Download - Bill Eggers - Innovation In Government
Innovation State: Why Innovative Government Doesn’t Have To Be A Contradiction
Bill Eggers, Director, Deloitte Services LP
Copyright © 2008 Deloitte Development LLC. All rights reserved.
• The problem: Getting through to the right person when you had a problem
• The innovation: 311
• How it works: Operates 24/7, including weekends, in multiple languages. Calls answered in a matter of seconds. Citizens call in with diverse requests: pot hole repairs, bulk-trash pickup, or graffiti clean up. All requests tracked, increasing accountability and transparency
• Results: The inventory at Chicago’s impoundment lot was cut by half as citizens found an easy way to locate their towed cars
• Innovation replicated in dozens of cities around the world
311: A one-stop center for non-emergency services
Copyright © 2008 Deloitte Development LLC. All rights reserved.
Few public sector organizations produce a steady stream of innovations
Public agencies approach
innovation in terms of one-
off change
Public agencies approach
innovation in terms of one-
off change
Public agencies approach innovation in terms of one-off change, using the “big bang” approach instead of a series of new approaches that make up a broader process.
Public agencies approach innovation in terms of one-off change, using the “big bang” approach instead of a series of new approaches that make up a broader process.
Only a handful of organizations appear on the winners list more than once
Only a handful of organizations appear on the winners list more than once
UK National Audit Office canvassed 126 organizations for innovations
Harvard Innovations in American Government Awards
“Innovation experts have told us that no public service has yet succeeded in establishing a genuine culture of innovation across the organization.”
-Jessica McDonald, Deputy Minister to the Premier and Cabinet Secretary,
Province of British Columbia..
Copyright © 2008 Deloitte Development LLC. All rights reserved.
Why sustained innovation matters
Perception: The private sector gives us digital video recorders and iPods; the public sector creates tax forms and motor vehicle registration queues.
Call for innovation
Call for innovation
The current economic crisis
Manage risks: buck stops with public sector
Global issues: climate change, terrorism, rising fuel prices etc.
Rising expectations
The current economic crisis
Manage risks: buck stops with public sector
Global issues: climate change, terrorism, rising fuel prices etc.
Rising expectations
Revenue slowdown
Aging population: Loss of revenue & experienced
employees
Unexpected events
Revenue slowdown
Aging population: Loss of revenue & experienced
employees
Unexpected events
Do more...Do more... ...with less...with less
Urgent and provocative challenges
Urgent and provocative challenges
Ability to meet challenges compromised
Ability to meet challenges compromised
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Tap all sources of service innovation
Government Organization
External PartnersExternal Partners
Citizens/customersCitizens/customersEmployeesEmployees
Internal PartnersInternal Partners
Participative and responsive government
Joined-up and reinvented government
Non-bureaucratic, outcome-focused government
Partnered and networked government
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Who is your primary source of innovation?
• Employees• Private sector firms / suppliers• Nonprofits• Other government agencies• Citizens
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The Innovation Strategies
Q. How can public sector alter the internal environment to overcome the hurdles to innovation?
Q. Why are some innovations replicated with speed and ease, while others flounder?
Replicate Cultivate
Q. Can you extend partnership to “buy” innovations from the best in class providers?
Partner
Q. How can you connect with the best ideas, engage citizens, and establish new delivery mechanisms?
Open SourceNetwork
Q. How can you energize large groups of people from diverse disciplines to enable flexible, customized solutions?
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#1: Cultivate
Tap into Tacit Knowledge
Develop Emerging Ideas
Drive Organizational
Change
Engaged Employees
Motivators
Two-way communication
Ownership of ideas
Gainsharing, awards, bonus etc.
Accept mistakes
Enablers
Safe havens
Skunk works
Prediction markets
Tools for collaboration
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Safe Havens
How do safe havens help?• Ensure that emerging ideas get the time
to develop, protected from short-term budget constraints and premature criticism
• Permit low-risk experimentation• Motivate “renegade” thinkers -- not people
seeking to undermine authority, but independent visionaries looking to achieve results.
Create New Organizational Structure
Safe havens are separate units kept close to mainstream activities but away from the line organization.
Skunk Works
Havens of creativity within an organization.
Intrapreneurs
Employees who act as entrepreneurs within an
organization
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Tap into diverse knowledge in the fieldTSA Idea Factory
At TSA, instead of transforming the structure, Kip Hawley used collaborative technologies to transcend it.
