{"id":49,"date":"2004-10-12T11:47:49","date_gmt":"2004-10-12T15:47:49","guid":{"rendered":"http:\/\/blogs.law.harvard.edu\/cesarbreadev\/the-state-of-e-government\/"},"modified":"2004-10-12T11:47:49","modified_gmt":"2004-10-12T15:47:49","slug":"the-state-of-e-government","status":"publish","type":"page","link":"https:\/\/archive.blogs.harvard.edu\/cesarbreadev\/the-state-of-e-government\/","title":{"rendered":"The State of e-Government"},"content":{"rendered":"<p><a name='a48'><\/a><\/p>\n<p>This week I attended the <a href=\"http:\/\/www.ec3.org\/\">National<br \/>\nElectronic Commerce Coordinating Council<\/a> meetings in Boise, Idaho.<span style=\"\">&nbsp;<br \/>\n<\/span>The theme of the conference was &#x201C;Government in the Digital Age: Myths,<br \/>\nRealities &amp; Promises &#8211; A Candid Assessment and Road Map for Success.&#x201D;<\/p>\n<p>(I went on behalf of the <a href=\"http:\/\/www.ksg.harvard.edu\/exec_ed\/3e\/index.html\">E-Government Executive<br \/>\nEducation (3E) Project<\/a> at Harvard&#8217;s JFK School of Government (KSG), where I<br \/>\nam working with <a href=\"http:\/\/ksgfaculty.harvard.edu\/jerry_mechling\">Professor<br \/>\nJerry Mechling<\/a> to develop a new online application called the Compass.<span style=\"\">&nbsp; <\/span>The Compass, built on <a href=\"http:\/\/dotlrn.org\/\">.LRN<\/a> with the support of IBM, includes<br \/>\nassessment, benchmarking, and library tools which will support both the 3E<br \/>\nProject&#8217;s executive education programs, and perhaps later other KSG and other<br \/>\nprograms.<span style=\"\">&nbsp; <\/span>We showed an early version of<br \/>\nthe Compass to 25 execs gracious enough to give us their time, and their<br \/>\nresponse and feedback were both encouraging and useful.<\/p>\n<p>The first &#x201C;production&#x201D; use of the Compass prototype will be<br \/>\nfor a 3E program we&#8217;ll be running in December called &#x201C;Leadership in a Networked<br \/>\nWorld: The 2005 Leadership Agenda&#x201D;.<span style=\"\">&nbsp; <\/span>The<br \/>\npurpose of the program is to help senior public sector executives and their<br \/>\nadvisors evaluate and set priorities among IT-enabled initiatives, not only in<br \/>\nlight of their potential value, but of the political calculus associated with<br \/>\nthem as well.<span style=\"\">&nbsp; <\/span>After choosing a few to<br \/>\nfocus on, the program then considers how best to pursue these priorities given<br \/>\ntheir associated political considerations.)<\/p>\n<p>Conferences can be a mixed bag.<span style=\"\">&nbsp; <\/span>This was a good one.<span style=\"\">&nbsp; <\/span>The participants included current and former<br \/>\nstate comptrollers, auditors, and CIOs.<span style=\"\">&nbsp;<br \/>\n<\/span>Vendors were represented by very experienced folks who had themselves<br \/>\nbeen in the roles of the government participants and were well-known and<br \/>\nrespected.<span style=\"\">&nbsp; <\/span>So in addition to a very<br \/>\ncollegial feeling there was little of the awkwardness and stiff hype that&#8217;s<br \/>\ntypical of other vendor-customer interactions.<\/p>\n<p>I&#8217;d never been to Idaho<br \/>\nbefore.<span style=\"\">&nbsp; <\/span>Boise<br \/>\nis a nice town, with some attractive architecture (state capitol, churches) and<br \/>\nsome incredible views.<span style=\"\">&nbsp; <\/span>There&#8217;s a really<br \/>\ngood, inexpensive Basque restaurant called Bar Gernika across the street from<br \/>\nthe Grove Hotel where Jerry and I had lunch (lamb-dip sandwich: good) and Dan<br \/>\nCombs and I had dinner (lamb stew: great).<span style=\"\">&nbsp;<br \/>\n<\/span>Apparently you can fish in the river that runs through town, though I<br \/>\ndidn&#8217;t get to try that.<span style=\"\">&nbsp; <\/span>And of course it<br \/>\ntook me a bit to adjust to saying &#x201C;how-do&#x201D; to passersby, and to wait to cross<br \/>\nuntil the light said I could.<\/p>\n<p>Here&#8217;s some of what I heard and learned (not necessarily a<br \/>\nfaithful transcription of what people said, presented, or intended).<\/p>\n<p>Wednesday morning&#8217;s plenary session was keynoted by Peter<br \/>\nHarkness, the editor and publisher of <a href=\"http:\/\/governing.com\/\"><i>Governing<\/i><\/a><br \/>\nmagazine. His theme: the e-government revolution hasn&#8217;t really happened<br \/>\nyet.