
Building trust through efficiency in government
Reallocating resources to priorities through targeted efficiencies, rather than blanket cuts, helps governments achieve financial sustainability.
Governments across Canada face a common challenge: improving service delivery and client experiences efficiently and cost-effectively. This challenge is amplified by a complex landscape of resource constraints, increasing demands and the risk of eroding public trust.
The pandemic-induced surge in government spending has created an unsustainable fiscal situation. With tightening budgets and a growing need to deliver essential services to an aging and growing population, governments are facing increasing pressure to operate more efficiently and effectively. The threat of US trade disruptions to the Canadian economy adds even more urgency to the need for governments to collaborate on initiatives such as removing interprovincial trade barriers and improved coordination of multi-province or federal-provincial programs. In addition, Canadians are demanding enhanced services. They expect the same level of convenience, responsiveness and ease of access they receive from private-sector companies. This gap in service delivery, combined with a growing focus on public-sector productivity, risks eroding public trust in the government's ability to serve its citizens.
The time has come to rethink how services are provided. We need to reimagine collaboration across all levels of government, as well as between departments and teams. Let's explore how collaborative relationships within and between governments, along with new service delivery methods, can create next-generation, citizen-focused government services.
Public-sector leaders have an opportunity to create a more cohesive and effective environment that meets the evolving service expectations of Canadians. To help accelerate these efforts, we’ve drawn on research from across our global network into restructuring how various levels of government, organizations outside government and delivery bodies work together to address cross-jurisdictional challenges. This includes PwC UK’s 2024 report, Rethinking the architecture of government (PDF)Opens in a new window. While the UK system of government differs from Canada’s, both aim to coordinate programs and service delivery among local and regional authorities across health, education, security, the economy and other services.
In Canada, our federated system and multiple levels of government foster positive regional variation and local responsiveness. But it can also lead to fragmented and inconsistent service delivery. Greater collaboration and more cohesive strategies across levels of government in areas where harmonization and coordination make sense can enhance the efficiency and effectiveness of services provided to Canadians.
This collaboration and cohesion can be achieved through three pillars:
Below, we delve into these three strategic imperatives and provide government leaders with practical perspectives on how to implement each pillar, along with Canadian examples of these principles in action.
In recent years, some government entities have embarked on horizontal initiatives that simplify citizen experiences and streamline service delivery where responsibilities and mandates overlap. This approach can enhance the efficiency and effectiveness of public services by fostering collaboration between various departments and agencies, illustrated by the Community Safety and Well-Being (CSWB) initiative in Ontario.
The CSWB initiative involves municipalities working with police and community partners to address complex social issues such as mental health and addictions, gun and gang violence, human trafficking and hate-motivated crimes. By fostering cross-sector collaboration, the initiative aims to create safer and healthier communities through proactive and preventive measures.
Several powerful forces shape intergovernmental collaboration. This includes funding frameworks, which can either promote collaboration or generate tension among departments. Additionally, aligning mandates, particularly between environmental and economic development goals, is crucial for successful co-operation. Clear roles and responsibilities, along with stable leadership, create a foundation for effective collaboration, as frequent turnover among senior officials can lead to misunderstandings and inefficiencies.
The success of specific initiatives can also depend on well-defined objectives and thorough planning. Information and data-sharing protocols provide access to vital resources and facilitate informed decision making. Additionally, staff training and development helps build the capacity needed for effective collaboration. These practical considerations collectively influence the ability of departments and agencies to work cohesively and deliver high-quality services to citizens, focusing on the steps and priorities that contribute to the success of projects and initiatives.
The following factors create the conditions for successful intragovernmental collaboration and effective public service delivery.
Senior civil servants have told us they feel intergovernmental collaboration and coordination are increasingly strained. This is a critical challenge. Collaboration and coordination between different levels of government, particularly federal and provincial, create opportunities to address complex, multi-jurisdictional issues. Federal and provincial government activities are intertwined with shared and overlapping responsibilities, authority and funding in many public policy areas.
The Canada Child Benefit (CCB) is one example of effective intergovernmental collaboration. Consider how different levels of government worked together to achieve substantial social improvements:
The CCB was credited with decreasing child poverty rates across Canada in the years immediately after its introduction,1 highlighting how coordinated policy making and resource allocation among federal, provincial and municipal governments can address complex social issues and improve citizens’ lives.
