Delivering on public service modernization
Governments are increasingly blending digital and physical services for improved public service delivery
Efficient and pleasant customer experiences often combine digital and physical services—and as companies’ technology gets smarter, digital plays an ever-larger role in successful interactions. Customer expectations are rising.1
For government services, agencies may struggle to provide seamless experiences for citizens and meet those higher expectations. Many services—negotiating airport security, securing licenses and permits, and applying for a public benefit—may resist transitioning to more efficient digital-first systems; the human element remains significant, which can slow processes and introduce potential error. Many services involve some form of interaction, from onsite inspections to caseworker interviews.
The challenge is often in integrating digital and physical service delivery—for example, making the process of registering a car no more complex than the process of renting a car. A 2022 Deloitte global citizen survey found that satisfaction with online government services lags the private sector by more than 20 percentage points—56% to 77%.2 The gap between public and private services for purely online services may be even higher for services with a physical component.
Agency leaders are fully aware that positive interactions can enhance citizen satisfaction and trust in government—and that metrics are key to making that happen. More than 70% of government chief information officers plan to increase investments by 2026 to measure the quality of citizen experiences.3 Perhaps unsurprisingly, satisfaction with government services varies (figure 1).4
Making public service experiences more simple and intuitive takes careful design. Modernizing high-touch services is often about more than efficient service delivery—it can help rebuild trust between governments and the communities they serve. The stakes can be high. The examples featured in this report illustrate that it’s possible to deliver high-touch services better, faster, and at a lower cost.
Key challenges
Usually, it’s easier to patch a software program than to overhaul a city bus system. Physical public services—often reliant on expensive facilities, capital-intensive tools, and legacy processes that impede innovation—may resist digital upgrades. And the occasional delays and glitches that often accompany human involvement can take a toll on public opinion, particularly because these services are the ones with which many citizens interact often. A smooth passport renewal experience might improve one’s perception of government competence,5 while a frustrating experience transferring a car title can create resentment toward government functions that are completely unrelated to that activity.
Moreover, governments often need to address interconnected problems, such as poverty and low educational test scores, while catering to multiple, frequently conflicting stakeholders. Simple solutions may not only fail to address systems-level issues but can worsen them. Tackling complex systems presents common challenges:
Behavioral challenges. Resistance to change is often expected, among both employees and constituents. Modernizers can face challenges like, ingrained organizational cultures and deeply integrated legacy systems. Adapting to new systems may require training that some employees find time-consuming, costly, and frustrating. Citizens, too, may resist digital channels—a mandatory switch from a familiar fill-in paper form to a confusing smartphone app may not be welcome. A digital transition should center on the user—even if the user is a citizen who needs an analog option for a while before being won over to digital. It’s important to acknowledge the variety of needs of various citizen segments, including those with language barriers and accessibility challenges.
Technological challenges. Some government services depend on legacy systems, including outdated programming languages, which complicates updates as the programmers who understand it retire.6 The difficulty of translating old technology to new systems can impede efficient, modern solutions. Nearly half of the public sector’s C-suite level executives identify legacy systems as a barrier to embracing change.7
Data access. Agencies aiming to modernize delivery should utilize data effectively. Legacy systems often trap key management data in silos, making it difficult to access and analyze. By harnessing data effectively across agencies, governments can anticipate needs, allocate resources more efficiently, and enhance accountability. Data also fuels the use of emerging tools such as artificial intelligence and predictive analytics.
Coordination and decision-making challenges. Government often answers to a complex variety of stakeholders, each with its own complex mix of incentives. The different incentives motivating agencies, private partners, and citizens can slow the pace of strategic prioritization of modernization. Within government as well, coordinating efforts across multiple departments becomes a challenge, since each department may have its own priorities, processes, and timelines. Lack of coordination in execution can result in duplicated efforts, wasted resources, and delays in implementing initiatives.
Trend in action
Despite common challenges, each government service has a unique set of challenges. Some services, involved in complex networks of cause and effect, may need a holistic overhaul. Others can improve by broadly rethinking a process. And in some cases, smaller, easier changes can achieve significant benefits.