<span style=\"\">&nbsp; <\/span>My notes:<\/p>\n<ul>\n<li><span>E-government hasn&#8217;t affected costs yet.<\/span><\/li>\n<\/ul>\n<ul>\n<ul>\n<li><span>From 1994 to 2003, the number of federal employees has shrunk from 2.2<br \/>\nmillion to 1.95 million, but this masks outsourcing to consultants<\/span><\/li>\n<\/ul>\n<\/ul>\n<ul>\n<ul>\n<li><span>Over the same period, total employment by states grew from 4.6 million<br \/>\nto 5 million, and local public sector employment grew from 11.7 to 13.8 million<\/span><\/li>\n<\/ul>\n<\/ul>\n<ul>\n<ul>\n<li><span>(I<br \/>\nchecked: US population grew 16%, or from 240M to 280M from 1990 to<br \/>\n2000.&nbsp; Per capita, we still have roughly the same number of<br \/>\ngovernment employees we used to.)<\/span><\/li>\n<\/ul>\n<\/ul>\n<ul>\n<ul>\n<li><span>So e-gov has not reduced costs, even though &#x201C;online v inline&#x201D; is<br \/>\nprogress&#8230;<\/span><\/li>\n<\/ul>\n<\/ul>\n<ul>\n<li><span>The revolution requires integration<\/span><\/li>\n<\/ul>\n<ul>\n<ul>\n<li><span>Technology isn&#8217;t the obstacle<\/span><\/li>\n<\/ul>\n<\/ul>\n<ul>\n<ul>\n<li><span>Organizational balkanization is the real problem<\/span><\/li>\n<\/ul>\n<\/ul>\n<ul>\n<ul>\n<ul>\n<li><span>The exception that proves the rule is the military<\/span><\/li>\n<\/ul>\n<\/ul>\n<\/ul>\n<ul>\n<ul>\n<ul>\n<ul>\n<li><span>We&#8217;ve seen the power of network-centric warfare<\/span><\/li>\n<\/ul>\n<\/ul>\n<\/ul>\n<\/ul>\n<ul>\n<ul>\n<ul>\n<ul>\n<li><span>The real enabler is the elimination of inter-service rivalry in the<br \/>\nconduct of warfare<\/span><\/li>\n<\/ul>\n<\/ul>\n<\/ul>\n<\/ul>\n<ul>\n<ul>\n<li><span>Balkanization exists in many places in government<\/span><\/li>\n<\/ul>\n<\/ul>\n<ul>\n<li><span>Among local, state, and federal, but also within agencies and branches<br \/>\nof government at each level<\/span><\/li>\n<\/ul>\n<ul>\n<li><span>Politics impede integration<\/span><\/li>\n<\/ul>\n<ul>\n<ul>\n<li><span>Here&#8217;s an example of how it&#8217;s made worse:<\/span><\/li>\n<\/ul>\n<\/ul>\n<ul>\n<ul>\n<ul>\n<li><span>Sophisticated parties + redistricting = primaries, not general<br \/>\nelections are the actual places that public officials get selected with no<br \/>\nenduring commitment to a moderate middle; add term limits to the mix and<br \/>\nthere&#8217;s little time to do the relationship building and horse-trading based on<br \/>\ntrust that allows room to get things done.<\/span><\/li>\n<\/ul>\n<\/ul>\n<\/ul>\n<ul>\n<ul>\n<li><span>Here&#8217;s another example of how the &#x201C;Politics of Policy&#x201D; are dividing<br \/>\nfeds from states and locals:<\/span><\/li>\n<\/ul>\n<\/ul>\n<ul>\n<ul>\n<ul>\n<li><span>FDA doesn&#8217;t want to allow importation of prescription drugs from<br \/>\nlower-cost places like <\/span>Canada,<br \/>\nhaving been persuaded by the pharmaceutical industry that the practice is<br \/>\nunsafe for consumers.<span style=\"\">&nbsp; <\/span>But Montgomery<br \/>\n  County, MD, where the taxpayer<br \/>\npays a prescription drug benefit for 80k retired public workers, says they<br \/>\nare.<span style=\"\">&nbsp; <\/span>And in an era where federal<br \/>\nnon-defense discretionary spending is eclipsed by the size of the annual budget<br \/>\ndeficit, federal ability to influence local practice with funding is<br \/>\ndiminishing.<span style=\"\">&nbsp; <\/span>So incentives to cooperate<br \/>\non systems to ensure optimal use of drugs by seniors and other beneficiaries<br \/>\nare also reduced.<span style=\"\">&nbsp; <\/span>We also see this<br \/>\nadversarial relationship in homeland security efforts<br \/>\n.<span><\/span><\/li>\n<li><span>State AG&#8217;s have been suing investment banks, mutual fund companies,<br \/>\npharmaceutical firms, utilities &amp; auto manufacturers, and have found<br \/>\nthemselves in court fighting not only these organizations but the federal<br \/>\ngovernment as well (e.g., California&#8217;s attempt to impose fleet mileage<br \/>\nrequirements in the state)<\/span><\/li>\n<\/ul>\n<\/ul>\n<\/ul>\n<p>\nAt lunch later that day, David Lewis, formerly the CIO of<br \/>\nMassachusetts, gave me an example of the as-yet-unfulfilled promise of<br \/>\ne-government.<span style=\"\">&nbsp; <\/span>David observed that a<br \/>\nreally useful thing would be for DHS case workers to be able to enter some<br \/>\nparameters that describe a particular person&#8217;s or family&#8217;s needs, and then to<br \/>\nhave that &#x201C;filtering&#x201D; return a list of all of the relevant benefits<span style=\"\">&nbsp; <\/span>available to that situation from across 600<br \/>\n-plus programs offered by over 40 agencies.