Government 2020 (v4.1 for pdf, dec2009)

© 2009 IBM Corporation© 2009 IBM Corporation

Government 2020and the Perpetual Collaboration Mandate

Lynn Reyes([email protected])

IBM Institute for Business Value

© 2009 IBM Corporation2

Long-term changes, varying by country and region, are occurring in the composition of populations

Economic interdependence is blurring social, political and cultural boundaries within a global context Societies and governments

are becoming more attuned to what the earth can provide and what it can tolerate

Individuality, consumerism at social and commercial levels demands that governments deliver to the same expectations

Technology adoption and use is changing the way individuals, business and public institutions function; and reshaping relationships between them

The range, nature andconsequences of threats(for example terrorism, armed conflict, tribalism, pandemics, natural disasters) are increasing

Source: Government 2020 and the Perpetual Collaboration Mandate,IBM Institute for Business Value study, 2008

Six powerful drivers are reshaping societies –and the way they are governed


The drivers compel a dynamic, continuous cycle of both strategy and execution, so a shared frame of reference is key

Implications

Manifestations

Desired PublicOutcomes

ConstraintsAspirations

Strategies

Drivers

Desired Outcomes

Strategies

Results

Actions

PublicSector

Drivers, Manifestations,Implications, Aspirations

and Constraints

Drivers, Manifestations,Implications, Aspirationsand Constraints



and Constraints


The future of every society is being shaped by the unique and specific manifestations of these drivers

United States• High immigration with cultural

diversity• Declining industrial base, job

shifts, trade deficits• Leading carbon consumer• Target of global terrorism• Technology innovator, consumer• E-readiness ranking*: 1

Belgium• Open services economy with high per

capital income, but slowing growth• Almost all urban population• High public debt• Low immigration• E-readiness ranking*: 20

Japan• High and rising median age (45.8 years)• Rising immigration but limited experience

with cultural diversity • High labor costs• E-Readiness ranking*: 18

China• Gender imbalance (1.14 males

and female under age 15) • Rapid industrialization, impact on

environment, urbanization• Minimal expectations of

government by citizens --government budget 18% of GDP

• E-readiness ranking*: 56

India• Low median age (24.8 years)• Growing service economy• Minimal expectations of government

by citizens; gov’t budget 16% of GDP• Rising resource consumption with

environmental impacts• Significant cultural diversity• E-readiness ranking*: 54

Brazil• Immigration and diversity• Moderate labor costs• Rising resource consumption • Minimal threat of global

terrorism• E-readiness ranking*: 42 * Source: e-Readiness Rankings 2008 – Maintaining Momentum, Economist Intelligence Unit, written in

cooperation with IBM Institute for Business Value, April 2008. http://a330.g.akamai.net/7/330/25828/20080331202303/graphics.eiu.com/upload/ibm_ereadiness_2008.pdf

Implications

Manifestations



Strategies

Drivers

Implications

Manifestations



Strategies

Drivers


EnvironmentalConditions are

Stable

Stabilize

ImproviseReuse

and “get it out”

Mobi lize on de mand

Miti gateAssure

EnvironmentalConditions areDisruptive

Responses must beAgile and Adaptive

Responses must beSteady and Consistent

We are here

Implications

Manifestations



Strategies

Drivers

Implications

Manifestations



Strategies

Drivers

Hard choices, fragmented intelligence … little time.Speed is of the essence

The recent global financial crisis – now a global recession –is one example


Drivers Implications (examples)

Changing demographics

§ Amplified demand on the physical and social infrastructure§ Acceleration in social, health and pension costs further

challenged by global financial crisis, upsetting budget plans§ National cultures in transition§ Increased accessibility by government

Accelerating globalization

§ Public and private investments must reflect new economicrealities and cycles

§ Economic interdependence grows, for example financial markets § Emerging and less developed countries will create more and better paid high tech jobs§ Talent (and related education programs) is more critical than ever to economic strategies§ Communication and cultural compatibility become differentiators§ Distribution and communication networks are becoming critical to global economy, stability�

We’re also observing some cross-cutting trends�

§ Ongoing effort to change the rules of the game of government§ Increased use of performance management§ Growth in providing competition, choice and incentives§ Drive to perform on demand§ Heightened focus on engaging citizens§ Increased use of networks and partnerships

� Source: Government 2020 and the Perpetual Collaboration Mandate, IBM Institute for Business Value study, 2008� Source: Six Trends Transforming Government, IBM Center for the Business of Government, 2006

Every nation (or jurisdiction)uniquely experiences the set ofdrivers and manifestations, theimplications of which officials

should understand

Implications

Manifestations



Strategies

Drivers

Implications

Manifestations



Strategies

DriversWhile the six drivers are nearly universal, specific implicationsand their magnitude vary by country and region, among others


What makes people “confident” in government?

