DIGITAL ERA GOVERNANCE

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DIGITAL ERA GOVERNANCE
Presentation to GOVIS 2005
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EDS Corporation
Who are we ?

• EDS Corporation is the leading global IT
  outsourcing services company with 120,000
  employees in 60 countries. Based in Plano, Texas
  
• Created by one-time US presidential contender
  Ross Perot in the 1960s to run the computer
  systems of US Govt departments, multi-national
  banks and commercial organisations
• Revenue exceeds US20 billion. Listed on NYSE
  and London Stock Exchanges. Ranked 95th in
  Fortune 500
  

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EDS New Zealand

• EDS NZ services the biggest govt depts and banks,
  and NZs two biggest companies Telecom and
  Fonterra
  
• Processes 1 million beneficiary payments a
  fortnight, handles interbank overnight
  interchange and settlement, collaborative
  cheque-processing, biggest print/mail outlet in
  NZ
• Created more than 200 jobs in two years handling
  work for offshore clients
  
• Market leader in IT outsourcing and services,
  more than 2300 staff in 8 cities
  

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Major New Zealand Clients
Banking and Finance
Central Government
Other Industries

• ANZ National Bank Ltd
• Bank of New Zealand
• Westpac
• ASB Bank
• Interchange and Settlement Ltd

• Ministry of Social Development
• Inland Revenue Department
• Land Information New Zealand
• Department of Labour Workforce
• NZ Police
• Ministry of Justice

• Telecom
• Fonterra
• Auckland Regional Council
• Auckland District Health Board

Local Government
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Viewpoint

• EDS has been working with London School of
  Economics, KSG Harvard and Carnegie Mellon
  
• Professor Patrick Dunleavy
• Professor Mark Moore
• This talk is based on the findings of their
  research as well as experiential evidence from
  EDSs involvement with government globally
  
• AIM To promote debate

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Scope

• The Prevailing Management Philosophy
• New Public Management (NPM) / New Management
  Strategy
  
• Digital Era Governance (DEG)
• E-government
• E-democracy
• The Transformational Potential of ICT
• Barriers to Adoption
• The NPM/DEG Paradox

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• PUBLIC MANAGEMENT PHILOSOPHY

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Definition of NPM

• Hands on professional management
• Explicit standards and measures of performance
• Output controls
• Decentralisation Agencification (Separation of
  the policy implementation function from
  policy-making function)
  
• Competition
• Private sector style management practices
• Parsimony in resource use

• Disaggregation
• Competition
• Incentivisation
• Dunleavy (2004)

Hood, Christopher, A Public Management for all
Seasons? Public Administration, Vol 69, pp.
3-19, Spring 1991
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New Public Management (NPM) New Management
Strategy (NMS)

• Literature on NPM is vast and varied
• USA Bill Clinton Reinventing Government
• Japan PM Hashimoto (1997)
• UK Thatcher/Heseltine spearhead
• New Zealand Market-based reforms (1984)
• plus Australia, Canada, India, Jamaica and
  Thailand
  
• Germany elements

Foster, C D and Plowden, F J (1996) The State
Under Stress (Buckingham Open University Press)
Dunleavy, P. (2004). NPM is Dead - Long Live
Digital-Era Governance. London School of
Economics and Political Science.
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The NMS/NPM Movement

• NEW MANAGEMENT STRATEGY. In the UK the Next
  Steps agencification programme once expected to
  include five-sixths of the central civil service
  in fact stabilised at somewhat over half the
  total.
• 102 agencies 80 of civil servants.
• Claimed improvements in services provision have
  been closely questioned
  
• NEW PUBLIC MANAGEMENT. In New Zealand the
  country pioneered NPM structural changes
  
• 300 separate central agencies and 40 ministries,
  in addition to local and health service
  authorities

James, O. (2003). The Executive Agency Revolution
in Whitehall Public interest versus
bureau-shaping perspectives, (Basingstoke
Palgrave Macmillan) Dunleavy, P. (2004). NPM is
Dead - Long Live Digital-Era Governance. London
School of Economics and Political Science.
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The Impact of NPM/NMS

• In NZ, impressive reforms, impressive results
  turned the country around
  
• No one wants to return to the bad old days
• However, three unwanted side effects of NMS/NPM
  are
  
• Duplicating costly separate management
  hierarchies for very similar functions
  
• NPM radically increased institutional and policy
  complexity
  
• NPM has eroded the citizens capacities for
  solving social problems
  

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• The more difficult it is for citizens to
  understand internal state arrangements and
  operate appropriate access points to represent
  their interests politically and administratively,
  the more their autonomous capabilities to solve
  policy problems may be eroded.
• Dunleavy 2004

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An Illustration of NMS in the UK
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• DIGITAL ERA GOVERNANCE The Pursuit of
• E - government and E - democracy

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• The advent of the digital era is now the most
  general, pervasive and structurally distinctive
  influence on how governance arrangements are
  changing in advanced industrial states.
• (Dunleavy 2004).

