Leadership, Governance and E-Transformation John Anthony, Associate Director Gartner Consulting Seattle, Washington 206 374 9756

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Leadership, Governance and E-Transformation
John Anthony, Associate DirectorGartner
ConsultingSeattle, Washington206 374 9756

• IPMA Executive Seminar
• Skamania, Washington
• September 17, 2001

2
Conclusions

• Focused and committed senior leadership is the
  critical factor for successful implementation of
  e-government strategies.
• Leadership for e-government must be selected
  based on enterprise characteristics and
  transformational goals.
• The e-government leader is a catalyst for focused
  organizational, business process, and
  technological change. E-Government Readiness
  Assessment determines how and where to begin this
  transformation.
• As it matures within the agency, e-government
  will be moved into core business functions.

3
Conclusions

• Governance is a process that crosses internal and
  external organizational boundaries. It is
  responsible to Executive leadership team and all
  impacted must participate in order for it to
  succeed.
• Enterprise Architecture is a corporate asset that
  requires Executive level planning, funding and
  commitment.
• Information technology is comprised of people,
  processes and technology, that must be
  repositioned to support e-government service
  delivery and organizational transformation.
• E-Government transformation and Information
  Technology is everyone's responsibility.

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Proactive e-Government LeadershipLess Time,
More Returns
Hurricanes of change mgmt.
Political icebergs
Guiding beacon of business leadership
Finish?
New worlds to explore
Shortcut of balanced metrics
Shortcut of e-business economics
Desert island of poor planning
Off-course destination of no/low BU buy-in
Storms of buy-in
Tech-only false promises
Cost- cutters reef
Graveyard of nonaction
Shortcut of executive involvement
Doldrums of rudderless leadership
Start
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Four Phases of E-Government
4. Transformation
Funding stream allocations Agency identity Big
browser
3. Transaction
Competition Confidentiality/ privacy Fee for
transaction E-authentication
Strategy/Policy People Process Technology
Job structures Relocation/telecommuting Organizati
on Performance accountability Multiple-program
skills Privacy reduction
2. Interaction
Cost/Complexity
Self services Skill set changes Portfolio
mgmt. Sourcing Increase business staff
SearchableDatabase Public response/ e-mail
How much is enough?

• Constituent demand
• Political climate
• Agency identity
• Maturity
• Trust

Content mgmt. Increased support staff Governance
Integrated services Change value chain New
processes/services Change relationships(G2G,
G2B, G2C, G2E)
1. Presence
BPR Relationship mgmt. Online interfaces Channel
mgmt.
Approval Public
Knowledge mgmt. E-mail best practices Content
mgmt. Metadata Data synch.
Existing
Legacy sys. links Security Information
access 24x7 infrastructure Sourcing
Some new applications New data structures
Constituent Value
Streamlineprocesses
Search engine E-mail
Web site Markup
Time
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E-Government Strategic Planning
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E-Government Leadership Priorities

• Leadership and guidance from the Executive team
• Strategizing for e-Government/IT linkages
• Demonstrating business value of IT
• E-government process management capabilities
• E-enabling IT architectures
• Attracting and retaining quality people
• Nurturing and sustaining IT competencies
• Developing IT as a professional services business
  
• Professional project/program management
• Project prioritization

Provide Leadership
Build Capabilities
Develop IT Professionalism
Delivering e-business
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Leadership planning is a must!

• Advocate for e-Government
• Executive sponsorship
• Fuse business and IT
• Evaluate IT investments
• from an enterprise
• perspective
• Prioritize e-Gov. and IT projects
• Monitor progress and spending
• Appoint e-government leadership

• View IT worker shortage as an enterprise issue
• Champion the development of a compelling
  adaptive workplace

Clowder (def) A herd of cats
Clowdermeister Cat Herder
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Planning for Results
STRATEGIC DIRECTIONS What do we want to be? What
is our Vision?
Strategic Planning
Tactical Planning

• Define Strategic
• Foundation
• Mission
• Vision
• Operating Principles

• Conduct
• Workshop 1
• Confirm Strategy and Objectives

• Gather Data Through Team Interviews
• Develop Strategy

• Conduct
• Workshop 1
• Confirm Strategy and Objectives

Outcomes Drivers Operational Effectiveness Proces
s Improvements

• Conduct Workshop 2
• Select Measures
• Set Targets

• Determine Measures Targets
• Propose Measures

• Determine Measures Target
• Proposed Measures

• Conduct
• Workshop 2
• Validate Measures and Targets

• Complete BU
• BSC
• BSC
• Implementation Roadmap

• Plan for
• Implementation
• Identify Initiative
• Resources for
• both BU and
• the Enterprise