What makes government “relevant”?

Today? Tomorrow?

Are we making “progress” towards our desired outcomes?

How do we “know”?

Are there desired public outcomes that we share? Do we have a shared understanding of what they mean?

NetworkNetworkOutcomeOutcome

Public Outcome

NetworkNetworkOutcomeOutcome

Public Outcome

A safe and sustainable food supply

Preserved, protected cultural heritages

“Good government”

A vibrant, thriving arts & humanities life

Fair access to markets

Protected peace

Improved collective problem-solving

An equipped and competitive workforce

Sustainable energy supply

Healthy environment

Sustainableeconomic growth Healthy communities

A relevant, accessible health system

Better ways to “connect”

Fair application and enforcement of the law

Attractive employment

Relevant, enforceable laws

Available, affordable money & credit

Positive relationships with global neighbors

A thriving innovation ecosystem

Mitigated security risks

Improved community well-being

Safe and reliable transportation

Affordable, accessible places to live

Vibrant, healthy industries

Prevented conflicts

Safe, responsible energy use

A relevant and affordable social safety net

Safer communities

Financial stability

ILLUSTRATIVEILLUSTRATIVE

LEGENDl Public Outcomel Civil Societyl Private Sectorl Public Sector

Figure adapted from: Barabasi, A. Linked, “Afterlink: Hierarchies and Communities”, p. 233. Penguin Group, New York, © 2003


What makes people “confident” in government?

What makes government “relevant”?

Today? Tomorrow?



Are there desired public outcomes that we share? Do we have a shared understanding of what they mean?

Figure adapted from: Barabasi, A. Linked, “Afterlink: Hierarchies and Communities”, p. 233. Penguin Group, New York, © 2003




How does our organization’s performance contribute to progress toward those outcomes?


There is work to be done to define – and distinguish – and align performance and progress


Each society’s desired outcomes, aspirations and constraintsstrongly shape and lead to the goals, ideals, decisionsand actions for progress

Drivers Desired Outcomes Aspirations (To …) Constraints

Changing demographics

§ See previous slide for examples

§ Provide the right balance between social security (safety) & social services

Political andoperational constraints§ Availability of budgets for government programs (fiscal sanity*)§ Citizens’ views of the role of government, for example government by contractors?*§ Organization & Management: Structure: speed and efficiency of government

processes, for example governing without boundaries* , results really do matter* and “expect surprises”*

Economic constraints§ Workforce skills, education and training (crisis of competence*)§ Availability of capital, the impact of regulation, bureaucracy, administration§ Scientific and technical capabilities, for example e-Government is only the

beginning*§ Increased global competitionSocial constraints§ Citizen expectations for working conditions; service, living standards; privacy

(security and privacy in the Flat World*); social responsibility (for example “green leadership”*),

§ Receptivity to real or virtual immigration§ Information overload*Other constraints§ Physical – Aging and/or damaged roads, bridges, telecom infrastructure § Natural tensions – for example Conflict between economic development needs and

environmental interests§ “Maturity” and “Readiness” of sectoral and/or social segments

Accelerating globalization

§ Sustain and grow industry vitality and competitiveness

Rising Environmental Concerns

§ Be a model for safe and responsible energy use

Evolving Societal Relationships

§ Embrace the best aspects of new approaches without undermining social stability

Growing Threats to Social Stability and Order

§ Promote stable societies within political borders while being engaged in the global economy

Expanding Impact of Technology

§ Demonstrate sustained and sustainable innovation leadership

Considering implications, aspirations, desiredoutcomes and constraints together in light of

the drivers sets the stage for suitable andspecific strategies

* Source: Ten Challenges Facing Public Managers, IBM Center for the Business of Government, 2008

EXAMPLES

Implications

Manifestations



Strategies

Drivers

Implications

Manifestations



Strategies

Drivers


Aligning drivers to aspirations and constraints forms thefoundation of effective strategy development

§ What makes us distinctive?

§ Where do we want to go? What does that look like?

§ What trade-offs can and should we make?

§ Where are we today? Where can we “leapfrog” others?

§ Are we ready to change? How do we get there?

– What are the risks and how do we mitigate them?

– What do we really need? Do we know who to talk to?

– What sequence of actions should we take? When?

– How do we best manage our stakeholder relationships so that they also take ownership in the change process?

How will strategies be adapted to an increasingly interconnected environment?

Resulting strategies should then be used to drive operational alignment

Implications

Manifestations



Strategies

Drivers

Implications

Manifestations



Strategies

Drivers


Collaboration is a catalyst to the future –a structural priority and crucial to operational success

Which of the following Government Structure Factors will have the greatest impact on your business in the next three years?

