Decision Frameworks

1. Information Technology andInnovation in Government Decision Frameworks ΔI + ΔW + ΔL  ΔV 3/10/2013

2. Agenda • Our issue and key concepts, in a sentence • Applications/actions -- from practitioners • Conclusions

3. 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?

4. How can we maximize public value... VALUES, ENDS OPTIONS, MEANS 1. Productivity 2. Equity 3. Legitimacy 4. Community 5. Privacy 6. Etc. Δ I = Info and Tech Δ W = Workflow Δ L = Leadership Etc. + Other Variables 1. Values:What do we care about? Tradeoffs? 2.Options: What can we do? 3.Options: What can we do? Analyze, then choose actions, further study.

5. … 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.

6. hierarchy of authority … by working together… shared goals, transparency Develop authoritative governance, controls.

7. …using information and technology… • Electronic– efficient, fast, interactive • Digital– yes or no; extremely accurate; for data, voice, video, integration • Processing – if  then, a reduced need for “handoffs” • Over networks– here  there, remote and asynchronous handoffs • With incredible productivity growth-- through Moore’s law and Metcalfe’s law Using Digital Data, Processing, Communications

8. …for improved divisions of labor… x x hierarchy of authority x x x rules rules rules rules rules rules 1. Remote, asynchronous service – fewer interruptions/trips 2. Self-service, redesigned service – fewer handoffs/delays

9. …for improved divisions of labor… Supplier/Partner Supplier/Partner NEW ORG rules rules rules rules rules rules 1. Remote, asynchronous service – fewer interruptions/trips online access 2. Self-service, redesigned service – fewer handoffs/delays enterprise integration 3. Transparent, outsourced service – better specialization community of practice Expand networked relationships and negotiation.

10. …where implementation is difficult… Vision:plans, pilots; stake-holder involvement and education Judgment:care, commitment;“slow trigger, fast bullet” confusion Action:Just do it; line leadership for projects Clout:negotiation, control;align incentives,maintain focus. conflict Plan, negotiate, and act to resolve confusion and conflict.

11. EVOLUTIONARY Total Quality Management(significant investment) STABLE REVOLUTIONARY 1 2 3 Specialized Planning Staff (least investment) Reengineering (very significant investment) …and continued innovation essential? TURBULENT ??? The Learning Organization (most investment) REVOLUTIONARY frequency of steps taken size of steps taken Engage in adaptive leadership as turbulence increases.

12. 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.

13. The system we’re exploring… ΔI + ΔW + ΔL  ΔV • Digital data • Processing • Networks • Remote • Self-service • Outsourced • Confusion • Conflict • Innovation • Productivity • Equity • Transparency Theory and practice should inform each other.

14. The system we’re exploring: Governor King’s, for example… ΔI + ΔW + ΔL  ΔV • 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

15. Much at stake… • 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 • EQUITY/FAIRNESS: • Easier to reach dispersed poor, but major educational challenges and troubling trends • TRANSPARENCY/LEGITIMACY: • New capacity for transparency, but IT controlled (at least initially) by incumbents. Failures erode trust These will be YOUR challenges…

16. Will you be the frog?

17. Agenda • Our issue and key concepts, in a sentence • Applications/actions -- from practitioners • Conclusions

18. The GAP –a HUGE problem Extension by “fast followers” (settlers) Invention by “first movers” (pioneers) For better diffusion, bridge the gaps… The GAP –a HUGE problem Economies of standardization Economies of innovation Adoption GAPS: Pioneers vs. Settlers CIOs vs. CXOs Practitioners vs. Academics

19. Eight Imperatives “If you want to be an effective leader in anetworked world, you need to engage IT issues.” Services 1. Reshape work and strategies 2. Innovation, not automation 3. Best practice implementations 4. Better budgeting/financing Governance 5. Protect privacy and security 6. Ec development partnerships 7. Equal opportunity/communities 8. Digital democracy

20. On a curve: • A step • S.O.P. change Now moving to the next wave… VALUE REDESIGN cross-boundarytransformation penetration and benefits ACCESS online, not in line Changing curves: • A leap • Crisis change TIME time and effort …with new leadership/governance challenges

21. Next wave challenges… PLANNING AND DECISION-MAKING 1. Technology Assessment: Understanding what's possible and ripe for application 2. 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 GOVERNANCE 4. 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 authority 7. New Institutions: Sustaining new behavior through new structures 8. Adaptive Leadership: Adjusting the pressure cooker

22. Questions for analysis. . . ΔI + ΔW + ΔL  ΔV • 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?

23. 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.

24. ΔI + ΔW + ΔL  ΔV Let’s Go!!!