Governments often lack the initial investment needed to improve internal systems for larger change initiatives. One reason is the challenge of justifying the initial cost and eventual return on investment, with benefits often measured in time saved or improved constituent satisfaction rather than boosted revenue or saved costs. Investing in broad, holistic changes—from cybersecurity systems to automated toll collection—has often driven significant long-term benefits.8
Faster service delivery
Some agencies have used several approaches to reduce wait times, including embracing new technologies and processes, discarding outdated rules and regulations, and finding the right balance between speed and staffing levels.9 A spirit of innovation can drive a more responsive, agile government that exceeds the expectations of citizens, fast.
India offers an example of rapid service delivery. By leveraging digital identity technology, the government has transformed the way public welfare services are distributed, speeding the process and boosting efficiency. The country’s national identity program, launched in 2010, and refined over the years, has digitized the delivery of public welfare services, providing citizens with a unique digital identity for secure authentication. During the COVID-19 pandemic, Aadhaar enabled direct deposits of US$3.9 billion to 318 million beneficiaries, revolutionizing service delivery for millions of Indians.10
Even in processes that demand some level of human review, improving a process’s digital aspect can boost speed. In the United States, passport renewals following the pandemic were seeing significant wait time, in part because the largely manual process struggled to keep pace with a flood of applications amid a lingering staffing shortage.11 The State Department has since transformed the renewal process into a more seamless, faster experience. In 2021, the department introduced an online program for adult US citizens to renew expired passports. It enabled users to pay, upload photos, and apply entirely online.12 By October 2024, the State Department reported that it had issued 24.5 million passport books and cards in fiscal year 2024, marking an increase of approximately 500,000 from the previous year.13
Merging digital, mobile, and even in-person models can make services more user-friendly, offering users services at their preferred location. A seamless experience could allow someone to begin an application on a laptop, use a phone to upload a picture of a key document, and maybe if they run into trouble, even go into an office for help, picking up right where they left off—no delays, no rework; just the services they need, when they need them. In 2020, the Arizona Motor Vehicle Division launched a modernization initiative. It implemented a digital driver’s license on cell phones and rearchitected digital payments. Other innovations included a streamlined check-in process using digital IDs at kiosks and an electronic car-title–transfer station, which improved efficiency and expanded access to over 30 services online.14
Reducing costs
Many government organizations, today, seems to be feeling some level of budget constraint, making cost reduction a priority. Modernization tools can become a cornerstone of cost-reduction efforts as governments move from short-term efficiencies to long-term gains. Tools such as artificial intelligence and digital payments can reduce operating costs over time while simultaneously improving customer service. Although investments in efficiency may require an up-front expense, the results can yield substantial cost savings year over year.
Cloud computing can help agencies move away from spending money on physical data centers. Better data access can help agencies make informed decisions and cut down on inefficiencies. For example, the Washington State Department of Social and Health Services combined data from 10 different agencies to serve 2.4 million public assistance beneficiaries. The broad change enabled more detailed interventions. With shared data, it could meticulously evaluate the factors influencing health outcomes for high-risk Medicaid recipients. The resulting changes led to US$68 million savings through reduced nursing facility use and hospitalizations.15
Another way governments can streamline complex processes is to embrace effective change-management strategies and transition to modern technologies. Abu Dhabi’s TAMM 3.0 digital platform utilizes AI to streamline around 800 government services. Residents can access everything from licenses to utility payments through a user-friendly app. The automated service delivery saves 100,000 hours of work each month. This holistic integration not only enhances efficiency but also fosters data-driven decision-making, helping leaders better measure citizen needs and departmental success.16 These changes can improve citizen experiences by cutting through bureaucratic sludge and streamlining processes.
