how billions in government savings is likely to result from current administration it reforms
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Marti A. Hearst Professor, iSchool , UC Berkeley February 8, 2012. How Billions in Government Savings is Likely to Result from Current Administration IT Reforms. The views expressed in this talk are my own and do not necessarily represent those of any organization. The Goal. - PowerPoint PPT PresentationTRANSCRIPT
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HOW BILLIONS IN GOVERNMENT SAVINGS IS LIKELY TO RESULT
FROM CURRENT ADMINISTRATION IT REFORMS
Marti A. HearstProfessor, iSchool, UC Berkeley
February 8, 2012
The views expressed in this talk are my own and do not necessarily represent those of any organization.
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Enabling a high-performance, citizen-centered, 21st century government.
The Goal
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“Tackling the information technology gap between the public and private sectors is one of most effective ways we can make government work more effectively and efficiently for the American people.
…[F]or too long Federal IT projects have run over budget, behind schedule, or failed to deliver on their promise. That’s why fixing IT is a cornerstone of the President’s Accountable Government initiative.”
Reasons to Reform IT
Zients, Nov 2010http://www.whitehouse.gov/blog/2010/11/19/driving-it-reform-update
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Parallel Efforts
Citizen / Customer focus Leverage Recent Technology Advances Reduce Waste and Costs Improve How Large IT Projects are Built
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Costs of Failed IT Reasons for
Failed IT
Modern IT Practices
Reforms to Bring Modern IT to Government
How YOU Can Help
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Costs of Failed IT in Industry
Why Software Fails, R. Charette, IEEE Spectrum Sept 2005
YEAR COMPANY SYSTEM COST (US $)
2005 Hudson Bay Co. [CA] Inventory Control $33.3 million loss
2004-05 UK Inland Revenue Tax Credit $3.45 billion overpayment
2004 Avis Europe PLC [UK] Enterprise Resource Planning $54.5 million, cancelled
2004 Ford Motor Co. Purchasing system $400 million, abandoned
2004 J Sainsbury PLC [UK] Supply-chain management $527 million, abandoned
2004 Hewlett-Packard Co. Enterprise Resource Planning $160 million loss
2003-04 AT&T Wireless Customer Relations Management $100 million revenue loss
2002 McDonald’s Corp. Purchasing System $170 million, cancelled
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Costs of Failed IT
The cost itself. The opportunity cost:
FAA Air Traffic control system failure:○ $2.6 Billion Spent (1984-1994)○ Cumulative cost of delays estimated at $50 B.
Can jeopardize an organization’s future.FoxMeyer Drug Co., worth $5 billion,
plummeted into bankruptcy in 1996.
In search of the future of air traffic control, T.S. Perry, IEEE Spectrum 34(8), 1997. Why Software Fails, R. Charette, IEEE Spectrum Sept 2005
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Why Building IT Is Difficult“Managing an IT project is like juggling chunks of Jell-O: It's neither easy nor pretty.
Information technology is especially slippery because it's always moving, changing, adapting and challenging business as we know it.”
http://www.cio.com/article/40342/Project_Management_Definition_and_SolutionsImage from www.jellotime.com
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Why Large IT Projects Fail
Unrealistic or unarticulated project goals Inaccurate estimates of needed resources Badly defined system requirements Poor reporting of the project's status Unmanaged risks Poor communication between developers and users Use of immature technology Inability to handle the project's complexity Sloppy development practices Poor project management Stakeholder politics Commercial pressuresWhy Software Fails, R. Charette, IEEE Spectrum Sept 2005
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Frequency of Failed IT 15-20% failure rate for projects with budgets > $10 million
(Charette, 2005) From Standish Group CHAOS Report 2009 (via ProjectSmart):
Note that it has improved since 2004.
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The Situation is Improving Changes in the last decade:
User-centered Design Agile Software Development Maturing of Shared Software Components Maturing of Protocols between Components
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User-Centered Design
User Needs and Desires Determine Project Goals and Design
Work closely and continuously with users.
from Effective UI, Anderson et al, O’Reilly Media, 2010.
Images from Effective UI, Anderson et al, O’Reilly Media, 2010.
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User-Centered Design
User Needs and Desires Determine Project Goals and Design
Work closely and continuously with users.
from Effective UI, Anderson et al, O’Reilly Media, 2010.
