Leadership, Governance and E-Transformation IPMA Executive Seminar Skamania, Washington
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Leadership, Governance and E-Transformation John Anthony, Associate Director Gartner Consulting Seattle, Washington 206 374 9756 IPMA Executive Seminar Skamania, Washington September 17, 2001 Conclusions Focused and committed senior leadership is the critical factor for successful implementation of e-government strategies. Leadership for e-government must be selected based on enterprise characteristics and transformational goals. The e-government leader is a catalyst for focused organizational, business process, and technological change. E-Government Readiness Assessment determines how and where to begin this transformation. As it matures within the agency, e-government will be moved into core business functions. Conclusions Governance is a process that crosses internal and external organizational boundaries. It is responsible to Executive leadership team and all impacted must participate in order for it to succeed. Enterprise Architecture is a corporate asset that requires Executive level planning, funding and commitment. Information technology is comprised of people, processes and technology, that must be repositioned to support egovernment service delivery and organizational transformation. E-Government transformation and Information Technology is everyone's responsibility. Proactive e-Government Leadership: Less Time, More Returns Guiding beacon of business leadership Political icebergs Shortcut of e-business economics Hurricanes of change mgmt. Shortcut of balanced metrics Finish? New worlds to explore U.S.A. GULF OF MEXICO Nassau FLORIDA KEYS Havana Santa Clara ATLANTICOCEAN Holguín Hispaniola CAYMAN ISLANDS Port-au-Prince N JA MA IC A Kingston Santiago DOMINICAN REPUBLIC Santo Domingo San Juan PUERTO RICO CARIBBEANSEA THE WEST INDIES 0 100 0 Cities and Towns Desert island of poor planning 200 MI. 200 KM. NETHER ANTILLES Aruba GRENADA St.George TOBAGO Port of Spain TRINIDAD Capital S OU T H A M E R IC A Storms of buy-in Tech-only false promises Graveyard of nonaction 100 50,000 to 500,000 BARBUDA LEEWARD St.Johns NEVIS ISLANDS BasseterreANTIGUA Guadeloupe (Fr.) DOMINICA RoseauWINDWARD ISLANDS Castries ST.LUCIA BARBADOS Kingstown ST.VINCENT Bridgetown LESSER ANTILLES Start Costcutters’ reef Shortcut of executive involvement Off-course destination of no/low BU buy-in Doldrums of rudderless leadership Four Phases of E-Government4. Transformation 3. Transaction Strategy/Policy People Process Technology 2. Interaction Cost/ Complexity 1. Presence Approval Public Existing Streamline processes Web site Markup Searchable Database Public response/ e-mail Content mgmt. Increased support staff Governance Knowledge mgmt. E-mail best practices Content mgmt. Metadata Data synch. Search engine E-mail Competition Confidentiality/ privacy Fee for transaction E-authentication Self services Skill set changes Portfolio mgmt. Sourcing Increase business staff BPR Relationship mgmt. Online interfaces Channel mgmt. Legacy sys. links Security Information access 24x7 infrastructure Sourcing Funding stream allocations Agency identity Big browser Job structures Relocation/telecommuting Organization Performance accountability Multiple-program skills Privacy reduction How much is enough? Integrated services Change value chain New processes/services Change relationships (G2G, G2B, G2C, G2E) Constituent demand Political climate Agency identity Maturity Trust Constituent Value Some new applications New data structures Time E-Government Strategic Planning E-Government Leadership Priorities Provide Leadersh ip Build Capabili ties Develop IT Professio nalism Deliverin g ebusiness Leadership and guidance from the Executive team Strategizing for e-Government/IT linkages Demonstrating business value of IT E-government process management capabilities E-enabling IT architectures Attracting and retaining quality people Nurturing and sustaining IT competencies Developing IT as a professional services business Professional project/program management Project prioritization Leadership planning is a must! Advocate for e-Government Executive sponsorship Fuse business and IT Evaluate IT investments from an “enterprise” perspective Prioritize e-Gov. and IT projects Monitor progress and spending Appoint e-government leadership View IT worker shortage as an Clowder (def): A herd of cats Clowdermeister: Cat Herder enterprise issue Champion the development of a compelling & adaptive workplace Planning for