Estonia’s E-Government and Singapore’s Smart Nation … the innovative strategies by which governments seek to build future societies and deliver better services

July 19, 2024

Over 30 years of working with some of the world’s leading companies, I am still amazed by the lack of real strategy development in so many companies.

Many like to dream big, but then jump to the delivery, without really understanding what is the strategic shift they seek to make. Others are obsessed with planning and metrics, but fail to explore the changing world, to see the bigger picture, or to make decisive choices.

And then, you have public sector.

Government-related organisations struggle even more to define clear strategies, and implement them. Often an even more difficult challenge given the multitude of stakeholders, conflicting objectives, and typically lack of rigorous processes and practices to fall back on.

Over the years I’ve worked with many public sector organisations – from the UK’s health service and justice system, to UAE’s ministry for the future.

I’ve worked with governments in Egypt and Estonia, Kazakhstan and Kuwait, Saudi Arabia and Singapore, UAE and USA – and in areas from education to heritage, transport and tourism, healthcare to housing, local services and financial services, parking and prisons,

Of all these, Estonia’s E-Government Strategy was probably the most impressive, in its vision and delivery.

The small Baltic nation implemented an entirely paperless e-government system, allowing citizens to access nearly all public services online. This innovative approach to digital government is built on trust, transparency, and ease of use.

Developing a strategy within a government department or agency requires a clear vision, comprehensive planning, effective stakeholder engagement, and an understanding of the unique constraints and opportunities that come with the public sector.

Unlike private businesses, government departments must balance efficiency and effectiveness with public accountability, political realities, and social impact. Below are key principles for developing a successful strategy within a government department, along with examples of best practices from around the world.

Each year, I get invited by the OECD to lead a masterclass for their own member organisations, and others like IMF and UN, to explore the latest ideas in strategy and innovation. We look at the drivers of change around the world, how private companies like Apple or Alibaba, are responding, and what it also means for their organisations. What to do, and how.

So what have I learnt about developing strategy in governments, and other public sector organisations?

1. Clear Mission and Vision Alignment

Principle: A government department’s strategy should align with the broader national or regional objectives and serve the public interest. The mission and vision must be clear, focused on outcomes that improve public well-being, and reflect political, economic, and social priorities.
Singapore’s Smart Nation Initiative: The vision of making Singapore a global leader in smart cities guides all public sector strategies. The Smart Nation Initiative focuses on improving urban living using technology to enhance economic opportunities and public services, aligning with Singapore’s long-term national goals of sustainability, innovation, and inclusivity.

2. Evidence-Based Decision Making

Principle: Government strategies should be based on data, evidence, and rigorous analysis. This involves collecting, analyzing, and using quantitative and qualitative data to shape policies and decisions.
Estonia’s E-Government Strategy: Estonia is a leader in digital government, with its e-Residency program allowing global citizens to access Estonian services digitally. The government makes strategic decisions using data-driven insights from citizen usage patterns, digital transactions, and feedback loops to refine policies and services.

3. Stakeholder Engagement and Consultation

Principle: A successful strategy must be developed in consultation with key stakeholders, including the public, civil society, the private sector, and other government departments. Engagement helps ensure that the strategy reflects a wide array of perspectives and has broader support.
Finland’s Education Strategy: Finland’s education policy is developed through a collaborative approach with educators, parents, businesses, and local communities. The ongoing dialogue and consultations help maintain Finland’s reputation for high-quality education and ensure that all relevant stakeholders are invested in the success of the strategy.

4. Clear Objectives and Measurable Outcomes

Principle: The strategy should have specific, measurable, achievable, relevant, and time-bound (SMART) objectives. Setting clear goals allows the department to track progress and ensure accountability.
UK “Digital Strategy”: The UK government’s digital strategy set clear targets, such as making 100% of government services digital by 2025. The digital transformation agenda includes measurable objectives such as increasing online access to public services, improving user experience, and achieving cost savings.

5. Integration with Other Government Policies and Initiatives

Principle: Government strategies should be consistent with other national and local policies, ensuring coherence across sectors. This requires a holistic approach where each department’s strategy is connected and complementary to others.
The Netherlands’ Sustainable Development Strategy: The Dutch government has integrated sustainability into its national development strategy, linking various policies in areas like climate action, economic growth, and social equity. This cross-departmental approach has helped the country make significant strides toward achieving the United Nations Sustainable Development Goals (SDGs).

6. Flexibility and Adaptability

Principle: The political, economic, and technological landscape can shift rapidly. A good government strategy should be adaptable to change and resilient in the face of unforeseen challenges.
New Zealand’s Public Service Strategy: New Zealand’s public service strategy, particularly the “Better Public Services” program, emphasizes adaptability. For example, the government introduced flexibility in policy delivery and used a results-focused approach to allow departments to modify strategies as new information and conditions arose.

7. Resource Allocation and Risk Management

Principle: Effective strategy development involves identifying available resources and budgeting appropriately to ensure the goals are achievable. It also requires recognizing potential risks and preparing mitigation plans.
Canada’s Innovation Strategy: The Canadian government’s strategy prioritizes innovation funding for key sectors, focusing on science and technology. It integrates robust risk management frameworks to anticipate challenges in areas like cybersecurity and global competition, ensuring resources are allocated to high-impact initiatives.

8. Public Transparency and Accountability

Principle: Public trust is key in government strategy, and transparency should be built into the strategy development process. Clear reporting mechanisms, open data, and regular progress reviews foster accountability and trust.
South Korea’s Open Government Strategy: South Korea has made significant progress in establishing open government initiatives. The government regularly releases detailed information on budgetary allocations, progress on strategic goals, and evaluations of policy effectiveness, engaging citizens in the policy process through digital platforms.

9. Performance Management and Evaluation

Principle: Regular monitoring and evaluation of strategy implementation help ensure that the strategy is on track. Continuous performance reviews and feedback loops allow for course correction and ensure public funds are being spent efficiently.
Germany’s “Performance-Oriented Budgeting”: Germany uses a performance-oriented budgeting system where the impact of government spending is evaluated against predefined outcomes. This system helps ensure that taxpayer money is allocated efficiently and that public services meet defined performance targets.

A well-crafted government strategy is built on clear, evidence-based objectives, and is driven by stakeholder engagement, accountability, and adaptability. Global best practices—from Estonia’s digital governance to Singapore’s Smart Nation Initiative—demonstrate how public departments can leverage technology, data, and collaboration to drive sustainable outcomes that benefit society.

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