Summary of the session of Simon Giles at the City Innovation Summit. Barcelona 2014.
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The document discusses Accenture's City Innovation Summit in Barcelona which focused on defining high performance for cities. It outlines five challenges facing 21st century cities: digital transformation, talent mobility, engaged citizens, resource stress, and constrained public funds. Accenture proposes five outcomes for high performing cities: economic prosperity, quality public services, sustainability, financial management, and stakeholder perception. Examples are given of cities achieving different outcomes through various initiatives.
Summary of the session of Simon Giles at the City Innovation Summit. Barcelona 2014.
- 1. Barcelona City Innovation Summit 2014 Defining High Performance for a City and Establishing a High Performing Operating Model
- 2. 2 Day one of the City Innovation Summit focused on economy and performance and brought together speakers from city governments, independent charities and professional bodies from more than 40 countries across 4 continents. Barcelona’s City Innovation Summit highlighted the importance of driving cities to manage 21st century challenges through digital innovation, public-private collaboration, stakeholder co-design and co-creation and changing attitudes towards budgeting and economic management. Focusing on these challenges, Accenture’s Simon Giles talked about the competencies and capabilities that will help enable government reform in the digital age, and asked what lessons government can learn from the private sector about high performance and delivering public service for the future.
- 3. 3 City Challenges in the 21st Century As urbanisation predictions become a reality, five global macro-trends present a range of challenges for cities: Digital Transformation: Increasing expectations of citizen digitals combined with a data explosion is pushing the Internet of Things (IoT) agenda forward. Implications for cities include: • Rise of digital government • Digital-physical blur • Security and data privacy concerns Mobility of Talent: With increasingly mobile workforces, cities need to offer a compelling lifestyle proposition to attract and retain talent. Implications for cities include: • Rising lifestyle expectations • Identification of future skills gaps • Cities competing to attract best talent Emerging “pro-sumers”: Citizens increasingly have a voice through digital channels and are demanding more active participation. Implications for citizens include: • Sharing economy • Increased transparency and accountability from public services • Increased political engagement Resource stress: As cities become more populous they face chronic resource stress and a need to reduce emissions. Implications for cities include: • Increasing importance of resilience • Focus on the circular economy • Cleantech as an industry Constrained public purse: City governments need to do more with less and find new ways to deliver public services for the future. Implications for cities include: • Achieving operational efficiencies • Fundamental review of operating models and structures • Exploring new public – private partnerships tnerships 1 2 3 4 5
- 4. 4 Defining a high performing city Accenture has identified five core outcomes that cities should focus on to achieve high performance and increase city value: driving economic prosperity, high quality public services, social and environmental sustainability, strong financial management and governance, and positive stakeholder perception. High standard of living and ease of doing business are the most important to achieve high performance within economic prosperity. Innovative service delivery models are the greatest catalyst to improve the quality of public service delivery in the future. High standard of living Ease of doing business International Connectivity Other 42% 42% 13% 3% 23% 16% 55% 6% Digital transformation Public service skills for the future Innovative service delivery models Other Economic Prosperity Positive Stakeholder Perception High Quality Public Services Strong Financial Management & Governance Social & Environmental Sustainability Human- Centered Design An interactive pulse survey was conducted focusing on the target outcomes outlined above. We asked one question per outcome to gather insights into where city officials are currently focussing their efforts, and identify any challenges they are facing.
