Strengthening Australia’s Reform “Muscle” via SLO: Evidence and Practice

Governments worldwide face urgent, complex challenges, from entrenched disadvantage and climate change to geopolitical instability and AI. Yet Australia’s recent track record on major policy reform has been limited, raising concerns about the public sector’s capacity to respond effectively. 

This inertia stems partly from risk aversion within the public service, driven by fears of public backlash, reform fatigue, and lack of buy-in. Australia’s federal system adds complexity, with unclear responsibilities across multiple actors, making alignment difficult. This can weaken public trust and set off a cycle of declining confidence and effectiveness in government. 

Major reform requires system-wide collaboration, with governments convening resources, expertise, and stakeholders around shared goals. This demands a commitment to finding the best solutions, not just politically convenient ones, and strengthening the public sector’s reform “muscles”, including capabilities, practices, mindsets, and trust. 

In this context, this research project, co-funded by ANZSOG and the South Australian Department of Premier and Cabinet, and led by Professor Sara Bice at ANU’s Crawford School, will explore how Social Licence to Operate (SLO) can support major reform. SLO refers to the ongoing acceptance of a policy or initiative by stakeholders and communities, built on trust, legitimacy, and procedural fairness. 

While SLO is well-established in industries like mining, its application in policymaking is still emerging. The project examines how SLO is understood in the public sector, whether its principles are transferable, and what capabilities are needed to build and sustain it. 

This research will be valuable to public sector leaders, policymakers, and senior advisors seeking to drive major reforms with stronger public support. It will also interest government agencies, think tanks, and academics focused on governance and public trust. Community groups and advocacy organisations will be able use the findings to better engage with policy processes, while political leaders may draw on the insights to build legitimacy and navigate complex reform agendas. 

The research started with a review of academic and government literature to identify the conditions, capacities, and practices, such as strategic planning and engagement strategies, that help governments earn and maintain social license for reform.  

The research team will then develop in-depth case studies of successful major policy reform in Australia and internationally. The case studies will be selected to explore how reform works in different contexts, including diverse policy areas, varying levels of complexity, and examples of multi-level and cross-agency and cross-jurisdictional coordination.  

The final report will define SLO in the context of major policy reform, provide case studies and key lessons, and outline key guidance for system-level innovation to build and maintain the muscle for major policy reform.   

With its focus on understanding the forces shaping SLO and reform muscle across diverse case studies and policy contexts, the project will provide valuable cross-jurisdictional lessons and actionable insights for the public service to address the complex challenges of the 21st century.  

A literature review was undertaken to investigate how is SLO defined, understood and operationalised in Australia and internationally. 

The review highlights that specific application of the SLO concept to public policy is rare. However, proxies for social licence such as acceptance of policy reform are commonly used. Likewise, components of social licence, particularly trust and legitimacy are considered fundamental to reform success, but the relationships between these components remain poorly elucidated. 

The review also identifies and discusses the key mechanisms such as participatory processes by which governments seek policy acceptance and trust. It also identifies the factors such as politicised decision-making that influence reform success. 

These findings provide an evidence-based conceptual model to guide pa set of case studies of reform in the next project phase.