Article
Overcoming barriers to modernization in public services
Finding resilient cost savings without compromising service quality
“We are getting an increasing number of calls across the country from all levels of government with asks for help on how to do more with less and how to do more with the same. Both asks highlight challenges with effectiveness relative to operating costs.”
—Angela Choi, Partner and National Fiscal Sustainability Leader, Deloitte
The directive is clear: organizations need to do more with less
Finding resilient cost savings without compromising service quality remains a significant challenge. Short-term fixes—like delaying technology investments or freezing hiring—may offer temporary relief, but they often lead to deeper inefficiencies that demand costly reversals in the future. Institutional inertia, siloed perspectives, outdated processes, and lack of cross-departmental collaboration make it difficult to address both daily inefficiencies and larger systemic issues.
To drive lasting change, public sector organizations must train their teams to think and operate differently. Deloitte’s Evolving to modernize public services article highlighted the ways in which government and public institutions can shift from a surplus-oriented focus towards a value driven approach that delivers value for money and leads to benefits realization.
Organizations must understand the barriers they face and use them as a catalyst to modernize their institutions. To deliver impactful services to citizens, decision-makers must identify and implement resilient strategies that support their ability to spend more productively while simultaneously modernizing their teams and tools.
Deloitte’s approach to resilient modernization
Given the constraints many organizations face, there is often a lack of in-house capacity to modernize independently. To address this gap, organizations should consider engaging with professionals who have expertise in cost transformation, deep public sector experience, and a comprehensive understanding of its unique complexities.
Deloitte’s approach centres on three core solutions. These solutions are designed to complement each other or be undertaken individually, depending on the organization’s needs.
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If organizations want to do more with less and achieve lasting improvements in cost efficiency and service delivery, Deloitte’s professionals will meet organizations where they are and help identify the right starting point.
The Fiscal Resiliency Academy
Leadership collaboration for long-term fiscal health
If your organization needs alignment and strategic direction, the Fiscal Resiliency Academy may be the right starting point for you. The Fiscal Resiliency Academy brings together leaders from key departments, including finance, operations, IT, HR, and more in a structured and contained environment to collaboratively tackle challenges, such as resource optimization, budget constraints, and service delivery efficiency – without distractions. This cross-functional approach breaks down silos that often stifle in-house organizational progress, enabling leaders to clarify department-specific roles, KPIs, and areas of investment.
What does the Fiscal Resiliency Academy look like?
Engagements typically begin with a thorough assessment to pinpoint critical challenges. Subsequently, leaders participate in intensive sessions—either half or full-day—to devise actionable strategies and robust work plans that ensure sustained momentum and accountability. By the end, executive leaders can achieve clarity and alignment on long-term fiscal resiliency goals, with an actionable roadmap for achieving them.
Client impact
A provincial ministry, with 75% new executives, engaged the Fiscal Resiliency Academy to revitalize its cost transformation efforts. The Academy enabled these leaders to collaborate, innovate, and develop an integrated plan across departments. Through this collaboration, the ministry achieved a 15% reduction in operating costs within the fiscal year.
The Solutions Lab
Accelerating problem-solving and implementation
If your organization is at a standstill and cannot seem to find or commit to a solution, the Solutions Lab can help you break through a barrier and make impactful decisions.
The Solutions Lab brings cross-functional teams together to collaborate in real-time with a structured focus and actionable goals. By involving the “doers”—those who handle daily processes—the Lab quickly identifies practical solutions to specific problems, helping to drive broader transformation. The environment encourages experimentation, intense negotiation and responsive decision making, bypassing the slow, traditional processes that often stifle transformation.
What does a Solutions Lab look like?
A Solutions Lab engagement begins with pre-work to assess a specific problem or process and determine which team members should be involved. These individuals then participate in a structured and time-bound session focused on rapid solution development.
Following the Lab, Deloitte provides a detailed work plan outlining the quick to implement solutions and clear steps for ongoing progress.
Client impact
Equipped with the Solution Lab’s tactical facilitation and resources, we were able to break through and resolve the issue in four hours. It was intense!
—Executive Director, Agency
A medium-sized higher education institution used the Lab to resolve a four-year program and systems impasse. With our team's facilitation and resources, the client focused on real-time collaboration for rapid solution development and timely implementation. This led to the launch of a user-friendly registration system that reduced manual errors and processing time.
The Centre of Excellence
Continuing change with structured governance
If you have beneficial initiatives that need to be sustained and optimized, the Centre of Excellence (COE) provides the governance and continuous improvement framework necessary.
A COE serves as the backbone of change management and allows benefits to be realized. Acting as a strategic hub, it continually monitors initiatives, refines processes, scales improvements, and holds departments accountable for their roles in the transformation.
What does a COE look like?
Deloitte works with organizations to build a COE based on three core functions:
Client impact
A client sought help to revitalize a 2021 cost reduction plan. While they had implemented some quick wins, costs were creeping back, and progress on complex initiatives had stalled. We established a COE and governance, then mobilized teams to execute an integrated cross-initiative work plan in a coordinated, repeatable, and strategic manner. With the COE in place, the client now has a solid foundation to capture value resiliently and effectively.
Integrating for impact
Deloitte’s integrated approach—combining the strengths of the Fiscal Resiliency Academy, Solutions Lab, and COE—empowers public sector organizations to overcome persistent challenges and achieve fiscal resiliency. By adopting these solutions, organizations can achieve the fiscal health necessary to continue delivering high-quality services without compromising financial stability. This ensures organizations are well-prepared to meet the evolving needs of their communities.
Engaging with Deloitte
Ready to modernize your organization? Deloitte is here to help pinpoint the right starting point for your journey towards fiscal resiliency. Whether your organization seeks alignment, needs to overcome a barrier, or aims to sustain improvements, our tailored solutions are designed to achieve impactful results.
Let’s shift into action. Engage with us to build a fiscally resilient future that benefits your operations and the communities you serve.
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Recommendations
Evolving to modernize public services
The pursuit of fiscal sustainability
Accelerating innovation for government
Harnessing government data for next-generation budgeting and forecasting