government 2020 (v4.1 for pdf, dec2009)
TRANSCRIPT
© 2009 IBM Corporation© 2009 IBM Corporation
Government 2020and the Perpetual Collaboration Mandate
Lynn Reyes([email protected])
IBM Institute for Business Value
© 2009 IBM Corporation2
Long-term changes, varying by country and region, are occurring in the composition of populations
Economic interdependence is blurring social, political and cultural boundaries within a global context Societies and governments
are becoming more attuned to what the earth can provide and what it can tolerate
Individuality, consumerism at social and commercial levels demands that governments deliver to the same expectations
Technology adoption and use is changing the way individuals, business and public institutions function; and reshaping relationships between them
The range, nature andconsequences of threats(for example terrorism, armed conflict, tribalism, pandemics, natural disasters) are increasing
Source: Government 2020 and the Perpetual Collaboration Mandate,IBM Institute for Business Value study, 2008
Six powerful drivers are reshaping societies –and the way they are governed
© 2009 IBM Corporation3
The drivers compel a dynamic, continuous cycle of both strategy and execution, so a shared frame of reference is key
Implications
Manifestations
Desired PublicOutcomes
ConstraintsAspirations
Strategies
Drivers
Desired Outcomes
Strategies
Results
Actions
PublicSector
Drivers, Manifestations,Implications, Aspirations
and Constraints
Drivers, Manifestations,Implications, Aspirationsand Constraints
Drivers, Manifestations,Implications, Aspirationsand Constraints
Drivers, Manifestations,Implications, Aspirations
and Constraints
© 2009 IBM Corporation4
The future of every society is being shaped by the unique and specific manifestations of these drivers
United States• High immigration with cultural
diversity• Declining industrial base, job
shifts, trade deficits• Leading carbon consumer• Target of global terrorism• Technology innovator, consumer• E-readiness ranking*: 1
Belgium• Open services economy with high per
capital income, but slowing growth• Almost all urban population• High public debt• Low immigration• E-readiness ranking*: 20
Japan• High and rising median age (45.8 years)• Rising immigration but limited experience
with cultural diversity • High labor costs• E-Readiness ranking*: 18
China• Gender imbalance (1.14 males
and female under age 15) • Rapid industrialization, impact on
environment, urbanization• Minimal expectations of
government by citizens --government budget 18% of GDP
• E-readiness ranking*: 56
India• Low median age (24.8 years)• Growing service economy• Minimal expectations of government
by citizens; gov’t budget 16% of GDP• Rising resource consumption with
environmental impacts• Significant cultural diversity• E-readiness ranking*: 54
Brazil• Immigration and diversity• Moderate labor costs• Rising resource consumption • Minimal threat of global
terrorism• E-readiness ranking*: 42 * Source: e-Readiness Rankings 2008 – Maintaining Momentum, Economist Intelligence Unit, written in
cooperation with IBM Institute for Business Value, April 2008. http://a330.g.akamai.net/7/330/25828/20080331202303/graphics.eiu.com/upload/ibm_ereadiness_2008.pdf
Implications
Manifestations
Desired PublicOutcomes
ConstraintsAspirations
Strategies
Drivers
Implications
Manifestations
Desired PublicOutcomes
ConstraintsAspirations
Strategies
Drivers
© 2009 IBM Corporation5
EnvironmentalConditions are
Stable
Stabilize
ImproviseReuse
and “get it out”
Mobi lize on de mand
Miti gateAssure
EnvironmentalConditions areDisruptive
Responses must beAgile and Adaptive
Responses must beSteady and Consistent
We are here
Implications
Manifestations
Desired PublicOutcomes
ConstraintsAspirations
Strategies
Drivers
Implications
Manifestations
Desired PublicOutcomes
ConstraintsAspirations
Strategies
Drivers
Hard choices, fragmented intelligence … little time.Speed is of the essence
