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Modernizing government: Global trends

An era of public service that is agile, digital and customer centric

KPMG International

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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

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

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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

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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

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© 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 —F orty-five percent of consumers say digital “less mature” and about 42 percent rate their Attracting and 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. Government CX quality continues to trail the private — More governments will create some form of The future of Chief Customer or Experience Officer, charged government demands sector. Forrester’s Customer Experience Index (CX a connected Index™) shows that government provides poorer with overseeing improvement of the customer enterprise experience; CX than virtually every private-sector industry.4 Going forward, the public will increasingly look to — More policy makers will follow the lead of the KPMG Connected Australian Government’s Digital Transformation Enterprise for governments for a modernized approach that delivers Government the fast, convenient, secure, personalized, consumer- Agency, Treasury Board of Canada and the US Office of Management and Budget8 and issue centric services that are revolutionizing every corner stronger CX-related requirements for government of commerce today. Governments’ stakeholders want departments; Get in touch to be treated like valued customers when interacting with government. Various surveys reflect these — Governments are expected to pass more paradigm shifts in attitude. CX-related bills containing mandates related to enhanced service standards, technology, monitoring and reporting.

Modernizing government: Global trends 6 “To achieve citizen-centric transformation, public Putting people “at the heart” of government policy sector workforces will need to be supported with the should also include the need to meet evolving public appropriate training and toolsets,” says Michael Klubal, values and ambitions, says Michael Camerlengo, The future is customer National Industry Leader, Infrastructure, Government Head of Government, KPMG in the Asia Pacific region. centered and Healthcare, KPMG in Canada. “Government “A positive impact of the pandemic is the heightened leaders will have to evolve the culture within and focus on sustainability and the role of governments across their government entities by establishing a in driving this forward — for example, the UN’s Race Modern government is Key takeaways trusted and agile new outward-looking mindset, providing citizens with to Zero campaign, with more than 450 cities and 22 the opportunity to co-design government services regions adopting a target of zero emissions by 2050,” via their input and feedback. Horizontal system-wide he notes. Looking beyond platforms also need to be in place to break down yesterday’s borders organizational silos and enable multi-channel access “Social inclusion is also rising to the top of the agenda by citizens and businesses alike.” and causing governments to rethink traditional approaches in order to foster a more inclusive model Research into the state of CX in the sector Embracing the power The pandemic presents profound challenges for of policy development in education, social services, of technology and data has found that governments are providing government — but also historic opportunities. It city planning and beyond. We expect government poorer customer experiences than every throws light on the inevitable need to put the public bodies to place a conscious focus on measuring private-sector industry.9 To thrive in a new Attracting and “at the heart of every service” via a coherent, their true value to the community, and striving to retaining next era, governments should evolve operations consistent, centralized digital approach that improve their impact across the dimensions of the generation civil to focus on their stakeholders and position servants encompasses all government functions — and that environment, society and the economy,” themselves to continuously respond to continually anticipates and adapts to ever-evolving Camerlengo adds. ever-changing customer needs. Forward- Modernizing risk public needs. management in looking governments will likely build on the government “The future of public sector policy will likely be driven momentum of change that the pandemic has by underlying socioeconomic objectives for the unleashed and continue to transform public The future of service processes and efficiency. Putting government demands citizenry,” says Mun-gu Park, Digital Transformation a connected Center of Excellence, KPMG in South Korea. “A critical people “at the heart” of government policy enterprise success factor will be a movement toward design- may also include the need to meet evolving thinking policy development, combining behavioral public values and ambitions in areas such as KPMG Connected science, service design and digital technology.” the environment and social inclusion. Enterprise for Government

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Modern government is government trusted and agile Looking beyond yesterday’s borders

Embracing the power is trusted of technology and data

Attracting and retaining next generation civil and agile servants Modernizing risk management in government The future is rapid and responsive The future of government demands a connected enterprise

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© 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 8 The agility of governments was dramatically The pandemic has proven the potential of heightened — practically overnight — during governments everywhere to dramatically heighten the pandemic’s rapid, sweeping and devastating their agility, slash response times and meet public The future is customer impact. The simultaneous eruption of health and needs. Witness the rapid launch of new services, In the future, the importance of centered economic emergencies forced governments benefits and emergency processes that include into uncharacteristically rapid response modes. temporary hospitals and digital health solutions, 24/7 agile and trusted government We witnessed rarely seen levels of interaction, call centers and hefty stimulus packages. Modern government is will drive the need for a more trusted and agile innovation, support and short-term spending in the race to help the public. And the rapid change will ideally do much over citizen-centric approach to time to enhance public trust in government going delivering services. That has been a marked shift from the traditionally forward. It is worth noting that, according to the Looking beyond yesterday’s borders slower moving, due-process approach that typically 2021 Edelman Trust Barometer,12 businesses devotes significant time and resources to meticulous have replaced government as the most-trusted Reiji Kobayashi Public Sector Management Partner planning, balancing of conflicting requirements institution. Business now attracts greater trust Embracing the power and demands, and managing of the ‘big P’ political globally and the report warns of a growing trust KPMG in Japan of technology and data agenda. gap and the need to rebuild the trust ecosystem. A

2019 Organization for Economic Co-operation and Attracting and Australia’s pandemic response, for example, saw Development report13 found that only 37 percent retaining next over 10,000 additional short-term staff recruited of people in OCED jurisdictions considered that generation civil 10 servants to accelerate delivery of support to Australians. they had a say in what their governments did. The This was complemented by an unprecedented report further recommended that if governments Modernizing risk emergency initiative that tapped into technology such took a people-centric approach to policy making and management in as automation and mobile apps to create digital self- service delivery, they could rebuild trust in public government service capabilities and reduce dependence on face- administration in addition to other positive benefits. to-face, paper-based interactions, in a socially distant The future of government demands environment. Australia also accelerated development “In the future, the importance of agile and trusted a connected of its JobSeeker and Jobkeeper financial assistance government will drive the need for a more citizen- enterprise programs, a process that would normally take many centric approach to delivering services,” says Reiji more months to plan, develop and implement. Kobayashi, Public Sector Management Partner, KPMG KPMG Connected Using existing Commonwealth identity capabilities, in Japan, noting that the Japanese government has Enterprise for Government the Australian Government rapidly integrated the launched a recent initiative to hire 500 digital experts JobSeeker claims process onto a platform where for its planned “digital agency” of integrated public people and businesses could find information easily services.14 Get in touch and apply for support in one place.11

