Tag: government

  • “This is transformation” – the challenge of leading digital change

    “This is transformation” – the challenge of leading digital change

    To say Paul Shetler’s stay in Australia has been controversial would be an understatement.

    After leaving the UK’s Government Digital Service in 2015, Shetler was the founding CEO of the Australian government’s Digital Transformation office. He lasted 16 months before being managed out.

    In January I interviewed Shetler where he discussed the relative differences between countries, the challenges facing those trying to digitally transform governments and large organisations along with some scathing observations about the management of the Australian Public Service.

    Parts of this interview were the basis for separate articles in Diginomica and the Australian Financial Review however the entire conversations is worthwhile publishing.

    Some of Shetler’s answers have been lightly edited for clarity.

    How do we compare the digital transformation journey of different countries?

    In terms of the UK, the Government Digital Service really has done a great job. If hadn’t been for GDS we wouldn’t be having the conversation we’re having in Australia today, much less in New Zealand, the United States and other countries.

    Digital Transformation wouldn’t be on the table and an awful lot of the basic ideas on how you fix government IT by looking at structural reasons for behaviour rather than just saying “let’s make a nicer interface.” they were really good at identifying those things.

    Britain was the pioneer. Every country in the naughties had their own digital strategy but the UK led the way. The US right now is a mess, they don’t really have a digital strategy.

    How does the US look with the new Trump administration?

    They do have a lot of potential there. I do think the new administration is more likely to do something big to fix things than perhaps the Obama Administration was, because they are talking about national infrastructure.

    If you to the United States it’s shocking, the physical level infrastructure is falling apart and on a digital level things are pretty much the same, if you look at the government websites many of them look like they are from the 1990s and they all look and act differently.

    They are very much like the UK before Britain started the digital transformation and they’ve had several years to fix it but there’s been no concerted effort because no-one really owns it.

    They do have the USDS which operates out of the White House that gets really great talent in to do fix something but they don’t have the authority across the government.

    They have 18F who operate on a cost recovery basis who act like an internal consultancy… they have some extremely talented people there and we’ve learned quite a bit from them.. and they help agencies with individual things, like looking at contracts or procurement or whether it’s fixing a particular service. But there’s no vision or strategy that guides it all.

    If you go to New Zealand you’ll see they’ve been doing a lot of great thinking. It really influenced us in Australia on user journeys across governments, where you want to get something done that goes across agencies.

    Let’s look from the standpoint of the end user; the end user wants to send a child to school, to emigrate to New Zealand or to open up a business. What do they need to do and how can we map it out for them.

    The problem in New Zealand is that the team has no authority, all they can do is propose and it depends upon other people saying ‘oh, that’s a great idea’ although there’s been a lot of great design thinking coming out of there and it difficult for that being translated into practice.

    One of the things I learned here was you can have all the great ideas and talent but if you don’t have the political will and authority to drive it then a recalcitrant bureaucracy will not going along with it because their interests aren’t in alignment with their users.

    What did you find on coming to Australia?

    There was a lot of excitement and enthusiasm on what we could do with the idea of the DTO, particularly among the public there was a lot of goodwill as well as in large parts of the Canberra bureaucracy, generally speaking the lower you got down the ranks there was more enthusiasm.

    In the UK you have two layers of governments; you have the central government and local administration.

    You have the split between politics and policy, you have the politicians who just don’t spend time in their departments. When I was with the UK Justice Ministry the Secretary of State, Chris Grayling, and his ministers were in the building every day.

    As a consequence they were very aware of what was going on. There were in there everyday and they could see things. It made it easier for the ministers to give direction and cover for the civil servants.

    In Australia it’s much easier for public service to capture the minister, direction is spotty and politicians are easily manipulated, partly because of lack of information.

    There’s also the gap between policy and delivery, the UK Department of Justice, for example, works on legal and constitutional policy but is also responsible for prisons, courts and other services. So there’s a tight feedback loop where if a policy isn’t working, you find out pretty quick.

    How important are people and existing processes?

    You can’t fight human nature you have to acknowledge it and live with it and make it work for you.

    In Australia we did a terrible job of working with human nature. This idea we could get Australian government to magically transform itself because it was told to, that I could come here and put up some pretty pictures and say some nice words and everyone would say ‘hey we never thought of that.’

    That’s not going to happen when you have entrenched interests, habits, structures and groups who are committed to doing things a particular way. It’s not going to happen and it’s vary naïve to think you can do it, it’s just not how people work.

    In the UK, we didn’t focus on consensus we focused on getting things done. When I first met with Francis Maude he said ‘this is not a change management process – this is transformation.”

    When we talk about change management it’s often about appeasing people who are throwing up obstacles, this isn’t about appeasing them, it’s about them doing their job. Too often here there was too much appeasing bureaucrats which I think comes down to a lack of political will and perhaps cowardice.

    One of the major reasons why the UK was a successful as they were was because Francis Maude was the minister for five years. It became clear he was going to see this through and if you were going to fight, you were going to lose. People got into line.