The recent global financial crisis – now a global recession –is one example
© 2009 IBM Corporation6
Drivers Implications (examples)
Changing demographics
§ Amplified demand on the physical and social infrastructure§ Acceleration in social, health and pension costs further
challenged by global financial crisis, upsetting budget plans§ National cultures in transition§ Increased accessibility by government
Accelerating globalization
§ Public and private investments must reflect new economicrealities and cycles
§ Economic interdependence grows, for example financial markets § Emerging and less developed countries will create more and better paid high tech jobs§ Talent (and related education programs) is more critical than ever to economic strategies§ Communication and cultural compatibility become differentiators§ Distribution and communication networks are becoming critical to global economy, stability�
We’re also observing some cross-cutting trends�
§ Ongoing effort to change the rules of the game of government§ Increased use of performance management§ Growth in providing competition, choice and incentives§ Drive to perform on demand§ Heightened focus on engaging citizens§ Increased use of networks and partnerships
� Source: Government 2020 and the Perpetual Collaboration Mandate, IBM Institute for Business Value study, 2008� Source: Six Trends Transforming Government, IBM Center for the Business of Government, 2006
Every nation (or jurisdiction)uniquely experiences the set ofdrivers and manifestations, theimplications of which officials
should understand
Implications
Manifestations
Desired PublicOutcomes
ConstraintsAspirations
Strategies
Drivers
Implications
Manifestations
Desired PublicOutcomes
ConstraintsAspirations
Strategies
DriversWhile the six drivers are nearly universal, specific implicationsand their magnitude vary by country and region, among others
© 2009 IBM Corporation7
What makes people “confident” in government?
What makes government “relevant”?
Today? Tomorrow?
Are we making “progress” towards our desired outcomes?
How do we “know”?
Are there desired public outcomes that we share? Do we have a shared understanding of what they mean?
NetworkNetworkOutcomeOutcome
Public Outcome
NetworkNetworkOutcomeOutcome
Public Outcome
A safe and sustainable food supply
Preserved, protected cultural heritages
“Good government”
A vibrant, thriving arts & humanities life
Fair access to markets
Protected peace
Improved collective problem-solving
An equipped and competitive workforce
Sustainable energy supply
Healthy environment
Sustainableeconomic growth Healthy communities
A relevant, accessible health system
Better ways to “connect”
Fair application and enforcement of the law
Attractive employment
Relevant, enforceable laws
Available, affordable money & credit
Positive relationships with global neighbors
A thriving innovation ecosystem
Mitigated security risks
Improved community well-being
Safe and reliable transportation
Affordable, accessible places to live
Vibrant, healthy industries
Prevented conflicts
Safe, responsible energy use
A relevant and affordable social safety net
Safer communities
Financial stability
ILLUSTRATIVEILLUSTRATIVE
LEGENDl Public Outcomel Civil Societyl Private Sectorl Public Sector
Figure adapted from: Barabasi, A. Linked, “Afterlink: Hierarchies and Communities”, p. 233. Penguin Group, New York, © 2003
© 2009 IBM Corporation8
What makes people “confident” in government?
What makes government “relevant”?
Today? Tomorrow?
Are we making “progress” towards our desired outcomes?
How do we “know”?
Are there desired public outcomes that we share? Do we have a shared understanding of what they mean?
Figure adapted from: Barabasi, A. Linked, “Afterlink: Hierarchies and Communities”, p. 233. Penguin Group, New York, © 2003
© 2009 IBM Corporation9
Are we making “progress” towards our desired outcomes?
How do we “know”?
How does our organization’s performance contribute to progress toward those outcomes?
How do we “know”?
