public value and roi measurement in goverment sector
DESCRIPTION
Al-Khouri, A.M. (2008) 'Public Value and ROI Measurement in Government Sector', FutureGov Summit, October 15-17, Bali, Indonesia.TRANSCRIPT
National Vision ... For Better Future Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE
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Emirates Identity Authority
Public Value and ROI Measurement in
Government Sector
Presentation:
October 2009
By: Dr. Ali M. Al-Khouri Director General, Emirates Identity Authority United Arab Emirates
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Agenda
• Government IT Projects and Statistics
• Common Myths in Public Sector
• Stakeholders Interests and Objectives
• ROI Dimensions
• Reflection
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The risks of IT innovation in government
3
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• Substantial expenditure in IT projects
• Criticised for not measuring full value of IT investments
• Inability to demonstrate a return on investment based upon a well grounded measures
Governments investment in IT Projects
4
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IT projects research and statistics
5
Failure
Partial failure
70 %
successful
20%
10%
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• Government services are essential and, therefore, may not need this level of evaluation
• Absences of revenues and profits make the concept of ROI inappropriate
• Little or no hard data in government organisations
• Investment decisions in the public sector take place in a context of political and policy influences
Some Common Myths in the Public Sector
6
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Some Common Myths in the Public Sector
• Government services are essential and, therefore, may not need this level of evaluation
• Absences of revenues and profits make the concept of ROI inappropriate
• Little or no hard data in government organisations
• Investment decisions in the public sector take place in a context of political and policy influences
Global environment is changing
government organisations practices and acceptance of new concepts only
limited to private sector organisations.
7
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Stakeholder interests
• Delivery of benefits to citizens
• Enhancing the value of government as a public asset
8
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Public Sector IT Projects Objectives
Product-ivity
Quality
Time
Cost Profit
Effectiveness Efficiency Impact
9
• Every government IT project have its own unique goals, value propositions, and stakeholders.
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The Three Dimensions of ROI
Financial
ROI
Social ROI
Political ROI
Public ROI
direct, measurable benefits and costs
indirect and difficult- to-measure
'public good' benefits and costs
motivational feasibility of the project, or the
benefits and costs for interested parties
(champions, opponents, decision-makers)
10
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Paradigm shift to a Result-Based Approach
• Assessment of performance effectiveness
• Specific objectives for behaviour & business impact
• Results expectation communicated to participants
• Environment prepared to support change
• Partnership established with key managers & clients
• Measurement of results and cost/benefit analysis
• Planning and reporting is outcome focused
11
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Efficiency Enhancement
Service Quality
improvement Government Policy
Effectiveness
Economic Policy
Objectives
Public Reform Agenda
Citizen Engagement
and Trust
Motivating & Restraining Forces to Public ROI
Shrinking annual budgets Scale & Complexity
Business Process
Strong silo-culture
Excessive waste (e.g., paper work, approval
cycles, bureaucracy)
Lack of alignment with government
policies
Public exposure of failure/error
Multiple stakeholders
12
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Public Value Vision
Technology Strategy
Program Impact
Operational Strategy
Technology Implementation
Public Value Outcome
Public value chain – a simple approach
13
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Public Sector - some practices
14
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National Vision ... For Better Future Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE
Emirates Identity Authority
Thank you
Dr. Ali M. Al-Khouri Director General, Emirates Identity Authority United Arab Emirates [email protected]