The biggest risk to government modernization isn’t technology

Every administration wants to leave government working better than it did when they arrived.

For state and local agencies, this ambition drives modernization efforts aimed at improving services, strengthening operations and helping public programs keep pace with changing demands.

The challenge is when the scope is defined too narrowly. While new systems and emerging tools can play an important role, modernization is ultimately a leadership, operating model and outcomes challenge. The assumptions agencies bring to the effort influence every decision that follows — from planning and investment choices to adoption and long-term success.

These assumptions surface in discussions with public sector leaders and in insights emerging from the recently expanded EY US State and Local Center for Government Modernization. Left unchallenged, three common myths can stall progress before agencies realize the full value of their investments.

Myth 1: Modernization is an IT Project and Leadership Can Delegate it

New systems and emerging tools have already improved government operations and service delivery. That is why this myth is easy to believe: technology is often the most visible part of modernization. But successful modernization does not begin with a platform decision. It begins with leadership alignment around the problem to be solved, the outcomes that matter and the operating changes needed to achieve them.

Whether the focus is improving a citizen-facing service or supporting a complex case-management function, this groundwork helps leaders identify where change can have the greatest impact, where value can be demonstrated early and where the organization may need to adjust as priorities evolve. It creates a stronger foundation for adoption because employees can see how the effort connects to the work they do and the outcomes the agency is trying to improve.

The difference shows up early. In one recent modernization effort, treating the work as primarily IT-led created gaps in requirements, weakened business prioritization and left key users feeling disconnected from the process. Later rollouts gained more traction when business leaders were involved from the start, communication came from the top and employees participated directly in design and testing. The lesson is not that technology leadership matters less. It is that modernization needs shared ownership across program, operations, policy and technology leaders.

This is especially important as governments work to meet growing demands on their programs and services. Agencies are navigating changing regulations, updated eligibility requirements and rising expectations from the public while managing budget and workforce constraints. In this environment, understanding the operational challenges that affect performance is essential.

Effective modernization begins with questions that are easy to overlook:

• What is preventing the agency from achieving its objectives?
• Where do delays occur?
• Which processes create unnecessary burdens for employees or citizens?

The answers reveal issues that extend beyond technology. Some involve processes that slow service delivery. Others stem from unclear ownership, policy constraints or competing priorities. In many cases, modernization efforts create the greatest value by simplifying processes, reducing unnecessary complexity and improving how work gets done. 

Addressing these issues requires leadership engagement. Transformation gains momentum when leaders define the purpose of the effort, align the organization around measurable outcomes and stay involved as difficult decisions arise.

Myth 2: If We Build it, People Will Use it

Few agencies begin modernization efforts expecting resistance. But success depends less on whether a new capability is launched and more on whether employees, constituents and partners are able to use it in ways that improve the work and their experience.

Public sector initiatives routinely introduce new systems, update workflows and change how services are delivered. Yet implementation is rarely the finish line. Employees need practical training and clear direction. Leaders need visibility into how changes affect day-to-day operations. Feedback needs to be gathered and incorporated as challenges emerge. Without that foundation, even well-designed initiatives can struggle to deliver the improvements agencies set out to achieve.

Stakeholder engagement cannot be treated as an afterthought. The people closest to the work understand where friction may emerge, which changes will be most difficult to sustain and what support employees need to adopt new approaches successfully. Agencies that gather feedback early are better positioned to refine implementation plans and address concerns before they slow momentum.

This principle extends beyond employees. Constituents bring different needs, expectations and levels of access to digital tools. A solution that works well from an administrative perspective may still create barriers for the people it is intended to serve. Understanding these experiences enables services that are more effective and more accessible.

Portal modernization efforts offer a useful example. Up-front research with employees, constituents and external stakeholders can reveal where government language, complex journeys or information overload make services harder to use. Those insights can help agencies define priorities around the experience people actually need, not only the process that government already knows.

Adoption grows when people understand the purpose behind a new capability, see how it supports the work or service experience, and have a meaningful role in shaping how it is introduced and used on a daily basis.

Myth 3: Change Management is Communication and Training at the End

Modernization efforts are often designed to improve how government works today. The strongest ones are also built to adapt for what comes next.

That matters in government, where leadership transitions, policy shifts, funding changes and emerging challenges can quickly reshape priorities.

Change management must extend beyond communication and training at the end. Agencies need structures that support continuity as circumstances change. Clear governance helps leaders evaluate new priorities, manage risk and make adjustments without losing momentum. A phased approach can also help agencies demonstrate value early, give employees time to adapt, reduce implementation risks and adjust as priorities evolve.

One motor vehicle modernization effort illustrates what that can look like in practice. By combining workflow-based automation with strong executive sponsorship, governance and agile delivery, the agency expanded digital services, improved processing efficiency and generated measurable value. As a result, it can now process more than one million transactions each quarter while saving more than 60,000 hours.

This type of outcome creates flexibility while keeping the organization focused on longer-term objectives, even as priorities change.

The same principle applies as agencies evaluate emerging technologies. AI, automation and other tools will create new opportunities to improve public services, strengthen oversight and support complex functions. The organizations that benefit most will connect those capabilities to clearly defined objectives and remain focused on the outcomes they hope to achieve. Evaluating emerging technologies through that lens helps agencies avoid treating modernization as a series of technology decisions and instead build durable, scalable and flexible ways to deliver near- and long-term value.

Programs that can adapt their service offerings to changing priorities are better positioned to create lasting value for the people they exist to support.

Key Takeaways for Government Leaders

While every agency faces different challenges, several principles consistently contribute to stronger modernization outcomes:

• Define the problem before selecting a solution: A clear understanding of objectives, constraints and operational challenges creates a stronger foundation for improvement.
• Make adoption part of the strategy: Employee engagement, practical training and ongoing feedback help modernization efforts translate into sustained results.
• Build programs with flexibility: Plan for changing priorities, policy requirements, funding conditions and leadership transitions.
• Focus on outcomes that matter to the public: Make it easier for people to access services, strengthen oversight and protect taxpayer dollars.

Challenging these myths will not solve every modernization issue. But it can help agencies focus on the leadership decisions, operating changes and adoption strategies that drive better outcomes for the people they serve.

Justin Fishman is EY’s Americas Government & Public Sector State, Local and Education Leader Elect.

The views reflected in this article are those of the author and do not necessarily reflect the views of Ernst & Young LLP or other members of the global EY organization.