There is work to be done to define – and distinguish – and align performance and progress
© 2009 IBM Corporation10
Each society’s desired outcomes, aspirations and constraintsstrongly shape and lead to the goals, ideals, decisionsand actions for progress
Drivers Desired Outcomes Aspirations (To …) Constraints
Changing demographics
§ See previous slide for examples
§ Provide the right balance between social security (safety) & social services
Political andoperational constraints§ Availability of budgets for government programs (fiscal sanity*)§ Citizens’ views of the role of government, for example government by contractors?*§ Organization & Management: Structure: speed and efficiency of government
processes, for example governing without boundaries* , results really do matter* and “expect surprises”*
Economic constraints§ Workforce skills, education and training (crisis of competence*)§ Availability of capital, the impact of regulation, bureaucracy, administration§ Scientific and technical capabilities, for example e-Government is only the
beginning*§ Increased global competitionSocial constraints§ Citizen expectations for working conditions; service, living standards; privacy
(security and privacy in the Flat World*); social responsibility (for example “green leadership”*),
§ Receptivity to real or virtual immigration§ Information overload*Other constraints§ Physical – Aging and/or damaged roads, bridges, telecom infrastructure § Natural tensions – for example Conflict between economic development needs and
environmental interests§ “Maturity” and “Readiness” of sectoral and/or social segments
Accelerating globalization
§ Sustain and grow industry vitality and competitiveness
Rising Environmental Concerns
§ Be a model for safe and responsible energy use
Evolving Societal Relationships
§ Embrace the best aspects of new approaches without undermining social stability
Growing Threats to Social Stability and Order
§ Promote stable societies within political borders while being engaged in the global economy
Expanding Impact of Technology
§ Demonstrate sustained and sustainable innovation leadership
Considering implications, aspirations, desiredoutcomes and constraints together in light of
the drivers sets the stage for suitable andspecific strategies
* Source: Ten Challenges Facing Public Managers, IBM Center for the Business of Government, 2008
EXAMPLES
Implications
Manifestations
Desired PublicOutcomes
ConstraintsAspirations
Strategies
Drivers
Implications
Manifestations
Desired PublicOutcomes
ConstraintsAspirations
Strategies
Drivers
© 2009 IBM Corporation11
Aligning drivers to aspirations and constraints forms thefoundation of effective strategy development
§ What makes us distinctive?
§ Where do we want to go? What does that look like?
§ What trade-offs can and should we make?
§ Where are we today? Where can we “leapfrog” others?
§ Are we ready to change? How do we get there?
– What are the risks and how do we mitigate them?
– What do we really need? Do we know who to talk to?
– What sequence of actions should we take? When?
– How do we best manage our stakeholder relationships so that they also take ownership in the change process?
How will strategies be adapted to an increasingly interconnected environment?
Resulting strategies should then be used to drive operational alignment
Implications
Manifestations
Desired PublicOutcomes
ConstraintsAspirations
Strategies
Drivers
Implications
Manifestations
Desired PublicOutcomes
ConstraintsAspirations
Strategies
Drivers
© 2009 IBM Corporation12
Collaboration is a catalyst to the future –a structural priority and crucial to operational success
Which of the following Government Structure Factors will have the greatest impact on your business in the next three years?
52.4%
42.9%
33.3%
28.6%
23.8%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Interoperability and Cross-agency collaboration
Fragment Funding Policies / Approaches
Other
Collaboration with private sector
Organization exceeding requests and issues
(n=21)
Collaboration has emerged as a key issue and a required competency
Source: IBM Business Consulting Services, The Global CEO Study 2008
© 2009 IBM Corporation13
• Leaders are as enthusiastic about collaborating with external partners as their private sector counterparts
• The challenges are profound:
– How to redefine the “enterprise” as a networkof public, private and nonprofit organizations
– How to encourage the flow of new ideasand nurture them through to adoption
– How to flexibly respond to rapidly changingconditions to fulfill the mission
Source: IBM Global CEO Study 2008; n (Global) =350; n (Government) = 107; Strong focus on Business Model Innovation type includes 6 to 7 scores on a 1 to 7 scale (69% of total population)
Global CEOs
Public Sector Leaders
Global CEOs
Public Sector Leaders
41%
67%
54%
67%
Work WithinOrganization
Intense Collaborationwith External Partners
41%
67%
54%
67%
Work WithinOrganization
Intense Collaborationwith External Partners
Enterprise Model Innovation Focus
Leaders are looking “within” and “outside” to innovateways of delivering existing and new services
© 2009 IBM Corporation14
� Reduce costs � Find new revenue sources
� Drive new regulatory initiatives
� Collaborate broadly and better
§ Do more with the same or less – hiring freezes, budget reallocations, contract renegotiations
§ Gain efficiencies through consolidation and shared services
§ Improve collection rates on declining tax bases
§ Gather new revenues from (e.g. enforcement and permitting, road charging)
§ Continue to streamline trade
§ Restructure governance and oversight of the financial sector nationally and globally
§ Improve internal and external collaboration within / across borders and institutions
§ Enable rapid assimilation and deployment of expertise and knowledge
§ Enable co-creation, ideation, scenario planning
§ Perform community outreach and education
� Drive innovative business models
� Ensure public safety
� Maintain social stability
� Stimulate economic activity
§ Grow new financial and delivery vehicles – asking the private sector to invest with government for long term stability and return
§ Shared risk-reward, benefits-based contracting, joint ventures
§ Regionalization and aggregation of smaller government entities
§ A protected and resurgentsegment in recession
§ Education remains a priority for stability and workforce development
§ Social services “safety net” must broaden
§ Many national governments will create stimulus packages – some, bold with the intent to position for long-term competitiveness –that will flow to consumers and industry.
