Interview of Siim Sikkut former CIO of Estonia and currently Managing Partner of Digital Nations
April 1, 2024
It was a great pleasure to conduct the first ever interview for DigiGov Central with Siim Sikkut, an integral figure in Estonia’s remarkable digital success, co-founded Estonia’s groundbreaking e-Residency program, significantly contributing to its triumph. Siim’s past role as the Government Chief Information Officer of Estonia underscored his expertise.
Presently, as the Managing Partner at Digital Nation Siim focuses on fostering forward-thinking digital societies. Renowned globally as one of the most influential figures in digital government by Apolitical, Siim has also released a book titled “Digital Government Excellence: Lessons from Effective Digital Leaders.”
Let me start by sharing, as Dina my main takeaways from the insightful and value-packed conversation that I had with Siim:
- Above all, prioritize making governments work for the benefit of their citizens
- Emphasize the importance of delivery over the novelty of ideas
- Address inefficiencies in current processes to streamline operations
- Capitalize on existing successful cases and elevate them to higher levels while starting new ones next to them
- Continuous funding is imperative for sustained improvement in digital transformation initiatives
- Allocate resources for ongoing experimentation within the government to prevent regression
- When lacking skills or funding, leverage existing resources to initiate action and gradually expand
I am sure the same as me you would have liked the chat with Siim to continue for hours. Nevertheless, in this short interview all of us got to learn so much.
Interview Start
Dina:
How would you introduce yourself, Siim?
Siim:
I am from Estonia, and my background is deeply rooted in government service. After completing my bachelor’s degree in the US, I aimed to contribute to policymaking in economic development to foster growth in Estonia, which was still a less affluent country at the time. Although I don’t have a formal background in technology, being part of a generation in Estonia exposed all of us to the internet and computers in the mid-90s, we had an inherent understanding of their potential impact, which fueled my optimism about their role. Recognizing Estonia’s potential in digitalization, I seized the opportunity to become advisor to the Prime Minister on all things digital. That started my decade in steering Estonia toward harnessing the full potential of digital technologies, with last 5 years serving as Government Chief Information Officer for the country. My term ended in early 2022, and then I shifted my focus to collaborating with government leaders globally to help them start and deliver digital change successfully as the Managing Partner at Digital Nation, an advisory company.
Dina:
What are you most passionate about?
Siim:
Meaningful change and seeing it through to delivery to witness its impact. Whether as an advisor or leader, I am driven by observing how we are effecting change, both in people and in government.
Dina:
What was your time in government really like? Estonia is always praised as the pioneer in global digital government. However, what was it like from within? What was the most significant moment during your term?
Siim:
I was part of the third or fourth generation of digital government leadership in the country, building on the foundations laid already from the late 1990s onwards. Estonia stands out, as digital practices are ingrained in how all things are done in daily lives. The challenge to me was to elevate it to the next level while preserving its existing good basis – the services that had been built, and the infrastructure beneath.
Two moments that marked meaningful change for me were, firstly, the launch of the e-residency program in 2014. It allowed anyone worldwide to become “an Estonian” digitally by getting a Estonian digital ID and running a company full digitally without visiting Estonia. This brought to the country new economic activity through new users. It wasn’t just about improving existing processes; it was about creating entirely new value. On launch the interest was extremely high and beyond our expectations, so this even caused the website to go down due to the share volume of signups. This massive interest highlighted that we were about to bring live something really unique. Secondly, witnessing the impact of AI in government was significant. When I started as CIO, the government wasn’t using AI. We initiated an accelerator program in 2018-19 with the hypothesis that Estonia with our small size could leverage AI vastly. This move opened new avenues of productivity and made Estonia a frontrunner in governments in practical AI use.
Dina:
How did you realize e-residency was an opportunity for Estonia?
Siim:
The idea had been circulating for years. Estonia had built up digital services for entrepreneurs, but if a foreign national wanted to engage with Estonia, it required their physical touchpoints. This created a dual system and added unnecessary steps and processes for the companies involved. The initial aim was to reduce this inefficiency for even the existing foreign investors. There were three main founders who took the floating idea and made it happen: the Government’s former CIO Taavi Kotka, myself from the PM office, and Ruth Annus who was in charge of the identity policy field. The idea itself was not new, but the key was in its implementation.
