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Roadmap to the 21st Century in Public Financial Management: Aligning PFM Reform and Social Media
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1 1
I skate to
where the
puck is going
to be, not to
where it has
been.
Wayne Gretzky
Version 7 section
• brief discussion The [Social] Future of Public Financial
Management and Governance
ICGFM Spring Conference
2012
Doug Hadden
disclaimer
3 3
research
4 4
5
open data
open government
government 2.0
social media
social networking
e-government
e-governance
6
Social in government?
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There is nothing more
difficult to carry out, nor
more doubtful of success, nor
more dangerous to handle
than to initiate a new order of
things.
Niccolo Machiavelli
7 7
What will be the nature of public financial management across the
next decade?
Recognizing the limitations of
prediction
9 9
10 10
example: flying cars
Upside down
11 11
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Arab Spring
12 12
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Tea Party
13 13
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Occupy
14 14
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Source: Time Magazine
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Analog Governance
16 16
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Digital Governance
17 17
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Democracy isn’t democracy…
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• brief discussion Broadcast can
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manipulate
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Change
22 22
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1969…
23 23
Source: NASA
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2012
24 24
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We are living in the
middle of the largest
increase in
expressive capability
in the history of the
human race
Clay Shirky
25 25
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1. Mobile
27 27
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2. CoIT (Consumerization of IT)
28 28
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3. Gamification
29 29
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4. Social & Crowdsourced
30 30
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5. Transparent
31 31
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6. Visualized
32 32
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The Symmetry of Open Government
3 collaboration
participation 2
transparency 1
employee participation 4
community data 3 Government 2.0 Open Government
Source: Gartner
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• brief discussion It is the framework which
changes with each new
technology and not just the
picture within the frame.
Marshall McLuhan
34 34
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Digital Age Democracy A New Era of Digital Governance
Industrial Era
Democracy Representative
Citizens Passive Consumers
Politics Broadcast, Mass,
Polarized
States National,
Monocultural
Source: Mills Davis, Microsoft
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Digital Age Democracy A New Era of Digital Governance
Industrial Era Digital Era
Democracy Representative Participatory
Citizens Passive Consumers Active Partners
Politics Broadcast, Mass,
Polarized One-to-One
States National,
Monocultural
Global, Local,
Virtual,
Multicultural
Source: Mills Davis, Microsoft
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Government 2.0 in Context
Scope
Exte
rnal
Inte
rnal
Transactional Social
Focus
Source: Batorski, Hadden
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Government 2.0 in Context
Scope
Exte
rnal
Inte
rnal
Transactional Social
Focus
Source: Batorski, Hadden
Version 7 section
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Government 2.0 in Context
Scope
Exte
rnal
Inte
rnal
Transactional Social
Focus
Source: Batorski, Hadden
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Society 2.0
40 40
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• brief discussion Most of our assumptions
have outlived their
uselessness.
Marshall McLuhan
41 41
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Warning…
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From specialist and
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& institutions
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Self-organizing groups
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Crowd sourced
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how does this change the nature of PFM?
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learning: collaboration
50 50
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learning: e-learning & distance learning
51 51
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learning: knowledge
management
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budget: participatory budgeting
54 54
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55 55
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budget: “government as platform” (open data)
56 56 Source: Tim O’Reilly
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58 58
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risk management: Crowdsourcing
59 59
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+innovation
60 60
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Benefits from IT-Enabled Connected Government