§ Protect locally specific spending (e.g. tourism).
Especially in an economic downturn, governments will focus intensely on eight strategic priorities in the near- and mid-term
© 2009 IBM Corporation15
What will it take?A mandate of perpetual collaboration
But first, what is “Collaboration”?
§ A recursive process in a relationship …
§ … where participants (e.g. people, organizations) work together as co-equal partners towards an intersection of common goals.
§ Each gives up some of their independence and autonomy through formal or informal agreements.
§ In the process, each becomes partially dependent on the other for their individual, as well as joint success.
And the “Perpetual Collaboration Mandate”?
§ A state of practice where the enabling elements of collaboration:
– Incorporate broad, innovative perspectives into a shared frame of reference;
– Enable situational and contextual awareness; and
– Help “systematize” and accelerate the change needed
§ Collaboration elements fall into four broad categories
– Relationships– Learning– Management structure– Enabling operating models
Source (adapted): Four Strategies to Transform State Governance, IBM Center for the Business of Government, 2008
Source: Government 2020 and the Perpetual Collaboration Mandate, IBM Institute for Business Value, 2008
© 2009 IBM Corporation16
The dimensions of perpetual collaboration are all essential …
Management Structure
Organization, Culture and Governance
Learning
Knowledge Creation and Sharing, Taxonomy
Enabling Operating Models
Partnerships, Intermediaries and
Exchanges
Relationships
Personalized Interaction and Services, Networks
PerpetualCollaboration
Source: Government 2020 and the Perpetual Collaboration Mandate, IBM Institute for Business Value, 2008
So that governments and their stakeholders understand and leverage their interconnectedness and dynamic governance to
interact and innovate in entirely new ways
© 2009 IBM Corporation17
ChangingDemographics
RisingEnvironmental
Concerns
EvolvingSocietal
Relationships
ExpandingImpact of
Technology
AcceleratingGlobalization
Growing Threatsto Social Stability
and Order
Citizen Engagement
Public Technology
Infrastructure
Management Efficiency and Effectiveness
Standards and Standards Adoption
GovernmentSourcing and Tasking
Citizen SelfResponsibility
Access to Public
Information
Defense and Security
EmergencyPreparedness and Response
Policing and Public
Security
Economic VitalityFor AgingCitizens
Social, FinancialPrograms forPensioners
Workforce andSkills
Development
Research. Science and Innovation
Strategic Intelligence
Water and Food Supplies
and Safety
Wellness Programs CitizenshipInitiatives
Economic Competitiveness
and Policy
Immigration Control Urbanization Transportation
and Congestion
Outcomes andValue BasedHealthcare
Primary Education
for ChildrenHigher Education
Customs andBorder
Management“Green Agenda”
EnergySupply and
Consumption
ILLUSTRATIVE
Environmental Innovation and Stewardship
Lands and Physical
Infrastructure
… because many programs should be refurbishedas strategies are aligned with existing realities
© 2009 IBM Corporation18
SCOPE OF COLLABORATION
CO
LLA
BO
RA
TIO
N
CA
PAB
ILIT
Y M
AT
UR
ITY
EmergingChance and
point-specific
EmbeddingAnticipatory and
sustained
ExtendingAdaptive and
increasingly influential
ExpandingSynchronous and co-
creating net new value
SYSTEMIC
SYSTEMIC
Progress TowardsDesired Public
Outcomes
EvolvingReactive, but
gaining momentumBeginnerAd hoc, but
communicating
DiscovererAware andcooperating
PractitionerCompetent and
coordinating
VirtuosoLeading,
contextualizing
MaestroInnovating and
impactful
ILLUSTRATIVE
EnvironmentalConditions are
Stable
Stabilize
Ana lyze
ImproviseReuse and
“get it out”
Tar get
Fore cast
Mobi lizeon de mand
Miti gateAssure
EnvironmentalConditions areDisruptive
Responses must beAgile and Adaptive
Responses must beSteady and Consistent
Are you ready?Are we?Who is “we”?