Leveraging advanced technology can enhance infrastructure management, cutting costs while ensuring reliable services for communities. Washington, D.C.'s water treatment facility embraced AI to help with the detection of water pipeline defects. D.C. Water deploys autonomous robots to capture video footage of pipes, then utilizes an AI-based neural network to identify defects. Inspection costs dropped from US$7 to US$9 per linear foot to just US$2 to US$3. This approach not only saves money but catches defects more accurately, ensuring a more reliable water supply for the community.17
Similarly, the city of Raleigh, North Carolina, implemented a new pavement management system to analyze large amounts of data to inform decision-making. The system improved the overall condition of its road network and saved US$8 million to $9 million in annual maintenance costs.18
Improving the quality of services
Speed, cost savings, and quality of services often influence each other. In a digital era, focusing on one could improve at least one of the other two. So rather than looking at savings first, some governments have asked how they can best serve their citizens—and then harvested efficiencies as by-products.
When services are crafted with the user at the center, they can naturally become intuitive and accessible. High-touch services can benefit from this approach. Thoughtful design can reduce the necessity for extensive support and follow-ups, and can make the service experience smoother and more enjoyable. A user-centric approach can not only elevate the overall experience but also streamline operations, resulting in quicker service delivery and reduced costs. As business leaders and government CIOs likely both know, customer satisfaction pays off.
Singapore’s LifeSG app: Keeping citizens at the heart of public service delivery
One example of governments modernizing public service delivery is Singapore government’s LifeSG app. The app is a testament to the power of digital innovation in public service. The thinking behind LifeSG is simple: The less time citizens need to spend transacting with the government, the more time they get to focus on the things they love.
Launched in 2018 as "Moments of Life," the rebranded LifeSG app is designed to provide citizens with a seamless, personalized experience when interacting with more than 400 government services. Once users log in through their unique digital identity using Singpass, LifeSG creates a dashboard that personalizes recommendations for content and services and supports users through significant life events. For example, the app streamlines the birth registration process—including applying for the nation’s Baby Bonus and opening a Child Development Account—from 60 minutes to just 15 minutes.19 Singaporean parents now register 7 in 10 eligible newborns with the app.20
LifeSG’s human-centered design aims to help users navigate the interface intuitively. By answering a few simple questions, citizens can view the list of government support programs for which they are eligible and estimate the benefits and support they can receive. The app sends out proactive, personalized notifications so users don’t miss important deadlines or eligible benefits.21
Easing processes for citizens can help improve their overall experience and satisfaction with the service. Children’s of Alabama, a children’s hospital, demonstrated the power of enhancing service quality by transforming the experience itself. In 2022, the hospital faced challenges with disruptive patients in its busy X-ray suite. Recognizing that complaints about long wait times often reflect a frustrating experience, but unable to conduct X-rays any faster, the hospital transformed the atmosphere for waiting patients. It equipped the X-ray room with an ambient experience, integrating dynamic lighting, sound, and video to create a soothing environment—a small change that boosted patient compliance and satisfaction.22
Governments are transforming service delivery to address complex societal challenges, such as homelessness, by simplifying complicated processes and applying experience-focused approaches. Previously, the New South Wales government’s assistive outreach program for the homeless relied on a paper-based note-taking system that required already vulnerable individuals to speak to multiple staff members and repeat their stories. To address this, the government partnered with experts to develop the "Journey on Home" mobile app. The app has allowed for significantly improved homeless support services, ensuring the most vulnerable receive the right service at the right time without repeating their story to different staff members. The reduction of manual data entry significantly freed up time for staff, allowing them to focus on providing support to clients and reducing time spent on reporting by 80%.23
(For more information on the holistic transformation of service quality, dive into our in-depth exploration of digital transformation in government.)
Tools and strategies to deliver on public service modernization
While there is no one-size-fits-all strategic approach to public service modernization, agency leaders may want to consider a number of strategies when looking to make services with significant physical and digital components better, faster, and cheaper.
Define your objective. Are you trying to cut costs? Reduce wait times? Cut the error rate? Improve service quality? Understanding who can benefit the most and knowing what you are aiming for can help you choose the right path.
Demand reduction. Taking steps to lower demand can be a win-win. Can you shift renewals from annually to every two years?
