In Canada, governments at all levels are under tremendous pressure to ‘modernize’ — that is, to clarify what core services they must deliver, and determine the most efficient and cost-effective ways of doing so. They must do all this within the context of an aging population, deteriorating physical infrastructure, and a political environment that demands greater transparency and accountability.

“Governments must ask themselves every day: how can we provide our services smarter and better?” says Paul Macmillan, national leader of Deloitte’s Public Sector industry practice. “The challenges are enormous, as governments search for economically viable ways of meeting public needs.” As a senior-level management consultant with over two decades of service to federal and provincial governments and Crown corporations, Paul understands these issues well. “Upgrading physical infrastructure — waste/water systems, roads, hospitals, schools — is but one of the headaches governments face. Health care is another: how to decrease waiting times, improve delivery and contain the growth of health service costs.”

Industry perspectives offer options for greater efficiency and savings
Add to those challenges the fact that citizens increasingly expect governments to deliver services as rapidly and effectively as private industry. “Citizens are now holding governments to a standard that is hard to live up to,” Paul says. “Individuals ask, for instance, ‘If a bank can provide me with a credit card in 48 hours, why do I have to wait weeks for a birth certificate?’”

According to Paul, governments are demonstrating much greater openness to learning from other industries and jurisdictions. In the past, governments would say that they are different than business and must do things their own way. Today, governments are much more inclined to ask how the private sector handles particular issues.

“This is where Deloitte’s depth and breadth of experience really pays off for the client,” says Paul. “We can draw upon the skills of our consumer business practice or our banking practice, for example, to see what systems and processes might be applicable and beneficial in particular public sector situations. Boutique-type firms that focus on government alone cannot offer industry perspectives.”

Governments need guidance to understand all phases of implementation
What’s more, boutique firms often see only a limited part of the picture. Experience in strategy, for instance, may not help anticipate possible pitfalls in implementation. Having led large consultant and client teams through complex implementation programs — such as over a year implementing SAP at a major provincial utility — Paul realizes that clients need to understand the full scope of what they’re getting into.

“Frankly, if governments knew the full challenges of implementation, sometimes they would scale back,” says Paul. “They need to hear straight talk from their consultants. That way, when they make a commitment, they can be sure they have the knowledge and resources to see it through.”

A cookie-cutter approach is prone to failure
Throughout his career, Paul’s focus has been on government transformation — helping improve the efficiency of service delivery through strategy development, organizational design and system implementation. In recent years, as Deloitte’s lead consultant for the Ontario government, he has spearheaded leading-edge business transformation programs, such as an enterprise-wide review of the core business functions of the Ministry of Health and Long-Term Care.

“Having worked for Deloitte for almost five years in Calgary, seven in Ottawa and six in Toronto, I understand that no two governments in this country are the same,” Paul says. “A cookie-cutter approach simply will not work. While the issues may be similar, governments at all levels deserve to be met with sensitivity to their particular situations and requirements.”

Changing times demand comprehensive resources
“The era of hierarchical government bureaucracy is coming to an end,” Paul observes. In its place we’re seeing the emergence of a new model in which government executives redefine their core responsibilities from managing people and programs to coordinating resources to produce public value. This new model of governing by network is characterized by the web of multi-organizational and multi-governmental relationships that increasingly constitute modern governance.

Tackling such complex change demands coordinated input from a wide range of experience. “Governments may initially be focused on one piece of the puzzle,” Paul says. “What they need, though, is a more comprehensive and integrated approach. Change management, process redesign, defining new business models, implementing technology to enable change, and managing the risk — these are the challenges that today’s governments must address.”