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DIGITAL ERA GOVERNANCE

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Title: DIGITAL ERA GOVERNANCE


1
DIGITAL ERA GOVERNANCE
Presentation to GOVIS 2005
2
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

3
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

4
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
5
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

6
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

7
  • PUBLIC MANAGEMENT PHILOSOPHY

8
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
9
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.
10
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.
11
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

12
  • 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

13
An Illustration of NMS in the UK
14
  • DIGITAL ERA GOVERNANCE The Pursuit of
  • E - government and E - democracy

15
  • 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).

16
  • 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).

Page 16
17
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.
18
  • 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.
19
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
20
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.
21
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.
22
(No Transcript)
23
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
24
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.
25
Transaction Participation
26
  • DRIVERS FOR DIGITAL ERA GOVERNANCE

27
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

28
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

29
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

30
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
31
  • BARRIERS TO ADOPTION

32
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
33
Barcelona
  • DIRECT DEMOCRACY UNDER CONSTRUCTION

34
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

35
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

36
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

37
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

38
eds.com
stephen.griffin_at_eds.com
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