• Identify Initiatives
• Conduct Gap Analysis

• Conduct Workshop 3
• Select and define Initiatives

Present BU BSC and Plan for Implementation

• Conduct
• Workshop 4
• Present Plan

• Plan for
• Implementation
• Implementation
• Roadmap

Business Unit Initiatives
Enterprise Initiatives
RESOURCE MANAGEMENT
Operational Planning

• Project Schedules for
• Enterprise Initiatives
• BU Initiatives

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The Balanced Scorecard Addresses Barriers to
Strategy Deployment and Execution
Only 5 percent of the work force understands the
strategy
9 of 10 Companies Fail to Execute Strategy
85 percent of executive teams spend less than
one hour per month discussing strategy
Only 25 percent of managers have incentives
linked to strategy
60 percent of organizations do not link budgets
to strategy
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Balanced Scorecard Process Overview
Development of a Balanced Scorecard (BSC)
involves the following steps

• Define Foundation
• Vision
• Mission
• Operating Principles

• Define Strategy
• 3 - 5 Key Strategic Directions

• Identify Objectives
• Customer
• Financial
• Internal Process
• Learning Growth

• Identify Measures
• Outcome
• Driver

• Establish Targets
• Baseline
• Stretch

Identify Key Strategic Initiatives
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BSC Development Success Factors

• Ensure Executive Involvement
• Sponsorship
• Communication
• Active and continuous participation
• Manage Peoples Expectations
• Plan does not go to the tactical level
• Not a metrics project, but a change process
• Use Directed Facilitation
• Keep people from thinking in silos
• Help participants focus on strategy
• Work from examples, not a blank page
• Understand and Incorporate Leadership Passions

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BSC Development Success Factors (cont.)

• Ensure Consistent Participation
• Workshops
• Sub-teams
• Avoid Group Think
• Ensure someone challenges ideas
• Link Process to Peoples Daily Lives
• Measures and targets
• Division and individual BSCs
• Build a BSC Support System
• Permanent team structure
• Dedicated staff (BSC Advocate)
• Continuous evaluation and communication processes

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Collaborative Development Ensures Alignment with
Business Priorities

• Shared effort for transforming IT performanceand
  capabilities
• Forum for making IT relevant to the managementof
  the business
• Directly tackle how IT enables business
  objectives IT and business units wrestle with
  linking, demonstrating, correlating return on IT
  in business terms
• Enabling the business transformational
  objectives
• Implementing mission-critical technology solutions

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Benefits for the Organization

• Provides leadership with a common framework for
  making strategic decisions and implementing
  change
• Staff clearly see how their work contributes to
  the organizations strategy and benefits the
  whole
• Provides the organization with a vehicle for
  sharing progress with citizens and key
  stakeholders
• Measurement tracking serves as a communication
  tool to determine effectiveness of strategy
  development and implementation (vs. mechanism for
  control)

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Strategic Perspectives

• Customer
• What needs to be done to exceed customer
  expectations?
• Financial
• How will we maximize the return on tax payer
  dollars?
• Internal Business Processes
• Where do we need to excel and what processes
  should we streamline to satisfy customers,
  business partners and other governmental
  agencies?
• Learning and Growth
• What will we do to provide employees with an
  environment that supports innovation, learning
  and growth?

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Sample Balanced Scorecard
Measured Objectives
Direction Improve Operating Efficiency
Measures
Targets
Initiatives
1. Establish competitive costs 2. Provide
quality service
1. Customer perception (O) 2. Customer perception
(O)
1. Rate and billing reform 2. Project management
office 2. Customer relations unit
85 85
Establish competitive costs
Customer
Provide quality service
1. Customer relations unit
1. Percent of overall business (O) 1. New
Accounts (D)
1. Attract new business
20 10 per week
Eliminate waste
Attract new business
Financial

1. Customer expectations met (O) 1. Achievement
of project milestones (D)

75 95
1. Project mgt methodology
1. Project management office
Implement performance measurement processes
Implement standard project mgt methodology
Internal Process
Improve business processes, communication and
workflow
1. Staff excellence 1. Project management office
1. Develop Managers staff
1. Staff performance (O) 1. Managers in training
(D)
70 of staff improve 100
Learning Growth
Develop Managers staff
Define Core Competencies
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Target Setting Methodology

