In this landscape, innovation and digitalization are essential to delivering high-quality services. But despite significant investments, many digitalization projects still fall short - often because change is being driven top-down, without involving the people who are actually affected.

So what’s missing? The answer may be closer than you think: your employees.

What is employee-driven innovation?

Employee-driven innovation means starting change where the knowledge is strongest—with those closest to the daily work. Instead of rolling out prepackaged, top-down systems, it means designing solutions based on the real experiences and needs of your staff.

Digitalization isn’t just about automating existing processes. When we think beyond the obvious, we can use technology to design new workflows that better support the organization’s mission. The devil is in the details—and it’s the end user who often feels the pain of clunky systems and knows exactly what could be improved.

3 Success factors for employee-driven innovation and digitalization

1. Start small - and scale what works

One of the most common mistakes in digitalization is trying to solve every problem with one big, complex system. A more effective approach is to begin with a small, well-defined process and build from there.

Example:

A Swedish region digitalized their grant application process, which previously required over 1,000 signatures per month across paper forms and Excel sheets. By starting with the actual needs of case handlers, they created a transparent and user-friendly digital workflow. Once that process was in place, they realized the same solution could be adapted for conflict of interest declarations—and later, other processes across the region.

2. Create a culture where innovation can thrive

Technology alone isn’t enough. Successful innovation requires courage, structure, and the right conditions.

• Political support: Innovation should be a strategic priority, with budget allocated for development projects—even those without short-term ROI.
• Structural changes: Create new forums, roles, and working groups to support long-term innovation. It’s not enough to rely on passionate individuals; innovation needs visibility in the organizational structure.
• Courage and leadership: Perhaps most importantly, successful innovation requires bold leadership and a willingness to challenge the status quo.

Takeaway: When innovation is treated as a long-term investment—not a short-term project—your chances of success increase dramatically.

3. Involve and empower employees from day one

A common roadblock is that employees don’t feel included in the change process. To build ownership and engagement:

• Identify key people: Find employees who are passionate about improvement—and give them real influence.
• Build trust: Show how the changes benefit both the organization and the individual.
• Create structure: Clear processes, active leadership support, and well-defined forums make it easier to drive change.

Once the wheels are in motion, make sure innovation is supported across the organization—not just by isolated champions.

Common roadblocks - and how to overcome them

❌ Fear of change and unclear value

➡️ Start small, show results quickly, and highlight success stories.

❌ Lack of internal skills or resources

➡️ Identify internal innovators—and supplement with external expertise when needed.

❌ Overly complex systems blocking progress

➡️ Choose modular, flexible platforms that integrate easily, rather than building monolithic all-in-one solutions.

Conclusion: Employee-driven innovation is the way forward for the public sector

By involving employees early, focusing on real needs, and creating the right structural support, public organizations can:

✅ Build more efficient and sustainable work processes

✅ Improve the work environment and increase employee engagement

✅ Deliver better services to citizens

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