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A CLOSERLOOK ATIMPACT & BENEFITS
UNLEASHING INNOVATION:
Using our Innovation Framework, Accenture conducted a global study of government innovation. Here we focus on the Impact & Benefits pillar:
STUDYING GOVERNMENT INNOVATION
Copyright © 2018 Accenture. All rights reserved. 2
IDEATION ABSORPTION EXECUTION
IMPACT & BENEFITS
What is the impact of innovation?
Does the agency track and measure the impact?
Are benefits felt?
STRATEGY
WHAT HAVE WE LEARNED ABOUT MANAGING THEIMPACT & BENEFITS OF INNOVATION IN GOVERNMENT?
The study revealed broad–but far from universal–use of evaluation frameworks and business cases for innovation:
START WITH A BUSINESS CASE
Copyright © 2018 Accenture. All rights reserved. 4
58%Use some type of framework to evaluate ROI and other impacts
>60%Use (and frequently update) a business case for every innovation project
96%of Innovation Leaders report using a business case for every innovation project
Accenture’s study uncovered some interesting features in how agencies measure outcomes:
MANAGE TO METRICS
Copyright © 2018 Accenture. All rights reserved. 5
95%Use metrics,yet many of those metrics are “soft” Use only soft
metrics
42%
Use both “soft” and “hard”
metrics
15%
“Hard” core metrics - example: reduced cost, improved policy outcomes, and improved productivity per employee, to assess the return on investment of each of our innovations
“Soft” metrics – example: satisfaction levels, engagement and perceptions
Accenture estimates that 66.3% of agencies aren’t integrating hard metrics into their evaluation frameworks
BUT WHY?
• Perhaps agencies have hard metrics but don’t use them in a business case
• Maybe they have a business case that simply doesn’t include hard metrics
• Either way, a lack of hard metrics is less than optimal
‘HARD’ TRUTH ABOUTMEASURING IMPACT & BENEFITS
Copyright © 2018 Accenture. All rights reserved. 6
Copyright © 2018 Accenture. All rights reserved. 7
58%Using frameworks with
HARD METRICS
43%Other frameworks
ACHIEVING BETTER OUTCOMES IN CITIZEN-
FACING PROGRAMS
55%Using frameworks with
HARD METRICS
37%Other frameworks
ATTRACTING AND RETAINING TOP TALENT
INNOVATION LEADERS ARE ACHIEVING BETTER RESULTS USING HARD METRICS
Despite common concern that innovation savings are simply swept back to general funds,
59% OF AGENCIESreinvest time and/or money saved into other priorities
REINVESTING INNOVATION DIVIDENDS
Copyright © 2018 Accenture. All rights reserved. 8
Evidence on the following slide shows why this should be a best practice for government innovation programs.
Copyright © 2018 Accenture. All rights reserved. 9
Agencies that reinvest “innovation dividends” report consistently higher rates of the following benefits:
PUBLIC AGENCIES
CONSULTING FIRMS
CITIZENS
PUBLIC AGENCIES
CONSULTING FIRMS
START UPS AND NEW DIGITAL COMPANIES
PUBLIC AGENCIES
CONSULTING FIRMS
SUPPLIES/VENDORS
PUBLIC AGENCIES
CONSULTING FIRMS
UNIVERSITIES
50%
51%
53%
50%
46%
11%
36%
22%
31%
22%
0% 10% 20% 30% 40% 50% 60%
Attracting and retaining top talent*
Automating processes*
Achieving better outcomes in citizen-facing programs+
Improving shared services efficiency across agencies+
Developing a positive agency image with citizens
Reinvesting Innovation Dividends Not Reinvesting*Difference is statistically significant+Difference is not statistically significant
REINVESTING INNOVATION DIVIDENDS
The benefits that governments are working to achieve with their innovation programs fall into four categories:
IDENTIFYING AND QUANTIFYING BENEFITS
Copyright © 2018 Accenture. All rights reserved. 10
1
2
3
4
Improved service delivery to citizens (“Great place to live”)
Improved employee/citizen satisfaction (”Great place to work”)
Improved productivity and efficiency with funding available (“Efficient service delivery”)
Better results at lower costs (“Value for money”)
Copyright © 2018 Accenture. All rights reserved. 11
GREAT PLACE TO LIVEQUANTIFYING IMPACT OF INNOVATION
49% 49% 48% 46% 45% 43%39% 39%
Discontinued services or
programs that were not
performing well or meeting objectives
Reduced time to respond to
citizen’s needs
Better outcomes
in citizen-facing programs
Reduced human errors
Improved customer
interaction efficiency
Report positive agency image with the public
