driving fatalities by 35 reduction in the number of Criminal service and the elected government per cent by the end of 2013. This goal Code cases (and hence costs associated meant that the public service was was exceeded with an unprecedented with hearing those cases in court) given the necessary time and space to 52 per cent decrease in alcohol- with fewer impaired driving cases re-draft the legislation. Amendments related fatalities since the Immediate going through provincial court since to the legislation to address issues Roadside Prohibition (IRP) legislation the introduction of the IRP program. raised by the Court were brought into came into effect. Police found drinking The program has faced many legal force on June 15, 2012.

9 Transforming the government through shared see leadership as a key to agility. Leadership services.

The Government of Canada created Strong leadership is a key enabler of agility. Shared Services Canada (SSC) on Agility can’t be expected without investing in August 4, 2011, to fundamentally transform how the Government the required leadership skills. manages its information technology (IT) infrastructure. The creation of SSC brought Project contributors identified that good leadership in the public together people, technology service is about “doing the right thing,” providing direction and resources and assets from 43 building an agile culture. federal departments and agencies to improve the efficiency, reliability and security of the government’s IT By this, participants meant that good If all this sounds very ambitious, it infrastructure. leaders can’t be focused on preserving doesn’t have to be. Contributors agreed their position but rather on building that while these attributes are critical SSC’s executive leadership team relationships and using their influence to agility, governments are too often recognized the need for strong and to achieve citizen-centric policy and failing to take the time and effort to agile leaders to guide employees program outcomes, even if that may train leaders to develop these skills. through its transformational sometimes be to the detriment of their They also agreed that it’s difficult to see journey and initiated the own traditional interests. Agile leaders how governments can really change the development of change leadership will have vision and a pathway for way their leaders operate without some competencies of its executives and success, but will also be flexible to adapt credible investment in education and managers through a developmental to changing circumstances. They’re professional development. This isn’t a program. SSC has designed and altering the language and perception of criticism of the current crop of leaders, developed change leadership risk, developing a tolerance for ambiguity but a realistic acknowledgement that the workshops. To date, approximately and able to defend decision-making, public service is one of the few sectors 36 change leadership workshops, to even in instances when mistakes have where experience, or time on the job, is over 500 executives and managers been made. Most importantly, agile considered sufficient training to acquire across Canada, have been leaders understand the importance the necessary leadership qualities. Very delivered. of partnerships within and outside few natural leaders are born into service, The workshops are designed to of governments. They’re invested in they need to be equipped with the right provide leaders with an agile relationships with other leaders, and tools and skills, with guidance and navigation system to help tailor the leverage their networks to help achieve mentorship. change process to the unique and outcomes. emergent variables they face daily. Feedback from the participants has been positive and key themes and issues raised in the workshops are shared with senior leaders for their review. Based on feedback from participants, additional workshops are being planned to address topics such as navigating through ambiguity and the importance of fostering partnerships.

10 Agile government | Responding to citizens’ changing needs emphasized that the public service needs to become less risk adverse Risk to be agile.

Risk was a recurring theme throughout most of the interviews and at all of the roundtables Placing the citizen at the conducted with Canadian leaders for this project. centre

The prevailing view is that risk management is a critical part of any In 2005, the Auditor General change process and will be necessary if the public service is going to issued a highly critical report of Passport Canada operations, be more agile. including serious concerns over security measures. Then, in roles very challenging. However it 2007, a change in requirements was also asserted that tolerance levels “Redefining risk appetite for travel to the US created a for innovation and intelligent risk surge in passport demands is about developing an would be higher if elected officials and led to overwhelming understanding of next provided some cover for public applications that the agency was practice, not best practice.” servants. Successes can’t always be unable to manage. enjoyed solely by the politicians, nor — Chief Administration Officer, can failures be borne only by the public In response, the agency Municipal Government service. This creates a culture of fear reinvented itself by introducing and inhibits creativity. a new, more flexible and Unfortunately, in the current accelerated customer service environment, public servants often feel Elected officials could change the model, which simplified disempowered. This is because, when it language around project and program back-end processing, reducing comes to risk-taking, the focus has tended development, which at the moment turnaround times. The agency to be on how public servants can and lends the perception that new also became more accessible should be more creative and innovative, initiatives must work the first time by increasing its service points. yet this doesn’t account for the conditions or be considered failures. This would The success of Passport Canada that must be created in order to facilitate require a different kind of conversation is regularly cited as an example thoughtful risk and innovation. with the public–not over-promising of a government agency that that every solution will be perfect and managed to redesign the way Risk aversion was a theme noted by build in the potential to change policy it did business, placing the Canadian leaders. It’s recognized that and program directions if necessary. customer at the centre of its elected officials are beholden to many It was also noted that public servants operations and increasing its diverse stakeholders, which makes their require detailed documents and agility at the same time. implementation plans well before the approval process for budget, design and end product even begins. This obviously limits the capacity for innovation and the prospect for re-direction when changing circumstances require a “second look.”