Internal To Provider Agencies and Governments
External To Consumer Citizens and Businesses
1. Avoidance of duplication 1. Faster service delivery
2. Reduction in transaction costs 2. Greater efficacy
3. Simplified bureaucratic procedures 3. Increased flexibility of service use
4. Greater efficiencies 4. Innovation in service delivery
5. Richer communications & coordination 5. Greater participation and inclusion
6. Enhanced transparency 6. Greater citizen empowerment
7. Greater information sharing 7. Greater openness and transparency
8. Secure information management
Source: Dr. Pallab Saha
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Source: Nick Semple
Traditional
Viewpoint
Control
1. Not on work time
2. Company confidential
information
3. Privacy concerns
4. Regulatory compliance & e-
discovery
5. Control over content & opinion
6. Process to codify knowledge
7. Return on investment?
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bar Traditional vs. Government 2.0 Viewpoint
Control Chaos
1. Not on work time 1. People will use the tools
anyway
2. Company confidential
information
2. Internal and external social
networking
3. Privacy concerns 3. Free expression of ideas
4. Regulatory compliance & e-
discovery
4. Individualization of
information context
5. Control over content & opinion 5. Expertise vs. opinion
6. Process to codify knowledge 6. Non standard tools
7. Return on investment? 7. Burden on infrastructure
8. Secure information
management
Source: Nick Semple
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Barriers?
64 64
digital divide, poverty, bandwidth, capacity, literacy
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Leapfrog?
Developing Countries Developed Countries
1. High governance impact 1. Moderate governance impact
2. More holistic thinking 2. More specialist thinking
3. Low trust for government data 3. High trust for government data
4. Need for auditors 4. Less need for auditors
5. Digital divide & connectivity 5. Digital divide less critical
6. Single information systems 6. Multiple information systems
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Government 2.0 Maturity
67 67
Source: Gartner
Casual
1
Initial
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Government 2.0 Maturity
68 68
Casual Transparent
2
Developing
1
Initial
Source: Gartner
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Government 2.0 Maturity
69 69
Casual Transparent Participatory
3
Defined
2
Developing
1
Initial
Source: Gartner
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Government 2.0 Maturity
70 70
Casual Transparent Participatory Collaborative
4
Managed
3
Defined
2
Developing
1
Initial
Source: Gartner
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Government 2.0 Maturity
71 71
Casual Transparent Participatory Collaborative Engaged
5
Optimizing
4
Managed
3
Defined
2
Developing
1
Initial
Source: Gartner
Version 7 section
• brief discussion Channels
Infrastructure
Business Processes
(Financials, HR, Budgeting, Procurement)
Custom
Applications
Packaged
Applications
External
Services
Constituent-Centric Services Policymaking Processes
D
a
t
a
Socialization and Consumerization
Source: Gartner
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Transition
73 73
From broadcast to “in network”
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Initiative
Government Data Transparency
Citizen Audit
Citizen Outcome Management
Participatory Budgeting
Public service capacity building
Citizen capacity building
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Initiative
An
ti-
corru
ptio
n
Government Data Transparency
Citizen Audit
Citizen Outcome Management
Participatory Budgeting
Public service capacity building
Citizen capacity building
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Initiative
An
ti-
corru
ptio
n
Govern
men
t
effic
ien
cy
Government Data Transparency
Citizen Audit
Citizen Outcome Management
Participatory Budgeting
Public service capacity building
Citizen capacity building
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77 77
Initiative
An
ti-
corru
ptio
n
Govern
men
t
effic
ien
cy
Govern
men
t
effe
ctiv
en
ess
Government Data Transparency
Citizen Audit
Citizen Outcome Management
Participatory Budgeting
Public service capacity building
Citizen capacity building
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78 78
Initiative
An
ti-
corru
ptio
n
Govern
men
t
effic
ien
cy
Govern
men
t
effe
ctiv
en
ess
Socia
l Inclu
sio
n
Government Data Transparency
Citizen Audit
Citizen Outcome Management
Participatory Budgeting
Public service capacity building
Citizen capacity building
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79 79
Reduce Corruption
Improve Efficiency
Improve Effectiveness
Increase Social
Inclusion
Increase Taxes
Reduce Debt
Develop Economy
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Internet Evolution to 2020
Incre
asin
g k
now
ledge
con
nectiv
ity
Increasing social connectivity
1.0
The Web:
Connects
Information
2.0
The Social Web:
Connects People
3.0
The Semantic Web:
Connects
Knowledge
4.0
The Ubiquitous Web:
Connects
Intelligence
Source: Mills Davis
Source: Mills Davis: Project 10x,
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speed
81 81
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