UNLEASHING INNOVATION: A CLOSER LOOK AT IMPACT ......“Hard” core metrics -example: reduced cost, improved policy outcomes, and improved productivity per employee, to assess the

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


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


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



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


Evidence on the following slide shows why this should be a best practice for government innovation programs.


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


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”)


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:


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%


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


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?


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


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


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


AUSTRALIA

UNITEDKINGDOM

SOUTH AFRICA

IRELAND GERMANY

ITALYFRANCEUNITEDSTATES

BRAZIL

CANADA

In October 2017, Accenture surveyed

591

METHODOLOGY


RESPONDENTS

From 10 countries

Respondents represented the following levels of government:


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:


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.

https://www.linkedin.com/in/mark-howard-079944a/

mailto:[email protected]

https://twitter.com/markhoward_co

FOR MORE INFORMATION VISIT US AT

www.Accenture.com/GovBackOffice

https://www.accenture.com/us-en/insight-back-office-gov-innovation?c=psv_fy18hpspspublicslideshare_10271909&n=smc_0518

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UNLEASHING INNOVATION: A CLOSER LOOK AT IMPACT ......“Hard” core metrics -example: reduced cost, improved policy outcomes, and improved productivity per employee, to assess the