52.4%

42.9%

33.3%

28.6%

23.8%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Interoperability and Cross-agency collaboration

Fragment Funding Policies / Approaches

Other

Collaboration with private sector

Organization exceeding requests and issues

(n=21)

Collaboration has emerged as a key issue and a required competency

Source: IBM Business Consulting Services, The Global CEO Study 2008


• Leaders are as enthusiastic about collaborating with external partners as their private sector counterparts

• The challenges are profound:

– How to redefine the “enterprise” as a networkof public, private and nonprofit organizations

– How to encourage the flow of new ideasand nurture them through to adoption

– How to flexibly respond to rapidly changingconditions to fulfill the mission

Source: IBM Global CEO Study 2008; n (Global) =350; n (Government) = 107; Strong focus on Business Model Innovation type includes 6 to 7 scores on a 1 to 7 scale (69% of total population)

Global CEOs

Public Sector Leaders

Global CEOs

Public Sector Leaders

41%

67%

54%

67%

Work WithinOrganization

Intense Collaborationwith External Partners

41%

67%

54%

67%

Work WithinOrganization

Intense Collaborationwith External Partners

Enterprise Model Innovation Focus

Leaders are looking “within” and “outside” to innovateways of delivering existing and new services


� Reduce costs � Find new revenue sources

� Drive new regulatory initiatives

� Collaborate broadly and better

§ Do more with the same or less – hiring freezes, budget reallocations, contract renegotiations

§ Gain efficiencies through consolidation and shared services

§ Improve collection rates on declining tax bases

§ Gather new revenues from (e.g. enforcement and permitting, road charging)

§ Continue to streamline trade

§ Restructure governance and oversight of the financial sector nationally and globally

§ Improve internal and external collaboration within / across borders and institutions

§ Enable rapid assimilation and deployment of expertise and knowledge

§ Enable co-creation, ideation, scenario planning

§ Perform community outreach and education

� Drive innovative business models

� Ensure public safety

� Maintain social stability

� Stimulate economic activity

§ Grow new financial and delivery vehicles – asking the private sector to invest with government for long term stability and return

§ Shared risk-reward, benefits-based contracting, joint ventures

§ Regionalization and aggregation of smaller government entities

§ A protected and resurgentsegment in recession

§ Education remains a priority for stability and workforce development

§ Social services “safety net” must broaden

§ Many national governments will create stimulus packages – some, bold with the intent to position for long-term competitiveness –that will flow to consumers and industry.

§ Protect locally specific spending (e.g. tourism).

Especially in an economic downturn, governments will focus intensely on eight strategic priorities in the near- and mid-term


What will it take?A mandate of perpetual collaboration

But first, what is “Collaboration”?

§ A recursive process in a relationship …

§ … where participants (e.g. people, organizations) work together as co-equal partners towards an intersection of common goals.

§ Each gives up some of their independence and autonomy through formal or informal agreements.

§ In the process, each becomes partially dependent on the other for their individual, as well as joint success.

And the “Perpetual Collaboration Mandate”?

§ A state of practice where the enabling elements of collaboration:

– Incorporate broad, innovative perspectives into a shared frame of reference;

– Enable situational and contextual awareness; and

– Help “systematize” and accelerate the change needed

§ Collaboration elements fall into four broad categories

– Relationships– Learning– Management structure– Enabling operating models

Source (adapted): Four Strategies to Transform State Governance, IBM Center for the Business of Government, 2008

Source: Government 2020 and the Perpetual Collaboration Mandate, IBM Institute for Business Value, 2008


The dimensions of perpetual collaboration are all essential …

Management Structure

Organization, Culture and Governance

Learning

Knowledge Creation and Sharing, Taxonomy

Enabling Operating Models

Partnerships, Intermediaries and

Exchanges

Relationships

Personalized Interaction and Services, Networks

PerpetualCollaboration

Source: Government 2020 and the Perpetual Collaboration Mandate, IBM Institute for Business Value, 2008

So that governments and their stakeholders understand and leverage their interconnectedness and dynamic governance to

interact and innovate in entirely new ways


ChangingDemographics

RisingEnvironmental

Concerns

EvolvingSocietal

Relationships

ExpandingImpact of

Technology

AcceleratingGlobalization

Growing Threatsto Social Stability

and Order

Citizen Engagement

Public Technology

Infrastructure

Management Efficiency and Effectiveness

Standards and Standards Adoption

GovernmentSourcing and Tasking

Citizen SelfResponsibility

Access to Public

Information

Defense and Security

EmergencyPreparedness and Response

Policing and Public

Security

Economic VitalityFor AgingCitizens

Social, FinancialPrograms forPensioners

Workforce andSkills

Development

Research. Science and Innovation

Strategic Intelligence

Water and Food Supplies

and Safety

Wellness Programs CitizenshipInitiatives

Economic Competitiveness

and Policy

Immigration Control Urbanization Transportation

and Congestion

Outcomes andValue BasedHealthcare

Primary Education

for ChildrenHigher Education

Customs andBorder

Management“Green Agenda”

