eGovernments New Imperatives

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eGovernments New Imperatives
Governor Jim Geringer May 29, 2002
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This Presentation is about

• Tight Budgets
• Big expectations
• State have decreased
• But Fed in high cost areas have increased
• Dont forget local government
• Resource problems that may be only allocation
  problems

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eGov Who really gets it?

• Have we properly defined Digital Gov?
• Centered mostly on transactions
• eGov increases productivity, but does it affect
  service results?
• Value added services
• Performance based budgeting
• Enterprise approach
• Functional integration
• Investment model

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Bringing it on home

• The New Economy is about productivity and
  innovation
• eGov must do likewise to meet citizens
  expectations about access and quality

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Great Expectations

• States and locals are in difficult financial
  straits
• Reduced revenues
• Medicaid costs up 14 this year, 9 next
  employee health insurance is up another 30
• Increases expected by P-16 Education
• Public assistance costs could increase with
  reduced employment
• Big buildup in Homeland Security

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Fiscal Outlook for the States

• Fiscal 2002 enacted budgets were reduced in
  thirty-nine states by approximately 15 billion
  20 states more than in FY2001

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-15B
-6.2B
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Federal Increases in Education

• Reading First 1.0B
• Teacher Quality 9.0B
• Accountability 0.4B
• IDEA 1.3B
• Title 1 1.8B
• TOTAL 14.5B

Source www.whitehouse.gov, www.nochildleftbehind
.gov
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BioTerrorism

• 4.3B in Budget Request
• Much of the focus of the BioTerrorism grants is
  on building capacity through Public Health,
  hospitals, labs, surveillance
• Medicaid and other health services are enhanced
  as a result

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Homeland Security

• 10.6B in FY02, 18.2B in FY03
• Some of the Possibles that states might consider
  to leverage other program benefits
• SmartCards Benefits transfer to clients
• Public Safety Networks First responders, lower
  costs to local governments
• Integrated data bases
• Security against cyber terrorism helps all
  security
• GIS (more than maps Interrelationships)

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• Education
• Homeland Security
• Medicaid
• Increased federal dollars allocated for each of
  the above exceed the 15B reduction incurred by
  the states in 2002

More Obligations, Less Money?
or is it an allocation problem?
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What happens to IT Budgets?

• 50 States, 3200 counties, 19,000 municipalities
• Could IT be a ready target for reduction?
• Is IT integral or an add-on?
• How do you calculate IT costs? Benefit?

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Challenge of ChangeHow well informed are
government executives on IT issues?
86
CIOs
CEOs
45
Agency Directors
36
Executive Oversight and Budget Personnel
28
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Legislative Bodies
0 50 100
Source JFK School of Government, Harvard
University
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How Does Digital Government or eGov Mature?

• Web presence
• Passive displays, agency specific
• Interactive web
• Hot links, still mostly gov by agency
• Transactions on the Web
• Highly interactive, prompts, function portals
• Imbedded technology and Interactive Web
• Enterprise interactivity
• Service enhancement
• Data driven results focused not just process
• Economic and business partnerships

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Much of Government is Transaction Centered
Price of Government Service Transactions
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Cost of Teller Transaction
1.50
0.30
0.01
1985 (Bank)
1995 (ATM)
2000 (Internet)
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Length of Time to Execute a Long-Term Gas Contract
2-3 years
9 months
2 weeks
lt 1 second
1981
1989
1997
2000
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eGovernment Business Transactions

• Business and tax Forms on line
• Downloadable, mail in
• Web interactive, real time
• Electronic Payment
• License, permit, registration, taxes, utilities
• EFT or credit card
• Records storage and retrieval

Source Digital States 2001 Progress and Freedom
Foundation
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Social Services Transactions

• Benefit application forms on-line, preferable
  web-interactive
• Client history and contact available through
  email or web
• Job Search and application
• Smart cards for benefit distribution and client
  history
• Child support payment and enforcement

Source Digital States 2001
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Public Safety TransactionsLaw Enforcement and
Corrections

• Digital wireless statewide network
• Interoperable communications
• Data entry and retrieval
• Traffic queries, reports
• Crime investigations
• Tele-
• Health
• Depositions

Source Digital States 2001
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Judicial Transactions

• Integrated data systems with law enforcement,
  social services
• Court decisions on line

Source Digital States 2001
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Legislative and Elections

• Bill Status, text, amendments, history
• Election
• Requirements
• Returns
• Contacts

Source Digital States 2001
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Technology Enables Productivity
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Transactions can be reduced or eliminated that
saves butHave you added value to the service
or only saved ?

• 24/7 has shifted the responsibility for
  transactions from government to the client or
  customer. Value through convenience

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What Value does your agency add?

• Value time divided by elapsed time
• Value time is the amount of productive work time
• Elapsed time is from the time work starts until
  the time its finished
• Ideal ratio of VT/ET 1
• In a typical organization, value added is less
  than five percent

Source (Dr. Michael Hammer to NGA Aug 2001)
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Reallocating Resources

• The solution lies in eliminating non-value added
  work, which only adds costs, errors, delays, and
  inflexibility.
• Current employees can be moved to higher skill
  and value areas
• Processes can be redesigned or eliminated
• Embedded Technology is the enabler, data is
  essential

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A Technology Solution must deliver value or
benefit

• Technology by itself does NOT deliver benefit
• Technology enables process transformation
• which may deliver benefit at lower cost or
  better quality

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Understanding IT is as hard as Understanding
Performance

• 26 states resorted to across-the-board cuts to
  balance their current year budgets
• Only 10 states chose to make program changes
• Why arent performance budgeting and enterprise
  management used more effectively?
• Standard Budget Resources needed to
• Perform the same work or
• Deliver the same services

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Managing for ResultsFifteen years later

• Performance Based Budgeting was widely popular,
  then pushed into the background when state
  revenues were flush
• Agencies now are being asked to justify increases
  or even to take less money
• Agencies often dont know a programs full cost,
  how to integrate annual performance plans with
  budget justifications or even how to measure or
  evaluate performance

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Enterprise approach to managing state government

• Data-driven evaluation of results is essential to
  performance evaluation but impossible without
  technology
• How should states apply technology to collect
  data real-time and over time ?
• We are overwhelmed with data. What we need is
  data that can enable or inform decisions,
  especially in budgets
• How will you justify substantial increases
  without measurement of results?

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Local Government to Feds, StatesNo More Mandates

• Tell us what you want to achieve, not how to do
  it
• Give us flexibility, well give you
  accountability
• Who sets performance criteria?

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• Mayors, governors, CIOs, legislators, agency
  folk all have to understand the value of shared
  responsibility and functional management
• Functional areas dont follow agency boundaries
• Enterprise management is essential
• Continuous improvement is a necessity
• Frequent reinventing of government is a sign of
  poor strategic thinking and a route to mediocrity

Dr. Michael Porter, Harvard Business Review
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Technology is the easy part

• You have to change an entire culture

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Who Moved My Cheese?

• Change Happens
• They keep moving my cheese
• Anticipate Change
• Get ready for the cheese to move
• Monitor Change
• Smell the cheese often so youll know if its
  getting old

Spencer Johnson, M.D.
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The best way to predict the future is
to create it. --
Peter Drucker