Leadership, risk appetite and ROI among key government data issues

As governments worldwide grapple with the dual challenge of cutting costs while delivering efficient, innovative services, our new research report highlights the transformative potential of data and digital strategies in achieving this delicate balance. 

The research, Leading from the Front – Using Data and Digital Integration to Cut Costs and Improve Public Services, polled 100 UK DDaT leaders, and was conducted in partnership with esynergy. It suggests that genuine change requires a shift in mindset, clear leadership, and a fresh approach to measuring success. Its key conclusions are summarised below.

The call for a mindset shift

For data and digital integration to receive the investment and attention it deserves, a fundamental shift in perspective is necessary. This change must occur at all levels of government:

• Bottom-up: Departments and rank-and-file employees need to embrace the value of digital tools and data-driven decision-making. Training, awareness, and cultural change initiatives are critical to foster grassroots adoption.
• Top-down: Policymakers and resource allocators must prioritise data and digital transformation as essential pillars of public service improvement. This commitment includes allocating sufficient resources and embedding digital strategies into long-term plans.

This dual approach ensures that data and digital strategies are not merely buzzwords but deeply integrated into the fabric of government operations.

The need for centralised leadership

The report stresses the importance of having a single leader in each department accountable for data, digital, and AI strategies. These leaders would provide clarity, focus, and direction within their domains. Beyond individual departments, they should collaborate through an executive body, such as the DDaT Functional Leaders Group chaired by the Central Digital and Data Office (CDDO). This collaborative model facilitates cross-government insights, improves resource efficiency, and enhances interoperability.

Clarifying authority and risk management

A significant barrier to data integration in government is the ambiguity around authority and responsibility. Departments must clearly delegate authority for:

• Policy setting: Establishing guidelines on data management, storage, and usage.
• Risk appetite: Defining parameters for data sharing across organisational boundaries to mitigate risks while fostering collaboration.

Clear governance structures will minimise duplication of effort, reduce costs, and enable data to be harnessed effectively across government entities.

Rethinking return on investment

One of the most insightful conclusions of the report is the need to redefine what success looks like in data and digital investments. Traditional return-on-investment (ROI) metrics often focus on short-term gains. However, the benefits of data-driven transformation unfold over time. Governments must adopt a longer-term view, understanding that the right prioritisation and partnerships will yield substantial dividends in the future.

Collaborations with the private sector, for instance, can accelerate innovation and leverage expertise while maintaining a focus on public service objectives. By realigning expectations, governments can invest with confidence in initiatives that might not deliver immediate results but are essential for long-term transformation.

Building a data-driven future

The conclusions of this report indicate a roadmap for governments seeking to lead from the front. By changing mindsets, appointing accountable leaders, clarifying governance, and adopting a forward-looking approach to ROI, the public sector can unlock the full potential of data and digital integration.

Download your copy of the research below.