11 Public servants aren’t, however, placing Research on corporate culture and all responsibility on elected officials innovation identifies three overarching Responsive and emphasize that their role should be themes: promoting risk taking, developing in crisis to create a ‘no surprise’ environment, innovation skills and incentivizing key communicating and engaging effectively talent 7. Companies like Google and to help understand risk tolerance levels Apple are prominent in this research as and build contingency into policy options. leaders in promoting workplace practices Following the 2008 global A large part of being agile is about that encourage employees to innovate. financial crisis, the Canadian delivering what government needs in However, there are few examples in the government directed the public more innovative ways, which necessarily literature of governments taking the lead service to rollout an ambitious implies some acceptable level of risk. to foster a culture of innovation. infrastructure stimulus package. Set up in very tight timeframes Contributors also agreed that public The way the public service responds to within the Treasury Board service leaders could do more to provide crises provides a valuable illustration Secretariat, with billions of staff with more capacity to take risks. of how the risk equation can change dollars to allocate and only Staff need to know that it’s acceptable to when the will exists. The public sector a small number of staff, the make occasional mistakes, and that as should consider how processes change in program was successful for a long as professional judgment has been these kinds of situations, why normally number of important reasons: used in decision-making, the organization slow decision-making becomes more • There were no limitations will support them in instances when responsive and how this can be applied or restrictions placed on the ideas don’t succeed or best efforts don’t to day-to-day operations. One of the key organization to impede agility fully achieve objectives. Borrowing outcomes of crises is that government as no previous organization of from private sector processes, several organizations share information with this type had existed smaller projects and experiments could greater speed and ease, without being • The structure was flat and be considered, with the understanding fixated on accountability regimes and the based on work needs, so there that with limited resources not all can be ‘need to know.’ were no hierarchical barriers realized. to responsiveness • The culture of the organization was suited to the task due to targeted recruiting. All of these elements–flat structure, quick and appropriate Project contributors identified a number of actions to promote recruitment, and high threshold risk-taking and an innovation culture in the public sector: for innovation and risk-taking– were all enabled by a close relationship between the public 1. ensure that senior management are innovation champions service and elected officials and 2. allow free time to experiment with ideas a clear, shared understanding of 3. create an environment that allows experimentation objectives. 4. encourage and reward innovative thinkers 5. accept some mistakes and failures and don’t let missteps paralyze the innovation process

7 Abel, Brock, Popiela, 2014. ‘Building the Foundation of an Innovative Culture: Human Capital’s Role in Making It Happen.’ The Conference Board of Canada.

12 Agile government | Responding to citizens’ changing needs Human capital

Canadian leaders agreed that government agility overwhelmingly hinges on the capabilities of public servants.

One of the key barriers to recruiting In developing the right kinds of future and developing the human capital public servants, leaders believe that “The biggest enabler of agility required for agile governments is mobility has a critical role to play is people. Processes will the recruitment process itself. Due to building a diverse human capital follow.” existing human resources requirements base. Government is complex, and and accountabilities, hiring is too policy makers and program designers — Provincial Secretary often slow, cumbersome and outdated. need to be able to reach beyond the With a generation that’s accustomed everyday environment of the public to immediacy of response and feeling service to understand impacts and “Diversity enables agility– connected online to potential employers, outcomes. Governments need to create experience and mobility governments’ approaches are likely the conditions to encourage public enables diversity.” costing them valuable staff among a new servants to pursue opportunities outside generation of emerging leaders. of government, and for private/not- for-profit employees to want to work in — President of a Canadian foundation The federal public service engagement government. There is understandably plan, Destination 2020, is a positive start some risk in allowing talented staff to changing governments’ approaches to take up opportunities outside of If you have the right people, focused on to recruitment; however, contributors government; however, creating these the right things, partnering as required, to this project believe the public service opportunities and this kind of working you can achieve significant outcomes. needs to go even further. Many young environment is an important part of the You need the bench strength to respond. people that choose the public service new recruitment and retention equation A simple concept – but not always easy to when they’re considering where they for governments. execute. will build their career do so because they Part of building an agile public service believe that they can make a difference is acknowledging that governments and contribute to society. Governments can’t continue to recruit and manage can do better to leverage this desire talent the way they have in the past. to serve the public, and be smarter Today’s pace of change means that public about the ways they recruit new staff. servants aren’t doing the same type of Project contributors acknowledge that jobs in the same kind of departments. a new generation of employees have Today’s government work demands a very different expectations about job different kind of public servant that’s experience than their predecessors. more adaptable and mobile. Previously, it Flexible work arrangements, quality was believed that there were a handful of experience and relationships with of easily defined competences for ideal supervisors and team are seen as key public servants, but now, staff need to elements of a positive work environment. Most importantly, young public servants stress the importance of mobility to be able to innovate, persuade, lead and improve conditions to encourage want to feel empowered and connected engage, while being technologically able deployments into government from the to outcomes. The public service is and politically savvy. private and not-for-profit sectors and competing for valuable human capital between levels of government. and, much like the private sector, needs to adjust its approach accordingly.

