Publication Mail Registration Number: 40052410 THE MAGAZINE FOR PUBLIC SECTOR DECISION MAKERS WINTER 2025 VOLUME 31 | NUMBER 1 0 9 01 61399 70471 $5.00 www.canadiangovernmentexecutive.ca INSIDE: AVOIDING SURPRISES IN AN UNCERTAIN AND HIGH STAKES WORLD BEYOND THE TARIFFS: RETHINKING GOVERNANCE IN A SHIFTING GLOBAL LANDSCAPE UNCERTAINTY IN GOVERNMENT AND PUBLIC SERVICE
WINTER 2025 // Canadian Government Executive / 3 CONTENTS 6 Uncertainty in a Time of Transition: Three key issues ahead for public servants By David McLaughlin 10 Avoiding surprises in an Uncertain and High Stakes World By Sara Filbee PERSPECTIVE 14 Bridging the Gap: Leading Technology Reinvention in the Public Service By Mark Lambert, Senior Managing Director - Canada Health & Public Service Client Group Lead, Accenture PERSPECTIVE 16 AI in the Public Sector: Balancing Innovation and Security By Microsoft Canada 20 Navigating Uncertainty: A Conversation with Graham Flack on Public Service Resilience 24 Beyond the Tariffs: Rethinking Governance in a Shifting Global Landscape 28 Policy Horizons Canada By CGE Magazine staff PERSPECTIVE 31 A Return to Trust: Helping our federal government navigate uncertainty in a challenging world By KPMG Canada 32 GOVERNING DIGITALLY The Digitization of National Security: Transparency, Engagement & Inclusion By Jeffrey Roy 34 THE LEADER’S BOOKSHELF Speaking Truth to Canadians About Their Public Service, by Professor Donald J. Savoie By David McLaughlin 36 THE LAST WORD Prime Minister Justin Trudeau’s leadership has never been on shakier ground By Lori Turnbull 32 The Digitization of National Security CGE ONLINE: Letters We welcome feedback on articles and story ideas. Email lori@promotivemedia.ca About the Cover Uncertainty in government and public service It’s in the Archives Missed an issue? Misplaced an article? Visit www.canadiangovernmentexecutive.ca for a full archive of past CGE issues, as well as online extras from our many contributors.
OUR MISSION IS TO CONTRIBUTE TO EXCELLENCE IN PUBLIC SERVICE MANAGEMENT EDITORIAL DEPUTY EDITOR | LORI TURNBULL lori@promotivemedia.ca EXECUTIVE EDITOR | DAVID McLAUGHLIN davidm@promotivemedia.ca MANAGING EDITOR | TERRI PAVELIC terri@promotivemedia.ca CONTRIBUTORS | SARA FILBEE JEFFREY ROY EDITORIAL ADVISORY BOARD DENISE AMYOT, PENNY BALLANTYNE, JIM CONNELL, MICHAEL FENN, LANA LOUGHEED, JOHN MILLOY, VIC PAKALNIS, ROBERT SHEPHERD, ANDREW TREUSCH, DAVID ZUSSMAN SALES & EVENTS DIRECTOR, CONTENT & BUSINESS DEVELOPMENT | DAVID BLONDEAU 905-727-3875 david@promotivemedia.ca ART & PRODUCTION ART DIRECTOR | ELENA PANKOVA elena@promotivemedia.ca SUBSCRIPTIONS AND ADDRESS CHANGES CIRCULATION SERVICES | circulation@promotivemedia.ca GENERAL INQUIRIES 21374, 2nd Concession Rd, East Gwillimbury, ON, L9N 0H7 Phone 905-727-3875 Fax 905-727-4428 canadiangovernmentexecutive.ca CORPORATE GROUP PUBLISHER | J. RICHARD JONES john@promotivemedia.ca Publisher’s Mail Agreement: 40052410 ISSN 1203-7893 Canadian Government Executive magazine is published 6 times per year by Navatar Press. All opinions expressed herein are those of the contributors and do not necessarily reflect the views of the publisher or any person or organization associated with the magazine. Letters, submissions, comments and suggested topics are welcome, and should be sent to lori@promotivemedia.ca REPRINT INFORMATION Reproduction or photocopying is prohibited without the publisher’s prior written consent. High quality reprints of articles and additional copies of the magazine are available through circulation@promotivemedia.ca. Privacy Policy: We do not sell our mailing list or share any confidential information on our subscribers. We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund (CPF) for our publishing activities. canadiangovernmentexecutive.ca 4 / Canadian Government Executive // WINTER 2025 WEB EDITOR’S NOTE Hi and welcome to the latest issue of CGE Magazine! After a short hiatus, CGE Magazine is getting back in gear with new content and the beginnings of a new approach to writing and sharing. First, we are showcasing a theme for each issue. This one is about “Uncertainty” in government and public service. More than two years and counting since the great pandemic uncertainty left us, a new type of uncertainty is settling into governments today. It’s the uncertainty about ‘what’s next?’. CGE Magazine takes this on for you to read. Take a look at Dr. Sara Filbee’s article. She’s the author of Managing in Complexity: How Our Fears of Uncertainty Can Hurt Us and What to Do About It. Sara shares her insights on how public servants can consider complexity and uncertainty in today’s public service in this issue. Second, we will be presenting a feature interview with someone interesting and informative on Canadian governance issues. Graham Flack, a former senior federal deputy minister, speaks about the issues and challenges facing the federal public service at a time of uncertainty. You can hear Graham chat with Lori Turnbull and me on CGE radio also. Third, we will be bringing you interesting articles, data, and book reviews on the latest in governance and public service in Canada. This issue features insights from Policy Horizons Canada on the “uncertainty” theme, as well as a review of Dr. Donald Savoie’s latest book, Speaking Truth to Canadians About Their Public Service. Savoie is Canada’s strongest academic guru of what ails our public service today. Speaking of gurus, Lori and I have started a CGE-sponsored podcast which we call “Governance Gurus”. It will be an informative and, we hope, provocative space to discuss all things governance in public service today. Catch us on https://canadiangovernmentexecutive.ca/ We will continue to highlight the importance of digital governance in our pages. Regular contributor Jeffrey Roy, is professor at Dalhousie University’s Faculty of Management, writes about national security digitization in this issue. For our regular feature, The Last Word, we turn the pages over to Lori Turnbull for her regular commentary on contemporary governance and politics in Canada today. Thank you to all our contributors and advertisers! CGE Magazine is changing and growing with our readers. We hope you enjoy reading it! David McLaughlin Executive Editor, CGE Media
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FEATURE 6 / Canadian Government Executive // WINTER 2025 UNCERTAINTY IN A TIME OF TRANSITION: AHEAD FOR PUBLIC SERVANTS 3KEY ISSUES Uncertainty is not a bug but rather a feature of working in Canada’s public service today. Three years on from the pandemic, a return to normalcy is more elusive than ever. We remain mired in a post-pandemic transition period dealing with the economic and social fallout of two years of upheaval. It is as if ‘long COVID’ has infected our body politic as a whole. Demands on public servants are growing not lessening. The pace of work, supercharged for many to deal with COVID-19, has not lessened. Any expected snap-back to a form of business-as-usual has evaporated. The uncertainty of navigating through COVID has been supplanted by the uncertainty of navigating old issues under new circumstances. Housing and immigration are two big examples where pre-pandemic policies are being radically overhauled to address massive structural inequities and policy failure laid bare by the pandemic. Whether it’s figuring out new post-pandemic policy approaches or accommodating ‘return to office’ obligations and changed working environments, or even having to prepare for a change in government at the top, uncertainty is more and more the operational order of the day for federal public servants. The first step to dealing with uncertainty is identifying what’s ahead. Regardless of who’s in charge, these three key institutional issues will be affecting all federal public servants. BY DAVID McLAUGHLIN, BA, MA, MBA