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• DIGITAL ERA GOVERNANCE
• A whole complex of changes, which have ICT and
  information-handling changes at their centre, but
  which spread much more widely and will remake the
  two distinct yet intertwined relationships
  between the people and their governments
• the one between the government and the citizen as
  customer or consumer of public services
  (transacting),
  
• and the other between the government and the
  citizen as owner or shareholder (participation).

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Democracy Defined

• Pluralistic competition among parties and
  individuals for all positions of government
  power
  
• Participation among equal citizens in the
  selection of parties and representatives through
  free, fair and periodic elections
  
• Civil and political liberties to speak, publish,
  assemble, and organize, as necessary conditions
  to ensure effective competition and participation

Joseph Schumpeter, Capitalism, Socialism, and
Democracy, New York Harper and Row, 1950.
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• Democracy works poorly when individuals hold
  preferences and make judgements in isolation from
  one another, as they too often do in todays
  liberal democracies.

Mark E. Warren, What do we expect from more
Democracy?, Radically Democratic Responses to
Politics, Political Theory, Vol. 24, Issue 2,
May 1996.
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Direct Democracy Citizen Involvement

• Increased Citizen Participation. The concept of
  direct democracy, where the citizen is
  continually involved in an explicit way in the
  decision-making process remains a powerful one
  for some proponents of e-democracy and has an
  undeniable moral appeal.
• Legitimacy of Decisions. Direct democracy
  incorporates not only the speed of decision
  which is the greatest strength of the dictator,
  but additional advantages which can never be
  his.
• ..intrinsic irresponsibility.
• Citizen Malaise and Apathy. According to recent
  research, the opportunity to participate in
  politics constantly ranks among the least
  interesting things people want to do over the
  internet.

Buckminster, Fuller, No More Second-hand God,
available at www.vote.org, 1940
Richard K. Moore, Democracy and Cyberspace, in
Hague, Barry N. and Loader, Brian D., editors,
Digital Democracy Discourse and Decision-making
in the Information Age. London and New York
Routledge, 1999
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Direct Democracy Citizen Involvement

• Knowledge and Expertise
• At the Local Level. It can be argued that having
  a decision impact upon ones life gives one a
  necessary understanding to make a decision
  
• At the National Level. There is a tendency for a
  typical citizen to drop to a lower level of
  mental performance as soon as he/she
  contemplates national and global issues, he/she
  tends to yield to irrational prejudice and
  impulse, even if there is enough complete and
  correct information available

Helena Catt, Democracy in Practice, London and
New York Routledge, 1999. Joseph Schumpeter, Ca
pitalism, Socialism, and Democracy, New York
Harper and Row, 1950.
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The Move to Self Government

• Thomas Jefferson once pointed out that if the
  people appeared not enlightened enough to
  exercise their control of government, the
  solution was not to take away the control but to
  inform their discretion by education. . If
  these processes work, if they spread, if they
  become an indispensable part of government at all
  levels, we may take it as a sign that we, as a
  people, have moved up a grade in democracys
  school. It holds out the hope that, eventually,
  we be ready for self government.

William Ruckelhaus, Restoring Public Trust in
Government, National Academy of Public
Administration, Nov 15, 1996.
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(No Transcript)
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The E government Continuum

• 1993 2006 ACCESS The implementation of a
  passive presence on the Web. Government
  websites provided information but there was no
  interaction with the citizen - Research.
  Challenge is TECHNOLOGICAL
• 2005 2010 INTERACTION Using the Internet to
  allow citizens to interact with government - from
  paying taxes to renewing drivers licences
  Transaction. Challenge is ORGANISATIONAL
• 2010 beyond ENGAGEMENT Breaking down the
  bureaucratic barriers to create functionally
  oriented, citizen-centred government Web
  presences Personalised Customer Service.
  Challenge is SOCIAL

