Digital Transformation
for Federal Agencies
A Holistic Approach
By Gregg Mossburg
Senior Vice-President, Strategic Operations© 2018 CGI Group Inc.

When agencies successfully embrace digital transformation,
they become more customer-centric, agile and value-driven
enterprises. But the hard truth is that 80 percent of digitaltransformation initiatives fail to deliver the expected value.
How agencies go about this complex and sometimes daunting
task is a challenge. How can an agency choose the rightapproach to help ensure success of its digital transformation
initiatives?
IN THIS PAPER, WE WILL:

Define digital transformation



Introduce research that reveals the Nine Digital Competencies shared by organizations
that are realizing success in their digital transformation efforts



Discuss tools and provide specific strategies encompassed in a holistic approach totransformation that can set an agency onto the path of successProvide you with a set of questions and a sample roadmap to help ensure you’rechoosing the right partner to help design and implement your digital transformation
strategy.

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According to a January 2018 report by the American Customer Satisfaction Index(ACSI), public satisfaction with federal government services increased in 2017 to
69.7 on a scale of 0-100, its highest level since 2006. The score marked a gain of
1.7 percentage points over 2016’s rating, which itself was an improvement after
three years of decline. Of the four drivers of citizen satisfaction that ACSI considers,the federal government’s largest gain was in the timeliness and efficiency of
government processes, which showed a 3 percent rise.
That the government’s score increased for the second straight year is an indicatorthat citizen demands regarding service delivery are not only being heard but arealso starting to be met. Sparked by private sector innovators such as Uber, Amazon
and Airbnb, citizens have been re-conditioned to a new model of customer service.
The digital transformation revolution brought about by these providers has turned
what used to be the typical consumer model on its head and, because of that, asprevious ACSI surveys had shown, the American public is no longer willing toaccept services at the “pace of government.” As a result, federal agency executives
are thinking about different ways to engage citizens—as well as their own
employees—so that these interactions can be more consistent with everyday life.
Heightened expectations for citizen service is just one of several trends that haveintensified to create an imperative for change. At the same time, digital paradigms
are converging and maturing into the mainstream, enabling—and demanding—
digital transformation in the public sector.

What is Digital Transformation?
It is important to distinguish digital transformation from many other current
technology efforts. After all, organizations have been “going digital” for many years(for instance, moving to paperless, mobile and cloud environments). But discreteand disparate implementations of digital technologies designed to improve existing
systems and processes more accurately can be described as IT modernization. As
author Malcom Gladwell states, transformation is not about improving; rather, it’s
about re-thinking.
Practical applications of these transformations in government can already be found.
Take, for instance, the Transportation Security Administration (TSA) and its “Curb toGate” initiative. By leveraging RFID technology and the Internet of Things (IoT) to
tag passengers and bags at the airport curb, authorities can track the whereaboutsof both and be alerted automatically to abnormal or suspicious activity. Other
examples include the U.S. Patent and Trademark Office’s (USPTO) Pre-Search
initiative that enlists machine learning to proactively search patent databases andother related documents when an application is received. The U.S. Census Bureau
is also planning to implement new methodologies in the way it collects, examines
and utilizes data for the 2020 census. In each of these cases, technology is being
used to fundamentally change the way the organizations collect, process and act
upon the data gathered.

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Still, few agencies today have programs that are at the level of TSA, USPTO andCensus—and even fewer agencies (or commercial entities, for that matter)—canclaim to be truly digitally transformed. Most agencies are behind the curve, andeach one must transform at its own rate and follow its own mission-focused path.
Like snowflakes, no two digital transformation undertakings are alike. It’s helpful tolook at organizations that have already successfully begun the transition to digitaltransformation to determine the most surgical insertion point to begin, or advance,
your own digital transformation efforts.
DIGITAL TRANSFORMATION VERSUS IT MODERNIZATIONNINE DIGITAL COMPETENCIES: INDICATORS OF DIGITAL
TRANSFORMATION SUCCESS
2017, CGI conducted in-person conversations with senior business and technology
leaders to get their insights on the business and IT trends that are impacting theirorganizations. We spoke with more than 1,300 leaders across 10 industries aroundthe world, including a number within the federal government. The resulting CGIClient Global Insights report affirmed that meeting citizens’ rising expectations for
digital public operations and services had moved digital transformation to the top ofgovernment executives’ agendas.
Most federal agencies are in the early stages of their digital journeys, either
exploring new technologies or implementing discrete projects. But, faced withincreasing pressure to operate more efficiently under tightening budgets, 81 percent
say they are intent on becoming digital organizations to better meet increasing
citizen expectations and enhance their own mission capabilities, despite the factthat 55 percent were constrained by legacy technology or lack of agility.
One key insight uncovered—both in these interviews and in CGI’s ongoing workwith clients in commercial and government sectors worldwide—is a common thread4

