• How many times have you been warned about reinventing the wheel? Tim Kastelle identifies some circumstances where innovation is aided by doing so.
• In another post Tim Kastelle discusses some opportunities for business model innovation within the higher education sector. “There are a few issues in university education these days. The main one is that education is information based, and over the past 20 years we have seen nearly every single business model based on control of scarce information get disrupted.”¹
• Craig Thomler looks at gamification in government.
• Need to do more with less? Stefan Lindegaard gives some suggestions about how to improve innovation in your organisation without spending too much money.
• In an ever-changing world, innovation requires new ideas which requires learning. Bill Taylor discusses how leaders can become better learners.

As always, please feel free to identify any other developments or articles of interest in the comments below.

One of the ideas included in the Australian Public Service (APS) Innovation Action Plan released in 2011 was the establishment of an APS Design Centre that could assist in developing and testing new approaches to complex policy challenges and to enhance government program delivery. This in turn was based on a recommendation within Empowering Change that the APS establish a MindLab style collaborative experimentation program.

In December the Secretary of my Department, Dr Don Russell, gained agreement and support from the Secretaries Board for an 18 month pilot. This will provide an opportunity to demonstrate the value of design thinking across the APS and to ensure the Centre’s activities complement the growing body of design expertise the already exists within a number of APS agencies.   

We are now working to establish the ‘Centre for Excellence in Public Sector Design’. The Centre will be hosted by the Australian National University and it is planned that it will commence work in the first half of 2012.

One of the key steps in establishing the Centre is finding a person who can lead the Centre and demonstrate the value of this new approach and the contributions of innovation and design thinking in delivering better outcomes. We have called for expressions of interest for the CEO role (advertisement available in word, rtf) and I encourage you to bring the opportunity to the attention of any candidates that you might think suitable for this senior and important role in the APS innovation agenda.

Many of the other details of the Centre are still being finalised, and the team will aim to provide updates when appropriate.

I look forward to the establishment of the pilot Centre and its potential in showing how public sector innovation and design thinking can help achieve better solutions and stronger engagement with those we serve.

• Bill Eggers and Ruben Gonzalez from Deloitte write about the need for disruptive innovation in the public sector. “Budget cutting in government is typically an exercise in using the blunt instrument of across-the-board cuts—in other words, doing more of the same with less money. The inevitable result, however, is not more for less but less for less. To get more for less requires doing things differently. Needed are innovations that break traditional tradeoffs, particularly between price and performance. Disruptive innovation offers a path to accomplish this goal and in the process transform public services.”¹
• The UK’s NESTA (National Endowment for Science, Technology and the Arts) is establishing a centre for innovation prizes. It will be a hub for expertise in designing, setting up and running challenge prizes to tackle social and technological challenges in the public interest. (Information on competitions and prizes can also be found in the relevant Public Sector Innovation Toolkit module).
• Ingrid Burkett from The Centre for Social Impact writes about social design. “Social design can point to a particular outcome of a design process: that is, design for a social purpose. So social design can focus on the design of products that benefit people (for example, the design of water purifiers for people living without potable water); or services (for example, designing more inclusive financial services); or processes (for example, designing participatory decision-making processes inside organisations).”²
• The Australian Public Service Commission has released circular 2012/1 ”Revisions to the Commission’s guidance on making public comment and participating online“.
• Tim Glyn Burke considers what the public sector can learn from the legacy of Steve Jobs. “Real solutions to intractable public problems are out there. The challenge is what Jobs knew how to do best: forcing change that endures by cutting through bureaucracy, fearlessly facing down opposition and insisting on maximum performance. What will it take for governments—along with their nonprofit and community partners—to do the things they never dreamed possible?”³
• The Harvard Business Review launched the Beyond Bureaucracy Challenge with McKinsey. Polly LaBarre shares the stories of the 14 finalists from different sectors around the world.

As always, please feel free to identify any other developments or articles of interest in the comments below.

So, as the year comes to a close, it is a good opportunity to look back at what has been achieved in the public sector innovation arena in 2011. 