Adapted from Forrester The Future of E-
government. May 2005
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E - democracy

• E-democracy is the provision of high quality
  information (explicit knowledge) and effective
  communication tools for the specific purpose of
  empowering people for able participation in
  consultations and decision-making, both in their
  capacity as consumers of public services and as
  citizens

Margaret E. Phillips and Adrian Cunningham,
Keeping Online Information Accessible for
E-governance and E-democracy, A paper prepared fo
r the Australian Electronic Governance
Conference. Centre for Public Policy, University
of Melbourne, Melbourne Victoria, 14th and 15th
April, 2004.
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Transaction Participation
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• DRIVERS FOR DIGITAL ERA GOVERNANCE

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Why Harness the Transformational Potential of ICT?

• Reintegration the key opportunities for
  exploiting digital-era technologies lie in
  putting back together many of the elements that
  NPM broke down into discrete corporate
  hierarchies. This disaggregation placed the
  burden on the citizen to integrate public
  services into usable packages
• Needs-based holism involves a systematic attempt
  to re-prioritise away from the NPM emphasis on
  business process management and towards a
  genuinely citizen-based, services-based or
  needs-based foundation of organisation

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Why Harness the Transformational Potential of ICT?

• 3. Digitalisation Processes closely connected
  to the impacts of Web, internet and email upon
  public agencies and most of its component changes
  are at least partially captured under the
  E-government label
• Electronic services delivery covers the
  substantial potential for most paper-based
  administrative processes to be converted to
  e-government processes
• Radical disintermediation denotes the potential
  for Web-based processes to allow citizens,
  businesses and others to connect directly to
  state systems without passing through the
  previously universal gatekeepers in the form of
  agency personnel
• Organisational and cultural changes inside the
  government sector, plus behavioural shifts by the
  citizen

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NPM and ICTs

• NPM can be interpreted as a special and
  prominent case of an attempt to deliver the
  transformational properties of informatisation.
  Full-blown NPM is an information-intensive reform
  of the structures and processes of governance,
  demanding new and complex horizontal and vertical
  flows of information in and around government
  organisations. Bellamy and Taylor (1994)
• This proved much more complex in operation
• No close correlation between IT spend and
  organisational effectiveness, in an NPM
  environment, within UK and USA
  
• Large scale computer systems actually work
  against NPM trends

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The Reality
Very few countries in the world are utilizing
all aspects of the E-government potential. None
does it to the full limit of this potential.
UN Global E-government Survey 2003.
UN Global E-government Survey 2003
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• BARRIERS TO ADOPTION

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Barriers to Adoption of E-democracy

• Government and Citizen Will.
• The citizen must be brought more fully into the
  equation
  
• Willingness of government and groups to provide
  the necessary tools for citizen engagement and to
  educate citizens on the importance of that
  engagement

Cathia Gilbert Riley, The Changing Role of the
Citizen in the E-Governance E-Democracy
Equation, Commonwealth Centre for e-Governance,
2003
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Barcelona

• DIRECT DEMOCRACY UNDER CONSTRUCTION

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Barriers to Adoption of Full DEG

• The Legacy of NMS/NPM
• In the UK, NMS meant adding peripheral elements
  to the pre-existing managerial system
  
• In NZ, NPM is the system (Schick 2001)
• What would replace it?
• Digital NPM

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The NPM/DEG Paradox

• Upside Fantastic reforms impressive results
• World leading AGILE GOVERNMENT
• Downside Increased complexity eroded citizen
  competency duplication
  
• The ICTs and know-how is here
• Deliver direct gains in social problem solving
• Boost citizen competencies
• Reduce institutional and policy complexity

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Conclusion

• New Zealand is an ICT-enlightened nation with a
  high level of education, technological literacy,
  and a relatively homogeneous population. It is,
  therefore, an ideal platform for employing
  technology on a national scale to innovate
  creating social change and economic benefit
• To fully benefit from ICTs we need to resolve the
  NPM/DEG paradox
  
• The answer is evolution not revolution

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EDS

• EDS is part of the ICT fabric that exists within
  NMS/NPM
  
• Actively engaged with academics and practitioners
  globally to better understand the next stage of
  the evolution
  
• We believe we are key stakeholders in any future
  transformation to DEG and welcome further debate
  on the topic

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eds.com
stephen.griffin_at_eds.com