Report ability to reach different citizen groups/ demographics
Report offering higher-quality services to the
public
Agencies reported the following benefits:
Copyright © 2018 Accenture. All rights reserved. 12
GREAT PLACE TO WORKQUANTIFYING IMPACT
INCREASED EMPLOYEE ENGAGEMENT
51%
IMPROVED SERVICE
DELIVERY
50%
IMPROVED SKILLS OF
EMPLOYEES
49%
INCREASED TOP TALENT RETENTION
44%
INCREASED ATTRACTION/
ACQUISITION OF NEW TALENT
43%
DEVELOPED IMPROVED AGENCY IMAGE WITH EMPLOYEES AND JOB
SEEKERS
39%
Copyright © 2018 Accenture. All rights reserved. 13
EFFICIENT SERVICE DELIVERY: QUANTIFYING IMPACT
49% 47% 46% 45%39%
Improved employeeskills
Improved shared servicesefficiencies
Increased processautomation
Improved Customerinteraction efficiency
Started discussions withnew private or nonprofit
partners
Copyright © 2018 Accenture. All rights reserved. 14
VALUE FOR MONEY:QUANTIFYING IMPACT
MORE EFFICIENT SYSTEMS AND
PROCESSES
57%
REDUCED NEED FOR CAPITAL
EXPENDITURES
56%
REDUCED HEADCOUNT
43%
DECREASED OPERATING COSTS
38%
Our research and experience suggest the following:
READY TO IMPROVE HOW YOU MANAGE INNOVATION IMPACT & BENEFITS?
Copyright © 2018 Accenture. All rights reserved. 15
Create a solid business case for each innovative idea
Hard metrics are important–but they aren’t everything
Determine what you will do with the benefits achieved (time, money, image and/or morale)
BUILD A BUSINESS CASE FOR EVERY IDEA
Copyright © 2018 Accenture. All rights reserved. 16
BE CLEAR about what each innovation is intended to achieve
BE RIGOROUS in specifying and measuring the intended improvement
Regularly evaluate the likelihood of
ACHIEVING the intended improvement
If the business case isn’t being met,
DON’T BE AFRAID to stop working on the innovation
BE OPEN IN DISCOVERING intended benefits and revise your business case accordingly
Copyright © 2018 Accenture. All rights reserved. 17
CHOOSE THE RIGHT METRICS
SET UP A STRUCTURE FOR
IDENTIFYING NEEDS
i.e. what’s working and not working
with your existing services
METRICS CAN BE “HARD” OR
“SOFT” just be clear from the beginning on
intended goals
TAILOR METRICS based on what the
innovation is meant to achieve
REINVEST ALL SAVINGS in the agency mission
Money is often the trickiest, so try to KEEP MONEY SAVED WITH THE AGENCY BUDGET or another enterprise program the agency will benefit from
STAY FOCUSED on reinvesting dividends to maintain momentum–and drive continuous innovation
CREATE AREINVESTMENT PLAN
Copyright © 2018 Accenture. All rights reserved. 18
AUSTRALIA
UNITEDKINGDOM
SOUTH AFRICA
IRELAND GERMANY
ITALYFRANCEUNITEDSTATES
BRAZIL
CANADA
In October 2017, Accenture surveyed
591
METHODOLOGY
Copyright © 2018 Accenture. All rights reserved. 19
RESPONDENTS
From 10 countries
Respondents represented the following levels of government:
Copyright © 2018 Accenture. All rights reserved. 20
Respondents represented these segments within government:
38%Local
38%State/Regional/Provincial
24%National/Federal
7%Healthcare Payor (Health Insurance) – Public/Government
7%Healthcare Provider – Public/Government Managed
86%Public Service (other than Education) – Government Agency
METHODOLOGY
Government agency respondents represented these functions:
Copyright © 2018 Accenture. All rights reserved. 21
15%Centralized Administration
18%Employment Services
11%Policing/Justice
5%Defense
18%Social Services/Welfare14%
Revenue/Tax
8%Pensions
8%Border Services/Customs
3%Other
METHODOLOGY
CONTACT
MARK HOWARDGlobal Administration Segment Lead Public Service, Accenture
ABOUT ACCENTUREAccenture is a leading global professional services company, providing a broad range of
services and solutions in strategy, consulting, digital, technology and operations. Combining
unmatched experience and specialized skills across more than 40 industries and all business
functions — underpinned by the world’s largest delivery network —Accenture works at the
intersection of business and technology to help clients improve their performance and create
sustainable value for their stakeholders. With approximately 442,000 people serving clients in
more than 120 countries, Accenture drives innovation to improve the way the world works and
lives.
FOR MORE INFORMATION VISIT US AT
www.Accenture.com/GovBackOffice
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