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Compliance without tears

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While many businesses may welcome fewer government regulations, what’s often most important to them is simply to spend less time on reporting and compliance. A focus on improving the customer experience may offer a key to reducing friction costs in government-business interactions. https://dupress.deloitte.com/dup-us-en/industry/public-sector/relationship-between-government-and-business-customer-experience.html

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Compliance without tears

  1. 1. Compliance without Tears: Improving the Government-to-Business Experience
  2. 2. Compliance without Tears: Improving the Government-to-Business ExperienceCopyright © 2017 Deloitte Development LLC. All rights reserved. 2 Manufacturers spend an average of $19,564 per employee every year to comply with federal regulations in the US Interacting with government can be very costly for businesses An increase of $1 billion in regulatory burden can eliminate over 8,000 positions Compliance to rules cost $2 trillion annually in the US Adding state and local regulations brings the cost of compliance to nearly 17 percent of US GDP, according to some estimates Source: National Association of Manufactures, American Action Forum, Cost of Government Center
  3. 3. Compliance without Tears: Improving the Government-to-Business ExperienceCopyright © 2017 Deloitte Development LLC. All rights reserved. 3 Business pain points Dealing with government can be tricky for businesses Delays Complexity Paperwork burden Duplication Lack of transparency Inconsistency
  4. 4. Compliance without Tears: Improving the Government-to-Business ExperienceCopyright © 2017 Deloitte Development LLC. All rights reserved. 4 So, how can government address those pain points?
  5. 5. Compliance without Tears: Improving the Government-to-Business ExperienceCopyright © 2017 Deloitte Development LLC. All rights reserved. 5 By applying Customer Experience (CX) principles to address those business pain points
  6. 6. Compliance without Tears: Improving the Government-to-Business ExperienceCopyright © 2017 Deloitte Development LLC. All rights reserved. 6 Applying a CX lens: A Small Business Scenario
  7. 7. Compliance without Tears: Improving the Government-to-Business ExperienceCopyright © 2017 Deloitte Development LLC. All rights reserved. 7 Five ways customer experience can transform the government- to-business experience 1. Increase Compliance 2. Reduce delays and increase transparency 3. Cut business costs 4. Join up government 5. Starting a business
  8. 8. Compliance without Tears: Improving the Government-to-Business ExperienceCopyright © 2017 Deloitte Development LLC. All rights reserved. 8 E-verify Increase Compliance: E-Verify is a free and typically easy-to-use tool that electronically verifies an employee’s eligibility to work in the US Delivers results within three to five seconds. About 99 percent of cases are authorized instantly, or within 24 hours Launched E-Verify listens website to crowdsource improvements to E-Verify Other key facts • More than half a million employers use E-Verify at more than 1.9 million hiring sites • The system reviews more than 25 million cases annually • The program scored 87 against the federal average of 64 in ACSI 2014 survey Source: US Citizenship and Immigration Services
  9. 9. Compliance without Tears: Improving the Government-to-Business ExperienceCopyright © 2017 Deloitte Development LLC. All rights reserved. 9 “We want something that is understandable and predictable, where customers can figure out what they need, and have a clear understanding of how long they can reasonably expect those things to take.” — Alex Lawrence, permitting project manager, City of Boston Boston’s permitting reforms Reduce delays and increase transparency Hackathon: Ran a “hackathon” to co-create with citizens, businesses, and tech community to streamline the permitting process Permit finder: Launched an app that describes which permits a project needs and a program to track applications Online system: Released a beta version of an online permitting system that allows users to apply for multiple permits, organize permits by project, and include multiple people Source: HubHacks, Data-Smart City Solutions, Interview with Alex Lawrence
