I've just picked up a quote from a Demos paper on unlocking innovation - "in most government bureaucracies, it is not a part of the culture to actually listen or ask questions of the people who are going to live with your policies". The article is from Denmark talking about Mindlab but is eually relevant in the UK.
Whilst Transformational Government isn't only about knowing what citizens and businesses need and how they would like government to interact with them it's a good place to start. As the Danish article makes clear civil servants will need help / facilitation to enable them to learn from the people affected by their policies, it isn't enough to say " you must consult".
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