13 More than

believe that technology would have an overwhelmingly positive impact on agility and that governments need Technology technology investment.

Investment in IT is unavoidable if the public Becoming a service is going to be agile and keep pace with leader in the the digital revolution. digital revolution

Vancouver has become a Technology is a critical enabler for the New methods of service delivery, leading technology hub in North future of agility–the desire is there, but recruitment of the next generation America, with its dynamic the required budgets, not to mention of human capital and linkages with mix of emerging technology the technical skills, to implement new the public all rest on adopting new start-ups and established tech technologies presents an enormous technologies. Refusal to prioritize new companies. To support this challenge for governments. technologies is already undermining sector, the city developed a government agility, and this will only be In a constrained fiscal environment, digital strategy in collaboration exacerbated with time as natural partner Canadian leaders believe that there are with the Vancouver Public organizations change their practices and always competing priorities for limited reinvent their operations. If resources Library and the Vancouver budgets, and technology tends to be continue to be constrained, governments Economic Commission. Using a considered as a ‘nice to have’ rather than may be able to approach this piecemeal by Digital Readiness Assessment a necessity. adopting a hybrid model. New programs Model, the city established a A decade ago, Canada routinely figured are framed and designed digitally, while baseline by examining digital in the top rankings of every league table other existing programs are digitized at a maturity across five dimensions, measuring government performance slower pace, as certain benchmarks and including online, mobile, in adopting technology and moving successes are recorded. social, infrastructure and government services online. No longer– Technology has also changed data, as well as organization. Canada’s leadership position has eroded expectations of the way governments Six months after the Digital as other countries have embraced do business. Real-time monitoring of Strategy was approved by technology or digital strategies as a key and commentary about government City Council, the city created driver of agility. A first step for a number activities means that the public has of these countries was creating a digital the position of a Chief Digital developed an expectation that responses blueprint or strategy. It was critical for Officer (CDO) to implement the should be almost immediate. At some governments to put a stake in the ground strategy in collaboration with levels of government, particularly and commit to specific goals, actions internal business units and at the municipal level, this has led and timelines. For example, the UK external partners. As a unifying to significant changes in business government has set an ambitious course operations. Local governments, who are framework, the strategy and its through its Digital Strategy published in most closely connected to the public, have initiatives have created a central 2012, which identified 14 specific actions realized that traditionally structured table for decisions regarding for it to become “digital by default.” bureaucracies don’t lend themselves service delivery through Their vision is to create digital services to agility and have transformed their digital channels. As Vancouver that are so convenient, they become organizations accordingly. We’re now continues to adapt its digital everyone’s first or default choice8. As seeing flatter structures with fewer digital opportunities and challenges grow, roadmap, municipalities across clearance levels, which in turn is building deciding where to invest in technology Canada are looking to learn trust for staff’s capacity to respond can be difficult. Focused digital from the city’s experience as a without senior level oversight. This is investments on the most impactful citizen leader in the digital revolution. a more significant cultural shift than a transactions will help keep the scope of simple organizational restructuring. At work manageable.9 the municipal level, this is considered a

reflection of their desired responsiveness, 8 , 2012, Government Digital Strategy, and the ability to change the way https://www.gov.uk/government/uploads/system/uploads/ attachment_data/file/296336/Government_Digital_ business is conducted in order to reflect Stratetegy_-_November_2012.pdf citizen demands. 9 Hirt, Willmott, 2014. ‘Strategic Principles for Competing in the Digital Age.’ McKinsey Quarterly.

14 Agile government | Responding to citizens’ changing needs Barriers

There are barriers that exist, providing challenges to government leaders as they seek to be agile.

However, project contributors agreed that while some of these barriers are real and likely to remain, others can and should be overcome.