Images from Effective UI, Anderson et al, O’Reilly Media, 2010.
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Problem with Old Methods: Defining Requirements in Advance
“A comprehensive description of the scope of a project is so enormously complex that it simply can’t be done; the only perfect description of a product is the product itself.”
from Effective UI, Anderson et al, O’Reilly Media, 2010.
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Waterfall Development
Images from Effective UI, Anderson et al, O’Reilly Media, 2010.
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Problems with Waterfall
All requirements defined in advance. Not user-centered. Since the planning, architecture, and design
of the product are already ostensibly complete, there’s no option to change them.
Groups are siloed.
from Effective UI, Anderson et al, O’Reilly Media, 2010.
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Agile Development
Images from Effective UI, Anderson et al, O’Reilly Media, 2010.
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Advantages of Agile
Favor:Users and interactions over processes and tools. Working software over full documentation. Customer collaboration over contract negotiation Responding to change over following a plan.
from Effective UI, Anderson et al, O’Reilly Media, 2010.
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$80 Billion in Federal IT Spending Annually
http://www.cio.gov/pages.cfm/page/Chapter-19-Information-Technology-Page-1FY 2011 President's Budget, Analytical Perspectives, Special Topics, Chapter 19
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Large Government IT Projects According to the GAO:
Planned federal IT spending > $81 billion for 2012.Many projects are critical to the health, economy,
and security of the nation. Unfortunately, these frequently fail or have
overruns while yielding little value. Recent Examples:
After $127M over 9 years on an outpatient scheduling system, the VA had to start over.
After $40M and 7 years, FEMA canceled insurance and claims system as it did not meet user needs.
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Challenges for Federal IT Projects
Oversight / funding models make modern IT methods nearly impossible.
Procurement Rules & Myths Waterfall Development No User-centered Design Tradition Oversight Instead of Advising Lack of IT Expertise by IT Project Leaders Legacy Systems and Data
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What Leads to Federal IT Success?
GAO-12-7, Information Technology, Critical Factors Underlying Successful Major Acquisitions ,October 2011, http://www.gao.gov/new.items/d127.pdf
Note the emphasis on user-centered design.Several teams interviewed also mentioned Agile development practices.
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25 Point Plan for Reforming IT Issued Dec 9, 2010
Vivek Kundra, Steven VanRoekel Main Components:
Apply “Light Technology” and Shared SolutionsStrengthen Program ManagementAlign the Acquisition and Budget Processes with
the Technology CycleStreamline Governance and Improve
AccountabilityIncrease Engagement with Industry
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Embrace Modular Development
Usually, the first deliverables produced years after work beginsBy then, program sponsors and end-user
needs have changed.Should have 18-24 month duration
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TechStat Sessions Reviewed work on over 30 financial systems projects,
with budgets totaling $20 billion. Reviewed 20 agencies’ IT projects; took steps to save
$1.6 billion on these: Half on track, half not. Of these: 2 agencies: pulled forward meaningful functionality, resulting in almost
$230 million in budget reductions. 2 agencies: canceled projects, resulting in over $500 million in
reductions. 3 agencies: decreasing the scope of and improving their financial
system projects, resulting in over $680 million in budget reductions.
An additional $200 million in budget reductions identified.
Zients, Nov 19, 2010 http://www.whitehouse.gov/blog/2010/11/19/driving-it-reform-update
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25 Point Plan for Reforming IT
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Procurement Reform Ended unnecessary or unaffordable contracts,
weapons systems, information technology, financial management, operations and maintenance, transportation and fuel.
Smarter buying practices Using competitive techniques such as electronic
reverse auctions for purchasing Strengthened the acquisition workforce, after
years of inattention.
http://www.whitehouse.gov/sites/default/files/contracting_reform.pdfhttp://www.whitehouse.gov/blog/2011/02/04/turning-tide-contract-spending
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A Shortage of Procurement Staff
http://www.whitehouse.gov/omb/assets/procurement_workforce/AWF_Plan_10272009.pdf
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Adopting Off-the-Shelf Well-Designed Software as a Service
Hurdles TOS (Terms of Service) PII (Personally Identifiable Information) OWACS (Security requirements) COOP (Disaster recovery requirements) 508 (Accessibility Standards) Cookies (Persistent Cookie Restrictions) NARA (National Archives and Records)
Solution:One agency (GSA) is clearing the way for others.
