From vision to reality
Department of Service and Innovation Annual Report 2025
Project benefit assessment
To better capture the real impact of its projects, the Department of Service and Innovation developed and introduced a benefit assessment framework. This methodology is now a central part of the department's project management, clearly demonstrating the value that investments and improvement projects deliver.
Búi Bjartmar Aðalsteinsson, digital transformation lead at the Department of Service and Innovation, has guided this work from the beginning, shaping its philosophy and overseeing its integration into daily operations. In this interview, he discusses the framework's background, key lessons learned, and its overall impact on operations.
Public debate usually centers on what services cost rather than what they deliver. We set out to invert that perspective.
Benefit assessment reveals the real value of projects
Over the past few years, the Department has increasingly prioritized benefit assessments to highlight the tangible benefit projects bring to residents and staff alike. Instead of looking only at expenses, the goal is to understand the actual value services create.
"At its core, benefit assessment answers a simple question: How are we doing?" says Búi. "Public debate usually centers on the cost of services rather than their outcomes. We set out to flip that approach."
The Department developed this methodology alongside Reykjavík City's digital journey and its corresponding investments. We prioritized simplicity so measuring outcomes would feel like a natural part of daily work, not an extra chore. Búi notes that focusing primarily on two core metrics—time and cost—provides a clear picture of what projects actually achieve.
Part of everyday practice
The benefit assessment is now a standard part of how the Department manages projects. Gathering data from the very beginning of every project makes tracking progress and evaluating outcomes much easier.
"The rollout hasn't been without its challenges. It requires people to think differently about their projects," says Búi. Measuring direct impact proves harder in some cases, like infrastructure projects or foundational technical solutions. However, awareness of its importance continues to grow.
The benefit assessment has also positively shaped the Department's culture. Staff get a clearer picture of project performance and the real-world changes they drive. People typically hear more about what goes wrong or proves difficult. Tracking outcomes highlights everything going well—and there is plenty of it, Búi adds.
For instance, we saw an 80% drop in in-person visits to service centers. That sharp decrease clearly shows the profound difference simple improvements can make.
Clearer decision-making and a broader view
Framing project outcomes in measurable terms makes it easier to direct investments responsibly. Instead of isolating individual elements, benefit assessment builds a comprehensive picture of a project's impact.
It gives people a genuine sense of the scale of what we are achieving, says Búi. We look beyond individual projects to see how our overall investments pay off.
Interest in this methodology continues to grow, both within the City and beyond. The Department of Finance and Risk Management has already expressed interest, and hopefully, more municipalities and institutions will adopt similar frameworks. Wider adoption would allow organizations to benchmark against each other, share insights, and continuously improve.
Measurable results in practice
The rollout of online building permit applications serves as a prime example of these benefits. Though the changes were relatively targeted, they delivered a massive impact.
The streamlined process saved both time and money for service users and staff, says Búi. "Among other things, we saw visits to service centers drop by as much as 80%. That striking reduction proves how much of a difference simple improvements make."
People are often surprised by the sheer impact these projects have.
Positive responses and growing understanding
Overall, the response to these impact evaluations has been overwhelmingly positive. Many note that the results surprise them in both the scale and reach of the projects. Previously invisible benefits become both visible and measurable.
"People often express surprise at the actual impact these projects generate," says Búi. We habitually focus on challenges and failures, but benefit assessment shifts our attention to our successes—which happen more often than we realize.
A chance to pause and look at the big picture
This framework gives staff a chance to step back and evaluate the broader context. Moving past daily challenges or isolated projects makes it easier to see how incremental changes deliver tangible benefits for residents and City operations.
It also reminds everyone why we embarked on this digital transformation in the first place. Furthermore, it proves we aren't developing services just for the sake of change, but to genuinely improve them and maximize public funds. Benefit assessment puts that reality in black and white.
Positive impact on public spending conversations
Measuring impact also positively influences discussions around public spending. Proving what investments actually deliver builds trust and clarifies value for both the City administration and the public. Staff members feel a deeper sense of purpose when their contributions become visible and quantifiable.
Búi hopes more organizations will adopt similar frameworks. "If more municipalities and public authorities begin assessing benefits this way, it opens up opportunities for comparison. We can identify where others excel and learn from them, helping everyone develop better services and use resources more effectively."