© 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 9 Many governments will be undertaking the largest The future is rapid and responsive. Governments While roles such as policy making, regulation and logistical challenge in the past 50 years as they mobilize can continue to evolve by building new capabilities funding will remain central, agile new approaches and rapidly distribute COVID-19 vaccines to their for agility that ideally will position them to readily will enable governments to collaborate, partner and The future is customer populations. Along the way, of course, supply chains move in and out of the roles that they hold in providing interact more responsively and cost-effectively with the centered and procurement functions will need to be restructured public programs and services. KPMG Connected public, private industry and the marketplace. And this and modernized. The pandemic has clearly revealed Enterprise for Government is proving to be a timely is already becoming critical as we look to a future that the fragility of supply chains and governments are now roadmap that can be leveraged for new capabilities to will likely be characterized by continued low economic Modern government is trusted and agile addressing how to rebuild and diversify them in order harness the data, advanced analytics and actionable growth and the need for creative solutions that harness to make them more agile, modular, transparent and insights that can provide a real-time understanding of emerging opportunities amid rapid change. resilient. public stakeholders and how best to shape and deliver Looking beyond services. yesterday’s borders It is vital for governments to establish visibility over all key supply chains in order to maintain agile and trusted operations. This may best be achieved through Embracing the power technology and smart use of data. A predictive supply of technology and data chain toolset can provide comprehensive visibility across supply chains while also delivering new Attracting and capabilities to quickly identify and remediate emerging retaining next shortfalls. Government agencies may also need to generation civil servants review and bolster their scenario and contingency planning, including focused strategies for supply Modernizing risk chains linked to disaster recovery and critical national management in infrastructure. government

While some changes to heighten agility will no The future of government demands doubt take time, there are a wealth of accelerators a connected to dramatically shorten a rigorous and robust service enterprise design process. In the case of consultation, early engagement, co-design and customer-centric KPMG Connected development can enable stakeholders to support Enterprise for Government changes rather than oppose them. The process can also be accelerated by not seeing consultation as a discrete period in the process. Ongoing engagement, Get in touch leveraging digital platforms and a process of constant refinement of the service means that consultation can start early, be positive and continue while the service is in operation, rather than delaying change.

© 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 10 Opportunities for progress in a “Governments working more collaboratively than ever low-growth era with business can drive and support industry innovation, a competitive regulatory environment, taxation reform The future is customer Sustained low economic growth will likely pose and, ultimately, economic recovery and social progress,” centered challenges — and new opportunities — for says Mathias Oberndörfer, Head of Public Sector, governments to finance and deliver innovative Managing Partner, KPMG in Germany. programs and services, while also positioning Modern government is Key takeaways trusted and agile themselves to manage issues that include: the Fourth At KPMG, we believe that interdependence between Industrial Revolution; the next inevitable health public and private sectors in securing economic emergency; natural disasters and climate change; prosperity has never been more visible or viable. Modern government has the opportunity to continually Looking beyond aging populations; evolving demographics; economic yesterday’s borders and geopolitical uncertainty; national security and enhance its role as an economic steward, replacing more. A tall order indeed. decades of rhetoric with bold new intentions and intervening far more proactively to support the Governments should embrace agile approaches to working and embed rapid- Embracing the power Governments need to be responsive in revolutionary marketplace and foster progress. of technology and data new ways, pursuing an agile, rapid-service design service design into normal operations for Taiwan’s government, for example, is currently policy and services. Greater reliance on place- model that can turn emerging challenges into Attracting and opportunities for advancement. Localized place- dedicating significant funding and resources toward based solutions can enhance the precision retaining next based solutions will likely gain prominence to allow promoting and evolving what it calls the Six Core and speed of responses to challenges, issues generation civil servants governments to respond to challenges and issues Strategic Industries within its robust economy, including and disaster scenarios. the IT, cyber security, health and energy sectors.15 with new levels of precision and speed. Consider Modern governments may play a greater Modernizing risk how the pandemic’s abrupt impact has revealed management in “Populism has caused the government's policy direction role as economic stewards, taking a more government just what is possible when today’s governments tap to tilt,” says Steven Chen, Head of Infrastructure, active stance to drive economic growth via into resources, expertise and technology to manage Government and Health, KPMG in Taiwan. “It is innovation and initiatives that are closely The future of extreme challenges. attaching more importance to using public information aligned with industry needs. government demands and input, including through social media and today’s a connected Modern, agile government should move in and out enterprise of thriving industries to support their continued technology platforms, to inform policy direction, while also focusing on the importance of data protection and growth and success, at the same time delivering KPMG Connected crucial support to those sectors enduring economic risk-assessment.” Enterprise for Government challenges that include large cohorts of workers Agile government is flexible government, possessing reaching or nearing retirement age, mounting the vision and tools needed to adapt to society’s ever- talent shortages and the need to augment existing changing demands and preferences, for example the Get in touch workforces with new digital skill sets. As a significant emergence of remote-working arrangements that employer globally, governments should also be in for many employees within and beyond government a position to stimulate significant job creation in have become their preferred “new normal.” Smart partnership with industry. governments are already learning from the COVID-19 experience and looking ahead to embedding the speed and efficiency of rapid-service design organization-wide.

Modern government is yesterday’s trusted and agile Looking beyond yesterday’s borders

Embracing the power borders of technology and data

Attracting and retaining next How insights from other generation civil servants jurisdictions can help to address Modernizing risk today’s public sector problems management in government

