Information Technology andInnovation in Government

Decision FrameworksDecision FrameworksDecision FrameworksDecision Frameworks

ΔΔI + I + ΔΔW + W + ΔΔL L ΔΔVV3/10/20133/10/2013

Agenda

1. Our issue and key concepts, in a sentence

2. Applications/actions -- from practitioners

3. Conclusions

Our issue…

How can we maximize public value…

by working together,…

using information and technology…

for improved divisions of labor,…

where implementation is difficult…

and continued innovation essential?

How can we maximize public value...

OPTIONS, MEANS

Δ I = Info and TechΔ W = WorkflowΔ L = LeadershipEtc.

VALUES, ENDS1. Productivity2. Equity3. Legitimacy4. Community5. Privacy6. Etc.

++Other Variables

1. Values:Values: What do we care about? Tradeoffs?

2. Options: Options: What can we do?

3. Options: Options: What can we do? Analyze, then choose actions, further study.Analyze, then choose actions, further study.

… by working together…

Group action supports economies of:• scale – e.g., armies• specialization – matching skills and interests• specialization – learning via repetition

VALUE

But coordination difficult: Who gets the value?• Let trades motivate voluntary adjustment• But what about public value and threats from:

• slow decisions, externalities, inequities?

Take advantage of specialization and scale.Take advantage of specialization and scale.

… by working together…

hierarchy of authority

shared goals,transparency

Develop authoritative governance, controls. Develop authoritative governance, controls.

…using information and technology…

ElectronicElectronic – efficient, fast, interactive DigitalDigital – yes or no; extremely accurate; for data, voice,

video, integration Processing Processing – if then, a reduced need for “handoffs” Over networksOver networks – here there, remote and

asynchronous handoffs With incredible productivity growthWith incredible productivity growth -- through Moore’s

law and Metcalfe’s law

Using Digital Data, Processing, Communications

…for improved divisions of labor…

x x

x x xrules rules rules rules rules rules

1. Remote, asynchronous service – fewer interruptions/trips

2. Self-service, redesigned service – fewer handoffs/delays

hierarchy of authority

…for improved divisions of labor…

Supplier/Partner NEW ORGSupplier/Partner

rules rules rules rules rules rules

1. Remote, asynchronous service – fewer interruptions/trips

2. Self-service, redesigned service – fewer handoffs/delays

3. Transparent, outsourced service – better specialization

online access

enterprise integration

community of practice

Expand networked relationships and negotiation.Expand networked relationships and negotiation.

…where implementation is difficult…

conf

usio

nVision: plans, pilots; stake-holder involvement and education

Action: Just do it; line leadership for projects

Judgment: care, commitment;

“slow trigger, fast bullet”

Clout: negotiation, control;

align incentives,maintain focus.

conflictPlan, negotiate, and act Plan, negotiate, and act

to resolve confusion and conflict.to resolve confusion and conflict.

…and continued innovation essential?

frequ

ency

of

steps

take

n

EVOLUTIONARY

Total Quality Management(significant investment)

STABLE

Specialized Planning Staff(least investment)

2 31

TURBULENT

???The Learning Organization

(most investment)

REVOLUTIONARYREVOLUTIONARY

Reengineering(very significant investment)

size of steps taken

Engage in adaptive leadership Engage in adaptive leadership as turbulence increases.as turbulence increases.

Our issue, in sum…

Analysis: How can we maximize public value…­ Analyze risks/returns, then choose actions, further study.

Governance: by working together,… Take advantage of specialization, scale, and authority.

Technology: using information and technology…­ Use digital data, processing, and communications.

Workflow: for improved divisions of labor,…­ Expand networked relationships and negotiation.

Leadership: where implementation is difficult…­ Plan, negotiate, and act to overcome confusion and conflict.

Innovation: and continued innovation essential?­ Engage in adaptive leadership as turbulence increases.

The system we’re exploring…

ΔΔI + I + ΔΔW + W + ΔΔL L ΔΔVV• Digital data

• Processing

• Networks

• Remote

• Self-service

• Outsourced

• Confusion

• Conflict

• Innovation

• ProductivityProductivity

• EquityEquity

• TransparencyTransparency

Theory and practice should inform each other.Theory and practice should inform each other.