    Because they understood people were competitive they created a group called ‘Digital Leaders’, the digital leaders were the Director-Generals from various departments who were future leaders – most likely to become Permanent Secretaries – and said, “you guys will be those driving the transformation from the Civil Service side.” Of course because these people were all competitive they’d try to outdo each other.

    How does the Australian political culture compare?

    “It’s quite a bad culture. In Canberra you have people who think they are the intellectual elite of the nation who aren’t really, it’s a relatively mediocre elite.”

    The idea you have a group of people sitting around thinking their Big Thoughts in a bubble and telling each other how great they are who then hand those thoughts down to proles who do the service delivery. It’s a very weird class system that’s been built up – you have the Big Thinkers and then even the proles you give it to, they pass it on to the states or an NGO to deliver it.

    There is no feedback loop, there is none. You don’t know how much these policies cost, you don’t know what they’re delivering you don’t know what’s a success. That probably suits lots of people.

    We saw that with digital dashboard where citizens and ministers could monitor public services’ performance. There was so much pushback, there were some agencies that worked with us but getting information directly from the systems was difficult.

    What are the lessons from the Australian experience and for those trying to drive digital transformation?

    When the DTO was set up, they had to make a series of trade-offs. It wasn’t GDS, it didn’t have the powers of GDS. It didn’t have the powers to mandate or block.

    GDS had both, the idea you could kumbaya your way to transformation, no-one there believed it. That’s why they set up GDS the way they did. They could stop you from spending money, even if you had the budget approval or not, so that was a massive stake in the heart for a number of zombie IT projects.

    It’s particularly hard for IT managers in departments to admit that a long running project was a failure so GDS was great. That ability to do the right thing and to have it sanctioned by authority was brilliant. The years of ass-covering were over.

    Some kind of spending controls are good and some ICT procurement reform is absolutely essential. That’s potentially really, really good.

    How important is finding the right people?

    People coming into senior digital roles in the UK government were hired by GDS and that was massively important to get the right people in.

    I was thoroughly vetted as were all the other hires and it was important because it created a community of people who thought the same way. We were all committed to the same mission and we all came in at the same time. It’s not talked about much, but there was also a general clearing out of the old leadership.

    Having a common sense of mission was important, we would work together and collaborate with each other.

    You need to have political will to see them through because the departments will kick and scream but if their autonomy was working we wouldn’t have this problem.

    Why are Australian governments suffering IT problems?

    If all major government projects were failing we’d not be having this conversation. That said, there is an unacceptable rate of failure and it has to be fixed. Again, departmental autonomy is not working.

    Departments have chosen to deskill, departments have chosen to become dependent upon vendors and departments have chosen to put their own interests ahead of users – as we in the case with Centrelink. Infrastructure failures like the ATO or the Census were easily preventable. The idea you’re building data centres in 2016 is insane and anyone who tells you that should be fired.

    These are all predictable outcomes and as long as you have a public service that’s not really comfortable with 21st Century technology and which still views as its own departmental in-group as being more important than its end-users then you’ll end up with these problems.

    Public servants have to start operating the way a bank or insurance company would – how do I get onto the cloud, not how do I keep workloads off the cloud? How do I build around the user? It’s crazy to be asking these conversations because it’s an incredibly deskilled when it comes to IT. It’s appalling, much more than in the UK.

    That’s the problem, when you talk to actual practitioners in the Australian government they acknowledge it. It’s not the guys doing the designs or those trying to use the technologies, it’s those further up the management chain who don’t have the skills or have too close relationships with certain vendors where you see these anti-social behaviours kicking in.

    Where next?

    I’ve spent sixteen months banging my head against a wall so I’m not in a hurry, I’m looking some opportunities in Australia and a few elsewhere in the world.

    Similar posts:

  • Scamming the Jobs Act

    Scamming the Jobs Act

    When the Obama administration approved the US JOBS Act in 2012 it was almost certain the crowdfunding aspects would attract charatans looking to separate gullible investors from their money.

    And so it has turned out, with the New York Times reporting how some crowdfunding sites are worried by the poor quality of startups touting for funds on some platforms.

    The Times piece follows the story of Ryan Feit, the founder of New York’s Seedinvest who tells how he has rejected substandard proposals only to have seen them embraced by other crowdfunding platforms with often terrible results for investors.

    One of the early companies he rejected was shut down by regulators — who labeled it a fraud — after it raised $5 million from investors. And Mr. Feit expects it won’t be the last.

    That fraudsters would be attracted to crowdfunding sites is unsurprising and with regulators still working out how to manage investor protection the field is still very much ‘buyer beware.’

    High valuations are also an investor warning sign.

    Mr. Feit has been particularly worried about companies that have assigned themselves sky-high valuations that will make it hard for investors to ever make their money back. In several cases, companies that he rejected because of their high valuations have shown up on other sites with the same valuations

    The unicorn mania of recent years is the cause of this focus on high valuations and is strange for investors as those richly priced stakes are not in their interests or those of employees taking equity in the business. If anything, a ridiculous market valuation should be the biggest warning of all to potential stakeholders.

    Ultimately though it may be that crowdfunding equity isn’t about taking a stake in a business but more showing one’s support for a venture suggests, Nick Tommarello, the co-founder of Wefunder.