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© 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 12 Regardless of size or constituency, governments for digital transformation. Consider data sharing, everywhere are typically struggling with similar for example. Many governments have traditionally issues that include chronic deficits and rising debt, operated under a “vertical legislation” model that The future is customer low economic growth, climate change, shifting restricts sharing of the personal and business data Collaborative public-private centered demographics, rapid social change, economic they continually amass. Placing customers at the very disparity and trust in public institutions. Safe to say center of government services will require a bold partnerships between various that there are often more similarities than differences. new capacity for secure data sharing both within and levels of government and Modern government is trusted and agile beyond government agencies. Smart, future-focused governments are already business in the last decade looking across borders and jurisdictions to acquire Innovative partnerships and alliances that create have demonstrated the speed the vision, strategies, informed insights and best modern ecosystems for governments, can relieve Looking beyond and efficiency with which public yesterday’s borders practices that other governments enduring similar them of the perceived need to be “all things to all circumstances can ideally provide in order to turn people” and position them to “play to their strengths” services and infrastructure can into . within a sophisticated and complimentary network of today’s challenges tomorrow’s opportunities emerge. Embracing the power Adopting such a global perspective that can utilize expertise and capabilities. of technology and data new forms of instructive collaboration with other governments and agencies will break through Governments are also discovering how intelligent Paul Low automation that is underpinned by data, AI, robotics Attracting and traditional barriers and accelerate reforms. National Leader, Infrastructure, retaining next and analytics has the power to redefine government generation civil Critical new communication and problem-solving processes. On this front, KPMG’s data, artificial Government and Healthcare servants channels will also, as noted, extend into the private intelligence and emerging technology professionals KPMG in Australia Modernizing risk sector to enhance policy making, program design are helping more organizations unlock critical new management in and execution via a deep and sustained exchange of capabilities and insights. government thinking, ideation and best practices. In Australia, bushfires are a widespread and regular using a human-centric design. The solution, The future of “Collaborative public-private partnerships between occurrence. In the eastern part of the country, the called Falcon, is a web-based command center government demands a connected various levels of government and business in the last New South Wales Rural Fire Service, a state-run that consolidates data from internal and external enterprise decade have demonstrated the speed and efficiency volunteer-based firefighting agency has transformed sources, with a focus on areas of risk. It simplifies with which public services and infrastructure its operations in recent years. To better monitor and automates request processing and provides a KPMG Connected can emerge,” says Paul Low, National Leader, fire-related risks, the service obtained a new fleet of geographical visualization of fire incidents, weather- Enterprise for Infrastructure, Government and Healthcare, KPMG portable automatic weather stations but had difficulty observing equipment and relevant readings. Government in Australia. “The future is clearly collaborative — and deciphering the data the equipment generated. There opportunity rich when we look for shared interest.” were a number of internal and external data inputs In the area of digital policy, India has been making 16 available for fire behavior analysis that were siloed, strides. Its National e-Governance Plan is aimed at Get in touch Spotlight on innovators taking horizontal such as insights from the weather bureau. bringing all front-end government services online. perspectives The implementation of the Internet of Things gained To leverage this data to support decision making in impetus in 2015 through two major programs — the In pursuing a global perspective that opens new responding to and mitigating fire-related incidents, Smart Cities Mission17 and Digital India18. The Smart pathways into the public and private sectors, the NSW Rural Fire Service worked with KPMG in Cities Mission17 is a major urban-modernization and governments gain a more horizontal view of potentially Australia to create a one-of-a-kind data solution that development program that includes implementation ground-breaking insights, solutions and opportunities combines operational and management reporting of innovative digital technology and IT infrastructure.

© 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 13 Digital India is an initiative to make government learning together. Member nation Estonia has built services available to the public electronically via what it boasts is “a digital society” featuring a secure improved online infrastructure and connectivity. and transparent digital ecosystem that is delivering The future is customer 99 percent of government services online.20 The centered Along the way, India and other governments are government has implemented multiple security discovering a growing appetite among industry to protocols and tools to ensure digital identity protection coinvest with government, to provide managed and secure data exchange as public reliance on Modern government is Key takeaways trusted and agile services, and to open up new delivery methods — e-government grows.21 all of which can dramatically relieve government cost pressures while accelerating customer-centered Uruguay, meanwhile, aimed to have 100 percent of its service innovation and program delivery. government services online and instantly accessible Looking beyond yesterday’s borders by the entire population this year.22 These nations Small nations, monumental innovations and others within the Digital Nations collective are demonstrating just what is possible for governments Modern governments should adopt a global, For instructive examples of just what’s possible, we Embracing the power that set their sights on “citizen architecture” and borderless perspective to problem-solving — of technology and data might look no further than Estonia, New Zealand smart data use as the foundations of modern digital one that encompasses public and private or Uruguay. These are a few of the jurisdictions government. sectors for a revealing new horizontal view now setting a torrid pace into the digital future of Attracting and that delivers revolutionary insights, solutions retaining next 19 government as members of the Digital Nations New Zealand is also moving ahead boldly. “The and opportunities for success. generation civil initiative — a ground-breaking international forum dramatic health and economic impacts of COVID-19 servants of future-focused leaders. Their collective mission? have clearly highlighted the importance of our Looking across borders to acquire the vision, “To harness the potential global power of digital strategies, informed insights and best practices Modernizing risk government’s ability to respond swiftly and in a more management in technology and help one another to become even connected way to provide a safe and sustainable of other governments and businesses will help government better digital governments, faster and more efficiently future for all New Zealanders,” says Souella Cumming, governments to enhance their own local and through sharing and learning from each other.” Head of Government Services, KPMG in New domestic programs, solutions and services. The future of Zealand, noting that the nation’s new Public Service government demands The mission statement of Digital Nations is to “lead a connected Act 2020 is designed to promote a unified public enterprise digital government transformation for the benefit of service that functions as one integrated team.23 citizens” by: KPMG Connected “Public-service reforms in New Zealand reinforce — developing cutting-edge digital policy and practices Enterprise for the ‘spirit of the public service’ that is modern, Government — sharing approaches and best practices among connected and truly citizen-focused. Embedding members these expectations into legislation positions our public service leaders with the framework and momentum Get in touch — advancing members’ international influence to consistently and reliably address the social, — strengthening relations, building expertise and economic and technological expectations of all New connecting digital leaders globally. Zealanders.” Participants are connected by the principles of user needs, open standards, open source, open markets, open government and a commitment to sharing and

Modern government is power of trusted and agile Looking beyond yesterday’s borders

Embracing the power technology of technology and data

Attracting and retaining next generation civil and data servants Modernizing risk management in government

Supporting evidence-based The future of government demands insights and decision making a connected in the public sector enterprise

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© 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 15 From receiving benefits, accessing health records, sector average of 9 percent — a sign of how critical registering companies, applying for licenses, to technological transformation has become to the future of voting — digital technology can make these things public services. IT organizations in this sector will need The future is customer instantly accessible, intuitive to navigate and less to demonstrate that technology investments are having Nation-building investment centered expensive to deliver. So, what will it take to make clear, strategic impacts, as affordability of transformation governments digital? programs will be challenged. Priorities center around for the future transcends workforce enablement through collaboration platforms, spending on new transportation Modern government is A modern digital ecosystem that positions government trusted and agile and deriving critical insights from data to heighten infrastructure, modern public- to provide any service to any person or business on operational efficiency. Cloud, customer experience and any platform using any device will be a key enabling health facilities and other security are the three top investment areas for national, Looking beyond factor. And that will likely require four key components 25 state and local governments. yesterday’s borders — a centralized data-exchange platform; secure online important projects to include identification authentication; modern legislation KPMG firm experience and research26 clearly indicate digital infrastructure and a sharp governing data use and sharing; and new and upskilled that the public sector can mirror the ground-breaking focus on digital society’s needs Embracing the power talent who can work with and support emerging customer experiences that are being delivered by the of technology and data technologies that deliver a seamless customer private sector today. Success hinges on a changed and preferences. experience to the citizen. Governments that possess mindset as to what is achievable, and a precise Attracting and these game-changing innovations will likely position understanding of how to get there through new Leigh Harris retaining next themselves for success in a new era of capabilities, technologies and ways of working. generation civil Partner and Government of Canada servants demands and expectations. “Nation-building investment for the future transcends account lead Modernizing risk The challenge for government includes abandoning the spending on new transportation infrastructure, modern KPMG in Canada management in traditional continuum of working in silos, hiring in silos public-health facilities and other important projects to government and procuring in silos — replacing it with a services include digital infrastructure and a sharp focus on digital model that’s designed from the outside in, putting society’s needs and preferences,” says Leigh Harris, The future of government demands customers at the center of a complete digital ecosystem Partner and Government of Canada account lead for a connected that makes the most of data to unlock timely insights and KPMG in Canada. “Yesterday’s railroads are today’s enterprise support evidence-based decision-making. digital channels.” KPMG Connected Shared technology and data platforms that span Staying afloat at the deep end of the Enterprise for Government governmental agencies and enable the rapid and reliable data pool delivery of connected services to the public should be key priorities. This will include increased migration to the Consumer data continues to proliferate amid society’s cloud, development of modern enterprise architectures, rapid embrace of ubiquitous digital platforms, devices, Get in touch implementation of robotics and intelligent automation, apps and cloud services offering instant access to an and the adoption of agile methods for software expanding universe of online shopping, banking services, development. health-and-fitness resources, social media and more. As businesses nurture public trust in their use and protection 24 The 2020 Harvey Nash/KPMG CIO Survey shows that of data, consumers continue to enthusiastically sustain there has been a 15 percent increase in IT spending the deluge of personal data that keeps this digital by national governments compared to a cross- universe expanding.