Results STRATEGIC DIRECTIONS What do we want to be? What is our Vision? Strategic Planning Define Strategic Foundation • Mission • Vision • Operating Principles Determine Measures & Targets • Propose Measures Identify Initiatives • Conduct Gap Tactical Planning Conduct Workshop #1 • Confirm Strategy and Objectives Conduct Workshop #2 • Select Measures • Set Targets •Implementation Roadmap Strategy Outcomes Drivers Operational Effectiveness Process Improvements Conduct Workshop #3 • Select Determine Measures & Target Enterprise Initiatives Plan for Implementation • Identify Initiative Business Unit Initiatives RESOURCE MANAGEMENT Operational Planning • Project Schedules for: • Enterprise Initiatives • BU Initiatives Conduct Workshop #2 • Validate Complete BU BSC Present BU BSC and Plan for Implementation • Present Plan Strategy and Objectives Measures and Targets • BSC • Implementation Roadmap Conduct Workshop #4 Conduct Workshop #1 • Confirm •Proposed Measures and define Initiatives Analysis Plan for Implementation Gather Data Through Team Interviews • Develop Resources for both BU and the Enterprise The Balanced Scorecard Addresses Barriers to Strategy Deployment and Execution Only 5 percent of the work force understands the strategy Only 25 percent of managers have incentives linked to strategy 9 of 10 Companies Fail to Execute Strategy 60 percent of organizations do not link budgets to strategy 85 percent of executive teams spend less than one hour per month discussing strategy Balanced Scorecard Process Overview Development of a Balanced Scorecard (BSC) involves the following steps: Define Foundation • Vision • Mission • Operating Principles Identify Measures • Outcome • Driver Define Strategy • 3 - 5 Key Strategic Directions Establish Targets • Baseline • Stretch Identify Objectives • Customer • Financial • Internal Process • Learning & Growth Identify Key Strategic Initiatives BSC Development Success Factors Ensure Executive Involvement – – – Sponsorship Communication Active and continuous participation Manage People’s Expectations – Plan does not go to the tactical level – Not a “metrics” project, but a “change” process Use Directed Facilitation – Keep people from thinking in silos – Help participants focus on strategy – Work from examples, not a blank page Understand and Incorporate Leadership Passions BSC Development Success Factors (cont.) Ensure Consistent Participation – Workshops – Sub-teams Avoid “Group Think” – Ensure someone challenges ideas Link Process to People’s Daily Lives – Measures and targets – Division and individual BSCs Build a BSC Support System – Permanent team structure – Dedicated staff (“BSC Advocate”) – Continuous evaluation and communication processes Collaborative Development Ensures Alignment with Business’ Priorities Shared effort for transforming IT performance and capabilities Forum for making IT relevant to the management of the business Directly tackle how IT enables business objectives; IT and business units wrestle with linking, demonstrating, correlating return on IT in business terms – Enabling the business’ transformational objectives – Implementing mission-critical technology solutions Benefits for the Organization Provides leadership with a common framework for making strategic decisions and implementing change Staff clearly see how their work contributes to the organization’s strategy and benefits the whole Provides the organization with a vehicle for sharing progress with citizens and key stakeholders Measurement tracking serves as a communication tool to determine effectiveness of strategy development and implementation (vs. mechanism for control) Strategic Perspectives Customer – “What needs to be done to exceed customer expectations?” Financial – “How will we maximize the return on tax payer dollars?” Internal Business Processes – “Where do we need to excel and what processes should we streamline to satisfy customers, business partners and other governmental agencies?” Learning and Growth – “What will we do to provide employees with an environment that supports innovation, learning and growth?” Sample Balanced Scorecard Learning & Growth Internal Process Financial Customer Direction: Improve Operating Efficiency Establish competitive costs Attract new business Implement performance measurement processes Provide quality service Eliminate waste Implement standard project mgt methodology Measured Objectives Measures 1. Establish competitive costs 1. Customer perception (O) 2. Provide quality service 2. Customer perception (O) 1. Attract new business 