The barriers that Canadian leaders agreed Human resource processes and are unlikely to change in the short-to requirements around fair and The first pre-condition for medium-term, are structural, simply transparent hiring seriously impede agility is that change has to because the accountability measures are agility and aren’t always necessary or, begin at the top. Public sector necessary for the expenditure of public at the very least, could be significantly leaders must desire change. funds. Fear of failure has become deeply improved. An overwhelming focus on rooted in public sector culture. The responding to the latest crisis, driven interplay between the permanent election by reactions to public perception and cycle and the media’s insatiable need for media, distracts governments from “gotcha” journalism has resulted in zero- their core business. There are of course tolerance for administrative miscues. No exceptions (the global financial crisis, matter how creative and responsive public Ebola), but agile governments can servants are, it’s unlikely that their best distinguish between genuine and efforts will always result in the highest passing crises. Finally, there was some level of agility. contention among contributors that a more constrained fiscal environment was However, there are also some barriers that a barrier to agility, but most Canadian are based on tradition or past practices leaders believed that while resourcing that can and should be overcome. The first may be a recent challenge, austerity pre-condition for agility is that change has actually provides opportunities to to begin at the top. Public sector leaders explore how governments can operate must desire change. Inherent in cultural differently and more effectively. change is the maxim that organizations don’t change–people do. This means questioning some core assumptions of public service leadership and preparing to explore new ways of working together outside their comfort zone. Over the course of this project it was observed that senior executives in the public sector appear willing to ask themselves how they’re prepared to change in order to promote agility.

15 Conclusion

For years, the public sector has been grappling with how to meet citizens’ increasing expectations. The inherently risk averse nature of government means that it often avoids public service innovation. But the acceleration of technology and globalization has put pressure on government to catch up with the private sector and to invest in innovation, even if it means taking on greater risk and the possibility of failure.

Our discussions with Canadian leaders demonstrate that more change is likely, and there is a growing sense that now is the time to act. The case studies profiled offer evidence that innovative change is underway. We believe Canadian public sector leaders are prepared to become more agile in the following ways:

1. partnering with private sector and civil society stakeholders to leverage innovation and respond to citizen expectations and delivering services in new ways 2. rethinking the civil service career model and required competencies to achieve agility through strong leadership 3. providing staff with more capacity to take risks and support them when ideas don’t succeed 4. recognizing that younger professionals may have different expectations about their career paths 5. redesigning business rules and in some cases, a complete reconsideration of governments’ regulatory role

There are ways to ensure that checks and balances are in place, while also being responsive, creative and adaptable. Governments are now beginning to change the ways they lead, partner, invest and recruit in order to maximize agility. By doing so, they will be better prepared to respond to the changing needs and expectations of Canadian citizens.

“Agile government responds to changing needs from the public’s perspective”

— Provincial ADM

16 The agile government Project contributors

David Agnew Jocelyn Bourgon Dr. Wendy Cukier David Good Kent Kirkpatrick President Former Clerk of the Privy Vice President, Research & Professor City Manager Seneca College Council Innovation University of Victoria City of Ottawa Government of Canada Ryerson University David Akeeagok Sébastien Goupil Peter Kruselnicki Cabinet Secretary David Brezer Chris Daly Director General, Policy and Former Vice President, Government of Director, Consumer Policy Assistant Deputy Minister External Relations Public Relations and Liaison Branch Economic Rural Status of Women Canada TransCanada Penny Ballantyne Consumer Services Development and Tourism Cabinet Secretary Government of Ontario Government of Nova Scotia Peter W. Gurnham James Lahey Chair Professor, Graduate School Scott Brison Tony Dean Nova Scotia Utility and of Public and International Yaprak Baltacioglu Member of Parliament Professor, School of Public Review Board Affairs University of Ottawa Secretary Policy and Governance Rebecca Bruce University of Jean-René Halde Marie Lemay Communications Advisor President and CEO Deputy Minister/President Darcy Bear Halifax Port Authority Carl Desrosiers Business Development Economic Development Chief Director General Canada Agency of Canada Whitecap Dakota First Roger Butcher Société des Transport Regions of Nation Regional Director Montréal Josh Hjartarson BC Housing Management Vice President Louise Levonian Jim Bell Commission Mark Dixon Ontario Chamber of Senior Associate Deputy Manager of regional land use President Commerce Minister of Employment and planning Julie Cafley Babcock Canada Social Development and Government of Vice-President Karen Hougen-Bell Chief Operating Officer for Public Policy Forum Paul Dixon Director of Policy and Service Canada Danielle Bélanger Associate Vice President, Planning Director Allan Cahoon Enrollments and Registrar Government of Yukon David Lindsay Government of Canada President and Vice Saint Mary’s University President and CEO Chancellor Isabelle Hudon Forest Products Association Domenic Belmonte Royal Roads University Ted Doane Executive Chair of Canada Partner Executive Director Quebec and Senior Vice- PwC Sherri Campbell Internal Audit Centre President Peter MacArthur President Government of Nova Scotia Client Solutions, Sun Life Chief Financial Officer Paul Benoit Frontier College Financial Canada Atlantic Pilotage Authority Director Operations Support, Johanne Dumont Service Delivery Robert Carlyle Assistant Deputy Minister, Daniel Jean Rob MacIsaac Service Nova Scotia and Director, Strategic Workforce Status of Women Deputy Minister President and CEO Municipal Relations Management Government of Quebec Department of Foreign Hamilton Health Services Government of Nova Scotia RBC Affairs, Trade and Janet Ecker Development Dale MacLennan Margaret Bloodworth Michael Chong President and CEO Community Services Mentor Member of Parliament Toronto Financial Services Monique Jérôme-Forget Government of Nova Scotia Trudeau Foundation Alliance Former Minister of Finance Ian Clark President of Treasury Board Susan Margles Mitch Bloom Professor, School of Public Gabriel Eggenhofer Minister Responsible for Vice President Assistant Deputy Minister Policy and Governance Deputy Minister, Education Government Services Canada Post CANNOR University of Toronto Government of Northwest Territories Michael J. Jordan Bill Mathews Genevieve Bonin Sean Conway Partner, PwC Assistant Secretary Partner Visiting fellow, Centre for Michael Fenn Treasury Board of Canada PwC Urban Energy, Ryerson Former Deputy Minister Richard Joy University Municipal Affairs and Vice President Neil McEvoy Michel Bonsaint Public policy adviser, Housing Policy and Government Founder and CEO Head of the Legislative Gowlings Government of Ontario Relations Cloud Best Practices Assembly Toronto Region Board Network Government of Quebec of Trade