EnergySupply and

Consumption

ILLUSTRATIVE

Environmental Innovation and Stewardship

Lands and Physical

Infrastructure

… because many programs should be refurbishedas strategies are aligned with existing realities


SCOPE OF COLLABORATION

CO

LLA

BO

RA

TIO

N

CA

PAB

ILIT

Y M

AT

UR

ITY

EmergingChance and

point-specific

EmbeddingAnticipatory and

sustained

ExtendingAdaptive and

increasingly influential

ExpandingSynchronous and co-

creating net new value

SYSTEMIC

SYSTEMIC

Progress TowardsDesired Public

Outcomes

EvolvingReactive, but

gaining momentumBeginnerAd hoc, but

communicating

DiscovererAware andcooperating

PractitionerCompetent and

coordinating

VirtuosoLeading,

contextualizing

MaestroInnovating and

impactful

ILLUSTRATIVE

EnvironmentalConditions are

Stable

Stabilize

Ana lyze

ImproviseReuse and

“get it out”

Tar get

Fore cast

Mobi lizeon de mand

Miti gateAssure

EnvironmentalConditions areDisruptive

Responses must beAgile and Adaptive

Responses must beSteady and Consistent

Are you ready?Are we?Who is “we”?

Impact on success and progress depends on situational and contextual awareness, desired outcome(s), scope, and maturity


§ Intertwined and accelerating, the impacts can be particularly acute

§ Now more than ever, Public Sector Leaders are challenged to drive transformational change in ways they have never done before

– Across all levels of government– Across jurisdictions– Across sectors – Across nations

§ Our analysis suggests that approaches and solutions will need to be more global in nature, involving high levels of collaboration

– Smarter government

Source: Government 2020 and the Perpetual Collaboration Mandate,IBM Institute for Business Value study, 2008

The drivers demand responses that transcendtraditional boundaries


First, it will take a change in mindset anda shared frame of reference

Implications

Manifestations



Strategies

Drivers

Desired Outcomes

Strategies

Results

Actions

PublicSector


and Constraints




and Constraints


Second, the basic building blocks need to be put in place

B

A

C

AlignmentStrategy and organization aligned both vertically, horizontally to support the collaboration needed to move forward

BoundariesStrategic relationships with the extended enterprise defined, enabled and managed

CommitmentAgreement on roles, responsibilities, authorities, accountabilities and agreements; and, ongoing commitment to a climate for collaboration

Source: The Power of Many – the ABCs of Collaborative Innovation Throughout the Enterprise, IBM Institute for Business Value, © 2007


PerpetualCollaboration On DemandIntegratedAccess

Flexible

Integrated

Experimental

Information and Technology Capabilities

Bus

ines

s C

apab

iliti

es

Organizatio

n, Cultu

re & Governance

Reactive

Aligned

Adaptive

Public Enterprise of the Future

Public Enterprise of the Future

Where are you today?

How to respond? Lead by example or react?

Third, actual change needs to occur along three dimensionsstarting with a mandate of perpetual collaboration


Public Sector Summaries of the Core Traits

1. Hungry for change

2. Innovative beyond customer imagination

4. Disruptive by nature

3. Globally integrated

5. Genuine, not just generous

have fewer levers at their disposal than the private sector, but are defining new ways of working and using new technologies to develop and deliver innovative services to citizens

developing citizen centric solutions to deliver enhanced, tailored services and provide increased transparency and accountability

pursuing transformation programs as a means of meeting elevated expectations, despite financial constraints. Implementing sophisticated approaches to manage complex change

exploring ways to better integrate public sector operations, even in some cases, internationally

seizing the opportunity to better lead by example and developing new socially responsible approaches to build on the momentum in the Private Sector – some are more advanced than others

The Global CEO Survey identified five core traitsfor the Public Enterprise of the Future


§ Focus on core missions: economic prosperity, environmental wellness, public well-being, and a safe world

§ Collaborate through transparent approaches that enable governments to gain and retain public trust

§ Lead to gain and retain influence while driving necessary changes in their societies

§ Prioritize and execute plans, making choices clear, engaging local political groups in decision making, with increased attention on protecting human and property rights

§ Evaluate and improve actions taken in response to drivers, implemented at a pace that gives new initiatives a chance to succeed

§ Continuously seek and find ways to mix top down and bottom up development and implementation of solutions for problems and desires

§ Adopt and consistently apply standards and encourage trends in chosen areas

§ Demonstrate accountability while expecting personal responsibility of others

Successful governments by 2020 will share a number of achievements and behaviors

Government & Nonprofit

Government 2020 (v4.1 for pdf, dec2009)