© 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 16 Governments of course have also jumped into the security and privacy concerns are cited by 35 percent of According to KPMG’s 2020 Global Customer deep end of the data pool, if you will, compiling an governments as the leading barrier to their successful Experience Excellence report,29 98 percent of endless array of information related to personal execution of customer-centric strategies.27 customers are concerned about their personal data The future is customer and business taxes, health, employment, benefits, and what happens to it. KPMG research in the US30, centered education, immigration, licensing and permits, and Trust in government becomes critical meanwhile, shows that local, state and federal beyond. Governments now know enough about their government services have room for improvement, As governments continue to build immense customers to be more precise and responsive in their with just 44 percent of survey respondents saying Modern government is databases, their ability to implement technology, data trusted and agile policy making and program delivery. they trust government employees. At the same and analytics to create personalized, customer-centric time, however, 70 percent also said they would like service models will likely demand trusted government Today’s challenge lies in building public trust in governments to offer more online transactions. the government’s use of data — particularly the stewardship of all public data. Looking beyond yesterday’s borders sharing and centralization of information being held A 2020 Citizen Experience Survey by the Australian As the Embracing Innovation in Government report across the multitude of government agencies and government, meanwhile, found that just 37 percent by the Organization for Economic Co-operation and departments. While consumers are accustomed to of Australians reported having trust in Australian Development28 stresses, governments need to be Embracing the power providing personal information to online shopping or Public Services, an increase of 6 percent from of technology and data “transparent about the data they collect, and clearly entertainment platforms, doubts remain concerning 2019.31 Anecdotally, this indicates improvement demonstrate the value of the resulting products.” This public trust in governments’ data management. through the early COVID-19 response. To improve is increasingly the case as the public gains a more- Attracting and internal operations and encourage trusted data retaining next sophisticated understanding of algorithms being used A KPMG commissioned study conducted by Forrester sharing, governments will inevitably need to generation civil by online platforms, and the potential for data misuse. servants Consulting in 2020 on behalf of KPMG shows that data implement stringent cyber security protocols.

Modernizing risk People have a right to see how their personal data management in is configured, used, shared and protected. And government like today’s commercial platforms, governments everywhere will need to assure their customers that The future of government demands they are appropriately managing and sharing their data a connected both within and beyond departments and agencies. enterprise

Many governments are unable to unlock the promise KPMG Connected of using data for more effective operations because Enterprise for they have legislation in place that severely restricts Government data sharing. About a third of governments (30 percent) surveyed by Forrester Consulting on behalf of KPMG cited difficulty sharing customer data and analytics Get in touch between channels, jurisdictions and locations as a key barrier to progress on customer centricity.32

© 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 17 Unlocking the closely guarded tax data of people and public services.37 In Australia, the nation’s Digital businesses, for example, typically remains extremely Transformation Agency is consulting with the difficult. But new rules of engagement will be critical in public and business on innovative laws designed to The future is customer order to eliminate roadblocks embedded in regulations support the launch of its digital-identity program.38 centered and liberate governments to evolve toward centralized Proposed laws would “support and strengthen” digital ecosystems and decision making that’s driven by the government’s digital-identity system by making data-based evidence and insights. current privacy protocols more robust, while Modern government is Key takeaways trusted and agile establishing new governance arrangements. Innovators in the spotlight A trusted, reliable and secure digital-identification Below are a few examples of how various jurisdictions framework is considered essential for the Looking beyond yesterday’s borders are making progress to provide the public with advancement of online public-service delivery, giving unprecedented levels of access to data and agencies confidence that every person or business government resources online. they are dealing with is who they claim to be. The Governments should use data and technology for evidence-based insights and decision Embracing the power government’s immediate goal should be to continue of technology and data India has facilitated new levels of data sharing across building on the digital transformation momentum it making that will help them effectively identify, its central, state and local governments during has created during the pandemic, and to position itself respond to and anticipate public needs and the pandemic and this innovation is expected to Attracting and for a rapid recovery and growth post-pandemic. expectations. retaining next continue beyond the current health and economic generation civil emergencies.33 India’s National Data Sharing and In the US, the Internal Revenue Service is planning a To improve internal operations and encourage servants Accessibility Policy (NDSAP) makes all shareable, modernized, digital case-management system that trusted data sharing, governments should non-sensitive data generated by various government inevitably implement stringent cyber security Modernizing risk will allow taxpayers to access information faster and management in 39 protocols. agencies available in digital or analog format. The Open more reliably. The effort is part of the Taxpayer First government Government Data (OGD) Platform34 has also been set Act focused on updating technology that dates to the up to provide free access to various data and resources 1960s. The IRS has also begun using AI to target high- The future of published by different government entities. 40 government demands income households that have not filed tax returns. a connected enterprise In Denmark, to ensure that legislation closely aligns The journey continues for governments far and wide. As with its digital and economic strategy, authorities the University of Cambridge’s Bennett Institute for Public KPMG Connected must assess the commercial and economic Policy notes, nations around the world are responding Enterprise for consequences of new regulation against a set of “five in diverse ways to unleash the disruptive power of Government principles for agile regulation of trade and industry.”35 digital technologies.41 But the institute also warns that Estonia has an information system for the drafting many governments typically “suffer from a deficit of of legislation that enables transparent preparation knowledge among senior leadership surrounding digital Get in touch of policy documents, draft laws and regulations. The technologies and the possibilities that they hold for public can access documents that are open for public public service provision, policy making and regulation.” consultations and obtain updates on topics that they Senior leaders need to better understand “how are interested in.36 digital technologies can both impact and transform government and, on the basis of that knowledge, make New Zealand is also moving to enact faster informed decisions on digital adoption.” legislative changes that will accelerate delivery of

