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KPMG International Modernizing government: Global trends An era of public service that is agile, digital and customer centric KPMG International home.kpmg/connectedgov Contents Click on the topics to learn more about each global trend. Introduction The future is Modern government Looking beyond Embracing the power customer centered is trusted and agile yesterday’s borders of technology and data Attracting and Modernizing risk The future of KPMG Connected Get in touch retaining next management in government demands Enterprise for generation civil government a connected enterprise Government servants © 2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. The future is customer centered Modern government is Introduction trusted and agile Looking beyond yesterday’s borders The future of government has arrived — early, abruptly International Monetary Fund’s 2020 Annual Report — 1 and without invitation. While the global pandemic A Year Like No Other. The IMF says it has received a Embracing the power magnified cracks in the workings of government such record number of requests for emergency aid. of technology and data as IT, supply chain and back office limitations, it has Governments may understandably be tempted to also been a springboard for advancements in remote Attracting and working, agile policy making and rapid service design. offset the pandemic’s overwhelming price tag with retaining next strict new fiscal restraints that are bound to limit generation civil servants Welcome to the new frontier — an emerging era of inevitable future investment in technology, new modern government that is customer and business talent, 21st century digital services and economic Modernizing risk centric, agile, digitally enabled and inspired for future growth. As governments move quickly to manage the management in change. looming debt burden, civil services will of course be government under new pressure to do more with less. With massive sums of stimulus money being The future of pumped into communities and economies during the government demands a connected pandemic, public debts are soaring to record levels. enterprise COVID-19 triggered an unprecedented global fiscal response of about US$12 trillion, according to the KPMG Connected Enterprise for Government Get in touch Throughout this document, “we”, “KPMG”, “us” and “our” refers to the global organization or to one or more of the member firms of KPMG International Limited (“KPMG International”), each of which is a separate legal entity. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. © 2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Modernizing government: Global trends 3 Building on today’s momentum governments into a newly responsive, cost-efficient, platforms, collaboration with other governments, customer-centered model — is the inevitable way new partnerships with industry, and customer Successfully navigating the debt journey ahead will forward. For the purposes of this report, please note centricity — supported by new and upskilled The future is customer likely require governments to abandon traditional that the term ‘customers’ is used to refer collectively civil servants — ultimately revolutionizing how centered thinking. They should wisely replace the typical reliance to all government constituents: citizens, businesses governments function in the 21st-century public on program cuts and funding restraints with the pursuit and other stakeholders interacting with government interest. of new opportunities for programs, investments as ‘customers’. Digitalization will play a critical role in Modern government is trusted and agile and innovations that underpin sustained economic resolving the future debt dynamic while positioning Through this timely KPMG report, we examine growth and advancement — generating research governments to catch up to our society’s ever-evolving the limitations of the status quo and the promise and development, capital investment, employment needs and expectations. that digital transformation holds to shape modern opportunities, vital tax revenues and more. government that’s fully connected, agile, responsive Looking beyond yesterday’s borders According to Forrester Consulting research and built to put its customers at the center of Forward-looking governments are already pivoting commissioned by KPMG, nearly eight out of 10 everything it does. The pandemic has given the world their focus toward innovative initiatives and agile government organizations say they are putting — and governments themselves — an unexpected Embracing the power regulations that are designed to give them a much 2 customer centricity front-and-center. Twenty-nine but highly revealing glimpse of what’s possible. of technology and data deeper role as economic stewards — working in percent of government decision makers surveyed closer partnership with private industry to grow their Forward-looking governments are already leveraging count their customer-centric strategy as a top priority, Attracting and economies out of debt and enhance future prosperity. while 46 percent are making it a high priority. the momentum they have created for themselves retaining next Speed to execution, stewardship and impact are the during the pandemic, seizing an unanticipated ‘golden generation civil fundamentals of a modern agile government. We believe that reliance on robust business cases, opportunity’ for historic innovation. servants costly and time-consuming planning, and extensive Investment in revolutionary technologies, platforms, program “big builds” is now poised to give way Modernizing risk systems and processes — ultimately reshaping management in to a new model built on digital technology, cloud government The future of government demands Liz Forsyth a connected Global Head, Infrastructure, enterprise Government and Healthcare KPMG KPMG Connected Enterprise for [email protected] Government Liz Forsyth Get in touch © 2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Modernizing government: Global trends 4 The future is customer The future centered Modern government is is customer trusted and agile Looking beyond yesterday’s borders Embracing the power centered of technology and data Attracting and retaining next Transforming public services generation civil servants to meet constituent needs and Modernizing risk expectations management in government The future of government demands a connected enterprise KPMG Connected Enterprise for Government Get in touch © 2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Modernizing government: Global trends 5 Today’s consumers are more informed, connected Historic opportunities amid today’s and demanding than ever. And while they have come challenges to expect the highest standards of personalization, The future is customer choice, speed, satisfaction and security in every digital Governments, despite their stated good intentions The future of public sector centered interaction, the pandemic has served to heighten for change in the digital era, have considerable consumer expectations surrounding CX — customer ground to cover in their journey to match the policy will likely be driven by experience. private sector’s embrace of digital ecosystems underlying socioeconomic Modern government is trusted and agile that cater to customers. Findings of the Forrester objectives for the citizenry. KPMG’s 2020 Global Customer Experience Customer Experience Index (CX Index™) suggest Excellence survey of more than 100,000 consumers that government departments around the illustrates the pandemic’s influence on customer Looking beyond world still struggle with substandard customer Mun-gu Park yesterday’s borders 3 loyalty, expectations and experience : experience which hinders mission success.5 And Digital Transformation Center of — Consumer priorities have shifted to health in a KPMG-commissioned study conducted by Excellence and safety, understandably, but also toward Forrester Consulting, more than half of government Embracing the power KPMG in South Korea of technology and data heightened convenience, reliability, authenticity organizations themselves rate their customer-centric and transparency. capabilities as average at best: 16 percent call them “less mature” and about 42 percent rate their Attracting and —F orty-five percent of consumers say digital 6 retaining next channels will be their primary means of engaging customer centricity as “about average.” generation civil future services. servants At the same time, insights from Forrester7 and from — Consumers favoring face-to-face commercial the global KPMG organization reflect that governments services fell to about 20 percent since the Modernizing risk will continue to slowly centralize CX governance, with management in pandemic struck — down by half from about three current trends ongoing over the next few years: government 43 percent previously.
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