FEATURE WINTER 2025 // Canadian Government Executive / 7 01 One, the size of government. A reckoning is coming. The federal government has grown more in the past ten years than in the previous ten. There are now over 367,000 public servants; over 100,000 more than when the current government took office – a 26 per cent increase. The highest growth rates occurred immediately during and after the COVID-19 pandemic as the federal government added positions to deal with the public health emergency and its aftermath. The figure below from the Montreal Economic Institute shows changes in the number of federal public servants from 1984 to 2023 by successive governments. The deepest reductions in the public service workforce occurred during the Liberal government of Jean Chretien during the years 1994 to 1999. The biggest increases in the public service workforce have occurred during the Liberal government of Justin Trudeau, from 2015 onward. But as former Treasury Board Secretary, Graham Flack, makes clear in this issue’s feature interview, current public service growth was “exactly as required” to meet the political decisions of the elected government to pursue a very ambitious policy agenda. Government got bigger because it is doing more things. More public servants were needed to deliver what the government wanted to do. That this was a deliberate outcome of government policy can be seen in this second chart below from the Montreal Economic institute that compares the change in the number of federal public servants indexed against Canada’s total population. It shows that previous governments basically managed down the number of public servants over their tenure, some more significantly than others. Any government seeking to reduce the federal deficit will, by necessity, cut the size of the public service. Slower growth rates and allowing position attrition will be insufficient to restore a closer balance between population and public service. Eliminating positions will be necessary. A true reckoning on the size of government will require a hard look at what government does today. Trimming at the top of bureaucracy or the margins of programs will not yield more than a modest, temporary adjustment in growth similar to last year’s budget direction of 5,000 fewer public servants and $15 billion in overall savings across government operations. A deeper program and service review is required. A determination to stop doing some things will be the necessary catalyst for a rightsizing of government. Supporting that process with ideas and recommendations and then, successfully implementing such direction will challenge the public service for the first time in three decades. That was when the last serious program and service review was conducted by the Chretien government. With no corporate memory inside government as to how that was done, and little remaining from the smaller scale reductions under the previous Conservative government of Stephen Harper, the federal public service will need to ready itself for this eventuality Figure 1: Federal public service workforce 1984-2023 Figure 2: Change in the number of federal public servants
8 / Canadian Government Executive // WINTER 2025 FEATURE Two, how government operates. The pandemic experience reinforced the importance of efficient, effective delivery of government programs and services to Canadians. Ottawa stood up a myriad of comprehensive income support programs for people and businesses in record time. Add the public health guidance to deal with the virus itself, and federal public servants acquitted themselves well. Improvised innovation and superior effort combined to combat the massive economic and social impacts of the pandemic on Canadians. But as one former senior public servant stated in a report on lessons learned from the pandemic, “So if I had kind of one wish, I would want it to be that the public service starts to become boringly excellent, rather than sporadically heroic.” [Source: Resilient Institutions Learning from Canada’s Covid-19 Pandemic, pg. 34] True to form, as the virus receded so too did anticipatory governance in key aspects of operational delivery. Passports and airports became clogged, requiring new injections of money and people to rectify service failures. Work from home versus return to office became flash points for public service unions and employees themselves. It was if the federal government was discovering the vitality of good service delivery as a key determinant of public trust and approbation. As an institution, the federal government has privileged policy and ideas over operational delivery as the litmus test of both relevance and respect within the public service. ‘Climbing the greasy pole’ of a public service career meant showing political and personality chops in managing highly visible issues, rather than behind-the-scenes operational expertise. With significant deputy minister and associate deputy minister churn (some 100 shuffles since 2015 with more than 300 changes and an average serving tenure of under three years), operational stability at the top has been a lesser priority. Antiquated information management systems and a penchant for complexity in policy design with multiple objectives (let’s call it “customization”) has stretched the ability of some federal departments and agencies to deliver what is promised. Fuzzy accountability mechanisms focusing on inputs and outputs rather than goals and results, has allowed service delivery issues to slide under the radar – until now. The current federal government has had an ambitious policy agenda involving significant economic and social reform. From climate change to industrial policy to housing to immigration, this has implicated numerous departments and agencies across the breadth of government. Governance and operational delivery are central to successful achievement of stated policy goals. But both the capacity, ability, and skills of the public service to actually deliver value-for-money programs are all lacking, as recent Auditor-General reports have shown. Witness the December reports on the emergency support program for business or industrial benefits policy for defence procurement. Governance reform ideas exist. Designating chief operating officers in both the PCO, TBS, and in each department and agency would raise the