TSA IdeaFactory• Collects input• Best ideas “rise to
the top”
Vision/Leadership
Data/Feedback
Ownership
Innovation
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#2: Replication
Mechanisms to Identify innovation
Adapt to local context
Collaborate
Core Group of employees
Internal partners
External partners
External partners
"I've been stealing everyone's ideas for 15 years and put them all together. People are desperate for non-conventional answers."
- Stephen Goldsmith, Former Mayor of Indianapolis
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#3: Partner
Seek new solutionsSeek new solutions
Test new approachesTest new approaches
Benefit from cross- border diffusion
Benefit from cross- border diffusion
Overcome internal
constraints
Overcome internal
constraints
Types of Partnership
Public-Private
Public– Public
Public-Nonprofit
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Partners help gain funds and mitigate risks
Empowerment schools program
• Schools sign performance agreements committing them to high levels of student achievement.
• In return for this commitment,
schools receive greater local autonomy over their operations.
• Private funds used to test the idea before spending public money on a citywide rollout
• In the past, school officials might have rejected such a proposal because they deemed it too risky
“…Our private sector partners have helped us to fund innovative new programs that are giving our children exciting new opportunities to explore their talents and fulfill their potential.”
– New York City Mayor Michael R. Bloomberg
A nonprofit that attracts private financing for diverse school reforms
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#4: Network
Citizens report a number of problems
External partners, citizens and employees can be engaged in selecting ideas Citizens know
what they want but may not be able to articulate it clearly
Citizen input is necessary if new ideas are to succeed
External partners
Middle and senior managers should not be insulated from citizen reactions
In-source ideas
Predict ideas worth pursuing
Build citizen networks Create a
learning organization
Look for solutions that meet unconscious needs of your customers
Engage the creativity and specialized skills of a range of providers
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How to get printed images on a potato chip?
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P&G Model of Using Global Networks for Innovation
DriversDrivers New StrategyNew Strategy ChallengesChallenges
Networked ModelNetworked Model
• Increasingly difficult to create organic growth of 4-6 %
• Growing competition
• Innovation success rate (percentage of products that met financial objectives) stagnant
• Growing interest in forming partnerships
• Acquire 50% of innovations from outside
• Identify promising ideas throughout the globe
• Apply own capabilities to create better and cheaper products
•Massive operational changes
• Reinvent the culture to “proudly found elsewhere” from “not invented here”
• Redefine the R&D organization – 7500 people inside plus 1.5 million outside with permeable boundary between them
P&G
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#5: Open source
User Community
Local community
CitizensDevelopment Community
SpecialistsOpen source companiesOpen source project
Global community
Government organizations
Technology experts
Students
Government agency
NonprofitsPrivate companies
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Open source education: Ontario e-learning
DriversDrivers TargetsTargets New StrategyNew Strategy
• With globalization reaching a crescendo, education will be the key to maintaining competitiveness and ensuring equity
• 75% of students achieve provincial standard in literacy and numeracy by 2008
• 85% graduate from high school by 2010-11
• Resources developed by teachers that can be customized to local needs
• Credit courses, technical helpdesk, sharing of classroom resources by teachers - all available free of cost
• It can serve small, rural and isolated schools that face shortage of educational resources and specialized teaching staff
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Open Source policy developmentU.S. Patent and Trademark Office
Source: http://www.uspto.gov/web/patents/peerpriorartpilot/
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The Innovation Process: One weak link in the chain can stump the flow of innovations
Idea GenerationIdea Generation DiffusionDiffusionConversionConversionSelectionSelection
Filter good ideas by creating an efficient sorting process
Convert ideas into products, services and practices
Manage stakeholders and disseminate ideas widely
Create systems to generate and maintain the flow of good ideas
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Identify and rectify your pain points
Cultivate Replicate Partnership Network Open source
Generation In-house External Co-creation External External
Selection In-house In-house Co-creation Co-creation/ External
External
Conversion In-house In-house Co-creation Co-creation/ External
External
Diffusion In-house In-house Co-creation Co-creation/ External
External
What can you do to overcome your weakness?
Where do you falter most often?