among the organizations that have been showing positive results as they progressin digital transformation: They demonstrate strength in nine specific areas or digitalcompetencies:
1) A MISSION-DRIVEN DIGITAL STRATEGY
While citizens may be intensifying the need for change, a commitment to digitaltransformation must be mission-driven and clearly articulated through seniorleadership.
2) LASER-FOCUS ON CITIZEN-CENTRIC SERVICES
The public is setting the pace and expectations for defining what is valuable.
Leaders must orient their thinking and priority setting around the recipients ofgovernment service.
3) A PERVASIVE DIGITAL CULTURE
The most difficult part of becoming a digital-first organization is the culturalchange that is required. Mapping out cultural and personnel plans to ensure
digital changes are embedded and actionable is critical.
4) PROGRAMMATIC INNOVATION
While most government organizations have a mandate to innovate, too few
have the resources or flexibility to achieve their goals. In order to truly enabledigital transformation, innovation must become part of the organization’s DNA.
5) AGILE EVANGELISM
More than 66 percent of industry leaders in the CGI Client Global Insights report
indicated that using agile for faster delivery was an increasing priority, but ittakes an empowered leader committed to agile to communicate this priority
throughout a large organization.
6) INSIGHTS-LED DECISIONS
Organizations must use constituent, system and device data and feedback togain valuable insights in order to ensure decisions are made with ample
information; otherwise, the “HiPPO” system (Highest Paid Person’s Opinion) willcontinue to dominate.
7) HYBRID IT ADOPTION
Roughly 30 to 40 percent of technology projects today are cross-functional anddone in agile sprints. The remaining 60 to 70 percent of projects still use
traditional waterfall approaches. This mix of methods will continue to swing
more toward agile as digital transformation forces faster, real-time thinking andcollaboration. In the interim, successful organizations will operate in a hybrid
model.
8) A RIGOROUS SECURITY APPROACH
Agencies must integrate cybersecurity into their value propositions. The threatof reputational and political damage through data loss or privacy breaches
makes security a high priority.

59) SHARED SERVICES MODEL
The federal government is increasingly turning to a shared services model forcost-effective IT procurement that can also create access to the most innovative
solutions available in the market.
The Nine Digital Competencies are not a one-size-fits all checklist to achieving
digital transformation success, but they serve as a guidepost by which executives
can begin to assess an agency’s areas of strength and weakness as they design
their unique digital transformation strategy.
HOLISTIC APPROACH TO SUCCESSFUL TRANSFORMATION
In order to embark on a successful digital transformation initiative, one must havethe right technology pieces in place. That’s a logical assumption. But technology is
only part of the answer. It takes a change in perspective that permeates theorganization to fully realize the possibilities.
A HOLISTIC APPROACH CAN PROVIDE THAT PERSPECTIVE SHIFT, BY:

Utilizing recent, relevant research to demonstrate the elements in successful
implementations of digital transformation



Looking at cultural changes that affect every aspect of your organization—from
technology to your organizational model to your business model—to help ensure that all
the critical factors are being adequately addressed

Accounting for where an agency is along the digital transformation continuum and allows
for assessment and implementation from that point, rather than risking a costly
redoubling of efforts or taking a one-size-fits-all approach

Demonstrating methods for selecting the right partner, one that possesses a proventrack record of helping clients build their digital transformation strategies, anticipates
their needs, and can share their thoughts on how to achieve digital transformation
Achieving the promise of digital requires transformation across three key areas:
Strategy & Organizational Change, Business & Process Transformation, andTechnology Transformation. This holistic approach differentiates agencies who
successfully employ digital transformation practices from those who struggle. It’s atricky proposition. All three factors must align just right to make effective digital
government a reality.

Strategy & Organizational Change are critical to both the development and thelong-term health of a successful digital transformation. When developing andexecuting a strategy, agency executives should consider the following principles tohelp guide their organization:

Determine your path: At the outset of a digital transformation an agency must establish
and implement well-rounded digital transformation strategy with consideration for theorganizational model, the impact to mission, the agency’s readiness to enable culturalchange, prioritization of initiatives and integration of digital and physical channels.



Align IT strategy with mission: Develop a comprehensive technology strategy that takes
into account transformational goals, the impacts of organizational change and considers
a wide breadth of digital channels and technologies.