• The APS 200 project on public sector innovation was wrapped up and reported back to the Secretaries Board, giving guidance to agencies on how to integrate innovation into their policy and program activity
• The Public Sector Innovation Toolkit and Public Sector Innovation Showcase were launched, providing resources to public servants looking for how to use innovation to achieve better outcomes
• The APS Innovation Action Plan was endorsed, signed and released by the Portfolio Secretaries in mid 2011, setting out the mandate for innovation within the APS
• In co-operation with the Australian National University, we had presentations from two international experts on public sector innovation – David Albury from the UK and William D Eggers from the US
• The APSII project on measuring innovation in the public sector is under way – it has led to greater examination of innovation within the 2011 State of the Service Report
• The Secretaries Board has considered a proposal around the APS Design Centre (referred to in the Action Plan) and there will be news on this in 2012
• We have been investigating how design can be used to further innovation in the public sector as well as learning some practical steps, and we will share lessons and insights on this through the Toolkit.

We think that we’ve achieved some important milestones in 2011 to help embed innovation into the systems of the APS (much of it with the help of others in the network). And, as innovation becomes more integrated with how the APS works, there should be more examples of innovation making a difference in the outcomes achieved by the APS.

We’re certainly aware that there is further work to do as we make our way along the innovation journey. For instance, at our December meeting with innovation representatives from other APS agencies we asked about future priorities or areas where further assistance would be most appreciated. Responses included:

• Explicit detailed innovation frameworks that can be applied by agencies
• Further information on how to build a business case for an innovation
• Change management guidance
• Engendering cultural change in an agency
• Having more cross-agency innovation events and workshops
• Further examples of the value of innovation in the policy space.

For the moment though, let’s celebrate what has been achieved. What about in your agency? What progress was made on the innovation front in 2011?

The Action Plan noted that, beginning in 2011, innovative public sector projects, initiatives or change processes would be assessed for recognition as part of the annual Prime Minister’s Awards for Excellence in Public Sector Management.

On 1 December the awards, including the inaugural innovation awards, were presented at an event hosted by the Institute of Public Administration of Australia (IPAA) ACT Division.

In the words of the IPAA ACT President, Secretary Andrew Metcalfe “These are Australia’s most prestigious awards for the efforts of public servants. They are supported by the Prime Minister, and in past years the awards have been presented by senior ministers or the head of the Prime Minister’s department. Nominations are received from all tiers of government, and the judging is rigorous and intense. The judging panel for the awards include former departmental Secretaries and leading academics and business figures. The award winners represent the very best of Australia’s public services”.¹

The winners of the Inaugural Innovation Awards were:

• Department of Human Services: Small Business Superannuation Clearing House – For a program that was technically difficult, managed within a short timeframe, and demonstrated thinking outside the square with robust learning opportunities
• Australian Taxation Office: The Community Programs Project – For a program that will have wider Service application outside of this agency – and creating potential for across government – building of social inclusion.

You can find information about the other winners and nominees for the awards in the Awards booklet. So have a look at these examples of excellence in the public sector and join us in congratulating those involved.

• Is it easier to be innovative in small teams? Michael Schrage looks at the trend for smaller innovation teams. “The key performance indicator here is, ironically, slow growth. A fast-growing innovation team means either the wrong people were hired or that the wrong challenge was picked. The team delivers measurably impressive results with only marginally more members. That is the success metric. Empire-building is out; remarkably ‘lean and mean’ is in.”¹
• Paul Macmillan and Howard Yeung look at some great examples of innovation from the United States.
• Cisco recently held their 2011 Public Services Summit with a strong theme of public sector innovation - Marc Musgrove provides an overview.
• Tim Kastelle looks at how to build better innovation metrics.
• The UK Government is establishing an Open Data Institute (ODI). Professor Nigel Shadbolt, who will be director of the ODI, discusses the value of government data in generating innovation. ”A great deal of the data we need to run our lives is generated, collected or held by the government. In the past, governments have either hold [sic] on to this data or else charged for it. But if the web has taught us anything it is the power of open content and unanticipated reuse. Open data is simply the latest manifestation of this trend but it has the potential to be one of the most transformative.”²

As always, please feel free to identify any other developments or articles of interest in the comments below.

Service Design thinking, for those who haven’t heard of it, is an interdisciplinary approach that offers great value for entrepreneurs and innovators in the field of services. Design thinking can help solve organisational problems, drive meaningful innovations and inform business strategies.