Impact on success and progress depends on situational and contextual awareness, desired outcome(s), scope, and maturity
© 2009 IBM Corporation19
§ Intertwined and accelerating, the impacts can be particularly acute
§ Now more than ever, Public Sector Leaders are challenged to drive transformational change in ways they have never done before
– Across all levels of government– Across jurisdictions– Across sectors – Across nations
§ Our analysis suggests that approaches and solutions will need to be more global in nature, involving high levels of collaboration
– Smarter government
Source: Government 2020 and the Perpetual Collaboration Mandate,IBM Institute for Business Value study, 2008
The drivers demand responses that transcendtraditional boundaries
© 2009 IBM Corporation20
First, it will take a change in mindset anda shared frame of reference
Implications
Manifestations
Desired PublicOutcomes
ConstraintsAspirations
Strategies
Drivers
Desired Outcomes
Strategies
Results
Actions
PublicSector
Drivers, Manifestations,Implications, Aspirations
and Constraints
Drivers, Manifestations,Implications, Aspirationsand Constraints
Drivers, Manifestations,Implications, Aspirationsand Constraints
Drivers, Manifestations,Implications, Aspirations
and Constraints
© 2009 IBM Corporation21
Second, the basic building blocks need to be put in place
B
A
C
AlignmentStrategy and organization aligned both vertically, horizontally to support the collaboration needed to move forward
BoundariesStrategic relationships with the extended enterprise defined, enabled and managed
CommitmentAgreement on roles, responsibilities, authorities, accountabilities and agreements; and, ongoing commitment to a climate for collaboration
Source: The Power of Many – the ABCs of Collaborative Innovation Throughout the Enterprise, IBM Institute for Business Value, © 2007
© 2009 IBM Corporation22
PerpetualCollaboration On DemandIntegratedAccess
Flexible
Integrated
Experimental
Information and Technology Capabilities
Bus
ines
s C
apab
iliti
es
Organizatio
n, Cultu
re & Governance
Reactive
Aligned
Adaptive
Public Enterprise of the Future
Public Enterprise of the Future
Where are you today?
How to respond? Lead by example or react?
Third, actual change needs to occur along three dimensionsstarting with a mandate of perpetual collaboration
© 2009 IBM Corporation23
Public Sector Summaries of the Core Traits
1. Hungry for change
2. Innovative beyond customer imagination
4. Disruptive by nature
3. Globally integrated
5. Genuine, not just generous
have fewer levers at their disposal than the private sector, but are defining new ways of working and using new technologies to develop and deliver innovative services to citizens
developing citizen centric solutions to deliver enhanced, tailored services and provide increased transparency and accountability
pursuing transformation programs as a means of meeting elevated expectations, despite financial constraints. Implementing sophisticated approaches to manage complex change
exploring ways to better integrate public sector operations, even in some cases, internationally
seizing the opportunity to better lead by example and developing new socially responsible approaches to build on the momentum in the Private Sector – some are more advanced than others
The Global CEO Survey identified five core traitsfor the Public Enterprise of the Future
© 2009 IBM Corporation24
§ Focus on core missions: economic prosperity, environmental wellness, public well-being, and a safe world
§ Collaborate through transparent approaches that enable governments to gain and retain public trust
§ Lead to gain and retain influence while driving necessary changes in their societies
§ Prioritize and execute plans, making choices clear, engaging local political groups in decision making, with increased attention on protecting human and property rights
§ Evaluate and improve actions taken in response to drivers, implemented at a pace that gives new initiatives a chance to succeed
§ Continuously seek and find ways to mix top down and bottom up development and implementation of solutions for problems and desires
§ Adopt and consistently apply standards and encourage trends in chosen areas
§ Demonstrate accountability while expecting personal responsibility of others
Successful governments by 2020 will share a number of achievements and behaviors