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1 1

I skate to

where the

puck is going

to be, not to

where it has

been.

Wayne Gretzky

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• 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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15 15

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…

18 18

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19 19

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20 20

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manipulate

21 21

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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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26 26

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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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35 35

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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36 36

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

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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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have outlived their

uselessness.

Marshall McLuhan

41 41

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Warning…

42 42

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From specialist and

43 43

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& institutions

44 44

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Self-organizing groups

45 45

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Crowd sourced

46 46

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47 47

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how does this change the nature of PFM?

48 48

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49 49

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learning: collaboration

50 50

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learning: e-learning & distance learning

51 51

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52 52

learning: knowledge

management

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53 53

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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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57 57

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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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65 65

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66 66

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

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• 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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74 74

Initiative

Government Data Transparency

Citizen Audit

Citizen Outcome Management

Participatory Budgeting

Public service capacity building

Citizen capacity building

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75 75

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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76 76

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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80 80

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