17 Joe McGillivray Josepth Pennachetti Yule Schmidt Peter Wallace Cabinet Secretary City Manager Special Assistant to Cabinet Secretary of the Cabinet Government of Yukon City of Toronto Government of Yukon Ontario

Peter MacKinnon Susan Phillips Georgina Steinsky- Lori Wanamaker President Director, School of Public Schwartz Deputy Solicitor General Athabasca University Policy & Administration President Government of British Carleton University GSS Logic Inc. Columbia David Mitchell President Kerry Pond Owen Taylor Doug Witherspoon Public Policy Forum Assistant Deputy Minister Partner Executive Director Centre for Leadership PwC Canada Algonquin College Larry Murray and Learning Chair Ministry of Government Hilary Thatcher James Wright Public Policy Forum Board Services Assistant Deputy Minister, Former Public Servant Government of Ontario Aboriginal Affairs Canadian Diplomat Karen Oldfield Government of Ontario President and CEO Luc Portelance Cynthia Yazbek Halifax Port Authority President Ian Thompson Executive Director of Canadian Border Services Associate Publisher Employee Relations Steve Orsini Agency Halifax Chronicle Herald Public Service Commission Secretary to the Cabinet Government of Nova Scotia Shawn Porter Susan Tinker Yves Ouellet Partner Vice President Glenda Yeates Head of Treasury Board PwC Canada Partnerships British Former Deputy Minster Government of Quebec Columbia for Health Sandra Pupatello Government of Canada Vern Paetkau Director Marc Tremblay Chair, Board Executive Business Development and Director Neil Yeates Literacy Victoria Global Markets Human Resources Former Deputy Minister PwC Canada Ministry of Culture and for Immigration Ann Pappert Communication Government of Canada Chief Administration Officer Saad Rafi City of Guelph Chief Executive Officer Annette Trimbee Sarah Young 2015 Pan Am/Parapan President Principal and Co-owner Brenda Patterson Am Games Organizing University of Winnipeg MT&L Public Relations Deputy City Manager Committee City of Toronto Stéphanie Trudeau Susanna Zagar James Rajotte Vice President Senior Vice President Yuen Pau Woo Member of Parliament Gaz Metro Workplace Safety and Former President and CEO Edmonton Leduc Insurance Board Asia-Pacific Foundation David Turpin of Canada Ross Reid Incoming President David Zussman Chief of Staff to the Premier University of Jarislowsky Chair Valerie Payn Government of University of Ottawa President and CEO Newfoundland and Mike Savage Halifax Chamber of Labrador Mayor Commerce City of Halifax Morris Rosenberg President Trudeau Foundation

18 Agile government | Responding to citizens’ changing needs 19 www.ppforum.ca www.pwc.com/ca/agility

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