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Enabling User-Centered Design
Legal Hurdles:Paperwork Reduction Act~6 months to ask questions of 10 or more people
Solution:Special new guidance created.Only takes 5 days!Applies to customer-service related information
gathering.
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Strengthen Program Management Design an IT management career path Enable mobility across govt and industry Launch a technology fellows program Require integrated program teams
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Streamline Governance
Reform existing internal reviews Redefine role of agency CIOs TechStat reviews at bureau level
Techstat: face-to-face evidence-based review of an IT program with White House and agency leadership.
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25 Point Plan for Reforming ITCurrent status: cio.gov/modules/itreform
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25 Point Plan for Reforming IT
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25 Point Plan for Reforming IT
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Other Angles
Reduce Waste Initiative Prizes, Challenges Supporting Standards Efforts
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Coach/AdvisePublish Short
How-To’s; Respond to RFQs
Study and Report on IT Practices
Work in Government!
How YOU Can Help
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Provide Advice
Agencies IT projects have LOTS of oversight, but NO coaching.
Solution: Unbiased advisors / coaches. Outside groups have to initiate these
and offer the services to government.
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Study Vendor Practices
Compile statistics on:ProtestsInterventions by CongresspersonsVendors’ Success Rates
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Publish How-To’s
Sunlight Foundation’s strategies for the Open Government Directive.
UC Berkeley iSchool faculty guidelines on how to improve the design of recovery.gov
OMB Watch’s technology used in relaunch of USASpending.gov
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(From EPA)
Sample Useful How-To on Social Media Usage
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How? federalregister.gov Example: IRB reform questions Example: OSTP sought advice on Open
Government topics:
What are the limitations to transparency?
What strategies might be employed to adopt greater use of Web 2.0 in agencies?
What policy impediments to innovation in government currently exist?
What performance measures are necessary to determine the effectiveness of open government policies?
Participate by Responding toRequests For Comment
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Example Idea: Usability ClinicProfessors teaching usability courses
○Have their students critique a web site as a homework exercise
○Commit to a particular time period Organizations sign up for the clinic
○Govt, non-profits, small businessesMay turn into longer-term projects
Participate with Classwork
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Build tools that use government dataExpose inefficienciesCreate new, useful functions
Example:Analyze hiring latency on a per-agency basisData isn’t there?
○ Comment on agency’s opengov website○ Be persistent if necessary
Participate with Data Analysis
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Entrepreneurs in ResidenceA time-limited recruitment of world-class
entrepreneurs and innovators to join highly-qualified internal employees in the development of new operational procedures in areas that impact innovation;
Deliver transformational change by combining the best internal and external talent in testing, validating and scaling what works
Example: Todd Parks of HHS
Join Government!
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A brand new program!Started Fall 20112 year paid fellowshipRotate among agencies
Builds on the highly successful Presidential Management Fellows programTrains leaders for Federal Government ServiceUsually a terrific cohort
Must apply in the Fall before you graduate with a masters or PhD But very few opportunities for non-US citizens
Become a Presidential Technology Fellow
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• IT Reform• Procurement Reform• Hiring Reform• Regulation Reform• Waste and Cost Reduction• Open Data / FOIA
Reform Major Government Operations
• Elevated Federal CIO and CTO• 25 Point Plan for Improving Federal IT• Promoting Standard Formation
Reform Large IT Projects
• Customer Service Executive Order• New PRA Guidelines• Plain Language Act Guidelines• Federal Web Site Reform• Modern Communication Tools (High quality web site
design, Information Visualization, Light-weight Online Discussion Tools)
Focus on Users / Citizens
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More Information
cio.gov whitehouse.gov/21stcenturygov whitehouse.gov/omb/procurement_default/ agency.gov/open federalregister.gov itdashboard.gov fedspending.gov
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It is still very difficult to successfully develop IT in government.
However, many reform efforts are greatly improving the situation. An IT-savvy administration. A focus on usability and citizen input. The 25 point plan. Additional changes in procurement guidance.
Academics, researchers, and practitioners can all help!
Summary
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“We can’t win the future with the government of the past.”
- Barack Obama