• Define Targets that Motivate the Organization
• Define baseline targets
• Define stretch targets
• Define Targets Based On Existing Data
• An overall business goal
• Industry benchmarks
• Incremental improvements based on past
  performance
• Define Targets Over Time
• When data is not available, establish a baseline
  first

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Outcome vs. Driver Measures

• Outcome Measures
• Purpose
• Focus on the performance
• results
• Strengths
• Objective and easily captured
• Issues
• Reflect success of the past

• Driver Measures
• Purpose
• Measure intermediate processes and activities
• Strengths
• More predictive
• Allows for adjustment
• Issues
• Based on hypotheses of cause and effect
• Difficult to track

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e-Business Implementation Roadmap
TODAY FUTURE
Strategic Direction

• S-1 - Strategic Planning
• Service Delivery Objectives
• Mix of Applications (G-C, G-B, G-C)
• S-2 -Measurement and Target Setting

Strategic Planning Program
1
2
G-1 - Set up Governance Structure (Internal
with Partners) G-2 - Perform Legal
Review G-3 - Develop Policy Framework
1
2
Governance
3

• C-1 - Readiness Strategy
• Organizational Readiness
• Client Readiness
• Technology Readiness
• C-2 -Launch Community of Interest Council(s)
• C-3 -Launch Quick Win Applications
• C-4 - Business Process Review for
  Transformation
• C-5 -Client Outreach Program

1
2
Customer Service
3
4
5
1
2
T-1 - Enterprise Architecture T-2 - IT Security
Program T-3 - Network Strategy T-4 - Shared
Services Strategy
Technology Infrastructure
3
4
O-1 - Resource Allocation Management
Program O-2 - Staff Excellence Program O-3 -
Sourcing Strategy
Organization Efficiency and Effectiveness
1
2
3
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E-Government Readiness Assessment
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(No Transcript)
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e-Government Readiness Planning

• Step 1 Organizational Readiness
• Legal readiness
• Leadership readiness
• Governance readiness
• Competency readiness
• Technology readiness
• Step 2 Customer Readiness
• Accessibility concerns (Digital Divide)
• Social issues
• Cultural issues
• Disability issues
• Economic issues

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e-Government Readiness Planning

• Step 2 Customer Readiness (Security Concerns)
• Confidentiality concerns
• Privacy concerns
• Authentication concerns
• Step 3 Business Processes Readiness
• Step 4 -- Technology Readiness
• Technology readiness for accessibility issues
• Technology readiness for security issues
• Step 5 -- Staff Readiness

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e-Gov Summary of Assessment Results
Proficient Ready Somewhat Ready Not Ready No
Action
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e-Gov Summary of Assessment Results
Proficient Ready Somewhat Ready Not Ready No
Action
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Organizational Assessment - Management

• Vision
• Clarity - it clearly articulates broad plans of
  action to be achieved
• Breadth - covers all key issues (Customer,
  Financial, Internal Processes and Learning and
  Growth)
• Unity - strong unifying theme that extends to all
  stakeholders
• Boldness and Innovation - features the best ideas
  from elsewhere in the world
• Credibility - must be realistic

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Organizational Assessment - Management

• Planning
• XXX has a documented e-Government Strategic Plan
• XXX e-Government Strategic Plan is integrated
  into the Business Strategic Plan
• XXX has an e-Government Tactical or
  Implementation Plan
• XXX has e-Government outcome metrics to measure
  their plans success
• XXX e-Government plan supports the stated
  direction

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Organizational Assessment - Management

• Governance
• XXX has a governance structure established
• XXX governance process has a defined set of
  operating principles
• XXX understand the role of management in making
  decisions and providing guidance for e-government
• XXX has a strategy for prioritizing and funding
  e-government projects
• XXX has a mechanism for updating and for
  providing exceptions to their technical
  architecture and standards

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Organizational Assessment - Management

• Culture
• The Board understands and supports e-Government
  direction
• The management team understands and supports
  e-Government direction
• The organization understands and supports
  e-Government direction
• The organization understands and embraces the
  implications of the plan

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Organizational Assessment - Management

• Change Management
• XXX has a communication strategy
• XXX communication strategy address communication
  across, down, and out of the organization
• XXX has a communication strategy for quickly
  sharing organizational learning about
  e-government throughout the organization
• XXX has a an organization change management
  strategy/plan that is funded

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Governance for E-Government
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Governance

