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Six Trends Transforming Government
Executive Brief
Overview
 Where Do the Six Trends Come From?
 An Analysis of Societal Drivers
 Six Trends Transforming the Management of
Government
 How to Interpret the Six Trends
 Seeing the Future
 Resources
What should government be
doing vs. How should
government do it
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Where Do the Six Trends Come From?
 An analysis of drivers for change in society
 From research supported by the IBM Center for The Business of Government
since 1998
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Over 160 reports and 16 books
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Competition, Choice and Incentives (16 reports)
E-Government (28 reports)
Financial Management (9 reports)
Human Capital Management (19 reports)
Innovation (13 reports)
Managing for Performance and Results (17 reports)
Networks and Partnerships (14 reports)
Transformation (22 reports)
Special Reports (8 reports)
 From observations of government activities and initiatives over the past decade
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An Analysis of Societal Drivers
 Drivers for change:
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The aging population
The continued rapid development of technology
Globalization of economies and services
The lack of confidence in government
External threats – terror, disasters, etc.
 As a consequence,
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Government is changing:
 The federal budget deficit is driving tighter budgets for non-entitlement programs
 Government’s apparent inability to respond to non-routine events and long-term trends
 Boundaries between federal, state, and local government activities are being reexamined, as
well as boundaries between public, private, and non-profit activities
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The workplace is changing:
 The “aging workforce” is impacting the supply and demand of workers
 The use of technology is changing “work”
 The job of the manager is changing to creating links and collaboration across boundaries
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Six Trends Transforming the Management of
Government
2. Using
Performance
Management
3. Providing
Competition,
Choice, and
Incentives
1. Changing the
Rules
Improved Government
Performance
6. Using
Networks and
Partnerships
4. Performing
on-Demand
5. Engaging
Citizens
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Trend 1: Changing the Rules

Strategic Management
of Human Capital

Improving Financial
Management

Rethinking
Organizational Structure
Theme: Reassessing Core
Administrative Systems
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Trend 2: Using Performance Management
 Creating a supply of
performance information
 Creating a demand for the
use of performance
information
 The challenge will be
managing the tensions
between using
performance management
for accountability and using
it for improving program
performance
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Theme: Shift from Outputs to
Outcomes that public demands
Trend 3: Providing Competition, Choice, Incentives
 Market-based approaches to
delivering public services
 Competitive sourcing
 Public-private partnerships
 Vouchers
 Market-based approaches to
delivering internal government
services
 Revolving funds, shared services
 Competitive grants
 Pay-for-performance
 Auctions
 Market-based approaches for
implementing regulatory
standards or allocating public
resources
 Bottle deposit/refunds systems
 Emissions trading
Theme: Using Public Choice Theory to Create
Market-based Government
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Trend 4: Performing On-Demand
 What is “On Demand?”
 Horizontal integration of processes and infrastructure across the entire
enterprise, including key partners, suppliers, and customers
 Deals with both routine (24/7) services and non-routine (emergencies)
 Key Characteristics:
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Responsive
Focused
Variable
Resilient
Theme: Sense and Respond
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Trend 5: Engaging Citizens
 Trust in government has declined
over past two generations,
leading to a reluctance to turn to
government to lead solutions to
societal problems.
 Continuing to “inform, consult”
and adding “engage, collaborate”
 Face-to-Face, On-Line
approaches evolving
Theme: Increasing Engagement and
Sense of Ownership
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Trend 6: Using Networks and Partnerships
 Characteristics of new challenges
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Outside boundaries of any one agency
Not part of traditional service delivery
system now in place in most agencies
Not playing by the same rules as traditional
agencies
 Role of performance measures
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More than a tool of accountability
More of a language for common action
 Key attributes of success
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Right people and incentives, not traditional
policy management approaches
Theme: No One Agency Can
Deliver on Anything Important by
Itself
How To Interpret the Six Trends
 We believe that each trend will continue and possibly accelerate in the
near future
 We are currently at a different point in the learning curve for each trend
 Government managers must continue to work more efficiently using
the tools and strategies described or implied in each trend
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The Six Trends Dashboard
 How ready are public managers to effectively respond to each trend
in the future?
One:
Rules
Tw o:
Performance
Three:
Markets
Four:
On-Demand
Five:
Citizen
Six:
Netw orks
0
1
2
3
4
5
The top of the 5-point scale suggests managers have experience, understand the issues, and generally
know how to address this type of challenge
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Seeing the Future: Find a Theme Park
And Hop on a Roller Coaster:
 Government leaders will experience a
topsy-turvy ride with:
 Ups and Downs
 Successes and Failures
 Trial and Error, and
 Steep Learning Curves
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