Unleashing Innovation: A Closer Look at Impacts & Benefits

ACLOSER
LOOKAT
IMPACT&
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 THE
IMPACT & 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 ABOUT
MEASURING 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 AGENCIES
reinvest 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 LIVE
QUANTIFYING 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 WORK
QUANTIFYING 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 employee
skills
Improved shared services
efficiencies
Increased process
automation
Improved Customer
interaction efficiency
Started discussions with
new 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 AFRAIDto 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 A
REINVESTMENT PLAN

AUSTRALIA
UNITEDKINGDOM
SOUTHAFRICA
IRELAND GERMANY
ITALYFRANCE
UNITEDSTATES
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/
Welfare
14%
Revenue/Tax
8%
Pensions
8%
Border Services/Customs
3%
Other
METHODOLOGY

CONTACT
MARK HOWARD
Global Administration Segment Lead
Public Service, Accenture
ABOUT ACCENTURE
Accenture 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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