Modern government is retaining next trusted and agile Looking beyond yesterday’s borders

Embracing the power generation civil of technology and data

Attracting and retaining next generation civil servants servants Modernizing risk management in government

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© 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 19 Global populations are aging and economies and Development (OECD) shows that, among are feeling the impact as private and public jurisdictions with available data on their central sector organizations struggle to manage talent public-administration workforces, about 24 percent The future is customer shortages that are undermining their workforces of employees are 55 or older, while just 18 percent centered and productivity — while also chasing the critical are under 34. Italy’s government has the highest new skills needed for the digital age. Research proportion of employees 55 or older at 45 percent.42,43 by the Organisation for Economic Co-operation Modern government is trusted and agile

Looking beyond yesterday’s borders Italy UK Embracing the power of technology and data

Iceland Germany Attracting and retaining next generation civil servants

Modernizing risk Spain Canada management in government erentage o entral The future of government government demands USA Australia a connected emloees aged enterprise ears or older KPMG Connected Japan Enterprise for OECD Government

Get in touch Korea

Source: OECD (2016) Survey on the composition of the Workforce in central/Federal Governments

© 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 20 The race is on to recruit the next generation of civil Critical new skills for a challenging new age servants. And it’s no secret that today’s young and emerging professionals are raising the bar in their Beyond heightening their brand as employers of The future is customer pursuit of meaningful, purpose-led, socially conscious choice in the competition for talent, governments will Reskilling of current teams centered roles and careers that ideally will allow them to have also need to explore opportunities to engage private- an impact in driving positive social change. sector professionals who can quickly deliver new skill for the digital era has become sets, such as data scientists and customer-experience Modern government is crucial amid new technology trusted and agile As the Geneva-based International Labour Office’s specialists. Reskilling (learning new skills to perform report titled Global Employment Trends for Youth a different job) and upskilling (learning new skills to and changing organizational 2020: Technology and the Future of Jobs 44 notes, expand capabilities) existing employees will also be priorities. “technological change has indeed increased the Looking beyond crucial to overcome talent shortages and enhance yesterday’s borders demand for highly skilled workers.” The report also public services. notes that “the adoption of digital technologies — such Nicholas Fox According to KPMG’s 2020 HR Pulse Survey report,46 as online portals and more sophisticated systems Partner, Head of Government Embracing the power based on artificial intelligence and deep learning — by for example, building talent through upskilling KPMG in the UK of technology and data public employment services in advanced economies and reskilling was cited by 72 percent of human resources executives as a key factor in shaping the and some emerging ones has increased their efficiency Attracting and and transparency in the labor market.” workforce of the future. Also noteworthy is the fact retaining next that government and public sector organizations, generation civil servants Fortunately, governments can typically meet this along with educational institutions and hospitality emerging workforce’s preference for the meaningful companies, reported the greatest reskilling needs. Modernizing risk and purpose-led work that it highly values. In the management in view of this report’s author and contributors, this “Reskilling of current teams for the digital era has government important value proposition has been underplayed become crucial amid new technology and changing by governments and should be highlighted in future organizational priorities,” says Nicholas Fox, Partner, The future of Head of Government for KPMG in the UK. “This is government demands recruitment efforts, proclaiming civil service as a a connected prime environment for young people who truly want making ‘learning in the flow of work’ essential — the enterprise to make a difference by enabling social change. ability to offer new forms of credentialing and new ways of building required skills and capabilities.” KPMG Connected Implementing modern technology will play a crucial Enterprise for role. Governments are challenged by the fact that Upskilling current employees, meanwhile, will be a Government younger talent with modern technical skills can be valuable way for governments to retain employees deterred by government’s lack of innovation. Research possessing valuable institutional knowledge and by KPMG in the US shows that nearly 60 percent of an understanding of how government functions. Get in touch government executives admitted that, compared to Enhancing their skills will enable them to focus the private sector, their agencies struggle today to on more valuable tasks and fill positions in highly attract and retain skilled talent for the digital future.45 competitive fields such as IT and cyber security.

This will all prove critical of course as governments Governments may also need to show new levels of continue to compete with the private sector for the flexibility in how their workforces and the diverse best and the brightest talent that possesses the roles within them are organized and dispatched, for passion to move modernization agendas forward. example managing the shift to remote and hybrid

© 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 21 working arrangements that for many employees respondents cited a lack of qualified staff as a barrier may become permanent. The pandemic has shown to executing customer-centric strategies.47 governments’ capability for greater flexibility in how The future is customer it functions, and this important trend will likely need At the same time, only about half (56 percent) will be centered to continue. prioritizing near-term investment in creating an aligned and empowered workforce, while a third say such While acknowledging the need for their workforces investment will remain a low priority for the next two Modern government is 48 Key takeaways trusted and agile to evolve their skills and capabilities to support digital to three years. As global workforces age in many agendas and customer-centric models, governments Western economies and retiring workers continue to realize that their journey still has considerable ground depart from jobs in growing numbers, of course, the to cover. Research conducted by Forrester Consulting pressure to innovate is certain to grow. Looking beyond yesterday’s borders on behalf of KPMG shows that 30 percent of

Governments should be proactive in attracting Embracing the power and retaining the next generation of civil of technology and data servants, introducing critical new skills and ultimately reshaping their workforces to align Attracting and with the demands of a digital society. retaining next generation civil Reskilling and upskilling today’s civil services servants will play a crucial role in retaining valued talent and knowledge, overcoming talent shortages Modernizing risk management in and enhancing public services. government