• Governance is the inter-agency organizational
  structure that provides a decision making process
  to determine the services, architecture, policies
  and standards for the enterprise information
  technology.
• Through 2003, less than 10 of agencies will
  participate in a governance structure needed to
  enable customer-centric transformation necessary
  for E-Government success.
• (0.8 probability)

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e-Government Governance
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Governance The Next Generation

• Action Items
• Build extra-agency view of governance
• Include constituents, partners, advocacy groups
• Develop cooperative architecture

Governing (Policy/ Regulations)
Mature Governance
Global Governance (Multiagency)
IT Governance (Single Agency)
Time
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E-Government Policy Framework

• Technical
• Architecture and Standards
• Shared Services
• Security
• Electronic Records
• User and Client IDs

• Management
• Privacy Confidentiality
• Collaboration
• Economic Development
• Measurement
• Impact Assessment
• Customer Support
• Access to Services

• Web
• Single Portal
• Availability
• Content Management
• Convenience Fees
• Commercial Advertising

• Staffing and HR
• Employees
• Retention
• Change Management

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E-Governance

• e-Gov cuts across organizational boundaries
• Business processes must be re-engineered to
  deliver services involving multiple
  departments/jurisdictions, business partners and
  customers
• Accountability must be ensured despite
  inter-jurisdictional applications
• Governance over process, architecture, standards
  and policies must be determined
• Manage expectations of constituents to avoid
  disappointment
• Partnerships require innovative governance models

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E-Government Enterprise Architecture
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Enterprise Architectural Design Principles

• The government IT customer has shifted from staff
  (internal) to the customer of the government
  (external).
• System (business processes and organization
  structure) must be customer-centric.
• System must accommodate a user population that is
  diverse in abilities and interests.
• System must accommodate usage that fluctuates
  widely depending on community events
  (scalability).
• System must be available at any time
  (availability).
• Multiple channels are required but must
  consolidate into a uniform processing flow.

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Conceptual Architecture
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e-Government Conceptual Architecture Components

• Management Layer
• e-Marketing
• e-Governance
• Policy
• Architecture
• Standards
• Security Management
• Interface Layer
• Customer Relationship Management
• Channel Management
• Supply Chain Management
• Intelligent Agents (Event Life Cycles)
• Application Layer
• Community of Interest (COI)Apps
• Legacy Apps

• Interface Layer
• Application Middleware
• Data Middleware
• Shared Services Layer
• Data Layer
• e-Data Bases
• External Historical Data Bases
• Legacy Data Bases
• Infrastructure Layer
• Platforms/ Servers
• User Devices
• Networks
• System Management

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Typical Un-architected e-Government
43
Architecture - Integrated Government System
44
E-Transformation
45
E-Government Plan for Intensity of Change
Enable online exchange of goods and services
Set initial market landscape and competitive
positioning
Re-envision the market, adopt new business models
Discernable Change
Significant Change
Transform-ation
Processes
Management Systems
Organization Structure
Culture
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E-Government Leadership Succession Planning

• E-government leaders must leave a leadership team
  well-prepared with the competencies required to
  succeed in the e-government world.

Partnership/Alliance Value Creation
E-Government Acumen
Technical Know-How
E-Government Leadership Competencies
Borrow
Refine
Build
Original Leadership Competencies
18-36 months
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Recommendations

• Recognize that focused leadership will decrease
  time-to-market and maximize success of
  e-government initiatives.
• Recruit an e-government leader who will fit in
  politically, as the e-business leader must drive
  change at the executive leadership level.
• Evolve governance processes and structures as
  business goals and the external environment
  changes.
• Consider Enterprise Architecture as a corporate
  asset, with management process and funding that
  keep it ever greened.
• Organization, people, process and technological
  transformations are the enablers of the
  e-government goals and strategies.
• Measure e-government success in terms of the
  enterprises transformation progress.
• Customer focused e-government service delivery
  strategies require integration of business
  processes across existing governmental
  organizational boundaries.

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Recommendations

• Customer Focused Strategies
• e-Government initiatives must be based on sound
  business strategies and desires of citizens to
  inteact with government differently.
• If your strategy aims for high customer focus,
  then your organization, processes, people, and
  technology will need to be re-engineered
• Technology Strategies
• Build competencies in the key areas of Enterprise
  Application Integration and Collaborative
  Architectures
• IT Management Strategies
• Align your organizational, people, and technology
  to support current and future service delivery
  channels
• Manage expectations, under promise and over
  deliver

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QUESTIONS ?