Dina:
In many governments, there are problems that everyone, from experts to users, are aware of, but it often takes a critical executive decision to address them. How did you take the step forward with the e-residency program? Was it about leaving a legacy or responding to a critical moment of popularity that needed to be addressed?
Siim:
As three founders, we were part of the same reform initiative and joined forces together. Both the Government CIO and PM digital advisor roles had been recently created and us brought in to instigate noticeable change. We noticed the possible potential of e-Residency as a concept, made it part of fresh country-wide master plan and one of its flagships – that was the base to start running with it, as then it was all about elaborating on the details. I took the co-lead because my role involved coordinating between ministries, which was facilitated by my position in the PM office.
Dina:
What was the transition like from being an advisor to the PM to becoming a GCIO?
Siim:
It was quite smooth because we had previously worked together with former GCIO as a tandem, I knew the people, and it felt like a continuation. When transitioning, it boils down to assessing the task at hand: do you need to reboot things or continue the positive aspects and build upon them? In my case, I stepped in and focused on progressing and elevating to the next level. It wasn’t a revolutionary shift; it was a logical evolutionary step.
Dina:
What skills are essential for a CIO?
Siim:
In my book “Digital Government Excellence”, I’ve conversed with many former peers holding similar positions in digital government across various countries. These 20 remarkable digital leaders come from diverse backgrounds, but their success lies in their hands regardless of their backgrounds – practical skills you can build up. What truly matters are the inherent leadership attitude: are you leading or being led? They were all proficient leaders in team-building, fostering a conducive culture, self-management, strategizing, and following through with daily routines. This all can be learned. But you got to have within you an active mindset where you see yourself as a leader.
Dina:
You’ve emphasized the significance of the team, a primary asset. What was your management approach?
Siim:
Regardless of approach, managing teams in government can be challenging. You got to look realistically, what are the chances of building a competent team? Do you have the necessary resources or talent? Often, you don’t have direct control over these factors. In my case, we often navigated between extremes, having some resources and people. However, by proving our worth in delivering even with the initial team you get, you could always ask for more then – cause delivery brings you notice, and credit. Similar to startups, securing funding relies on having a capable team and leader that delivers both products and growth. Getting things done gets you funding for more capacity.
Dina:
What was your day-to-day experience like? What kept everything together to propel progress?
Siim:
It involved classical leadership principles—establishing a shared vision, mission, or equivalent, and cultivating a culture to reach those goals. In our case, we sought individuals with a strong can-do work ethic and self-starting ability. The ability to see projects through, tackle challenges, and having managers who could then eliminate bottlenecks from people’s way were essential focuses for my leadership team.
Dina:
Throughout your role, what challenges did you encounter as Siim? What was behind the curtain?
Siim:
In Estonia, we stumbled when things were made overly complex or too big. And we stumbled when change management wasn’t properly executed. Digital transformation involves more than just technology; it’s about engaging people, effective communication, and addressing resistance. Classic change management elements that need systemic implementation within the government. That is what it takes to make digital transformation a success.
Another challenge was that our government was not previously putting the user at the forefront. Estonia developed many impressive services, but they weren’t always user-friendly. My biggest struggle was the need for continuous improvement, especially with new technologies requiring investment. Without consistent funding, it’s challenging to progress. I couldn’t persuade the politicians adequately. I had eight ministers during my tenure as CIO, and one lasted only a day. There wasn’t enough political leadership to propel progress. It was challenging; we knew how to do an excellent job but lacked resources. Being understaffed in this regard was exhausting, as every day you are delivering below your potential in that sense. But the wins we made along the way – the impact we brought to services and thus people – these kept us going.
Dina:
How do you balance serving citizens best while convincing politicians to invest?
Siim:
It’s crucial to try and communicate the value, but the tricky part is politicians often prefer glamorous and immediate results over radical improvements. Sometimes funding arrives too late, akin to fixing a house when it’s already burning. Way too often, a crisis is what incites action – like a cybersecurity mess. Better communication of risks is essential. It might sound naive, but politicians need to grasp what digital entails. This understanding is a learned skill, a question of leadership evolution.
Dina:
Why did you decide to leave the government?
Siim:
After a decade, even the work on change became routine, almost predictable. I believed Estonia needed fresh perspectives, and I chose to leave before I became a bottleneck as the veteran guy who has seen it all and is stubborn to new ways. Moreover, I am still young, leaving the office before I turned forty. I felt it was time to explore broader opportunities, maybe even assist another government in surpassing Estonia.