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Hire and nurture digital employees: The success of an agency’s digital transformation is
directly tied its people, processes and technologies. In a digital culture, technology isembraced, information is flowing, and employees readily seek and adapt to innovation.
While most employees live digital lives outside the office, digital culture doesn’t always
translate into office culture. Agencies must encourage and enable their workforce to godigital within the office to meet the needs of citizens.

Foster collaboration and innovation: The seeds for innovation exist not only within everyorganization, but also within the individuals that support your mission on a daily basis.
The key is cultivating that type of innovation within your teams. Strong leaders not only
find a way to continually increase an organization’s ability to innovate, but also tocultivate a culture of innovation through constructive interactions with its teams.

As well, there are a number of Business & Process Transformationconsiderations that must be taken into account with the Holistic Approach. Theseare proven private sector methods that should be embraced and adhered to in the
new digital government model:

Put the citizen first: We live in a digital world. Today’s citizens are used to accessing
information quickly and easily, and on any device. To satisfy citizen expectations, youragency should take a best practices approach to customer experience design.
Technologies should become citizen-centric to improve users’ digital experiences.



Leverage digital insights: Agencies have an increasing amount of data at their fingertips.
With all this available data, agency leaders need to figure out how to effectively harness
and transform it into actionable intelligence. Using today’s digital tools can help turn data
into usable information that can help you better understand and optimize operations.



Employ automation and artificial intelligence: As machine learning progresses andartificial intelligence sharpens, the possibilities for automation are rapidly expanding. As
robotic process automation matures, the potential goes beyond what was imagined justa few years ago. Existing capabilities include leveraging digital labor in the 24/7
performance of system and service desk functions, and interfacing with citizens via anavatar that demonstrates both intelligence and appropriate emotional responses, among
others. Make sure to use this to your advantage.



Embrace and achieve connectivity: Digital transformation is driven by data. With IoT,
organizations now have access to data beyond the physical boundaries of theorganization. This empowers organizations to obtain data tied to the mission andoperations at the source. As an IT leader, take concrete measures to ensure thatconnectivity is abundant throughout the organization, and that the data is collected,
quickly analyzed and acted upon.

Last but not least, Technology Transformation acts as the foundation of digitaltransformation. The right sets of strategies, tactics and tools can allow anorganization to strengthen its IT capabilities to the point that it is prepared for atransition to the digital environment:

Evolve the IT strategy: Agencies embarking on digital transformation will need acomprehensive approach to address the organization’s wide range of IT goals/objectives
as part of implementing an effective IT strategy. Utilizing a phased, end-to-end approachthat factors in all aspects of the IT enterprise and then deploys the right tools andmethodologies to execute them can make all the difference.

Prepare to become more agile: Digital transformation requires rapid response andconstant evolution without sacrificing quality. Becoming more agile and automating both

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software delivery and infrastructure helps ensure the type of organizational change
where new software can be introduced rapidly, frequently and more reliably.


Adopt/leverage a hybrid strategy: Agencies are under pressure to keep up with thedigital revolution enabled by cloud computing. Adopting a hybrid IT strategy can help
agency leaders transform and scale with innovation.

Enhance cybersecurity: Technology is enhancing and transforming the entire enterprise.
However, technological progress has also created new avenues for malicious hackers,
making it critical that agencies protect sensitive data. Ensuring that the agency scales up
to a set of solutions that can adequately assess, monitor, and protect against threats is amust.

THE HOLISTIC APPROACH

This holistic approach looks both outside your organization—to provide you with aclear picture of what successful organizations are doing—and inside (at strategy
and organizational changes, business and process transformations and technology
transformations) to ensure a 360° view and roadmap for digital transformation
success. Looking through the eyes of executives who embrace the competencies
that lead to successful implementations also helps alleviate the pain of trying totackle transformation in one big bite.
In the end, the shift from yesterday’s government-to-citizen delivery model totomorrow’s is significant, and achieving the attributes attained by those who employ
the Nine Digital Competencies is not a simple process. The barriers to attaining a
digital transformation are real, but using the holistic approach can make these moremanageable. Success requires changing everything: processes, tools andtechnology, as well as reconfiguring parameters for success. In other words, it’s notjust about going from point A to point B; it’s about using a 360° approach tofundamentally change the way government works, from a slow-moving bureaucracy
to a nimble, customer-focused organization.

