Qualitative and anecdotal information is naturally more difficult to weigh and assess but can be very powerful in driving perceptions of problems and possible solutions. In such cases the experience and judgement of experts in the field, both within and outside government, are very valuable inputs to decision-making.

An awareness of uncertainties increases the chance of successful implementation. If the assumptions made about an initiative are clearly identified, along with their sensitivity to change, then ministers and those implementing the initiative can be better informed of the possible likelihood and their consequences.

 

 

4.2 Think outside the current paradigm

Generating new ideas and revisiting existing and previous ideas from new perspectives and in light of changing circumstances is key to identifying possible solutions, one of which may be to ‘do nothing’. Strategic insights frameworks can be an effective approach to harnessing/facilitating creative thinking. Such a framework encompasses an analysis of where things are now, what are the desired end-points and what might be the pathways to get there.

There are various well-established techniques to facilitate fresh insights and lateral thinking. These range from informal processes such as brainstorming, through more structured processes such as De Bono’s six thinking hats[9], SWOT (Strengths Weaknesses Opportunities Threats) analysis, force field analysis (pros and cons) through to more complex techniques such as scenario analysis and planning and econometric modelling.[10] However, there is no one-size-fits-all approach.

It is not uncommon for ideas to cycle through various iterations over time, for certain approaches to become fashionable or for people to be sceptical about proposals based on past experience. Changed circumstances may mean that an idea that failed to gain traction in the past is now attractive, or an initiative that fell short of expectations, to be adapted ‘to work’ or ‘work better’.

In such an environment it is important to capture the ideas and perspectives of clients and other stakeholders, and to garner the expertise of groups external to the organisation, including international experience, to ensure a rounded understanding of the issues. Generally speaking there is no shortage of ideas and proposals that might be considered. Ideas will generally be readily forthcoming from staff, other organisations, clients, academics, industry groups and other stakeholders. The challenge is to determine from the options available which ones should be further explored and the best approaches or methods for doing that.

In this context, building and maintaining adequate in-house capability and expertise to assess and develop options is important to successful innovation. Having such capabilities ensures that both internally and externally generated and sourced proposals, including consultancies, can be confidently evaluated.

 

 

Manage innovation risks: engage with citizens

As public policy issues become increasingly complex, governments have realised that the resolution of many of the challenges facing Australian society require more active participation from citizens in order to achieve desired outcomes. This trend has led to an increased focus on the active engagement with, and input from, Australian citizens to help ensure that government initiatives have a positive impact on people’s lives. This ‘citizen-centred’ focus links citizens more directly to the decision-making process in such a way that they are better placed to influence and appreciate the design and direction of public policies, programs and services.

The desired result is programs and services primarily focussed on the needs of citizens, rather than just largely reflecting the organisational structure of public sector departments and agencies delivering them.

The best results are likely to flow from a process of strategic and frequent engagement. Such engagement goes beyond what might be thought of as more traditional forms of consultation to establishing a positive, proactive relationship. Traditional consultation processes such as discussion papers, submissions and public hearings still play an important role and are readily enhanced through use of web-based technologies.

Much of the momentum for increased engagement with citizens is being assisted by innovations in information and communication technologies (ICT). ICT has already enhanced productivity by providing new and more efficient ways of delivering public services. As part of appropriate communication strategies, ICT also offers a vehicle to engage more actively with citizens in order to obtain ‘citizen inspired’ approaches to delivering better quality services that are more responsive to community needs.

Apart from enriching the development process, at the very minimum proactive engagement with clients and external stakeholders will confirm assumptions, identify unexpected issues and help build understanding and support for change.

 

 

Manage innovation risks: engage with clients

Establishment of partnerships with private sector, not-for-profit and community-based organisations can promote innovation as well as offer innovative solutions in their own right. There is a broad range of models that can be explored, ranging from public–private partnerships for large infrastructure projects, to social service delivery arrangements through both for-profit and not-for-profit organisations, to policy and program development through research alliances.

Appropriate identification and sharing of risks are fundamental to the success of such arrangements recognising that some risks cannot be priced or effectively transferred from government.

 

 

4.3 Assess the options to develop effective solutions

As there is likely to be more than one way of addressing issues, options need to be carefully evaluated. The scope and scale of the assessment needed will vary according to the complexity of the proposal, the timeframe in which the issues need to be addressed and the outcomes being sought.

The assessment should consider data availability and measurement, the appropriateness of the proposed alternatives, their feasibility, their sustainability and accountability but also their level of complexity — that is ‘can the option be readily explained to, and understood by, the community at large’?

Assessment of feasibility includes early consideration of key implementation issues and risks. Even the best initiatives may fail to reach, or at least fall short of reaching, their full potential if implementation issues are not considered as part of options assessment and a broad implementation strategy is not developed.

There are many readily-available tools for assessing options to ensure they are evaluated on a consistent basis. The need for, and costs and benefits of, any particular regulatory proposal can, for example, be tested using the regulatory impact assessment process and the Business Cost Calculator available from the Office of Best Practice Regulation. For proposals requiring Cabinet policy or funding approvals, guidance is available through Guides produced by the Department of the Prime Minister and Cabinet.

Inevitably more complex options will require the exercise of professional judgment in determining which options are most viable in providing effective solutions. This includes consultation with ministers and their offices to ensure their perspectives are fully understood and taken into account.

 

 

Manage innovation risks: proof of concept

Where the evidence base is thin, risk probabilities are high, consequences uncertain, potential unforeseen consequences considerable, and the best approach unclear, valuable experience can be gathered through an experimental approach involving trials and or pilots. Running trials of alternatives can produce information about what works best. Pilots can test approaches on a small scale to gain experience before scaling up. Active engagement and user testing with clients and stakeholders will provide information on user acceptability. The Centrelink concept office is a good example of trialling initiatives with clients in an actual workplace environment.

In cases involving experimentation, trials or pilots, the indicators of success, assessment methodology, data and information requirements, milestones, timeframes and resources need to be part of the initial design and development brief. Governance arrangements should ensure that any decision to vary design, timing or resource parameters is subject to appropriate scrutiny. Similarly early lessons should be ascertained and taken into account.

By incubating and prototyping concepts in this way, innovations can be tested and refined, risks can be reduced and approaches confirmed or discarded. It is important to approach this early development work from the point of view of what can be learnt from the investment made rather than seeking to avoid the risk of perceived ‘failure’.

Clear communication and engagement with clients and stakeholders will facilitate their participation in trials and pilots, provide sources of feedback and ensure that expectations are not unduly raised about ultimate outcomes. For example, trials and pilots may legitimately be used for demonstration purposes in order to encourage wider adoption by other jurisdictions, the private and community sectors.

Once successful proof of concept is established, trials and pilots may need to be replicated and scaled up to ensure the initiative is sufficiently robust and well-proven to warrant full scale roll-out. This step is important for assessing the practicability of an initiative. For example, the proof of concept may identify: practical constraints that need to be overcome in order for the initiative to deliver required results on-the-ground; as well as more accurate projections of uptake and, therefore, more reliable cost estimates.

In the legislative and regulatory area, it is not practicable to trial legislation as such but proof of concept can still be tested in analogous ways. For example, legislative frameworks can be tested through discussion papers, exposure drafts, and consultations before being introduced to Parliament. The parliamentary processes themselves, including committee inquiries, are designed to establish that legislation and regulations are fit for purpose.

 

 

4.4 Key lessons

 

 

---

[9] De Bono, E. Six Thinking Hats, (revised ed) Penguin, 2000.

[10] These techniques are briefly outlined in Appendix B.

 

 

Previous: 3. An innovation process model

Next: 5. Implement