importance and accountability of this need. Changing the budget process from a Finance-driven ‘sources and uses’ of funding to a combined Finance/Treasury Board process of ‘results and delivery’ would integrate operational considerations with policy goals. Revamping accountability measures to focus on missions and results, as the UK government is starting to do, would alter the culture at the centre of government. Whatever the prescription, operational service delivery issues will be climbing in public and therefore public servants’ attention. Three, government productivity. More public servants raise a companion question: what are Canadians getting for this outlay? Declining private sector productivity is increasingly cited as a brake on the country’s economic growth, leading to fewer jobs and lower incomes than Canada could have. Unsurprisingly, attention is now being paid to just how productive the federal public service really is, especially with public sector growth outpacing the private sector. The figure below from the C.D. Howe Institute illustrates the problem starkly. It shows that post-pandemic, the share of public sector employees in total employment has increased by 21.6 per cent but public sector labour productivity has actually declined. This is not just a federal government issue. Public service productivity is a notoriously complex concept. Evaluating productivity for national defence is radically different than for passport services, for example. Defining a suitable market price for outputs when none really exists, illustrates the problem. The figure below on “the public service delivery chain”, from the U.K. Productivity Institute, encapsulates the complexity of determining 02 03 Figure 3: Share of Public Sector Employees in Total Employment and Public Sector Productivity
WINTER 2025 // Canadian Government Executive / 9 FEATURE public sector productivity around inputs and outputs: Still, the federal government is hearing the message. It established a Working Group on Public Sector Productivity in WINTER 2025 to provide recommendations to the President of the Treasury Board by the end of February, 2025. Its broad mandate is this: “The working group will examine the delivery of services to Canadians and the role of technology in helping address barriers to achieve greater efficiencies for Canadians and businesses. The working group will assess options to advance the public service’s ability to be innovative, flexible and efficient in delivering services for Canadians.” [Treasury Board of Canada] The working group’s terms of reference highlight the importance of examining the role of technology, including AI and digital technologies, as well as the lack of appropriate data for effective, timely decision-making. It will look also as government’s own internal processes and how they stifle productivity. This is a useful and timely exercise. Improving public sector productivity should concern all Canadians as well as all public servants. Beyond the cost to taxpayers, there is the broader impact on public trust in government and the people who serve in them. David McLaughlin is Executive Editor, CGE Media. David has over 30 years of senior-level public governance experience at both the federal and provincial government levels. He is a former Clerk of the Executive Council and Cabinet Secretary in Manitoba, deputy minister to the premier in New Brunswick, and chief of staff to the federal finance minister and prime minister of Canada. “The working group will examine the delivery of services to Canadians and the role of technology in helping address barriers to achieve greater efficiencies for Canadians and businesses. The working group will assess options to advance the public service’s ability to be innovative, flexible and efficient in delivering services for Canadians.” — Treasury Board of Canada Source: Public Sector Productivity Review: Fifteen questions, The Productivity Institute, pg. 10, March 2024
UNCERTAIN AND HIGH STAKES WORLD I have often heard Deputy Ministers say that we are in a ‘no surprises’ environment (particularly during election times!). The implicit instruction is that it is our job to keep it that way, to be in control and on top of what is going on. However, is it even possible to live up to such a standard? And if it isn’t, then what can we as managers and leaders do about it? Before we can answer these questions, it is helpful to understand what is possible and why. Unfortunately, traditional theories about management are not necessarily helpful. They implicitly assume that we can control or determine what is going on and thus prevent nasty surprises. That we can, in effect, predict the future. A different perspective, however, has recently emerged from research into the complexity sciences. This approach also incorporates what the social BY SARA FILBEE GOVERNING DIGITALLY 10 / Canadian Government Executive // WINTER 2025 AVOIDING SURPRISES IN AN sciences tell us about how individuals and groups interact and react during times of change and is the subject of my recent book, Managing in Complexity: How Our Fears of Uncertainty Can Hurt Us and What To Do About It. This theory about managing in complexity is based upon the work of Ralph Stacey, an econometrician and PhD graduate from the London School of Economics, and his colleagues at the University of Hertfordshire in England. Stacey built a career studying and teaching econometrics models as a way of understanding what was happening so that he could plan effectively. However, when he moved over to industry, he became disillusioned with the ability of sophisticated models to make accurate predictions. Rejoining academia he tried to make sense of this by studying complexity science, and
GOVERNING DIGITALLY in particular, computer programs called complex adaptive systems. What he realized was that these models, no matter how beautiful or sophisticated, could not generate good predictions for the simple reason that in a complex world it is just not possible. Complex adaptive systems are computer programs which model complexity, in which agents (effectively lines of code) interact with each other according to the programmer’s instructions. One well-known such program is called BOIDS in which three simple rules as to separation, alignment and cohesion, generate a complex and ever evolving patterning resembling the flocking behaviour of birds. This is not designed or choreographed but happens through what all the agents are doing together. While obviously the real world is so very much more complex than BOIDS, Stacey and his colleagues realized that the same principles apply in complexity and that what is going on for us is the product of what we are all doing together, out of which patterns of how we relate to one another emerge. However, we do much more than ‘flock’ and the patterning of how we interact with one another is not based upon a few simple rules, but upon an effectively infinite number of variables. Our norms and values, our emotions and our power dynamics all affect how we relate to each other. We all have histories, motives, fears and hopes which influence our actions and reactions. Different perspectives on what we value, what we must do and not do, and even what we observe and perceive as well as our power relationships with others, also drive us. Timing is always key. Further, unlike the BOIDS, we are not like billiard balls – instead, as we interact with each other, we are affected in large and small ways and rarely emerge unchanged from an encounter. Simply put, there’s always a lot going on, a lot at play. We cannot assume that if X happens then Y will be the result. This is what is called nonlinearity, on in popular terms, the butterfly effect. In such a relationship there are very complex connections between cause and effect which means that the effect is not necessarily proportionate to the cause. A small change can lead to large differences in results (e.g., the hypothetical proposition that a small butterfly flapping its wings could cause a typhoon), which makes it impossible to assert with any certainty that X causes Y or that if X happens then Y will result. Instead, very small occurrences can lead to significant alterations in subsequent events. Paraphrasing the philosopher Voltaire, while doubt may not be pleasant, even thinking certainty is possible is absurd. This leaves us as managers and leaders in a difficult position. Making sense in our uncertain and high stakes world is no mean feat. Realistically, if we are seeking to avoid or reduce surprises, we need to ensure we have as much information as possible so that we can figure out what to do. How do we know what we think we know? What is working out? What is a disappointment? What should we be doing about it. So often when things go wrong, we hear loud cries from the corner office lamenting that no one had warned them or spoken up or even noticed the potential for the latest disaster de jour. We had broken the ‘no surprises’ rule! Here, another drawback of most traditional management theory which takes an individualistic perspective on the workplace, comes into play. The reality, confirmed by what we have learned from our study of complexity science, is that we perform as a collective. What is going on is as the result of what all of us are doing. No one person can determine what will happen. Leaders may have significant influence, but they cannot control or determine what will happen. For that reason, we must think not only about ‘what’ we are doing together, but the patterns that have developed which affect ‘how’ we interact with each other in our work together and whether they support our collective problem-solving capabilities. This brings us to an important concept, productive doubt. This term, coined by the great American pragmatist John Dewey, refers to the importance of being able to question generally accepted wisdom. This is where a little bit of uncertainty is helpful. In fact, without productive doubt and the ability to challenge the status quo, there can be no innovation or creativity. Ensuring we have as much information as possible to help us in the exploration of productive doubt depends upon making sure different perspectives are brought forward. This is because research confirms what we see is affected by what we believe and expect to see. In other words what we see or notice, how we interpret it and the conclusions we reach as to what is going on and A small change can lead to large differences in results (e.g., the hypothetical proposition that a small butterfly flapping its wings could cause a typhoon), which makes it impossible to assert with any certainty that X causes Y or that if X happens then Y will result. WINTER 2025 // Canadian Government Executive / 11
FEATURE 12 / Canadian Government Executive // WINTER 2025 what we should do about it differs from person to person. Our histories, moods, stress, fatigue, rules of thumb and cognitive biases and differences in skill all significantly affect what we perceive and how we react. What you see I might miss and vice versa. Our ability to explore productive doubt also depends upon whether we are allowed to speak up, to disagree and/or raise a different perspective. Whether we trust that we will be respected if we split from the accepted wisdom. It can be daunting to surface doubts in the workplace when others have decided upon a different way of proceeding. Our job as managers and leaders is to make it safe to raise such questions. Here, our history can help us or hurt us. In the public service we honor the concept of speaking truth to power. Too often, past experiences have taught us that speaking up can be unwelcome – and at times career limiting. Realistically, if that is the pattern of how we work together that has developed as the result of our past interactions, we cannot expect colleagues to be enthusiastic about surfacing productive doubts! Exploration of productive doubt can be a challenge. Uncertainty can be threatening and especially so in the workplace. Conflict is also difficult and as we are conscious of our need to work together in the future, we often seek to avoid it. We may prematurely shut down our inquiries into what is going on. Or we might grasp on to an early consensus rather than, as Chris Mowles, senior scholar in the field of managing in complexity, often counsels, sitting in the ‘fires of uncertainty’ just a little longer to give ourselves the chance to explore what is happening. Ralph Stacey was known to observe that often the best leaders were those that had learned how to manage their anxieties in the face of inevitable uncertainty. One of the key differences between traditional management theories and prescriptions was perhaps most eloquently expressed by Doug Griffin, one of the original scholars in this field. He believed the key question in any organization is ‘Who are we becoming? Our interactions, the health of our relationships and ‘how’ we work together today are likely to affect how we will work together in the future. Especially in challenging, uncertain times, we must be conscious of the legacy of today’s interactions on the type of organization we are becoming. While we will never be able to deliver on the ‘no surprises’ request, we may be able to become more effective in reducing them through welcoming different perspectives to our exploration of productive doubt. Dr. Sara Filbee is the author of Managing in Complexity: How Our Fears of Uncertainty Can Hurt Us and What To Do About It. She recently retired from the Federal Government following a lengthy career that spanned public and private sector as well as civil society, including over 12 years at the Assistant Deputy Minister level. See sarafilbee.com for more information about her book. One of the key differences between traditional management theories and prescriptions was perhaps most eloquently expressed by Doug Griffin, one of the original scholars in this field. He believed the key question in any organization is ‘Who are we becoming? Our interactions, the health of our relationships and ‘how’ we work together today are likely to affect how we will work together in the future.
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14 / Canadian Government Executive // WINTER 2025 Today’s Deputy Minister is the public service equivalent to a corporate CEO—and crucial to driving needed digital advancements in government operations and citizen services. Most, however, assume these responsibilities without much technology experience after moving up the ranks and excelling as policy specialists. To keep pace with both public service and citizen expectations, a Deputy Minister must understand how best to meet citizen and government needs, with the same urgency as a CEO meets customer and business needs. IT driven workplace and service delivery modernization takes years of sustained and focused leadership attention backstopped by a long-term financial commitment. These challenges are further complicated by the political reality of short-term election cycles. While many Deputy Ministers will have gained insight into project management, information technology solutions, procurement and budgeting, very rarely will PERSPECTIVE Sponsored Content By Mark Lambert Senior Managing Director - Canada Health & Public Service Client Group Lead, Accenture they have previously dealt with technology transformation. Technological literacy needs to be treated with the same importance and urgency as financial literacy. Senior government leaders acknowledge that prioritizing IT modernization is challenging. Our aging systems are at increased risk of critical system failures without it. Reactive crisis management can be significantly more difficult and costly than proactive maintenance and upgrades. Crises and issues are an everyday reality, but leaders must be mindful of driving their department’s strategic plan. Deputy Ministers should view technology not as a patchwork of programs and repairs, but as a continuum that enables a more agile, effective and secure approach to work and service delivery. Deputy Ministers must become proficient in the principles and practices of digital reinvention to enable them to adopt digital platforms to streamline services, enhance citizen engagement, and improve the overall efficiency of govBRIDGING THE GAP: Leading Technology Reinvention in the Public Service
WINTER 2025 // Canadian Government Executive / 15 ernment and department operations. Embracing digital government means leveraging technology to make public services more accessible, transparent, and responsive to citizens’ needs as well as ensuring the public service has the tools to deliver. How can a modern Deputy Minister manage potential technology challenges and solutions while leading transformation? They can start by asking the following four questions. Is our information secure? As cyber threats become more sophisticated, understanding cybersecurity frameworks is vital. Deputy Ministers should familiarize themselves with policies and best practices to safeguard government data and services against cyberattacks. This includes ensuring robust security measures are in place to protect sensitive department information and maintain public trust. Additionally, data privacy law and regulations, both national and international, protect citizens’ information. There must be stringent data protection measures that align with the strong culture of privacy within the government In 2024, Treasury Board introduced Canada’s first ever enterprise cyber strategy. Executive buy-in will be crucial to ensure this policy has the best impact on the government. How can I support my team’s skills development? Promoting a culture that embraces continuous learning, and technological adaptation is key to progress. Deputy Ministers can lead a skills development culture through supporting modern training programs and initiatives that enhance digital skills across the organization. This not only encourages digital literacy, it also helps to attract, retain and develop skilled IT professionals to build a talented workforce capable of driving digital transformation. Does the project deliver on the department’s strategic goals? Effective IT projects and investment governance are crucial. Deputy Ministers have to manage risks, budget effectively, and align technology initiatives with organizational goals. Understanding the governance of technology ensures that projects are executed efficiently and deliver the intended outcomes. Departments can leverage technology to support strategic planning and policy development. This involves using data analytics and digital tools to inform decision-making and policy formulation. By harnessing the power of data, Deputy Ministers can make more informed and effective decisions. Will the new system be easy for everyone to use? Using technology to enhance public service delivery is key to the public services’ future success. Deputy Ministers should lead the implementation of digital government services that are accessible, efficient, and user-friendly. This involves designing digital services with the end-user in mind. Citizen-centric digital services that are intuitive better meet the needs of citizens and improve their interactions with, and trust in, government. Most importantly, Deputy Ministers can’t and shouldn’t do this alone. A collaborative culture across different government departments and agencies can ensure cohesive and inclusive strategies and deliver the best possible results. Additionally, there are external expert stakeholders, including the private sector, who can help. Deputy Ministers should build partnerships and leverage external expertise to drive technological advancements and improve public services. Canada can look to Denmark for an example. Emphasizing usability, Denmark ensured digital services were convenient and user-friendly. Public-private partnerships, cross government collaboration and educational efforts played an important role in promoting digital adoption and integration. As a result, Denmark ranks among the highest in citizen users and digital public services. Our new realities The pace of change is making continuous reinvention the default strategy. The world is in an extended period of instability and insecurity driven by geopolitical conflicts and political division, inflation, public health concerns and the impacts of climate change. Success is no longer a checked box, it’s the ability to constantly adapt to rapid advancement. Federal departments are massive enterprises, making ongoing technology reinvention essential. By prioritizing cybersecurity, fostering continuous skills development, aligning IT projects with departmental goals, and ensuring user-friendly digital services, Deputy Ministers can unlock long-term efficiencies that better serve citizens. This approach paves the way for an agile, effective, and secure model of work and service delivery. Sponsored Content PERSPECTIVE Using technology to enhance public service delivery is key to the public services’ future success. Deputy Ministers should lead the implementation of digital government services that are accessible, efficient, and user-friendly.
16 / Canadian Government Executive // WINTER 2025 fact that 74% of Canadian leaders acknowledge the necessity of AI to maintain a competitive edge), 59% are concerned about their organization’s lack of a concrete plan for AI implementation. This uncertainty is leading to a growing trend known as Bring Your Own AI (BYOAI), with 79% of Canadian AI users introducing their own AI tools to their workplace. This groundswell of excitement and increased use of AI is encouraging. PERSPECTIVE Sponsored Content However, the emerging BYOAI trend highlights a critical issue: data and security. Government employees experimenting with their own tools could put data at risk. Governments maintain vast amounts of sensitive data, including personal information of residents like property tax details and infrastructure data such as traffic cameras and water systems. This makes the need for robust and responsible AI adoption plans at all levels of government even more urgent. IN THE PUBLIC SECTOR: Balancing Innovation and Security AI Artificial Intelligence (AI) is transforming Canadian government operations, balancing innovation with the need for responsible and secure implementation. Cate Takemori, Public Sector Lead at Microsoft Canada, discusses how to navigate this evolving landscape. The use of generative AI (Gen AI) in the workplace is not just a future possibility—it’s a present reality. According to the latest Work Trend Index, a new report from Microsoft and LinkedIn, 62% of Canadian knowledge workers are already using AI at work. This widespread adoption is driven by the benefits AI offers in terms of time saving, increased productivity, and the reduction of mundane tasks— an enticing prospect for government employees who are often bogged down by routine, administrative work. Navigating the intricacies of government operations can be challenging, even for government employees themselves. It’s no surprise that Canadian public sector workers are eager for tools to streamline processes and free them from routine tasks. With more time saved, staff can focus on mission priorities and tackling complex problems. They may also be able to reduce burnout, increase efficiency between departments and minimize administrative burdens. What’s perhaps even more exciting is the possibilities for Gen AI to create better resident experiences, making interactions with government more accessible and less time-consuming. Despite all these benefits (and the
Creating a Culture of Innovation While complexity is inherent in strong AI development, the latest research shows that employees are eager for change and clear guidance. One of the first things to consider when rolling out generative AI tools at any level of government is creating a culture of innovation. To do this, it is important to address and remove any fear or stigma associated with technology like Gen AI. Nearly half *(47%) of people interviewed in the Work Trend Index said they were reluctant to admit to using AI for some of their most important work tasks for fear they may be perceived as replaceable. At best, this stifles innovation. At worst, it means employees are using their own AI tools in secret, putting security at risk. To solve this challenge, it is important that leaders focus on building their own AI skills and provide similar training opportunities for staff. Being clear about the benefits with staff as well as their role in the process is critical to ensuring people feel safe to experiment and bring new ideas to the table. In Canadian companies that have access to training, especially on prompt writing and how to use AI for their specific role or function, so-called “AI power users” quickly emerge. These power users are 124% more likely to experiment with different ways of using AI. This is because they understand how and feel supported to do so, without any stigma or fear. The result is that they are spending more time at work making a higher impact, driving innovation and ultimately, creating better services for residents. Championing AI from the Leadership Level An excellent way to ensure AI usage is used responsibly is to ensure that leaders within the public sector are regularly talking to employees about the benefit, possibilities and importance of Gen AI. Those that are seeing the most benefit from AI are 65% more likely to have heard their senior leaders talk about it. This also helps remove any stigma by promoting AI literacy, a skill that is increasingly sought after by hiring managers. 63% of Canadian leaders are more likely to hire a less experienced candidate with AI skills than a more experienced one without them. And 50% said they wouldn’t hire someone without AI skills at all. This trend underscores the increasing importance of AI literacy in the modern workforce and signals a shift in how government and other sectors evaluate potential hires. Communicating a Clear Vision Finally – and perhaps most importantly - developing and communicating plans for responsible use and deployment is critical. This can be accomplished through robust security measures alongside training opportunities for staff developing or using AI so that they understand legal, ethical and operational issues, including privacy and security. Public sector organizations should create responsible AI strategies that include principles, practices, tools, and governance to manage AI effectively. This may involve: • Adopting new policies and guidelines • Ensuring representative and unbiased data • Establishing governance bodies to scrutinize sensitive use cases • Maintaining accountability for AI systems AI has the potential to transform the public sector. Once potential risks are well understood and carefully managed, the public sector can realize the promise of AI. Forward-looking leaders must ensure that their commitment to responsible AI is not an afterthought but is baked into their organization’s innovation pipeline. This allows the public sector to use AI in a way that improves citizen services and benefits society as a whole. WINTER 2025 // Canadian Government Executive / 17 Sponsored Content PERSPECTIVE
PERSPECTIVE Sponsored Content 18 / Canadian Government Executive // WINTER 2025 Across Canada, forward-thinking governments at all levels are using AI every day to tackle everything from administrative tasks to service delivery. Here are a few examples. City of Kelowna The City of Kelowna has embraced AI technology to enhance resident services and streamline municipal processes. Using Gen AI technology, Kelowna has significantly improved the process of applying for building permits by implementing an AI Copilot that automatically fills out official forms based on resident’s input, speeding up the process and reducing administrative work for government staff. Additionally, the city rolled out voice and chat Copilot assistants to address common inquiries, significantly increasing accessibility to information and freeing up government staff for more impactful tasks. Another area where AI is improving the experience of Kelowna residents is with the city’s annual recreation guide. Previously published as a static PDF, this guide now benefits from an AI Copilot integration, making it more engaging and personalized. Instead of scrolling through a static document, users receive dynamic, tailored recommendations for activities, programs, and events based on their interests, from sports leagues and fitness classes to cultural events and parks. Using Gen AI technology, Kelowna has significantly improved the process of applying for building permits by implementing an AI Copilot that automatically fills out official forms based on resident’s input, speeding up the process and reducing administrative work for government staff. Success Stories of AI in the Public Sector
City of Burlington The City of Burlington is pioneering AI integration into municipal services with the introduction of CoBy, its first AI-powered digital assistant available on the city’s website, burlington.ca. This new Copilot provides 24/7 access to a wealth of city information and services, offering real-time AI-generated responses based on extensive knowledge gathered from the website. Developed in collaboration with Microsoft Copilot Studio, CoBy has been designed to learn over time, constantly evolving, adapting, and improving from each interaction. Users can simply click on the green conversation bubble icon on the website to pose questions, and CoBy utilizes Generative Pre-trained Transformer (GPT) technology to provide efficient responses. Currently in the beta phase, CoBy will continue to develop over time, influenced by user feedback and patterns learned through generative AI. Metrolinx Metrolinx, Ontario’s transportation agency responsible for PRESTO, which serves the Greater Toronto and Hamilton Area (GTHA) and Ottawa, is using Azure AI to modernize fare payment systems. Building on the success of the PRESTO fare card, Metrolinx launched a project for open payments, which would enable riders to conveniently tap on and off transit using their credit or debit cards. With Microsoft Azure, the agency has implemented a real-time fare management system, ensuring seamless transactions even during peak travel times. Overcoming challenges like the need for quick processing, Metrolinx rolled out the payment platform across regional transit networks, including TTC, GO Transit, MiWay, and UP Express. With an emphasis on security, Metrolinx uses Microsoft’s robust security infrastructure to safeguard sensitive data, allowing them to focus on providing a secure and efficient experience for all transit users. Looking Ahead: A Bright Future for Canada While governments have historically moved slowly—especially as it relates to technology—generative AI presents an opportunity to accelerate the pace of change. AI doesn’t always have to involve broad sweeping change either. It could be as simple as leveraging AI to take over administrative work, as in the case of the cities of Kelowna and Burlington. This, in turn, frees up employees to focus on bigger mission challenges. But there is still much work to be done to implement AI solutions at scale, WINTER 2025 // Canadian Government Executive / 19 Sponsored Content PERSPECTIVE Developed in collaboration with Microsoft Copilot Studio, CoBy has been designed to learn over time, constantly evolving, adapting, and improving from each interaction. Overcoming challenges like the need for quick processing, Metrolinx rolled out the payment platform across regional transit networks, including TTC, GO Transit, MiWay, and UP Express. to develop a workforce with the skills necessary to do so, and to take advantage of all that AI has to offer. By engaging with employees and creating clear plans and policies for responsible AI use, governments can unlock significant potential for innovation, improved processes, and streamlined operations—key priorities for any government agenda. *Based on global findings from the Work Trend Index. Canadian specific data not available.
INTERVIEW 20 / Canadian Government Executive // WINTER 2025 The federal public service in Canada is facing rapid changes and unprecedented pressures, from the lingering organizational effects of COVID-19 pandemic to grappling with economic, social and global uncertainties. In this conversation that appeared originally on Canadian Government Executive radio and hosted by publisher J. Richard Jones we hear from Graham Flack, former Secretary to the Treasury Board, in discussion with CGE’s Lori Turnbull and David McLaughlin. They explore everything from program design and system modernizations to what political transitions can mean for public servants on the ground. JONES: Welcome back to another episode of CGE Radio. I’m your host, John Richard Jones. Today we’re going to talk about uncertainty, medium-term planning and much more. Our first guest is Graham Flack, who was recently a senior deputy minister in the federal public service, ending his term as Secretary to the Treasury Board. We also have our two hosts: Lori Turnbull, editor-in-chief of Canadian Government Executive, and David McLaughlin, executive editor of CGE Media. First, Graham, everyone, welcome to the show. FLACK: Thanks everyone. Delighted to be here. NAVIGATING UNCERTAINTY: A Conversation with Graham Flack on Public Service Resilience. Graham Flack is a former senior official in the federal government, serving as Secretary to the Treasury Board and Deputy Minister of Employment and Social Development.
INTERVIEW WINTER 2025 // Canadian Government Executive / 21 Q: McLAUGHLIN: Graham, good to see you, and welcome. We want to talk about your time in the federal public service and about some of the key issues facing it today. We also want to talk about uncertainty—what the federal government can and should be doing in these rather unsettled times, economically, socially and politically. We also, of course, have a federal election looming. That’s our theme. So, let’s kick it off: having just left the public service, what’s the state of play inside? How would you characterize the state of the federal public service in Canada today? FLACK: I don’t think you can talk about the state of the public service without talking about the operating context. It’s as challenging as I’ve seen it. Look at the international context—multiple conflicts, instability and questions about the survival of the rulesbased global system. Add in inflation and how it’s disrupting economies, plus a global pandemic and issues like disinformation. I’d call it “everything, everywhere, all at once.” It used to be that we could focus on a few crises at a time, but now there seem to be everything, everywhere, all at once. Another shift is that society, in my view, is evolving at something like a derivative of Moore’s Law—change is accelerating over time. Decades ago, in government, you might introduce a policy framework or program that, once in place, might last 20 years with minor adjustments. Now you need to adapt far more quickly. Add to that the current government’s very ambitious set of priorities—at one point there were over 760 priorities in the mandate letters. I haven’t seen this level of new activity in my career; I’d argue maybe not since the 1970s. So, it’s a super-challenging operating context. Within the executive there’s a high level of fatigue. We’re used to crises—I’ve had a few in my career—but they tended to be measured in days, weeks or maybe months. COVID was 24/7 for a couple of years. There are structural shifts in how we’ll have to increase the pace of change to respond. That creates fatigue and challenges our ability to focus on more innovative approaches. If you’re fully occupied implementing the latest round of new programs, you don’t have time to reflect on transformation. So that’s the challenge. Q: McLAUGHLIN: Right. So, have the federal public service and the institutions of government reached a saturation point? FLACK: You come at it a couple of ways. Public services are “guardian” institutions by design. They’re risk-averse, rules-based. That’s a core feature. In a world of accelerating change and a huge government agenda, there’s massive friction in the existing system. But the public service has shown it can be extremely nimble in a crisis. During COVID, for instance, we set up 13 different benefit programs from scratch in weeks, using some very old systems. Then, after the crisis, the “elastic band” snaps back. Part of the solution is figuring out how to unleash the dynamism and innovation we see in crisis situations, during “peacetime.” How do we increase risk tolerance and speed? If we keep operating in the same context while adding an accelerating number of inputs, that’s not sustainable. But there is an opportunity: change the operating context so that we can be nimbler and implement programs faster. During major events—post9/11, the global financial crisis, COVID— I’ve seen departments regularly do impossible things. The public service is capable of doing that. We need to give the public service the “permissions” to do that all the time and make the right capital investments, so we don’t have to rely on 1970s-era operating systems. If we don’t do that, we can’t keep piling on new responsibilities and expect timely results. Q: TURNBULL: Switching gears, one thing that’s been on my mind—without getting too political—is that if the polls are right, we could soon be in a transition period. The public service is supposed to speak truth to power and carry out loyal implementation. How hard is it when government changes hands? Is it mainly something that’s “shock-absorbed” at the executive level, or do people notice it more widely? FLACK: In a big operational department like Employment and Social Development Canada (ESDC), most of the 39,000 employees aren’t dealing with senior executives, let alone ministers. They’re at Service Canada centres serving Canadians, so they’re affected less than senior public servants. Obviously, changes in government are significant. But one of the great features of the Westminster system is that we have a public service loyal to the government of the day. Its job is to advise the government and then implement its agenda efficiently. I’ve been through a lot of transitions—different parties, changes within the same party, or ministerial changes. Each minister has a different style, and you adjust to serve them. I contrast that with the U.S. system, where a transition can take a year of staffing new people, many of whom may not have government experience. They don’t have a builtin administrative system at senior levels ready to pivot and give advice. It’s clunkier and typically leads to weaker outcomes in the first couple of years. Transitions are our job—that’s when we shine. We have to be very adaptable to the styles and policy direction we get from different governments. But we want to do it in a way that continually brings the best possible independent, non-partisan advice and the most effective possible implementation. It can be a dynamic period, sometimes bumpy, but also an opportunity. A new government might focus on areas the old government didn’t, which can give new chances for public servants to excel. Q: TURNBULL: That’s a great answer—it’s actually quite uplifting. It’s true: we do have a successful approach to transition, certainly compared to other places. Westminster countries learn from each other, so is there anything about transitions elsewhere that we might want to copy? We don’t have a cabinet manual, for instance, and some other Westminster countries do. FLACK: There’s one top of mind for me: in the year prior to a fixed election date in Australia, the opposition parties get full access to their Treasury Department. Not only for costing the platform, but also for confidential feedback and advice on what they’re considering. Why would that help? In Canada, over the last 20 years, we’ve seen these megaplatforms that promise everything, but they don’t always have the inside knowledge of the latest data or operational capabilities. After an election, a new government discovers the details and says, “If we’d known that, we might not have promised this.” So, if I had one wish, it would be for our political parties to have confidential access to some public service advice in the year leading up to an election. They could then develop platforms informed by our best evidence. Operational considerations need to be brought up front. In a corporation, you don’t just develop a product and throw it over the wall. You need to plan the rollout. A platform built without any understanding of the operational implications isn’t a recipe for efficient public service delivery. Q: TURNBULL: That’s a great wish. It could help with accountability. A party promising something would know
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