- 5. 5 Within social and environmental sustainability, social inclusiveness and green growth are currently more undervalued than urban resilience and require more attention from city administrations. Integrated governance structures are seen to be the most challenging area when trying to achieve strong financial management and governance. Sixty nine percent of citizens do not feel they have sufficient involvement in decision making processes that impact their city. 15% 19% 67% 0% Integrated governance structures Other 37% 37% 20% 6% Social inclusiveness Urban resilience Green growth Other 31% 69% Yes No
- 6. 6 Introduction to a High Performing City Model Accenture’s High Performing Operating Model for a City identifies the capabilities and competencies needed to achieve high performance within the changing urban landscape. A High Performing City Operating Model can help identify which core competencies City Hall should prioritise to deliver value. The capability map below can help city governments identify and develop the key skills, processes and people needed within each operating block. P Strategy and Planning - set by city hall will define public service delivery in a city Back Office Integrated Asset Management & Operations Centre Citizen Relationship Management - manages citizen requests from inception to completion and outreach comms Operational Services - • Day-to-day running of the city • Operational service centre of the city • Full lifecycle asset maintenance Performance management - reports on and collates performance statistics and drives continuous improvement within city administration and in public service delivery Digital enterprise - services cut across the city administrations core operations and public service delivery
- 7. In addition, cities can learn from best practice examples of how cities around the world are achieving high performance across a number of competencies: Amsterdam - Economic prosperity through digital transformation and innovation A digital government in a digital era: Sparked by the IoT agenda, city governments traditionally focused on building physical infrastructure now need to adapt and focus on building a digital infrastructure. Rising expectations of citizens and city stakeholders are driving governments to re-assess how they define and measure quality of life within a city. It is important to understand what stakeholders value in the information age, for example high speed wireless connectivity, accessible high quality services, smart grids or open data, and these stakeholders are increasingly seeing their government’s role as being responsible for ‘making big data happen’ and delivering results. New York - Strategy and Planning Achieving economic growth while improving quality of life: New York City’s Economic Development Corporation (NYCEDC) is the city’s strategy and planning hub. In New York it is not enough to only measure economic growth when determining high performance, as the city feels that quality of life must be equally considered, avoiding the risk of achieving growth without development. One of NYCEDC’s outstanding transformational projects, for both economic development and quality of life, includes their applied sciences initiative dedicated to promoting STEM degrees by developing 300 applied sciences campuses around the city and delivering between 33-35 billion dollars in terms of economic impact. Paris - Citizen Relationship Management Co-creation in policy and public service design: The Paris Living Lab tool is an experimentation policy through which 125 trials have been rolled out since 2010. Examples of co-creation/ co-design schemes range from smart furniture to innovative vegetation proposals. The Living Labs provide a test bed for new ideas to be trialled in the real world, and enabling direct feedback from citizens. These Living Labs provide a great example of a win-win for all participants; the government, business, citizens and the City of Paris brand. Copenhagen - Performance Management Driving better outcomes through stakeholder collaboration: Copenhagen focuses on driving change by ensuring buy in from all city stakeholders: citizens, businesses, local SMEs and digital entrepreneurs, city employees and research institutions. The city provides incentives for participation and articulates how each stakeholder group will benefit – incentivising these groups to make each project a reality. A goal to become carbon neutral by 2025 has sparked a number of initiatives including the development of a fleet of H2 and electric vehicles with the aim to replace 85 percent of carbon fuelled vehicles by 2020. Barcelona - Digital Enterprise Quantifying the benefits from digital initiatives: Barcelona, winner of the European Capital of Innovation prize, sees technology as a core enabler to 21st century problems namely ensuring a high standard of living in the decade of urbanization. Barcelona focuses on using technology to track and measure the benefits realised from each digital initiative such as the city’s smart irrigation scheme which has resulted in a 25 percent decrease in water consumption and €425 000 (USD 530 700) annual savings from monitoring only three parks. 7
- 8. Copyright © 2014 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Delivering public service for the future Now is the time for collaboration and Accenture will be working with cities to refine the operating model, determine best practices within each capability and develop benchmarks that measure from basic to sophisticated performance levels. By testing the capability and operating model in partnership with city governments and experts, together we will create a robust capability toolkit for city officials and Accenture alike – delivering public service for the future. About Accenture Accenture is a global management consulting, technology services and outsourcing company, with more than 305,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$30.0 billion for the fiscal year ended Aug. 31, 2014. Its home page is www.accenture.com. For more information or to get involved, please contact • Steve Hurst Global Cities Lead +1 917 567 9311 steven.hurst@accenture.com • Simon Giles Global Cities Digital Lead +44 207 844 8019 smon.w.giles@accenture.com • Jen Hawes-Hewitt Global Cities Strategy Lead +44 792 919 9083 jen.hawes-hewitt@accenture.com 14-6133