It is not about creating products, but creating services – intangibles that hinge upon experience and emotion. It is a multi-disciplinary approach to solving problems by using ethnographic research as a basis for business decision-making. Ethno-what? I hear you say? More on that in a minute.

Armed with sticky notes, and rubber chickens, Marc Stickdorn, Service Design guru, and co-editor of ‘This Is Service Design Thinking’, thinks we can better design services that meet the needs of our citizens by applying the approach of design thinking.

Late last week in an impromptu visit to the Department of Innovation, Industry, Science and Research, Marc and his collaborator, Damien Kernahan from proto partners ran a ½ day ‘train the trainer’ style workshop for Innovation staff.

After trying hard not to groove to Flo-rider at the board room table, we quickly jumped into our first ‘project’ – design an online bank for pre-schoolers. This is not as easy as it sounds, but in four hours, using the methodologies of design thinking, our three groups had come up with some pretty tangible ideas for our future bankers.

Back to ethnographic research. In designing government services we tend to rely on demographic data, and professional intuition about who our stakeholders are. But are we getting it right? We quickly learned, that while this data has a role, it may also have a tendency to lead us up the wrong path in designing the services we offer.

For example, we might design a service for a man, born in 1948, who has two kids, is wealthy, lives in an affluent area and drives a nice car. Are we designing the service for Prince Charles – or Ozzy Osbourne?

By creating data-driven personas we are able to better design services with the client in mind, and engineer positive ‘touch points’ with the people we provide services to. If you are interested in finding out more about service design thinking check out www.protopartners.com.au

If you are on Twitter, check out #servicedesign and #designthinking or follow Marc @MrStickdorn

Answer: Take a design thinking approach

When the DIISR graduate project group investigating design thinking first heard of the concept of ‘design thinking’, a level of scepticism filled the room. As the project progressed through industry consultations, we became enthusiastically engrossed in the concept, and our initial scepticism gradually turned into a strong recognition and appreciation of the beneficial impact a design approach could have on the operation of the department.

We realised that design thinking had merit, and the fundamental principles and processes when applied appropriately could lead to the better design of programs, policy and internal processes. By taking a user-centred approach, the design methodology leads to the creation of innovative solutions that can improve efficiency; reduce compliance costs; mitigate the risk of project failure and more closely align results with organisational objectives.

User-centred design has already been applied successfully in many public sector agencies such as the ATO and the Department of Human Services. It continues to have significant impact on the private sector, with organisations such as Google, PriceWaterhouseCoopers and AMP incorporating design approaches to add value to their product and service offerings.

Drawing on secondary research, and information collected through industry consultations, the project group created a ‘hybrid model’ that outlines the process of design thinking. This was a difficult task, as every organisation had a slight variation and adaption of the design principles. The ‘generic’ model the team created draws on approaches from the public sector, private sector, industry consultants, and academia.

1. Identifying the problem– this includes brainstorming the problem, discovering which questions need to be asked, establishing empathy with the end-user and understanding the problem. An important part of this process is ethnographic study or contextual inquiry to observe end-users in their own context and develop solutions according to their needs
2. Creating blueprint – this can be a quick, cheap and rapid scenario. This includes engaging end-users or stakeholders, visualisation of the solution, discovery of multiple solutions and open, non-judgemental brainstorming
3. Prototyping – this includes design ideation, co-generation, trial proposal, consultation and collaboration
4. Piloting– this involves testing the design, storytelling about the solution and the way it is integrated into an organisation and redesigning if it does not meet the needs or solve the problem
5. Implementing change – this may involve recruiting, restructuring or consciously raising the solution
6. Evaluating – this involves analysing the positive and negative aspects of a program and feeding this new knowledge back into the design of new projects.

Design thinking, when broken down into its raw elements is not new. However there is value in recognising it as an approach that encompasses a practical process for enhancing the design of programs, policy and internal processes.

If innovation is your desired result, then a user-centred design approach could provide you with a method of achieving it.

Unfortunately we are unable to share the report due to material that was provided to us on a confidential basis, however aspects of the design thinking concept will be spoken about and the toolkit will be updated overtime to incorporate these elements.

