How governments can foster a digital-first culture in their workforce

Cultivating the new digital leader

A cross-industry EY study, conducted with the University of Oxford’s Saïd Business School, found that leaders identify leadership as the number one driver of successful transformation, but only 10th when it underperforms. Workers rank leadership as number one regardless.

The public sector is in urgent need of a new breed of digitally aware leaders, backed by senior executive sponsors who are actively committed to transformation.

A dedicated executive —sitting on the senior management board — should be appointed to lead the transformation program, working closely with the talent leader to align the digital and workforce strategy. They will use future-back planning to identify bold new opportunities, and craft a vision that enthuses and inspires all employees at all levels. In the EY-Saïd Business School study, 49% of respondents in high-performing transformations say the vision is clear and compelling versus just 27% of those in low-performing transformations.

Being a digital leader requires the courage to challenge entrenched behaviors and mindsets, and the influence to build consensus. This calls for soft skills, such as emotional intelligence and a willingness to listen, as well as technical skills. The Singapore government, for instance, has drawn up a new Core Competency Framework, reflecting the more diverse capabilities that leaders need at different levels.

Leaders need the humility to acknowledge that they may not have all the answers, and a willingness to look for solutions both inside and outside the organization. Forty-seven percent of the survey respondents from high-performing transformations say their leaders welcome ideas from more junior personnel, versus 29% from low-performing transformations.

For digital leaders, the ability to drive change is as important as technical expertise. They need to keep a constant eye on citizens’ needs and the problems that need solving, while motivating staff to embrace creativity and continuous learning. The digital leader should also work with the talent leader to highlight how technology is successfully addressing society’s big challenges, which can inspire existing and future employees. 

Our recent paper EY outlines 5 Leadership Mindsets, and recommends that leaders continually challenge themselves to ensure their beliefs, attitudes and values move with the times.

To find out more about the new breed of leader, read the full version of the paper.

Case study: Leaders power ahead in the Washington Metropolitan Area Transit Authority

EY teams supported the Washington Metropolitan Area Transit Authority in improving communication, training, and internal processes leading to a more collaborative work environment.

EY helped craft a leadership program to develop existing and future leaders, with a focus on culture to improve experience and engagement. We also assisted with change management to ensure smooth adoption, while providing data analytics to track metrics via a variety of innovative dashboards.

The resulting program is enabling a shift in culture, increasing engagement and retention, and helping the organization meet its goal of being the transportation and employer of choice.

Managing the change

Technical specialists may implement digital transformation, but it can’t happen without the wholehearted acceptance of the workforce, who need to embrace new digital tools and learn how to use data effectively. An effective digital transformation plan will consider all aspects of how the proposed changes will affect the workforce and what engagement is needed to build buy-in.

Many employees question their ability to work with technology and fear it may replace their jobs. However, the evidence is to the contrary: fewer than one in 10 leaders taking part in our EY 2022 Tech Horizon Survey reduced workforce numbers during digital transformation. As Amanda Cattermole, CEO, Australian Digital Health Agency, said, "5, 10 years ago, everyone was saying, ‘We're going to see a smaller knowledge-based workforce.’ I'm not so sure now. We're going to need people in different ways."

It’s the leader’s responsibility to paint a positive picture of change, communicating how it can enhance everybody’s jobs and deliver better services to citizens.

Cultural change also proceeds more smoothly when people take an active role, hence the importance of co-design. According to our EY 2022 Tech Horizon Survey, 64% of transformations that “exceed expectations extensively” engaged employees in designing the new employee experience; for initiatives that fell short, just 32% of people were involved actively.

Another successful change tactic is to create “digital champions” to help people understand and embrace new technology. Training can also accelerate buy-in, possibly augmented by incentives linking digital adoption to performance evaluations and even promotion. In the London Borough of Barking and Dagenham, digital champions have helped fellow workers co-design an analytics platform and shape the associated training.

Employee feedback helps to continuously improve the performance of technology. This doesn’t just raise motivation, it also encourages risk-taking, assuring workers that failure is a natural part of the creative process rather than something to be feared.

Case study: Overcoming resistence to change at Transport for NSW

Transport for NSW is delivering Australia’s largest-ever transport infrastructure program, integrating key agencies under one shared services organization. However, there has been considerable resistance to change, with many employees accustomed to traditional ways of working and having to adapt to a new leadership team.

The organization’s change management program included ongoing coaching on how to “navigate and lead through change,” team-building exercises to build a common, high-performing culture and, critically, “reflection” sessions to air and address concerns. Along with highly transparent communications with service center customers, this greatly helped employees transition into new roles and responsibilities. The reform has been widely recognized for its change management excellence and has significantly improved both customer satisfaction and employee engagement.

Abandoning caution and embracing a growth mindset

Creative new approaches to working practices and service delivery can only come through experimentation. However, public sector workers often struggle with change, fearful that failure will reflect badly upon them, with 58% of government leaders surveyed admitting they have not managed to instill a “fail-fast” mentality among staff.

The COVID-19 pandemic proved that new, digital approaches to service delivery can dramatically enhance the citizen experience; it’s essential to maintain this momentum. Government leaders need to champion a culture where curiosity and questioning of the status quo is the norm, create a safe environment for experimentation and learning, and reward people for bold new ideas. The Canadian government, for example, offers prizes to stimulate new solutions for major public challenges, via the Smart Cities Challenge, the Drug Checking Technology Challenge and the Indigenous Homes Innovation Challenge.

To embed entrepreneurial behavior, innovation labs, incubators, accelerators and internal hackathons or “skunkworks” (groups of people who research and develop a project for the sake of innovation in technology) can provide a safe environment for exploration and learning.

Key questions to consider

• Has leadership developed a clear and compelling vision that the whole workforce buys in to?
• How could we combine humans and technology to work in smarter ways?
• How can we educate and reassure our employees about the adoption of new technologies?
• How do we nurture a fail-fast mindset?