Several factors affect how different levels of government interact. Political priorities and regional interests can shape the direction and focus of collaborative efforts, sometimes leading to conflicts. The distribution of responsibilities and authorities can also impact the clarity and efficiency of policy implementation. Additionally, the allocation of funding and resources can determine the success of joint initiatives. The absence of constitutionally anchored intergovernmental structures often means that coordination relies on less-formal arrangements with reduced effectiveness due to a lack of clear accountabilities, decision-making authorities and shared resources.
The first step to overcoming these challenges is consistent and effective communication across different levels of government. This helps prevent misunderstandings and delays. Governments that successfully harness these forces and learn from initiatives like the CCB can effectively collaborate with other levels of government to enhance public service delivery and benefit Canadians.
Effective intergovernmental collaboration helps address complex, multi-jurisdictional issues.
The critical success factors include:
Introducing new service delivery models often involves overcoming significant barriers. A risk-averse culture can overshadow the benefits of innovative thinking and create reluctance to adopt new methods. This can be further complicated by concerns over maintaining service quality and fears that new approaches won’t match traditional outcomes. Additionally, some Canadians fear that extensive data sharing across departments and agencies will result in authorities holding too much of their private information.
A workforce skills gap, caused by recruitment and training that hasn't kept up with modern technology, also negatively affects service delivery. Governments sometimes turn to the private sector to fill this gap. But procurement processes that favour task-based commissioning over outcomes-based approaches can complicate these relationships and further limit meaningful change and genuine improvements in service delivery.
The need for reform also appears in governments’ use of technology. For instance, Canada’s ranking in the United Nations E-Government Development Index declined from 6th in 2003 to 47th in 2024.2 Separately, a 2023 auditor general report found that one-third of the federal government’s mission-critical applications were in poor health and in critical need of modernization.3 Accurately assessing the total cost of ownership for legacy systems versus cloud solutions remains a concern, particularly as many organizations add cloud services without developing new capabilities.
Advancing digitization and integrating data in service delivery helps streamline processes, improve data sharing and enhance the overall efficiency of public services. Encouraging a culture of innovation within government agencies opens opportunities for new ideas, rewards innovative thinking and fosters an environment where experimentation and continuous improvement thrive. This approach supports citizen-centric service delivery models by creating the agility required to meet citizens' evolving needs.
Additionally, alternative delivery models, including managed services, can help governments deliver services more efficiently and effectively. For example, the federal government recently pursued transitioning a service-oriented Crown corporation to an alternative operating and delivery model. This model aimed to improve efficiency and service levels through better use of technology. Specifically, a private, not-for-profit, non-share capital corporation would deliver the Crown corporation’s public-facing services. This new entity was expected to be more nimble, innovative, responsive, client-centric and affordable, ultimately providing citizens with a better service experience.
Focusing on the following success factors help overcome barriers to new service delivery models:
A strategic approach to strengthening intragovernmental (horizontal) and intergovernmental (vertical) relationships and enhancing service delivery models will help governments across Canada navigate the complexities of modern public service delivery and enhance the citizen experience.
This approach helps governments achieve significant efficiencies and effectiveness gains. Imagine a future where citizens, rather than navigating a labyrinth of fragmented services, access a single unified platform that seamlessly connects them to the support they need. Such a platform could take advantage of modern technology and artificial intelligence to guide citizens, streamlining processes and making it easier for them to find the resources they need, whether it’s building permits, health-care information or social services. This unified approach not only provides convenience for citizens but also helps achieve cost savings by eliminating redundancies, such as by consolidating various online, in-person and telephone service centres.
Governments that embrace this strategic vision can create a more efficient, effective and responsive public service that fosters trust and builds a stronger future for all Canadians.
1 - “Disaggregated trends in poverty from the 2021 Census of PopulationOpens in a new window,” Statistics Canada, last modified December 4, 2024.
2 - “E-Government Development Index (EGDI)Opens in a new window,” United Nations.
3 - “Report 7—Modernizing Information Technology SystemsOpens in a new window,” Office of the Auditor General of Canada, October 19, 2023.
Partner, NCR Consulting Leader and Government Enterprise Operations Sector Leader, PwC Canada