• Have you been involved in an outstanding innovation? You might want to consider nominating them for the 2011-12 Commonwealth Association for Public Administration & Management (CAPAM) international innovations awards. Nominations are due by 31 March 2012.
• Tim Kastelle asks “When was the last time you were wrong?“ Innovating is about experimenting – and that means some things will not work as you plan.
• On a related note, Jeff Stibel also talks about the importance of failure to innovation. “We don’t just encourage risk taking at our offices: we demand failure. If you’re not failing every now and then, you’re probably not advancing. Mistakes are the predecessors to both innovation and success, so it is important to celebrate mistakes as a central component of any culture.”¹
• Expected to do more with less? You might want to take inspiration from the Jugaad approach to innovation that is used in India.
• Craig Thomler advocates a learning approach and a learning culture that embraces learning about new things – something he fears is not the case in many parts of the public service.

As always, please feel free to identify any other developments or articles of interest in the comments below.

The theme of Ci2011 was “the challenges and opportunities of a super-connected world”.

Ci2011 is a effective mechanism for meeting and hearing view points from a wide variety of other innovation system players, including those from small and large businesses, the university research sector, and not-for-profits.

One key message for me from Ci2011 was strategies for, and the importance of, creative thinking. I loved Dr Edward de Bono’s master class, where he highlighted that of the three biggest problems facing the world today, one of them is poor thinking. Provocation – that is, to challenge by blocking the accepted way – can be used to overcome poor thinking. This is about thinking outside the box – thinking about new approaches to solving problems.

De Bono provided an example where, as a consultant to help overcome river pollution by factories, he recommended that a factory’s water intake be downstream of its location so that the factory is the first to sample its own pollution; this led to legislation changes in 13 countries.  

One key way to improve performance in any organisation is to engage in parallel thinking, which can be achieved through the use of all of Dr de Bono’s “Six Thinking Hats”. The six thinking hats facilitate assessing an issue from key necessary view points: factual, emotional, creative, positive, negative, and organising.

The hats, in my favourite order are: Red (focuses on feelings and emotional responses); Green (creativity, raises new ideas and alternatives); Yellow (positive outlook); White (considers how to gain any outstanding information); Black (critical and draws out negative); and Blue (organiser).

Dr de Bono provided examples of organisations that have implemented the six hats, and that have found they reduce meeting times by up to 90 per cent, and that have found collaborative activities with stakeholders with different backgrounds, even with languages barriers, to be more effective and efficient.

I also realised that there are many situations at work in which I have used the six hats without being aware of it. For example, to commence the evaluation of an industry collaboration program, the Industry Cooperation Innovation Program (ICIP), I had used all six hats to decide what was required. Initially I used the black hat to question why we need to do an evaluation, as the program was soon to conclude.  Later I used the red hat to consider the value that stakeholders may have gained from program; and, the yellow hat to consider how outcomes of the evaluation could be valuable to inform future programs. I then used the white hat to seek out what information such as customer reports were currently available, and what other types of information would be required. I used the green hat to pose questions to stakeholders in such a way that would effectively ascertain their views on the program, and any other relevant opinions they could impart to me. The blue hat was used last to plan the terms for reference, and the methodology. Looking back at this, the use of all six hats was invaluable to planning the evaluation.

At Ci2011 I found Dr de Bono’s advice that any person or organisation, including the public service, has the potential to and should engage in creative thinking, very inspiring.

Also presenting on leading creativity in organisations at Ci2011, was Professor Paddy Miller. From both De Bono and Miller, I drew together some methods for implementing creative thinking in any organisation:

• Any person or agency can use the Six Thinking Hats in any problem solving, decision making or planning tasks.
• To overcome change inertia, ensure you spell out benefits. Remember that people, including bureaucracies, are motivated to do things in a cheaper and simpler way.
• Have a change champion, someone who has the time and resources available to implement new ideas.
• Create a knowledge culture by publishing a list of foci each month, and invite people to submit their ideas.
• People shouldn’t be told that they are right or wrong in terms of their new ideas; anyone who does not agree with the ideas should leave it open for consideration or further development e.g. ‘that’s interesting’.

Overall, I found these messages to help me to remember the importance of creative thinking, and ways to implement it. 

Any thought or experiences you have with using creative thinking are welcome!