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An Overview of State IT Governance Models Presentation to the Joint Committee on Legislative Audits and Information Management and Technology Paul W. Taylor | Center for Digital Government

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An Overview of State IT Governance Models

Presentation to the Joint Committee on Legislative Audits and Information Management and Technology

Paul W. Taylor | Center for Digital Government

Beginning with the End in MindBeginning with the End in MindBeginning with the End in MindBeginning with the End in Mind

Consolidation is a means to an end … Cost Savings Operating Efficiencies New Service Delivery Models, Shared Services and/or a whole way of

organizing government.

Like spring cleaning, consolidation tidies up after living for a while and sprawling out all over a place

Has a green tinge to it – particularly through virtualization and its attendant energy savings

Governance: Getting Your Arms Around ITGovernance: Getting Your Arms Around IT

Source: Center for Digital Government/ eRepublic, 2011

Data Centers Servers Storage Networks/ Telecomm Desktops Automation Tools Software Licenses Contracts Staff

What Gets Consolidated? What Could be Shared?What Gets Consolidated? What Could be Shared?

Services/ Utilities Disaster Recovery/

Back Up Security Business

Intelligence E-mail Help Desk

Source: Center for Digital Government/ eRepublic, 2011

Trending IT Priorities Trending IT Priorities 2010-2013 2010-2013 and their and their relationship to IT Governancerelationship to IT Governance

Trending IT Priorities Trending IT Priorities 2010-2013 2010-2013 and their and their relationship to IT Governancerelationship to IT Governance

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Conventional span of control in IT Governance (but everything is related to everything else)

Core of IT Governance Do IT Well Do IT Once Do IT Anywhere Just Don’t Do IT Everywhere

See to - and Act on - the Edges of the Enterprise or Federation

Source: Center for Digital Government/ eRepublic, 2011

State IT Program Orientation (2004-2010)State IT Program Orientation (2004-2010)State IT Program Orientation (2004-2010)State IT Program Orientation (2004-2010)

2004

2006

2008

2010

54%

86%

WILLING TO SHARE

WILLING TO SHARE

Source: Center for Digital Government/ eRepublic, 2011

ITPROGRAM

CENTRALIZATIONReaction to uncoordinated (profligate)

spending, and unnecessary duplication

DECENTRALIZATIONReaction to poor service, inadequate capacity and lack of trust in central provider

SHARED SERVICE

ENVIRONMENTFlavor of StandardsBaskin Robbins 31One of Each

French VanillaCommunity Defined

VanillaCentrally Dictated

Architecture

FracturedHi Custom Hi Duplication

Service Oriented (Federated)•Retain internal control of core functions while maximizing cost efficiencies, bringing together functions that are frequently duplicated across organizations, offering these services more efficiently and at lower cost through shared services.•Competent and credible•Discretionary, competitively priced and cost recoverable•Balances needs of enterprise with those of agencies to act autonomously•Combines public sector mission with private sector discipline

McEnterpriseBillions Served

ConsistentlyCost Effectively &

Centrally Controlled

Nimble and Robust Structure and GovernanceNimble and Robust Structure and GovernanceNimble and Robust Structure and GovernanceNimble and Robust Structure and Governance

Source: Center for Digital Government/ eRepublic, 2007- 2011

High Value

Low Value

High Cost Low Cost

New Process

Current Process

Realizing Value: With Effective GovernanceRealizing Value: With Effective GovernanceRealizing Value: With Effective GovernanceRealizing Value: With Effective Governance

Leap and Reap

Rapidly

Creep and Weep Over a Much Longer Time

High Value

Low Value

High Cost Low Cost

New Process

Current Process

Keep the Old Process But Do

Less of It

Realizing Value: Without Effective GovernanceRealizing Value: Without Effective GovernanceRealizing Value: Without Effective GovernanceRealizing Value: Without Effective Governance

Cost

Value

Low

High

High

Eliminate

LeaveAs-Is

Integrate

Modernize

Good Governance = Deliberate DecisionsGood Governance = Deliberate Decisions

Governance: Key AttributesGovernance: Key Attributes

CIO with a desk down the hall from Governor’s Office

IT Rests with the Agency Head

Consensus = veto

AUTHORITY

Cabinet Level 78%

Member State IT Board 72%

Policy Setting 64%

Operations 74%

Project Management 66%

IT Funding 57%

BENCH – SUITE OF Cs

Technology 74%

Security 95%

Telecom 78%

Privacy/ Disclosure 48%

WEAK STRONG

LEVERS

Policy

- Business Strategy

- IT Strategy

Infrastructure/ Network

Systems/Applications

Operations

Development

Funding/ Investments

Staffing

Source: Center for Digital Government/ eRepublic, 2011

By Agency Groups

By Communities

Commonwealth of Massachusetts

IT as Vending Machine orDigital Barn Raising?

Governance & the Success of Shared ServicesGovernance & the Success of Shared Services

“Shared services work most effectively when there is a clear understanding of benefits to be achieved by sharing, and when governance processes acknowledge the retained shared ownership of the participants.”

- John P. Roberts, Gartner Group

Economies of scale Process consistency Supports enterprise

architecture Engagement of the

stakeholders Speed to market Operational excellence Innovation

Source: Center for Digital Government/ eRepublic, 2011

• Shared Services Committee• Which services, Best model, Managing the transition

• Governance of each shared service• Design, Critique, Monitor, Transparency• E.g. State Web Portal• Build, partner, or outsource?

• Clear communication and transparency– Newsletter, Improved Website

• Focus on each Customer– Stronger account management– Quarterly CIO level review

• Program for engaging department directors and other senior executives

What Governance Looks Like on the GroundWhat Governance Looks Like on the Ground

3Know the specifics of “As Is” vs. “To Be”How much, long, difficult? & what difference?

Another Half Dozen Governance PrinciplesAnother Half Dozen Governance PrinciplesAnother Half Dozen Governance PrinciplesAnother Half Dozen Governance Principles

Collaborate in design, build and oppsIf you must own it, share it4

Support reasonable experimentationTolerate controlled failure5

Think about the next PlatformStandardize, standardize, standardizeCost, management, security, performance6

Source: Center for Digital Government/ eRepublic, 2011

1Focus on the breakthrough, not the incremental improvement

Use technology to change the rules, cost structure, and the way the public’s business gets done

2Connect policy priorities and projects

Ensure that every project has tangible ties topolitical objectives and policy goals

Understand how things will be better when you are done

Another Half Dozen Governance PrinciplesAnother Half Dozen Governance PrinciplesAnother Half Dozen Governance PrinciplesAnother Half Dozen Governance Principles

Source: Center for Digital Government/ eRepublic, 2011

An Overview of State IT Governance Models

Presentation to the Joint Committee on Legislative Audits and Information Management and Technology

Paul W. Taylor | Center for Digital Government

[email protected] | 360.561.5984