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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 2 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 - Over 160 reports and 16 books 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 3 An Analysis of Societal Drivers Drivers for change: 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, - 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 - 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 4 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 5 Trend 1: Changing the Rules Strategic Management of Human Capital Improving Financial Management Rethinking Organizational Structure Theme: Reassessing Core Administrative Systems 6 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 7 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 8 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: Responsive Focused Variable Resilient Theme: Sense and Respond 9 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 10 Trend 6: Using Networks and Partnerships Characteristics of new challenges - - 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 - More than a tool of accountability More of a language for common action Key attributes of success - 11 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 12 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 13 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 14