  10. 10. Compliance without Tears: Improving the Government-to-Business ExperienceCopyright © 2017 Deloitte Development LLC. All rights reserved. 10 New Zealand’s Better for Business program Cut business costs Two objectives of the program • By 2017, reduce business costs (effort) of dealing with New Zealand government by 25% • Ensure government services to businesses have similar performance ratings as leading private firms What they did Identified pain points of businesses regarding delays, duplication, complexity, paperwork, and lack of transparency Solutions “Join up” government services Simplify Prioritize digital Sharing information across departments Results • By Dec 2015, businesses saw the cost of dealing with government fall by 12 percent • The service performance gap between the government and the private sector has narrowed Source: Ministry of Business Innovation, & Employment, NZ; State Services Commission, NZ
  11. 11. Compliance without Tears: Improving the Government-to-Business ExperienceCopyright © 2017 Deloitte Development LLC. All rights reserved. 11 “The idea was to make it easier for businesses to access all manner of government resources that could help them in their business.” — Dennis Alvord, executive director, BusinessUSA Join up government BusinessUSA Join up: In 2012, Department of Commerce launched BusinessUSA to virtually “join up” siloed government programs Iterative approach: Business leaders were involved in every phase of design and the team released 41 new or enhanced capabilities Wizards: Quick search tools called ‘wizards’ ask a series of questions and then return customized results Use of analytics: Uses analytics to determine how usage patterns evolve over time and to track how well its products and initiatives are received Source: US Economic Development Administration, Interview Dennis Alvord
  12. 12. Compliance without Tears: Improving the Government-to-Business ExperienceCopyright © 2017 Deloitte Development LLC. All rights reserved. 12 New York City (NYC) Business Atlas Starting a business Online tool: NYC Released online tool to help businesses research economic conditions of neighborhoods where they might set up shop Multiple sources: The tool sources data from multiple sources including the Department of Consumer Affairs, the Department of Finance, Placemeter for traffic data, and the census for demographic data Type of data: The tool provided data on percentage change in population, median income, existing businesses, new businesses, and taxable sales revenue, and households with kids. “Most people who come for small business services assistance want to open in their own neighborhoods. They make assumptions. Sometimes it's right, sometimes not. The data helps [them] test those assumptions.” — Michael Flowers, ex-chief of the Office of Data Analytics, NYC Source: GovLab and Omidyar Network, Tech President, NYC Business Atlas Website
  13. 13. Compliance without Tears: Improving the Government-to-Business ExperienceCopyright © 2017 Deloitte Development LLC. All rights reserved. 13 Strategies to get from here to there Focus on business as customers • Map the business journey • Ask what kind of experience businesses want for each transaction • Iterate • Proactively help business navigate government Instill a customer- centric culture • To create a customer culture, fix the systems and processes • Recruit people with customer mindset • Transcend the silos Evolve policies based on user input • Pursue legislative changes when needed • Engage businesses while formulating rules and regulations • Bring policymakers and the operations side of the government onto the same page Focus on business as customers • Map the business journey • Ask what kind of experience businesses want for each transaction • Iterate • Proactively help business navigate government Instill a customer-centric culture • To create a customer culture, fix the systems and processes • Recruit people with customer mindset • Transcend the silos Evolve policies based on user input • Pursue legislative changes when needed • Engage businesses while formulating rules and regulations • Bring policymakers and the operations side of the government onto the same page
  14. 14. Compliance without Tears: Improving the Government-to-Business ExperienceCopyright © 2017 Deloitte Development LLC. All rights reserved. 14 http://dupress.deloitte.com/dup-us-en/industry/public-sector/relationship-between- government-and-business-customer-experience.html Contacts William D. Eggers Executive Director, Deloitte Center for Government Insights Deloitte Services LP +1 571 882 6585 weggers@deloitte.com Sucha Kukatla Principal Deloitte Consulting LLP +1 312 486 2001 skukatla@deloitte.com Greg Pellegrino Principal Deloitte Consulting LLP +1 571 882 7600 gpellegrino@deloitte.com Kymm McCabe Principal Deloitte Consulting LLP +1 301 943 5966 kmccabe@deloitte.com
  15. 15. Disclaimer This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the “Deloitte” name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see www.deloitte.com/about to learn more about our global network of member firms. Copyright © 2017 Deloitte Development LLC. All rights reserved.

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