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Building an Innovation-Centered Organization
• Closed boundaries—government’s role is to own and directly provide services • Bricks-and-mortar infrastructure—throw more resources ata problem• Invent-it-yourself and centralized approach
Traditional Model: Hierarchical Government
• Some elements of partnership but government remains the primaryowner and provider of services• Improved collaboration across various departments
Intermediate Model: Joined-up, Partnered Government
New Models of Innovation: Networked, Open source Government
• Redefine role of government as an aggregator, manager and buyer of services • Identify promising ideas from anywhere • Use internal knowledge and skills to adapt ideas to the needs of your customers
Drivers• Plummeting costs of partnering• Growing number of problems that requirecross-sector response
Copyright © 2007 Deloitte Development LLC. All rights reserved.
Reconfigure Organizational Structure: Example of P&G
R&D
7,500 persons
1.5 million talented persons
NineSigma
InnoCentive
YourEncore
Yet2.com
Private Companies
Universities
Government Labs
Individuals
Retired Persons
ProprietaryNetworks
Technology Entrepreneurs
Suppliers
Open Networks
Permeable Boundaries
Strong Leadership Commitment
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Pushing the Culture: British Columbia’s Innovation Action Plan
BarriersBarriers Steps takenSteps taken Future activitiesFuture activities
• Employees felt they had neither the permission nor the means to innovate
• Communication was another barrier, with employees saying they lacked sufficient information to propose transformative ideas
• A new brand statement : “Where Ideas Work”
• Core values identified: courage, curiosity, passion, accountability, service, and teamwork
• Senior executive investment: subject to bonuses and salary holdbacks of a minimum of 5 percent based on their demonstrated support for innovation and employee engagement
• Awards: annual employee innovation awards
• External recognition: the BC Public Service began aggressively seeking external awards to gain recognition
• “Innovation Sessions” where employee focus groups examine what they need to become more innovative
• Suggestions will be inventoried and turned into a comprehensive list of scalable ideas that will be implemented within a year
• Corporate values related to innovation—such as courage and curiosity—will be factored into every employee’s performance assessment
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Innovation and Fear of Failure
• Any innovation carries risks • In general, bigger the change, higher the risk
Types of Risk• Organizational Risk: Costs of
introducing change could turn out to higher than the benefits
• Political Risk: Politicians and senior officials do not want to be seen to be backing the wrong horse
• Personal Risk: Failure could negatively impact the career of the person introducing the change; result in loss of jobs
• Risk of Counter-reinventions: Value of an innovation can be offset by new rules and regulations
Innovation
RiskUnacceptable situation
Value
No public manager wants to drink his morning cup of coffee reading a headline describing his latest screw-up in 12-point type.
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Solution: Fail Small, Fail Fast
• Innovation is about experimentation.
• Experiments often fail.• These days, innovative
companies build failure into their systems of innovation.
• The idea is to fail quickly if you have to, learn from the experience and move on to the next big idea.
Alter the Risk-
Reward Ratio
If you’re trying to make ambitious decisions or investments, but you’re working in a “can’t-afford-to-fail” environment, you’re not going to create a high-performance organization.
IDEOIDEO
Invites employees to “have the guts to create a straw man” that others can criticize.
“Fail often to succeed sooner.”
Invites employees to “have the guts to create a straw man” that others can criticize.
“Fail often to succeed sooner.”
3M3M
Brings together “skunk works” teams to investigate the problems in a potential product.
If a product is found deficient, the team quickly disbands to work on another one.
Brings together “skunk works” teams to investigate the problems in a potential product.
If a product is found deficient, the team quickly disbands to work on another one.
Copyright © 2008 Deloitte Development LLC. All rights reserved.
What you can do right now
#1: Define what innovation is for youTesco: “Better for customers, simpler for staff, and cheaper for Tesco”
#2: Decide who takes responsibility for implementing ideasThe In-House R&D Network at the Bureau of Motor Equipment for New York City:
worksite committees of mechanics adopt proposals and implement changes within the scope of their operations
#3: Take steps to build competencyTo make partnering a “way of life at the Department,” the Department of Interior sends employees to work in locations that excel at collaboration
#4: Build on past success“Innovation exchange” program: London will offer its expertise in dealing with issues like congestion pricing and climate change. New York City will share its experience in improving access to services through 311 and other technology initiatives.
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Just remember…
“People are very open minded about new things. As long as they are exactly like the old ones.”
- Charles Kettering
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For Further Information…
Bill Eggers
Global Director, Deloitte Research-Public Sector
202-378-5292
Questions & Answers
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