1. Project mgt methodology Targets 85% Initiatives 1. Rate and billing reform 2. Project management office 85% 2. Customer relations unit 1. Percent of overall business (O) 20% 1. Customer relations unit 1. New Accounts (D) 10 per week 1. Customer expectations met (O) 75% 1. Achievement of project milestones (D) 95% 1. Project management office Improve business processes, communication and workflow Define Core Competencies Develop Managers & staff 1. Develop Managers & staff 1. Staff performance (O) 70% of staff improve 1. Managers in training (D) 100% 1. Staff excellence 1. Project management office Target Setting Methodology Define Targets that Motivate the Organization – – Define baseline targets Define stretch targets Define Targets Based On Existing Data – An overall business goal – Industry benchmarks – Incremental improvements based on past performance Define Targets Over Time – When data is not available, establish a baseline first Outcome vs. Driver Measures Outcome Measures Purpose – Focus on the performance results Strengths – Objective and easily captured Issues – Reflect success of the past Driver Measures Purpose – Measure intermediate processes and activities Strengths – More predictive – Allows for adjustment Issues – Based on hypotheses of cause and effect – Difficult to track e-Business Strategic Direction Strategic Planning Program TODAY FUTURE Roadmap 1 S-1 - Strategic Planning • Service Delivery Objectives • Mix of Applications (G-C, G-B, G-C) S-2 -Measurement and Target Setting 2 1 G-1 - Set up Governance Structure (Internal & with Partners) 2 G-2 - Perform Legal Review 3 Governance G-3 - Develop Policy Framework 1 2 Customer Service 3 4 5 1 2 Technology Infrastructure C-1 - Readiness Strategy • Organizational Readiness • Client Readiness • Technology Readiness C-2 -Launch Community of Interest Council(s) C-3 -Launch Quick Win Applications C-4 - Business Process Review for Transformation C-5 -Client Outreach Program T-1 - Enterprise Architecture T-2 - IT Security Program 3 T-3 - Network Strategy 4 Organization Efficiency and Effectiveness Implementation T-4 - Shared Services Strategy 1 2 O-1 - Resource Allocation Management Program O-2 - Staff Excellence Program O-3 - Sourcing Strategy 3 Page 27 E-Government Readiness Assessment e-Business Processes Customers e-Digital Society e-Education e-Telecommunications Digital Society e-Economic Development Citizens/Public (B2C) Businesses (B2B) Other Governments (B2G) Visitors (B2V) Employees (B2E) e-Digital Society Promotion e-Politics (e-democracy) Service Requirements & Business Governance Interfaces Business Governance Opinions Action Trigger Service Requirements & Opinions Digital Divide e-Service Delivery Change Mandate Customer Service Interfaces Service Requests Service Delivery Organizations Business Partners/ Suppliers Action Business Trigger Need e-Service Delivered e-Service Created e-CRM/Channel Mgmt/Portal Goods/Service Delivered e-Procurement e-Government Readiness Planning Step 1 – Organizational Readiness – – – – – Legal readiness Leadership readiness Governance readiness Competency readiness Technology readiness Step 2 – Customer Readiness – Accessibility concerns (“Digital Divide”) - Social issues - Cultural issues - Disability issues - Economic issues e-Government Readiness Planning Step 2 – Customer Readiness (Security Concerns) – – – Confidentiality concerns Privacy concerns Authentication concerns Step 3 – Business Processes Readiness Step 4 -- Technology Readiness – Technology readiness for accessibility issues – Technology readiness for security issues Step 5 -- Staff Readiness e-Gov Summary of Assessment Results KNOWLEDGE AREA Organizational Customer Business Process Technology Proficient Ready ASSESSMENT RATINGS Vision Planning Governance Culture Change Management Service Delivery Customer Support Outreach Service Integration Information/Data Alignment Partnership Relationships Architecture Application Shared Services Data Security Infrastructure Somewhat Ready Not Ready No Action e-Gov Summary of Assessment Results KNOWLEDGE AREA Staff Administration Proficient Ready ASSESSMENT RATINGS Skills Technical Procurement and Contract Administration Business Process Analysis Project Management Knowledge Retention Staff Retention Training Organizational Alignment Funding Strategy Sourcing Strategy Policies Legal Access Content Management Record Management Somewhat Ready Not Ready No Action Organizational Assessment - Management Vision - Clarity - it clearly articulates broad plans of action to be achieved - Breadth - covers all key issues (Customer, - Financial, Internal Processes and Learning and Growth) Unity - strong unifying theme that extends to all stakeholders - Boldness and Innovation - features the best ideas - from elsewhere in the world Credibility - must be realistic Organizational Assessment - Management Planning - XXX has a documented e-Government Strategic - Plan XXX e-Government Strategic Plan is integrated into the Business Strategic Plan XXX has an e-Government Tactical or Implementation Plan XXX has e-Government outcome metrics to measure their plans success XXX e-Government plan supports the stated direction Organizational Assessment - Management Governance - XXX has a governance structure established - XXX governance process has a defined set of operating principles - XXX understand the role of management in making - decisions and providing guidance for e-government XXX has a strategy for prioritizing and funding egovernment projects - XXX has a mechanism for updating and for providing exceptions to their technical architecture and standards Organizational Assessment - Management Culture - The Board understands and supports e-Government direction - The management team understands and supports - e-Government direction The organization understands and supports eGovernment direction - The organization understands and embraces the implications of the plan Organizational Assessment - Management Change Management - XXX has a communication strategy - XXX communication strategy address - communication across, down, and out of the organization XXX has a communication strategy for quickly sharing organizational learning about e-government throughout the organization XXX has a an organization change management strategy/plan that is funded Governance for E-Government Governance Governance is the inter-agency organizational structure that provides a decision making process to determine the services, architecture, policies and standards for the enterprise information technology. Through 2003, less than 10% of agencies will participate in a governance structure needed to enable customer-centric transformation necessary for E-Government success. (0.8 probability) e-Government Governance Executive Board Commitment Executive Branch e-Gov Program Office Purchasing e-Procurement • Services • e-Business Executive • Finance • Legal • IT • HR • Members from Each Dept. Departments and Divisions • Architecture • Policies • Standards • Project • Approval • Measurement On-Line Revenue e-Commerce Collections e-Commerce Human Resources e-Commerce On-line Service Requests On-line Licensing Legal/Compliance Gartner Consulting Web Masters & Data Guardians Contract Admin Vendors Government Associations On-line Geographic Information On-line Selling Governance: The Next Generation Action Items: Build extra-agency view of governance Include constituents, partners, advocacy groups Develop cooperative architecture Governing (Policy/ Regulations) Mature Governance Global Governance (Multiagency) IT Governance (Single Agency) Time E-Government Policy Framework Management: • Privacy & Confidentiality • Collaboration • Economic Development • Measurement • Impact Assessment • Customer Support • Access to Services Technical: • Architecture and Standards • Shared Services • Security • Electronic Records • User and Client ID’s Management Website Web: • Single Portal • Availability • Content Management • Convenience Fees • Commercial Advertising Technical Staffing and HR Staffing and HR • Employees • Retention • Change Management E-Governance e-Gov cuts across organizational boundaries Business processes must be re-engineered to deliver services involving multiple departments/jurisdictions, business partners and customers Accountability must be ensured despite inter-jurisdictional applications Governance over process, architecture, standards and policies must be determined Manage expectations of constituents to avoid disappointment Partnerships require innovative governance models E-Government Enterprise Architecture Enterprise Architectural Design Principles The government IT customer has shifted from staff (internal) to the customer of the government (external). System (business processes and organization structure) must be customer-centric. System must accommodate a user population that is diverse in abilities and interests. System must accommodate usage that fluctuates widely depending on community events (scalability). System must be available at any time (availability). Multiple channels are required but must consolidate into