![]() ![]() Do you set up interdisciplinary teams to develop new solutions and test and deploy them at scale?.Is your organization set up to be responsive and resilient? Do you deploy predictive analytics to identify the greatest customer experience and value drivers?.Do you use external data to enhance your insights?.Do you use all relevant data sources to improve the quality and efficiency of your services?.Are you creating reusable data products, or re-creating data pipelines each time a new need is identified?.Do customers’ needs direct how you organize, including removing silos?.Do you research how your customers’ needs change over time, and proactively change your services to reflect this?.Do you use multiple sources of insight to understand customer needs?.Do you prioritize customer journeys and the value you will deliver?.Is your strategy built around improving the customer experience?.To begin to build the type of successes described here, leaders can use the following questions to assess their current approach: How can government organizations overcome these challenges and increase their productivity? What it takes to improve 3 “Digitalisation and productivity: A story of complementarities,” OECD Economic Outlook, 2019. ![]() The prize for upgrading is significant: according to the OECD, the most digitally advanced organizations are anywhere from 7 to 15 percent more productive than their industry peers. 2 “ The global case for customer experience in government,” McKinsey, September 10, 2019. ![]() What is more, as the private sector keeps raising the bar on great customer experience, citizens’ expectations of government rise too. Meanwhile, the pressure is increasing on governments to deal with urgent social and economic needs while controlling spending. 1 Danny Clark, Marcy Jacobs, Megan McConnell, and Sarah Tucker-Ray, “ Transforming the US government’s approach to hiring digital talent,” McKinsey, SeptemKerstin Balka, Breanna Heslin, and Sina Risse-Tenk, “ Unlocking the potential of public-sector IT projects,” McKinsey, July 5, 2022. And they often struggle to attract and retain the digital talent needed and to upgrade legacy systems, complicating their efforts to modernize. They also need to navigate fragmented control with multiple stakeholders, a highly regulated data environment, complex processes of raising capital for improvements, and additional oversight. Most importantly, they must frequently reassess their priorities in response to policy decisions and leadership changes. However, public-sector organizations contend with additional difficulties. They include dismantling silos, getting management and staff buy-in, funding investments, keeping business as usual running, upgrading technology, and competing for talent with the necessary skills, to name just a few. The challenges government organizations encounter in executing customer-centric transformations are, to some degree, like those of any large organization. This article is a collaborative effort by Radhika Chadwick, Natalia Ferens, Jonty Olliff-Cooper, Natasha Stern, and Patricia Walsh, reflecting views from McKinsey’s Public Sector Practice. ![]()
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