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© 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 23 In the wake of a historic global health and economic and required of governments. To support people and emergency — one that has demonstrated economies, governments have had to relax spending governments’ ability to act decisively and with rules, implement changes rapidly and take shortcuts The future is customer unprecedented speed — can we expect publics to that may expose them to risk. Governments are pretty well centered abide governments that maintain their traditional approaches to service delivery? The risk landscape in the post-pandemic new reality attuned to the risk issues they will likely be one that has emerged through each face — the true challenge lies in Modern government is It appears unlikely, in the view of this report’s author phase of the crisis, for instance: trusted and agile and contributors. The playing field has shifted, and the government’s ability to execute high expectations of today’s digital consumer society — Many of the actions taken in the initial crisis and implement. will likely be applied increasingly to governments for reaction phase may need to be safely wound Looking beyond yesterday’s borders smart, secure use of technology and data, trusted down over time, such as support payments, or and personalized services, faster response times, they will need to be strengthened and moved to a Liz Forsyth sustainable footing. heightened transparency and greater accountability. KPMG Global Head, Infrastructure Embracing the power — Resilience measures, such as new supply chains, Government and Healthcare of technology and data The pandemic has cut across the status quo and may need to be tested and amended to ensure unlocked vastly different ways of working that alignment, and reduced risk, to government have been relatively successful and subject to Attracting and outcomes and mission. retaining next ongoing improvements. In effect, the pandemic has generation civil precipitated a new way of “incubating” innovation In managing risk, leaders should ensure that the servants at an unheard-of pace — and one that governments control environment accelerates, rather than forcing Modernizing risk traditionally have been averse to pursuing. the business of government to slow down. Having management in assurance frameworks in place to accurately measure government The pandemic has thereby shown a change in the impact of government actions and programs will governments’ risk appetite regarding its processes, also emerge to reinforce agility and enhance future The future of delivering in the current environment digital government demands responses. a connected technology implementation, real-time results tracking, enterprise smart data use and electronic prescribing — all of We expect governments will recognize the wisdom which have been on government to-do lists for years of staying the course rather than slipping back to a KPMG Connected without substantial progress. traditional approach. Governments have no doubt Enterprise for learned that, unlike past reliance on high levels Government Higher risk, heightened responses of preparedness, due process and fully baked programs deemed optimal for delivery, the future This dramatic change in risk appetite has of course will likely be more about heightened responsiveness Get in touch been driven by necessity. Governments have been that leverages the power and reliability of digital forced to accept a higher risk posture in the face of the technology, data use and self-service capabilities. pandemic’s massive impact and the need for vastly accelerated decision making and reaction times. “Governments are pretty well attuned to the risk issues they face — the true challenge lies in In many instances, government responses to the government’s ability to execute and implement,” pandemic have been effective but have come at the says Liz Forsyth, KPMG Global Head, Infrastructure, expense of the usual rigor and diligence expected Government and Healthcare. “Government can

© 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 24 consider risk very competently but its most-significant experience, where a certain level of error and risk is risk today lies in its response. Governments struggle now allowed to implement new technologies.” with that. Execution and implementation represent The future is customer significant challenges, particularly in a very time- Reshaping approaches and processes in order to centered constrained environment such as we’ve seen during accept a higher level of ambiguity concerning risk — the pandemic.” as seen everywhere during the pandemic — is the way forward to achieving desired outcomes. Modern government is Key takeaways trusted and agile Saudi Arabia, for example, has seen “a much more self-forgiving government that is taking action as Dynamic risk approaches will ideally include real- needed while allowing itself to perfect its approach time visibility of program implementation and later,” says Ismail Alani, Head of Government and Public transparency. Risks can be quickly identified and Looking beyond yesterday’s borders Sector at KPMG in Saudi Arabia. “Acting fast rather mitigated, and the performance of programs and than acting ‘spot on’ has become the norm. This is services can be both sustained and demonstrated The pandemic has prompted a rapid and radical by a strong evidence base. especially tangible in the digitalization of the customer change in governments’ risk appetite and Embracing the power posture as nations race to meet today’s health of technology and data and economic emergencies.

Attracting and This dramatic change driven by necessity retaining next reflects future possibilities for a modernized generation civil approach to risk — one that will significantly servants accelerate program development, delivery and Modernizing risk performance. management in government Having assurance frameworks in place to

accurately measure the impact of government The future of actions and programs will reinforce agility and government demands a connected enhance future responses. Government can enterprise be confident that the impact of its investment or intervention aligns with expectations and KPMG Connected decision making. Enterprise for Government

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Modern government is government trusted and agile

Looking beyond yesterday’s borders demands a Embracing the power of technology and data

Attracting and retaining next generation civil connected servants

Modernizing risk management in government

The future of enterprise government demands a connected enterprise

KPMG Connected Enterprise for Understanding and mapping Government the interdependency and connectedness of legislation, Get in touch data, goals and people

© 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 26 Today’s customers are better informed and more demanding than ever. Economic markets are Employees unstable — with continuing disruption and upstart The future is customer challenges to the status quo. Sustainable growth in centered a digital world depends on a new order of customer centricity in which processes are aligned across all functions — and technology, talent and external Modern government is trusted and agile Market partners aligned to meet customers efficiently. Front, dynamics Customers middle and The future is about breaking down silos and getting and digital back offices connected. The divisions between front, middle Looking beyond signals yesterday’s borders and back offices are collapsing. Future-focused organizations are shaping new operating models in which every part of the organization, end to end, is Embracing the power working with every other element to deliver against of technology and data the big picture. Channel and Forrester Consulting research commissioned by Attracting and business retaining next KPMG shows that organizations making moderate or partners generation civil significant investment in all eight critical capabilities servants of a “connected enterprise” (see page 28) are 2.1 times more likely to deliver customer experiences Modernizing risk management in that exceed expectations, that successfully execute government on one or more customer-centric objectives, and Looking through five lenses that achieve return on investment on at least one The future of key.49 Each of these capabilities drive improvement government demands There are five lenses we believe organizations should look through when a connected but when combined, the impact of transformation is considering future success in an enterprise-wide transformation. enterprise effectively supercharged. High-performing government agencies are recognizing the inevitable to: KPMG Connected 1. Connect customers with compelling opportunities and interactions Enterprise for Government 2. Connect and empower employees to deliver on the customer-centric experience

3. Connect front, middle and back offices to execute on the customer- Get in touch centric agenda 4. Connect ecosystems of partners to jointly deliver on commitments to customers 5. Connect to market dynamics and digital signals

© 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 27 Eight critical capabilities of a connected enterprise and public sector digital innovation examples from around the world Capability Definition Global innovator

The future is customer Insight-driven The ability to harness data, In Japan, the agriculture, forestry and fisheries industries are suffering from workforce centered strategies and actions advanced analytics, and shortages and difficulties in the transfer of skills and management approaches from actionable insights with a aged to younger workers. To address these challenges and establish data-orientation in real-time understanding of the these industries, the Ministry of Agriculture, Forestry and Fisheries (MAFF) created the Modern government is trusted and agile customer and the business, Medium- to Long-Term Digital Government Plan in 2018. As the first step in this plan, to shape integrated business MAFF built a common application platform (eMAFF) that allows for various procedure decisions. applications to be made online. Looking beyond yesterday’s borders Innovative products The ability to develop The German Federal Ministry of Interior was provided with support to set up a fully compelling and innovative enabled self-organized innovation unit spreading a user centric mindset and methods and services Embracing the power policies and services to deliver within the federal administration, facilitating long-term mindset change and accelerating of technology and data outcomes and drive a positive the digitalization of the federal administration. customer experience. Attracting and retaining next generation civil servants

