But what’s the secret to Impact Canada’s success? Which parts of their model should other innovation-focused governments consider?
With the launch of Impact Canada, the Canadian Government elected to strategically deploy challenge prizes, and other outcomes-based methods, as part of its arsenal to tackle complex problems and deliver results for Canadians. This centralised, joined-up approach has been especially effective because of Impact Canada’s dedication to the following:
Investing in capacity development
The IIU supports partnering departments to “learn by doing”; each department takes ownership of its challenge prize design and delivery. When a department expresses interest in running a challenge, the IIU will host an introductory meeting. Often in partnership with Challenge Works, the IIU is then available to guide the department through the application, approval and challenge development process. We share learning from our respective experiences and mistakes and can provide extra hands to pick up particular tasks.
The IIU is now working to codify its challenge prize method and learning into a shareable resource. In addition, there could be great benefit in building connections between now-experienced departmental delivery teams and those starting out.
Building dedicated time and resources
In addition to developing capacity, the IIU has made sure to build in the required time and resources to design and deliver high quality challenges. They recognise effective challenge prizes, being used to address important policy objectives, cannot be completed side-of-desk. Therefore, they are vigilant about committing a realistic timeline to the rigorous design of challenges – often a year, although this may reduce as more learning and procedures are codified. They encourage and empower departments to build formal project teams with dedicated project leads. They developed the Impact Canada Fellowship programme which recruits subject-matter and technical experts to help foster innovation in the public service. Challenge prize Fellows are placed directly into department delivery teams, to work in tandem with Impact Canada and build departmental skills and capacity.
Earning senior department buy-in
The IIU works with departments to understand why and where challenge prizes make sense. This understanding, in addition to the “stamp” of Privy Council Office approval (the Privy Council is widely known for its rigorous analytical and challenge functions) can help earn buy-in from departments’ senior stakeholders. This buy-in has been assisted by the success of early best-in-class examples, such as Drug Checking Technology Challenge. Awareness of a high profile challenge prize, addressing a high profile issue, led by a high profile department can help pave the way for future challenges.
Focusing on centralised impact evaluation
The IIU has developed a robust method for evaluating the impact of its challenges, testing the results of each project against its desired objectives and outcomes. Doing this from the centralised position of the IIU allows for the systemic and consistent trialling and improvement of the challenge prize method horizontally across government. At the first stage, the IIU will use existing administrative data to understand how Challenge applicants and semi-finalists perform over time, compared to those who don’t apply. In time, the IIU should have the ability to compare the impact of challenges to alternative funding methods. This is not the case, for example, in the UK public sector where the use of challenge prizes is fragmented and cumulative learning is difficult.
Providing both social and technical permissions
Building Impact Canada’s centre of expertise, the IIU, inside the Privy Council Office created top-down support for new outcomes-based models like challenge prizes. And beyond these “social permissions”, Impact Canada ensured there were “technical permissions” like new Terms and Conditions “…built in a flexible manner to support departments in their experimentation with prizes, challenges, micro-funding and other outcomes-based and innovative programming approaches”.
The right team and mindset
IIU team members are selected for their innovative mindsets, openness and dedication to change. They’re a group willing to adapt and improvise, they’re comfortable being uncomfortable and they understand there’s no precedent for their role; they’re “building the boat while sailing”. Partnering government departments have demonstrated similarly impressive values and skillsets. Working with the IIU and its partners, our Challenge Works team has been impressed by their determination and resilience. It’s easy to see the social and logistical barriers to doing something different. Yet, we’ve watched these teams relentlessly come back to the question “what will create the best results for Canadians?” and tirelessly drive toward their answer.
Moving forward, governments need to update their arsenals with new tools and methods. Best said by Rodney Ghali, Assistant Secretary to the Cabinet of the Impact and Innovation Unit, “our collective perception of risk is not calibrated appropriately. We shouldn’t equate new with risky. Rather, we need to constantly question status quo, understand the risks of maintaining it, and recognise when we need to responsibly test something new”[3].
To read more about what the Canadian Government’s Impact and Innovation Unit does and how they do it, have a look at their annual report.
[1] Section 3.1.2 (a), Impact & Innovation Unit 2018-2019 Annual Report
[2] Prize Challenges, Defence Advanced Research Projects Agency (DARPA)
[3] Foreword, Impact & Innovation Unit 2018-2019 Annual Report