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CONSIDERATIONS FOR DESIGNING THE RIGHT ROADMAP WITH THE RIGHTPARTNERThe exact nature of an agency’s digital transformation journey depends heavily on
the degree to which it engages directly with its constituents. However, no matter thecurrent level of engagement, every journey needs a good roadmap. Successful
digital transformation is a well-planned journey that can result in a citizen-centric
enterprise in which digital information is the lifeblood of the operation. Thisapproach continuously collects, integrates and analyzes data on program output
and citizen needs to turn that information into actionable insight. But a poorlyplanned and executed digital transformation strategy can also end in disaster: aboondoggle that misses all the marks.
ELEMENTS OF AN EFFECTIVE ROADMAP INCLUDE:


Running digital awareness sessions with the leadership team to galvanize support andprovide a common view on the digital opportunities/threatsPerforming an enterprise value assessment to quantify operational impacts

Establishing a critical information assessment to enable the IT aspects of thetransformation

Launching citizen experience studies to confirm key segments and program
opportunities



Undertaking digital maturity assessments to ensure the agency, culture and programs
are set up for success

An effective digital strategy can transform an agency, driving efficiencies in current
services and uncovering new opportunities to achieve operational excellence. The
right digital strategy can identify opportunities such as transformational outsourcing
to optimize your operations, thereby reducing costs and creating a more agile
enterprise ready to respond creatively to changing citizen preferences.
Now that we know what the picture should look like—from the Nine Digital
Competencies—and we know what pieces are necessary to form the right picture(following the holistic approach and drawing the right roadmap), we need toconsider how to finally make those pieces fit together—or, rather, how to choose theright partner to help agency IT leaders form the clearest picture of yourorganization’s path to digital transformation.
The right transformation partner should possess a proven track record of helping
clients build and execute their digital transformation strategies, providing a roadmap
that focuses on value, insight and experience ̶ one that can assist you wherever you
are along your journey, whether you’re at the start or already have a strategy inplace and need help with its evaluation and implementation.
HERE ARE SOME QUESTIONS TO ASK WHEN SEARCHING FOR THE RIGHTPARTNER:

Mission focus: Is your potential partner providing a clear definition for your digitalstrategy that aligns to the mission?

Operational impact: Can the partner develop a clear business case that will help you
identify value upfront, enabling you to predict the operational and cost efficiencies you
can expect from your digital investment?

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Cultural change: One of the most difficult parts of becoming a digital-first organization is
the sea change required in building a digital-first culture. Can your partner adequately
map out the required cultural and personnel change plans to ensure digital changes areembedded and actionable throughout your organization?
Prioritized imperatives: Is your transformation partner able to identify a range of
operational imperatives –opportunities that already exist in your agency to achieve
mission excellence, reduce costs and improve efficiency—and work with you to decide
which levers to pull first?

Integration of digital and physical channels: It’s easy to get stuck in the gap between
digital and physical channels. Can the partner you choose engage citizens using themost appropriate channels while—at the same time—achieving the right balance acrosschannels?

Using digital enablers: Across the board, digital leaders and game changers are
employing digital enablers—such as data analytics, IoT, cloud computing, automation,
mobility, social media and more—to accelerate their transformation journeys. Can yourchosen partner use these enablers to create a more citizen-centric culture, develop
people and technology in support of a more agile digital future, and design new
operating models that leverage greater connectivity and digital insight—each embeddedwith robust cybersecurity?

IN SUMMARY
New technologies have changed the way citizens expect services to be delivered tothem, whether those services are from the public or private sector. Embarking on ajourney to digital transformation will help ensure that you can not only meet theneeds of citizens, but also help improve your efficiency, decision-making and reach,all of which go into providing an improved user experience for citizens.
Drawing from our work with clients around the world, we have identified Nine Digital
Competencies common to organizations that are implementing successful digitaltransformation initiatives. Utilizing a Holistic Approach throughout an agency’s
digital execution can help them get closer to achieving those best practices. But
digital transformation is a highly complex endeavor, and understanding these
aspects alone isn’t enough.
It’s possible for an organization to succeed at digital transformation on its own, but
the path is difficult. An experienced partner utilizing the right mix of solutions andexecuting on a well-developed strategy, can make the endeavor much lessdaunting.

cgi.com© 2018 CGI GROUP INC.
CGI Federal is a wholly-owned U.S. operating subsidiary of CGI Group Inc., dedicated to partnering with federal
agencies to provide solutions for defense, civilian, healthcare and intelligence missions. Founded in 1976, CGI is one of
the world’s largest IT and business consulting services firms. We help clients achieve their goals, including becoming
customer-centric digital organizations, through high-end IT and business consulting, systems integration andoutsourcing services combined with a unique client proximity model and global center of excellence network.

10“Transformation is notabout improving; it’s
about re-thinking.”
Malcom Gladwell, Author