The ability to design seamless In Saudi Arabia, the Ministry of Finance’s Etimad platform50 is breaking down information Modernizing risk Experience-centricity management in by design experiences for customers, sharing barriers among the Kingdom’s various departments and agencies that work third government employees, and partners, parties, including various government agencies and the private sector. The platform’s supporting the customer value capabilities include: The future of propositions and delivering government demands — online and automated budget services a connected business objectives. enterprise — tendering and procurement services that feature direct online transactions between government agencies and the private sector, including technical evaluation and awarding KPMG Connected — online contract registration and approval of contracts Enterprise for Government — payment management, request and receive payment orders — managing employees’ financial compensation for other government entities. Get in touch Seamless interactions The ability to interact and In the United States, a citizen in the state of Ohio may need three different logins to pay and transactions transact with customers, their taxes, pay a fine, and to obtain a driver’s license. The state's Innovate Ohio program is partners, and stakeholders working to create a system where residents can interact seamlessly with the government across policy, services, and for each of those services and others. 51 communication channels and achieve measurable results.

Responsive operations The ability to operate the In India, the central and state governments run a food security program (the Public Distribution enterprise with efficiency and System) that distributes food and non-food items to the disadvantaged at subsidized rates. and supply chain The future is customer agility to fulfill the customer The state governments are responsible for distributing supplies through a network of fair centered promise in an efficient and price shops. When COVID-19 hit, a state in the southeast of the country needed a “last-mile” effective way. doorstep delivery solution to serve 15 million people. To address this need, the Andhra Pradesh State Civil Supplies Corporation flexed its technology enabled supply chain and introduced Modern government is mobile dispensing units. The corporation also used low-cost technology solutions to trace trusted and agile ration bags to prevent pilferage and the fraudulent rerouting of supplies. Options for alternative storage were also introduced to reduce program costs and wastage of supplies. Looking beyond yesterday’s borders

Aligned and The ability to build a customer- In the UK, the Civil Service Learning (CSL) curriculum delivers innovative, digital empowered workforce centric organization and culture and blended learning to the government’s 450,000-plus staff from more than 200 Embracing the power that inspires people to deliver organizations and 46 functions and professions, domestically and overseas. The of technology and data on customer outcomes. Government Skills and Curriculum Unit, which oversees the offering is updating it to include learning topics that will cover modern leadership development, management Attracting and skills, project delivery, data sciences, customer excellence, trade, digital transformation, retaining next generation civil commercial, and financial training, alongside many other critical capabilities. servants

Modernizing risk management in Digitally enabled The ability to create To improve security clearing service delivery, the Canadian Government has embarked government technology architecture intelligent and agile services, on a project to modernize the business systems for its Industrial Security System, technologies, and platforms, currently comprised of two distinct systems: contract security and controlled goods. The future of enabling the customer agenda This transformation will see two aging systems that encumber support and service government demands a connected with solutions that are secure, delivery unified and optimized into one system designed to maintain appropriate security enterprise scalable, and cost-effective parameters while meeting the current and emerging needs of the Government of Canada, its customers, partners and industry. KPMG Connected Enterprise for Government Integrated partner and The ability to engage, integrate, Specialist Disability Accommodation (SDA) supports people with a disability and with and manage partners to significant functional impairment and/or very high support needs who require integrated alliance ecosystem Get in touch increase speed, reduce housing and supports to meet their needs. The Australian National Disability Insurance costs, mitigate risk, and close Scheme (NDIS) has an SDA Pricing and Payments Framework, creating a marketplace for capability gaps to deliver providers, investors and participants to interact in order to achieve the most efficient and customer outcomes. innovative models of integrated SDA delivery.

© 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 29 “Even if complete transformation is not immediately Cath Ingram, Lead Partner for Federal Government, feasible, a challenge that many governments are KPMG in Australia. “It’s a complex challenge and we already facing, it will be extremely important to are trying to provide a holistic roadmap, so that when The future is customer possess a clear roadmap for how each capability organizations embrace change and reform, they fully centered contributes to the evolution of a government understand the interdependency and connectedness organization and infrastructure for a new era,” says of legislation, data, people and process.” Modern government is Key takeaways trusted and agile

Looking beyond yesterday’s borders

To thrive in a new era, governments should evolve operations to focus on the public as Embracing the power of technology and data their customers and position themselves to continuously respond and adapt to ever- changing circumstances and needs. Attracting and retaining next generation civil Research shows that organizations investing servants strategically in the eight critical capabilities of a connected enterprise are twice as likely to meet Modernizing risk customer expectations, achieve their business management in government objectives and deliver return on their digital investment.52 The future of government demands a connected enterprise

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Modern government is Connected trusted and agile Looking beyond yesterday’s borders

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Attracting and retaining next generation civil Government servants Modernizing risk management in government A blueprint for digital transformation The future of in the public sector government demands a connected enterprise

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© 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 31 The KPMG Connected Enterprise for Government The framework ideally offers government the revealing the organization’s operating system as it framework is designed from the ground up to enable potential to “leapfrog” toward transformation, is intended and cutting across traditional functional an extraordinarily rich discussion at the leadership versus incremental change. How? By bringing entire, verticals, silos and boundaries. The result is a different The future is customer level about the entire organization — providing a organization-wide operations into a single line of lens and better guidance on where to invest in centered strong starting point for a digital engagement by: sight, thereby providing a unique view of the various digital innovation and how it shapes the customer journeys required by all stakeholders across diverse experience. — focusing on pain points government functions. Modern government is Forward-looking governments are already planning trusted and agile — establishing a target operating model From there governments are positioned to identify the and designing services across government entities, — tailoring the model to specific and unique various points of intervention for change and where replacing the traditional siloed approach that typically organizational needs to optimize return on investment. KPMG Connected separates individual departments and agencies. Looking beyond yesterday’s borders Enterprise for Government brings disparate parts of Such connected organizations ultimately enable — simplifying and accelerating the process of the organization together into an integrated whole, unprecedented new levels of constructive enterprise- transforming organizations for the digital future. wide dialogue and decision making. This kind of Embracing the power comprehensive innovation should begin from the of technology and data top down via leadership that adopts the required

enterprise-level thinking. Attracting and retaining next The future, then, is about responsive operations generation civil that offer seamless interactions through innovative servants services. There is no going back to the old ways of Modernizing risk doing things, post-pandemic. “The genie is out of the management in bottle” as the saying goes — and already anticipating government new digital applications. The future of The KPMG Connected Enterprise for Government government demands a connected framework provides cutting-edge sector insights enterprise and maturity diagnostics that assess a department’s digital maturity and can compare it against industry KPMG Connected and country standards. The framework also has Enterprise for sector blueprints that map the department’s entire Government enterprise and technology architecture.