Offer enhanced digital, mobile, and self-service options. Making “lower touch” options easier for your constituents can encourage them to forgo inefficient in-person visits or phone calls.
Work with partners for broader improvements. Look to channel partnerships to make service access more convenient—for instance, having service kiosks within retail settings like grocery stores so customers don’t have to visit a different location, or partnering with banks so customers can use banking information to verify their identity and access government services.
Consolidate for user convenience. Someone opening a new restaurant will likely need several different types of permits, licenses, and inspections; combining these can make the user experience far less onerous. Canada, Australia, and other countries have experimented with consolidating services into one-stop shops.
For greater benefits, upgrade your digital infrastructure. Multiple agencies can leverage a robust digital infrastructure—one with a unique digital identity, shared process applications, and cloud-based data-sharing—to improve constituent services. It’s also important to account for potential cybersecurity, privacy, and records management risks from the outset, ensuring these considerations are integrated into the design rather than an afterthought.
My take
Modernizing public services: A path to better service delivery
Michelle E. DiEmanuele, Ontario’s Secretary of the Cabinet24
To modernize public service delivery is to understand both the current needs of citizens and to anticipate their needs in the future. It requires evolving and questioning the status quo to continuously improve. If a citizen can withdraw cash from an ATM in 35 seconds, why can’t they access government services just as easily? Questions like this fuel my passion for enhancing public services. Modernizing means not only meeting public needs but delighting those we serve and earning their trust.
Delight comes from excellent service and a consistent approach the public can rely on. We achieve this through people, process, lean design, and technology, alongside a robust change management strategy. This ensures that we can support the public through service transitions, recognizing that sometimes the public is eager for change, while at other points, they may need more time to adapt. To do so requires us to guide our organization through change while also supporting the public to change.
A big part of building public trust comes from accountability. ServiceOntario demonstrated this by introducing North America’s first ever money-back guarantee for government services. The initiative was born out of a need to address the lengthy nine-month wait time for birth certificates in 2005. By employing technology and changing processes, ServiceOntario was able to significantly reduce this wait time. Since 2007, over 2.47 million families have used the online newborn registration service, with most receiving their baby's birth certificate within five days. The money-back guarantee symbolized the public service’s commitment to delivering reliable and timely services, matching private sector standards.
Over the last 20 years, public service changes have largely been driven by automation, technology, and people-centered design. Today, we use more of an iterative process that leverages design thinking, lean methodologies and a focus on data security. For example, instead of launching everything at once, we introduce an app with basic functionality and add more over time. There is also a stronger predisposition to standardization. AI is a great example, where everyone is looking to leverage it as a transformative tool, but it requires skill-building, bias reduction, and data protection. It is much more complicated than previous technologies but presents great opportunities to serve the public and build an economic engine.
Critical to the modernization of public service is seeding the change with the public. It involves engaging with stakeholders and validating the work being done. Effective stakeholder and public engagement is crucial, focusing on how to implement changes as well as on policy and engagement frameworks. Prototyping and proving the efficacy of new initiatives is essential. Public services play a vital role in people’s lives. As we modernize and improve, measuring risks while making progress is essential in design. Soliciting feedback continuously serves to remain relevant as we work to meet expectations for those we serve.
Ultimately, these advancements require a willingness to challenge the status quo and drive change. Recent initiatives, such as integrating ServiceOntario capabilities into retail spaces, demonstrate how public services can adapt to meet public needs more conveniently and build upon past successes. It requires proactive leadership, stakeholder engagement, and a commitment to continuous improvement. Above all else, it requires remaining relevant by focusing on the people we serve and how we can meet their needs now, and in the future.
BY
The authors would like to thank Joe Mariani, John O’ Leary, and Miguel Eiras Antunes for providing feedback and suggestions at critical junctures. In addition, the authors would like to thank Michelle DiEmanuele for her valuable input in the “My take” section.
Cover image by: Sofia Sergi; Getty Images; Adobe Stock