Digital transformation initiatives have the potential to drive innovation and improve customer service. With governments being asked to do more with less, digital technologies provide opportunities to meet these expectations and deliver better, more efficient services.
Project sponsors are key to the success of any digital transformation. A new report by Digital NSW and the University of Sydney offers guidance for project sponsors of digitally-enabled transformations in NSW Government.
Sponsors face many challenges while working on these projects, such as legacy systems, budget constraints, protecting data, ensuring cybersecurity and responsibly deploying artificial intelligence (AI).
This new report features practical advice from executives who have been sponsors, and learnings from Digital NSW gateway assurance, who have oversight of all large digital-enabled investments in NSW Government, as well as the latest research from the John Grill Institute for Project Leadership (University of Sydney).
Mark Howard, Executive Director, and Jessica Ho, Director of ICT Assurance at Digital NSW shared the top 5 things they think project sponsors need to be successful in digital transformation initiatives.
1. A clear vision and robust business case
Mark emphasised the importance of having “a clear end game in mind” when embarking on a digital transformation project.
“Be very clear on the value and the outcome you’re trying to achieve, and how you will measure success.”
- – Mark Howard, Executive Director, Digital NSW
While these goals may evolve, he stressed that starting with a clear vision and continuously tracking it is essential for success.
“It sounds basic, but you would be surprised how many programs don’t do this. You must get this right before charging into delivery mode,” he says.
Jessica added that it’s not just about delivering a project on time and within budget, but ensuring it fulfils its intended objectives and delivers the expected benefits. “This requires a clear understanding of the outcomes from the outset and monitoring their realisation post-implementation,” she says.
2. Strong support systems in place
As digital transformations are generally multi-year and complex, sponsors need strong support systems in place to be successful. “Independent Assurance offers support, acting as a ‘critical friend’ who can help you,” says Mark.
Jessica’s team at Digital NSW offers this independent assurance for sponsors.
“Identifying and addressing risks early in the project lifecycle significantly improves the likelihood of project success. Delaying risk management often leads to cost overruns and extended timelines.”
- – Jessica Ho, Director of ICT Assurance, Digital NSW
Equally important is having the right steering committee in place with clear accountabilities and robust governance. “Carefully consider who will help you succeed on your steering committee and drive change,” Mark advises. Jessica agrees, emphasising that effective project governance is key to ensuring accountability, staying focused on objectives, and facilitating timely decision-making.
3. The right team with the right capabilities
The importance of having the right team with the right capabilities on the project cannot be overstated.
“This sounds simple, but we see many projects fail because they overlook this,” says Mark. “Get the right project team in place that has the right experience. Capabilities include many disciplines including change, commercial and technical.”
“Large transformations require experience and often strategic partnerships to ensure success. Your Project Direction or Program Manager is especially critical. Large transformations are complex, so it’s essential to have a Project Leader with both the experience and credibility to navigate these challenges successfully,” he says.
4. Clarity on the sponsor role, time commitment and focus areas
Clarifying the sponsor’s role, time commitment and focus areas from the outset will help the project run smoothly. “Clearly defined roles, responsibilities and escalation processes help avoid confusion and delays,” says Jessica.
“Be prepared to invest significant time into the transformation - the project team, stakeholders, senior executives, end users and vendors will all need your time. This needs to be balanced with other responsibilities. Remember, as the sponsor, you’re the face of change within the organisation.”
- – Mark Howard
He also highlighted that there will be critical moments, such as the ‘Go Live’ stage, where sponsors will need to increase their involvement. “Continuous stakeholder engagement through regular communication with stakeholders, including project sponsors and delivery teams, is key,” adds Jessica. “Engaging stakeholders early and throughout the project helps align expectations, avoid surprises, and keep the project on track,” adds Jessica.
5. The ability to deliver in value-based increments
Digital transformation is most successful when delivered in value-based increments. “If you’re forced to reduce or change scope, make sure you’re delivering value throughout the life of the program. A ‘Big Bang’ approach is too risky,” Mark advises.
“To minimise risk, break down the transformation into manageable pieces and carefully plan your implementation strategy. Where possible, start with low-risk pilots. Ask yourself, where are the early wins?” Mark suggests.
Jessica acknowledges that balancing innovation with risk management can be challenging in digital projects. “Encouraging innovation while ensuring projects adhere to risk management protocols is not always easy,” she says.
“With technology evolving so rapidly, it can be difficult to maintain a digital transformation course that is both flexible and adaptable enough to keep pace with emerging tools, methodologies and platforms. This requires continuous review to ensure the project stays relevant and effective.”
- – Jessica Ho
Mark emphasises the importance of modern service design techniques to focus on delivering solutions that meet customer and stakeholder needs. “It may sound simple, but project teams can be too focused on the mission at hand and lose sight of the people who will actually use the solution,” he says.
How does Digital NSW support project sponsors?
Digital NSW runs the NSW Digital Assurance Framework and employs independent experts to do periodic reviews on programs. “They then make recommendations to the sponsor to increase the likelihood of success. While there is structure to the Digital Assurance Framework, we can do a review at any point in the program or if the sponsor has concerns,” says Mark.
Jessica’s team plays a crucial role in supporting digital transformation by overseeing and implementing the NSW Digital Assurance Framework. “The Digital Assurance Framework ensures that digital projects within the NSW Government are delivered successfully, with a focus on risk management, governance, and alignment with strategic objectives,” says Jessica. “My team’s work supports the overall transformation by fostering innovation while managing risks and ensuring projects deliver value for the public.”
Digital NSW also run project sponsor masterclasses with the University of Sydney, focusing on what it takes to be an effective sponsor and incorporating learnings from assurance and other industries. “It’s a great place to share experiences and learn from each other,” says Mark.
“We help in many other ways, for example in making introductions to experts, encouraging cross-government collaboration and helping find the right people to support. If you have a question and we can’t answer it, it’s highly likely we’ll know the people who can,” says Mark.
Digital NSW is taking expressions of interest for their Executive Project Sponsorship Masterclass, run in partnership with the University of Sydney. Email ICTAssurance@customerservice.nsw.gov.au for more information.