a uniform processing flow. Conceptual Architecture Customers Interface Integration Shared Services Infrastructure Data Management Business Applications e-Government Conceptual Architecture Components Management Layer – e-Marketing – e-Governance – Policy – Architecture – Standards – Security Management Interface Layer – Customer Relationship Management – Channel Management – Supply Chain Management – Intelligent Agents (Event Life Cycles) Application Layer – Community of Interest (COI)Apps – Legacy Apps Interface Layer – Application Middleware – Data Middleware Shared Services Layer Data Layer – e-Data Bases – External & Historical Data Bases – Legacy Data Bases Infrastructure Layer – Platforms/ Servers – User Devices – Networks – System Management Typical Un-architected e-Government Customers (B2C) Information Providers (B2B & B2G) US Mail In-Person Payments Fa US Mail In-Person x Web/Portal Payments Fa US Mail In-Person x Web/Portal Fa x Payments US Mail Web/Portal In-Person Fa x Payments Web/Portal Department A Department B Department C Department D Computer System Computer System Computer System Computer System Web Page A Web Page B Web Page C Web Page D Business Portal Architecture - Integrated Government System Cash US Mail Fax EFT Check Credit Cards Direct Deposit Kiosks E-Forms E-Filing Web On-Line Diskette/Tape INTERFACE MANAGEMENT SUPPLY CHAIN MANAGEMENT Document Management Return Filing and Remittance Transmittal Correspondence Management On-line B2B Taxpayer Registration Customer Assistance Billing and Notices Bulk Data Transfers Return and Payment Processing Taxpayer Accounting Compliance Operations Revenue Accounting Auditing Selection & Audit Processing Compliance Management Financial Reporting Nonfiler Discovery Collections Management Phase III Phase I ENTERPRISE OPERATIONS MANAGEMENT Integrated Tax Operations DECISION SUPPORT SYSTEMS Business Intelligence OPERATIONAL DATABASE IMAGE STORAGE Returns Correspondence Audio Microfilm ACTIVITIES/ CONTACTS FILINGS HISTORY LOG Apportionment Knowledge Management ENTERPRISE DATA WAREHOUSE ACCOUNTS CUSTOMER CASES FINANCIAL TRANS. Historical Data External Data Sources Training Data DATA LAYER Phase II FORMS MANAGEMENT WORKFLOW MANAGEMENT CUSTOMER RELATIONSHIP MANAGEMENT APPLICATION LAYER In-Person Financial Institutions, Employers, Employees,Merchants, Government Agencies INTERFACE LAYER Information Providers Citizens E-Transformation E-Government Plan for Intensity of Change Processes Management Systems Organization Structure Culture Set initial market landscape and competitive positioning Enable online exchange of goods and services Re-envision the market, adopt new business models Discernable Change Significant Change Transformation E-Government Leadership Succession Planning E-government leaders must leave a leadership team wellprepared with the competencies required to succeed in the e-government world. Partnership/Alliance Value Creation E-Government Acumen Technical Know-How Borrow Build Original Leadership Competencies 18-36 months E-Government Leadership Competencies Refine Recommendations Recognize that focused leadership will decrease time-to-market and maximize success of e-government initiatives. Recruit an e-government leader who will fit in politically, as the ebusiness leader must drive change at the executive leadership level. Evolve governance processes and structures as business goals and the external environment changes. Consider Enterprise Architecture as a corporate asset, with management process and funding that keep it ever greened. Organization, people, process and technological transformations are the enablers of the e-government goals and strategies. Measure e-government success in terms of the enterprise’s transformation progress. Customer focused e-government service delivery strategies require integration of business processes across existing governmental organizational boundaries. Recommendations Customer Focused Strategies • e-Government initiatives must be based on sound business strategies and desires of citizens to inteact with government differently. • If your strategy aims for high customer focus, then your organization, processes, people, and technology will need to be re-engineered Technology Strategies • Build competencies in the key areas of Enterprise Application Integration and Collaborative Architectures IT Management Strategies • Align your organizational, people, and technology to support current and future service delivery channels • Manage expectations, “under promise and over deliver” QUESTIONS ?