Embedding Innovation into Public Sector Strategy

Innovation in the public sector isn’t just about generating new ideas—it’s about aligning those ideas with strategic intent. For agencies to lead effectively in this space, innovation must be woven into their business planning and decision-making frameworks. Without this alignment, even the most promising initiatives risk stalling.

A key question to guide this process is:
“What are our strategic needs, and how do they shape our innovation priorities?”

Mapping Innovation Across Three Horizons

To explore future innovation needs, agencies can adopt the Three Horizons framework, which helps balance immediate demands with long-term vision:

• Horizon 1: Core Business
  What does the agency need right now to deliver its core services? Where could innovation streamline operations, reduce inefficiencies, or even phase out outdated practices?

• Horizon 2: Emerging Opportunities
  What new areas of work are on the horizon? Which solutions show promise and could be scaled to meet evolving needs? What investments and capabilities are required to support this growth?

• Horizon 3: Long-Term Challenges
  What major issues might arise in the future? How could they impact the agency’s responsibilities? What can be done today to prepare for or mitigate future uncertainty?

This framework should be tailored to each agency’s unique context and can be enriched through scenario planning—especially for large-scale initiatives. Collaborating with other agencies or external stakeholders during this process can surface broader insights and foster shared understanding.

Clarifying Support and Boundaries

These strategic processes also help clarify the level of executive and political support for innovation. It’s important to identify where innovation is encouraged, where it’s tolerated, and where it may be considered too risky. Being explicit about these boundaries doesn’t stifle creativity—it channels it toward areas that align with the agency’s direction.

Planning for the Unplannable

It’s worth noting that not all innovation can be forecasted. Policy shifts, government changes, or crises often demand rapid, creative responses. While these moments are unpredictable, they underscore the importance of having a culture and structure that’s ready to innovate—planned or not.