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KPMG Connected Enterprise for Government The future is customer centered

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Customers Channels Enterprise strategy Core business Advanced data Enabling business Looking beyond Citizens, industry, Service outlets, social Service outlets, social practices and analytics practices yesterday’s borders delivery partners, media, digital, contact media, digital, contact — Stakeholder — Technology and — Enterprise technology delivery agencies/ centers, mail/e-mail centers, mail/e-mail management architecture — Enterprise operations departments, (industry, Embracing the power — Government direction — Data collection and of technology and data communities, employees, citizens, storage ministers, other levels — Demographic needs intergovernmental, of government — Budgeting and regulators, — Governance and Attracting and compliance retaining next business plans communities, generation civil servants — Mission, vision and providers, industrial — Transformation and culture relations, elected algorithms bodies) Modernizing risk — Analytics management in government — Elected officials — Visualization and support insights The future of — Strategy and policy government demands development a connected enterprise — Ecosystem management KPMG Connected Enterprise for — Third party provider Government management Is your government organization — Regulation customer-centric? Get in touch — Service delivery Take the free diagnostic assessment

KPMG Connected Enterprise for Government The future is customer centered Primary actors Process/Orchestration Catalysts for change Ministers, citizens, customers, — Integrated business process workforce, communities, industry/ management Digital technologies and Modern government is trusted and agile partners, international governments, other processes government departments/NGOs, regulators loT, AI, blockchain, augmented reality, Front office business practices advanced sensors, cognitive, robotics Looking beyond yesterday’s borders Secondary actors — Elected official support — Strategy and policy Other levels of government, general development Advanced data science public, journalists/media Embracing the power — Regulation Natural language processing, deep of technology and data — Service delivery learning, quantum computing, Interaction hubs simulation, advanced analytics, Attracting and Middle office business practices retaining next optimization, cognitive and machine generation civil

— Contact centers Stakeholder management — Ecosystem management learning servants — Self-service portals for individuals and — Third-party provider management enterprise data, analytics and insights Advanced Modernizing risk — Employee experience interactions management in Enterprise data store government — Third party interactions Back office practices Device data, on premise, cloud storage (enterprise support) The future of government demands Capabilities — Budgeting a connected — Desktop services enterprise — Financial planning, management and IOT platform — App services (including: experience reporting Device connectivity, management and KPMG Connected and customer mapping) — HR, payroll and people management security Enterprise for — Mobility services — Procurement Government — Data services — Asset management — Everything as a service — Risk, quality management and Get in touch — ERP accreditation Cyber security and privacy — CRM — Facilities management — Grants management — Health and safety — Payments engine — Communications, marketing and media Enterprise technology — Modelling and digital twinning — Legal and compliance — Entitlement and eligibility calculator — Security and privacy — Intelligent automation — IT support and operations

When undertaking organizational transformation, The future is customer governments need to think about how change affects centered their people, as well as processes, and technology. KPMG’s Government and Public Sector practice professionals use the eight critical capabilities Modern government is trusted and agile of a Connected Enterprise to guide and support organizations on where and how to begin their transformation journey. Looking beyond yesterday’s borders KPMG firm professionals also know how governments work because many have held senior public sector roles and consistently combine their Embracing the power practical, hands-on local experience with insights of technology and data from our global practice. Our deep knowledge of the government sector gives us insight into current trends Attracting and as well as future challenges — be they disruptions, retaining next opportunities, or innovations. generation civil servants We can assess where your agency ranks in each Modernizing risk of the eight capabilities of a connected enterprise management in compared to the leading benchmarks and provide government a clear roadmap to advancing your agency on its journey to modernization. To get started complete the The future of government demands KPMG Connected Enterprise Maturity Assessment a connected Diagnostic or contact us today to get insights into enterprise how your organization can become more connected. KPMG Connected Enterprise for Government

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Liz Forsyth The future is customer Global Head, Paul Low Michael Camerlengo centered Infrastructure, Government National Leader, Infrastructure, Head of Government and Healthcare Government and Healthcare KPMG Asia Pacific Global Lead for Human KPMG in Australia Modern government is trusted and agile and Social Services T: +852 2140 2822 KPMG T: +61 7 3233 9771 E: [email protected] E: [email protected] Looking beyond T: +61 2 9335 8233 yesterday’s borders E: [email protected] Michael Klubal Mathias Oberndörfer National Industry Leader, Head of Public Sector, Infrastructure, Government and Managing Partner Embracing the power of technology and data In her role, Liz oversees a global network of more Healthcare KPMG in Germany than 5,000 government, healthcare and infrastructure KPMG in Canada consultants in KPMG firms in more than 140 T: +49 911 800 9299-32 Attracting and countries and territories. She uses global and local retaining next T: +1 416 777 3684 E: [email protected] generation civil insights to help firms’ clients address challenges E: [email protected] servants with the aim of producing better outcomes for citizens and communities. Elias George Ismail Daham Alani Modernizing risk Partner and Head, Infrastructure, Head, Government and Public management in Liz has more than 15 years’ public sector experience. Government and Healthcare Sector government She started her career as a social worker and then KPMG in India KPMG in Saudi Arabia moved into management consulting. Liz joined The future of government demands KPMG in 2002 and established the Australian firm’s T: +91 124 336 9001 T: +966 11 874 8500 a connected Health, Ageing and Human Services practice and E: [email protected] E: [email protected] enterprise went on to lead the sector at a national level in 2013 for 5 years. KPMG Connected Nicholas Fox Lorna Stark Enterprise for Liz’s driving passion is health and social policy Partner, Head of Government Partner, Advisory, National Government reform. Her work has predominantly focused KPMG in the UK Lead Partner — State and Local on issues related to disadvantage, disability and Government Advisory practice vulnerability. This work has included strategy, policy T: +44 207 3115046 KPMG in the US Get in touch development, program design and reform, service E: [email protected] improvement, resource allocation and funding T: +1 212 872 3396 methodologies and evaluation. E: [email protected]

Modern government is References trusted and agile Looking beyond yesterday’s borders

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Modernizing risk management in government

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The future is customer centered

Modern government is

trusted and agile

Looking beyond yesterday’s borders

Embracing the power of technology and data

Attracting and retaining next generation civil servants

Modernizing risk

management in government

The future of

government demands a connected

enterprise

KPMG Connected

Enterprise for Government

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The future is customer centered

Modern government is trusted and agile

Looking beyond yesterday’s borders

Embracing the power of technology and data

Attracting and retaining next generation civil servants

Modernizing risk management in government

The future of government demands a connected

enterprise

KPMG Connected Enterprise for Government

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Modern government is trusted and agile

Looking beyond yesterday’s borders

Embracing the power of technology and data

Attracting and retaining next generation civil servants

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