The system we’re exploring: Governor King’s, for example…

ΔΔI + I + ΔΔW + W + ΔΔL L ΔΔVV• Digital data – quantity, timeliness, multi-media• Processing – interactivity, accessibility, video• Networks –class, friends, parents, globe

• Remote – 24/7 access, works for small blocks of time• Self-service – more student interaction, less lecturing• Outsourced – for specialized courses, service

• Confusion – market to local schools, parents• Conflict – negotiate with legislature re: funding• Innovation – use ~1% of budget for major innovation

• Productivity – long-term skills, jobs, $/capita• Equity – reduced poverty, gap between rich/poor schools• Transparency – performance by state, district, school, grade, class, student

Much at stake…

1.1. PRODUCTIVITY:PRODUCTIVITY: ­ IT as #1 investment since 1995; the major factor behind

recent productivity growth­ Huge upside potential calling for diffuse action with major

risks. Essential in a global, knowledge-based economy

2.2. EQUITY/FAIRNESS:EQUITY/FAIRNESS: ­ Easier to reach dispersed poor, but major educational

challenges and troubling trends

3.3. TRANSPARENCY/LEGITIMACY:TRANSPARENCY/LEGITIMACY: ­ New capacity for transparency, but IT controlled (at least

initially) by incumbents. Failures erode trust

These will be YOUR challenges…These will be YOUR challenges…

Will you be the frog?

Agenda

1. Our issue and key concepts, in a sentence

2. Applications/actions -- from practitioners

3. Conclusions

For better diffusion, bridge the gaps…A

dopt

ion

The GAP –a HUGE problem Economies of standardization

Economies of innovation

Extension by “fast followers” (settlers)

Invention by “first movers” (pioneers)

The GAP –a HUGE problem

GAPS: Pioneers vs. SettlersGAPS: Pioneers vs. SettlersCIOs vs. CXOsCIOs vs. CXOs

Practitioners vs. AcademicsPractitioners vs. Academics

“If you want to be an effective leader in a

networked world, you need to engage IT issues.”

Eight ImperativesEight Imperatives

Services1. Reshape work and strategies2. Innovation, not automation3. Best practice implementations4. Better budgeting/financing

Governance5. Protect privacy and security6. Ec development partnerships7. Equal opportunity/communities8. Digital democracy

Now moving to the next wave…

VALUEp

ene

trat

ion

and

be

nef

its

ACCESSonline,

not in line

On a curve: • A step• S.O.P. change

REDESIGNcross-boundarytransformation

Changing curves:• A leap• Crisis change

TIMEtime and effort

……with new leadership/governance challengeswith new leadership/governance challenges

Next wave challenges…PLANNING AND DECISION-MAKING1. Technology Assessment: Understanding what's possible and ripe for

application2. Community Assessment: Understanding readiness for change across

enterprises, policy communities, and the globe 3. Strategic Risk Assessment: Balancing the full and real risks and

rewards

IMPLEMENTATION AND GOVERNANCE4. Communications and Negotiations: Mobilizing support and

overcoming opposition 5. Financing: Overcoming budgeting myopia and building cross-boundary

business models 6. Standards: Coordinating via limited but leveraged applications of

authority7. New Institutions: Sustaining new behavior through new structures 8. Adaptive Leadership: Adjusting the pressure cooker

Questions for analysis. . .

ΔΔI + I + ΔΔW + W + ΔΔL L ΔΔVV What new capabilities are available?

What new divisions of labor are possible?

What are the expected impacts on productivity, equity, legitimacy, and other values?

What can be done to make it happen?

Are the returns worth the risks?

What should be done? Now? Later? To reduce uncertainty?

Keep in mind…

This stuff is our future: imperative, not really elective.

The service agenda has been working pretty well, with better online access relatively easy; integration and transformation are more difficult.

The governance agenda is challenging and uncertain, with fewer models to copy from. We need to leverage what is being learned, especially re: financing, economic competitiveness, and transparency.

For both agendas, leadership is required.

This stuff is our future. It’s up to you.It’s up to you.

ΔΔI + I + ΔΔW + W + ΔΔL L ΔΔVV

Let’s Go!!!Let’s Go!!!