    Mr. Tommarello also noted that many small-time investors so far were viewing their investments more as donations to businesses they like, rather than as investments that will make money.

    As JOBS Act equity crowdfunding campaigns are limited to a million dollars each, being the modern equivalent of the ‘friends, families and fools’ may be the future of these capital channels. Hopefully there won’t be too many fools.

    Similar posts:

  • Zen and the art of digital disruption

    Zen and the art of digital disruption

    “You can’t kumbaya your way though it,” says Paul Shetler, the former head of Australia’s Digital Transformation Office, about the task of bringing an organisation or government into the 21st Century.

    Shetler, who previously worked for the UK’s Government Digital Service (GDS) and Ministry of Justice, was reflecting on how a brutal approach to change was necessary when confronted by management resistance and a recalcitrant bureaucracy.

    I had the opportunity to interview Shetler two weeks ago with part of that discussion being published on Diginomica. One of his key points is when driving a transformation, consensus is the first casualty.

    “In the UK, we didn’t focus on consensus we focused on getting things done. When I first met with Francis Maud he said ‘this is not a change management process – this is transformation.’”

    However to drive such change forcefully strong leadership is needed and Shetler emphasised that one of the great drivers for digital transformation at the UK’s Ministry of Justice was having a committed and powerful minister.

    “One of the major reasons why the UK was a successful as they were was because Francis Maude was the minister for five years… It became clear he was going to see this through and if you were going to fight, you were going to lose. People got into line.”

    Ultimately a lack of strong leadership is why the Australian DTO failed, with the country’s political culture seeing ministers rotated out of positions on a regular basis – the Innovation portfolio is seeing its fourth minister in 18 months  – it’s almost impossible for any leader, however forceful, to drive meaningful change.

    This raises the question of whether some organisations can culturally handle change, it may well be that some institutions are impervious to change given the nature of their management structures and the people that lead them.

    Australian taxpayers may hope that their public service isn’t an institution that resists change but Paul Shetler’s experience is a worrying warning.

    Similar posts:

  • A broken trail of government digital dreams

    A broken trail of government digital dreams

    Last August the centrepiece of the Australian government’s digital dream came to an end. The Canberra Times this week described how “the Turnbull government has quietly killed off one of its biggest plans for ‘digital transformation’; the hugely ambitious gov.au website project”.

    The abandonment of the project was an ignominious end of the plans for a Prime Minister who had promised so much at the time of his appointment, and that a cabinet submission would be pulled minutes before it was due to be tabled indicates the convoluted politics behind it.

    Bizarrely, that story ran the same day the Federal Treasurer revealed the government would be running a ‘pilot project’ to put more services online as part of their attempts to harness the digital economy.

    That the Australian Federal government is looking to run some pilot projects this year is remarkable given twenty years ago, in 1997, the then Prime Minister John Howard announced all appropriate government services would be online by 2001.

    Australian taxpayers would be well justified asking what has happened over the last twenty years.

    It could be argued that Australian governments are not particularly good at technology projects given ongoing disasters like the current Centrelink debacle, the failure of the 2016 Census and the collapse of the Tax Office’s portal shortly before Christmas.

    Probably the main reason for Australian governments’ technology failures is the lack of focus, as shown by the Digital Transformation Office barely surviving one year.

    That lack of focus is even more problematic as digital transformation projects are more about changing cultures than revamping technology, often making them a decades-long process.

    Without a long term commitment to projects and policies, initiatives such as the Howard government’s 1997 Investing for Growth or Turnbull’s 2015 Innovation Agenda are doomed to failure. Until Australian governments commit to longer term visions, it’s unlikely any of their digital dreams will be achieved.

     

    Similar posts:

  • Uber’s sharing strategy

    For most of its existence, Uber hasn’t been shy about claiming to be at the forefront of the future of transport which fits into yesterday’s announcement of Uber Movement which promises to provide aggregated and anonymised trip data to give communities and businesses an overview of road usage in their districts.

    Jordan Gilbertson,  one of the company’s Product Managers, and Andrew Salzberg, Head of Transportation Policy, described how Uber intends to make transit time data available.

    Uber trips occur all over cities, so by analyzing a lot of trips over time, we can reliably estimate how long it takes to get from one area to another. Since Uber is available 24/7, we can compare travel conditions across different times of day, days of the week, or months of the year—and how travel times are impacted by big events, road closures or other things happening in a city.

    As the Washington Post reports, transport agencies do already have a lot of data on some aspects of commuter behaviour – particularly public transport usage – and the Uber information fills as ‘missing part of the puzzle’.

    Taxis and buses are also increasing equipped with real time tracking equipment that also gives this data while traffic services like Wayze have been collecting this information for a decade.

    So agencies aren’t short of this data and the concentration of Uber’s customer base in more affluent areas means their information may be skewed away from poorer areas. Recently a Sydney taxi driver mentioned to me how he’d stopped driving for Uber because most of the city’s sprawling Western Suburbs where he tended to drive didn’t use the service.

    Uber’s offer is another piece in their data strategy that sees the company being a data hub for the logistics industry. It also helps if you’ve co-opted governments into your scheme.

    Similar posts: