Despite the majority of local governments in Australia and New Zealand recognising that digital transformation is the way of the future, only 20% believe they are doing enough to facilitate this change.

A survey of 107 councils across the two countries assessed the councils’ digital maturity across four areas: strategy and policy, external customer relations, internal processes and operations and performance metrics and standards.

The Local Government Digital Maturity Index report found that although there are positive moves toward a digital transformation, it is still in the early stages for most local governments.
 
The report found that, as a general rule, the larger the council, the more mature its digital evolution, likely due to the levels of resourcing and access to a larger skills pool. Queensland and Western Australia reported the strongest progress.

Across all councils, external customer relations rated the highest maturity rating (62.1) and strategy and policy rated lowest (49.7).

“This shows that, generally speaking, LGAs do best when it comes to presenting a digital face to the outside world, but that behind the scenes or within the organisation’s framework there appears to be some disconnect with strategic thinking,” the report stated.

The results of the survey show that while many LGAs are developing a strategic approach to digital transformation, most have not. More than three quarters (80%) do not have a policy for sharing digital information with external parties (such as other LGAs, service providers or the public), and almost as many (70%) do not have a digital strategy for building, planning and development activities.

Tony Walls, CEO of Objective Corporation, said the company’s digital maturity index indicated councils had made uneven starts on their digital journey but that most recognised “digital is the way of the future." 

“LGAs are experiencing several common challenges in their transition to digital delivery models. New technologies, new skills, and new ways of doing business require strategy and leadership. Often these changes must be effected within existing budget and resources, demanding creative approaches to staff engagement, transitioning from legacy systems or maximising the returns from existing systems. That means massive opportunities for improvement. LGAs can learn a great deal through comparison and knowledge-sharing with their peers,” he said.