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How Billions in Government Savings is Likely to Result from Current Administration IT Reforms

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.

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How Billions in Government Savings is Likely to Result from Current Administration IT Reforms

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  1. 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.

  2. The Goal • Enabling a high-performance, citizen-centered, 21st century government.

  3. Reasons to Reform IT • “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.” Zients, Nov 2010 http://www.whitehouse.gov/blog/2010/11/19/driving-it-reform-update

  4. Parallel Efforts • Citizen / Customer focus • Leverage Recent Technology Advances • Reduce Waste and Costs • Improve How Large IT Projects are Built

  5. Costs of Failed IT in Industry Why Software Fails, R. Charette, IEEE Spectrum Sept 2005

  6. 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. Why Software Fails, R. Charette, IEEE Spectrum Sept 2005 In search of the future of air traffic control, T.S. Perry, IEEE Spectrum 34(8), 1997.

  7. 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_Solutions Image from www.jellotime.com

  8. 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 pressures Why Software Fails, R. Charette, IEEE Spectrum Sept 2005

  9. 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.

  10. 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

  11. 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.

  12. 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.

  13. 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.

  14. Waterfall Development Images from Effective UI, Anderson et al, O’Reilly Media, 2010.

  15. 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.

  16. Agile Development Images from Effective UI, Anderson et al, O’Reilly Media, 2010.

  17. 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.

  18. $80 Billion in Federal IT Spending Annually http://www.cio.gov/pages.cfm/page/Chapter-19-Information-Technology-Page-1 FY 2011 President's Budget,  Analytical Perspectives, Special Topics,  Chapter 19

  19. 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.

  20. 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

  21. What Leads to Federal IT Success? Note the emphasis on user-centered design. Several teams interviewed also mentioned Agile development practices. GAO-12-7, Information Technology, Critical Factors Underlying Successful Major Acquisitions , October 2011, http://www.gao.gov/new.items/d127.pdf

  22. 25 Point Plan for Reforming IT • Issued Dec 9, 2010 • VivekKundra, Steven VanRoekel • Main Components: • Apply “Light Technology” and Shared Solutions • Strengthen Program Management • Align the Acquisition and Budget Processes with the Technology Cycle • Streamline Governance and Improve Accountability • Increase Engagement with Industry

  23. Embrace Modular Development • Usually, the first deliverables produced years after work begins • By then, program sponsors and end-user needs have changed. • Should have 18-24 month duration

  24. 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

  25. 25 Point Plan for Reforming IT

  26. 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.pdf http://www.whitehouse.gov/blog/2011/02/04/turning-tide-contract-spending

  27. A Shortage of Procurement Staff http://www.whitehouse.gov/omb/assets/procurement_workforce/AWF_Plan_10272009.pdf

  28. 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.

  29. 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.

  30. Strengthen Program Management • Design an IT management career path • Enable mobility across govt and industry • Launch a technology fellows program • Require integrated program teams

  31. 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.

  32. 25 Point Plan for Reforming ITCurrent status: cio.gov/modules/itreform

  33. 25 Point Plan for Reforming IT

  34. 25 Point Plan for Reforming IT

  35. Other Angles • Reduce Waste Initiative • Prizes, Challenges • Supporting Standards Efforts

  36. 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.

  37. Study Vendor Practices • Compile statistics on: • Protests • Interventions by Congresspersons • Vendors’ Success Rates

  38. 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

  39. (From EPA) Sample Useful How-To on Social Media Usage

  40. Participate by Responding toRequests For Comment • How?federalregister.gov • Example: IRB reform questions • Example: OSTPsought 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?

  41. Participate with Classwork • Example Idea: Usability Clinic • Professors 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 businesses • May turn into longer-term projects

  42. Participate with Data Analysis • Build tools that use government data • Expose inefficiencies • Create new, useful functions • Example: • Analyze hiring latency on a per-agency basis • Data isn’t there? • Comment on agency’s opengovwebsite • Be persistent if necessary

  43. Join Government! • Entrepreneurs in Residence • A 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

  44. Become a Presidential Technology Fellow • A brand new program! • Started Fall 2011 • 2 year paid fellowship • Rotate among agencies • Builds on the highly successful Presidential Management Fellows program • Trains leaders for Federal Government Service • Usually a terrific cohort • Must apply in the Fall before you graduate with a masters or PhD • But very few opportunities for non-US citizens

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