Dina:
You often liken digital government to a startup, why so?
Siim:
To me, a startup embodies the ultimate successful transformation journey —you begin small and then grow substantially. You experiment on a small scale and scale up what works. There’s a wealth of healthy thinking habits and working practices within startups that, if applied more in government, could significantly enhance digital transformation in this very traditional sector. This approach, if adopted more in government, could amplify the success of digital transformation. For example, that is why we consciously built and ran the e-Residency programme, calling and managing it as a governmental start-up.
Dina:
Do you believe the leaders mentioned in your book share the same perspective on digital government as a startup?
Siim:
In some ways, similar messages are reiterated, such as being user-centric or the importance of managing the change. These elements are expressed in different terms.
Dina:
Why did you write your book, and where did it all begin?
Siim:
When professionals meet, they exchange experience – and they ask for each other’s experience. How are you solving this or that. Government digital leaders aren’t much different. They discuss how to align agencies or enhance AI utilization. All their practical challenges are recurring issues themes globally. Most countries share similar strategies. My aim was to emphasize the necessity of learning from each other and bringing to a wider audience the conversations that happen between the good leaders. Sharing their outstanding experiences with others more widely than had been done before.
Dina:
What are the key messages you consolidated from the experiences of different leaders?
Siim:
It’s not groundbreaking, but the crux lies in delivery: in simply getting things done. As a leader, managing delivery is vital. All the way to how you manage your own work – your calendar, how to you deal with stakeholders, your team. You need to follow through constantly on your key priorities, for example, and there are several methods for it you can read in the book.
Overall, there’s plenty of “what to do” advice on digital government globally but insufficient guidance on “how to do” digital government effectively, and that’s where Digital Nation comes in. We offer practical, action-based advice, not just an excellent plan on paper.
Dina:
Can you explain your current role in Digital Nation, how you assist various governments at different stages of digitization and political consensus?
Siim:
We are built as a pool of experts, allowing us to offer tailored expertise to specific governments on anything and everything digital government and policy related. Our experts do not come just from Estonia but globally because no single country has it all figured out. We make available to our clients insights on both the challenges and successes—ranging from strategy to delivery, design, and mentoring their teams. We provide expert support and work with government leaders on how to make digital change actually happen.
Dina:
What do you envision as the future of government from your perspective?
Siim:
In the near future, AI virtual assistance becomes the interface. For instance, if your passport expires, it might ask you, “Hey, Siim, do you need a new passport?” Beyond technology, I believe the crux is to genuinely make governments citizen-centric, which requires more effort – and whatever the technology is behind it. Making government work for the people has to be the future. It’s not solely about technology; it’s about fundamentally altering how governments operate. Thirty years down the line, I believe governments will still exist given the role they have but in a different form and shape.
Dina:
Citizen-centricity is also what got me personally to be interested in digital transformation of government, having citizens as active participants in and government, to reimagine the relationship between the citizen and government. Is this feasible? Or are we drifting away?
Siim:
We cannot be drifting away or else we will be losing power. No government cannot afford to not be like that down the line.
Dina:
As someone passionate about meaningful change, what are your next steps, Siim?
Siim:
For me and our team, it’s about Digital Nation’s growth in assisting governments worldwide. Our moonshot would be to help build up a country to be digitally better than Estonia – the best digital government of the world of tomorrow. If there’s a government leader reading this and wants to honestly make it happen, let’s talk.
Interview End
I am sure the same as me you would have liked the chat with Siim to continue for hours. Nevertheless, in this short interview all of us got to learn so much.
For me – realizing that no country possesses a perfect blueprint for success; all nations are in a continual learning phase, including Estonia, often regarded as a shining example – enhance government productivity through continuous incremental steps, akin to start-ups, and subsequently scale up iteratively, avoiding a big-bang approach – avoid undertaking overly large, complex projects with too many simultaneous moving parts and instead having constant delivery – effectively communicate risks to politicians to garner better understanding and support – cultivate healthy thinking habits within government operations to facilitate successful digital transformation, similar to start-ups are some of the lessons that I shall embody in my thinking going forward.
Interview done by
Dina Richani, is a consultant with a rich background of working with various governments and experience at renowned institutions like the United Nations and World Bank.