<span style=\"\">&nbsp;<br \/>\n<\/span>He noted that the obstacle to this isn&#8217;t really technical, but the need<br \/>\nto reconcile the words and languages that agencies use to characterize<br \/>\neligibility and relevant benefits.<span style=\"\">&nbsp; <\/span><\/p>\n<p>Obviously this is a challenging thing to do.<span style=\"\">&nbsp; <\/span>I offered that maybe one approach would be to<br \/>\ncomplement traditional top-down reconciliation with a grass-roots &#x201C;social entrepreneurship&#x201D;<br \/>\napproach.<span style=\"\">&nbsp; <\/span>This would entail a motivated<br \/>\n20-something grabbing some free software to build a demo, then getting a small<br \/>\ngrant to pay some moonlighting case workers and program staff to do an 80-20<br \/>\ncut at translating a significant subset of program eligibility requirements and<br \/>\nbenefits to some formal or <i>de facto<\/i> standard.<span style=\"\">&nbsp; <\/span>It might only take three months, six at the<br \/>\noutside, to have a reasonably useful tool.<span style=\"\">&nbsp;<br \/>\n<\/span><\/p>\n<p>Later in the afternoon, I attended a very interesting<br \/>\npresentation by Glen Teal, who is the Portfolio Manager for Citizen &amp;<br \/>\nCustomer Services for the Manukau City Council in New<br \/>\n  Zealand.<span style=\"\">&nbsp;<br \/>\n<\/span>Glen was in the US<br \/>\nat the invitation of Peoplesoft&#8217;s J.D. Williams, formerly the Idaho<br \/>\nstate comptroller (and a very wise and charming man).<span style=\"\">&nbsp; <\/span>His presentation was a thorough and<br \/>\nwell-organized story of how they had implemented CRM software to permit the<br \/>\nconsolidation of service interfaces with citizens across a number of different<br \/>\nagencies, which then permitted the selective outsourcing of the fulfillment of<br \/>\nthese services to private firms under different contracting schemes depending<br \/>\non how well-developed pre-existing markets for these services were.<span style=\"\">&nbsp; <\/span><\/p>\n<p>Two lessons from his talk: first, never outsource<br \/>\nrelationship management with constituents; second, don&#8217;t try to create markets<br \/>\nto outsource to where none previously existed.<span style=\"\">&nbsp;<br \/>\n<\/span>So, on the latter point, it makes no sense for the government to do engineering<br \/>\nservices because the private sector has a healthy market for this that can be<br \/>\nrelied on.<span style=\"\">&nbsp; <\/span>However, private-sector dog<br \/>\ncatchers mostly do not exist in nature.<span style=\"\">&nbsp;<br \/>\n<\/span>Outsourcing this function inevitably leads to consolidation of an<br \/>\ninitially fragmented mom-and-pop market by enterprising ex-public sector<br \/>\nexecs.<span style=\"\">&nbsp; <\/span>Once they achieve duopoly or<br \/>\nsomething close, the government is at their mercy:<span style=\"\">&nbsp; <\/span>pay or it&#8217;s &#x201C;Release the hounds!&#x201D;.<span style=\"\">&nbsp; <\/span>More politely, Glen called it &#x201C;market<br \/>\ncapture&#x201D;.<\/p>\n<p>The theme of opportunities from consolidation, and the<br \/>\nstructural barriers to it, wove its way throughout a number of conversations I<br \/>\nhad.<span style=\"\">&nbsp; <\/span>In the hallway between sessions,<br \/>\nDavid Lewis and I chatted with Brian Ridderbush from Unisys about how Medicaid reimbursement<br \/>\nrules encourage states to each develop their own benefit structures, which<br \/>\nmeans perhaps $18 billion in additional expenses for variations in related<br \/>\nclaims processing systems.<span style=\"\">&nbsp; <\/span>Is the<br \/>\nvariety worth it?<span style=\"\">&nbsp; <\/span>I think we&#8217;re unlikely to find<br \/>\nout.<span style=\"\">&nbsp; <\/span>The federal money is now allocated<br \/>\nin the form of block grants as part of the overall trend toward<br \/>\ndevolution.<span style=\"\">&nbsp; <\/span>So the feds can&#8217;t prescribe<br \/>\nany rationalization.<span style=\"\">&nbsp; <\/span>The feds reimburse<br \/>\nthe states for 90 cents of every Medicaid dollar they spend, so the greater<br \/>\ncost of variety is not a place states focus on to save money. <\/p>\n<p>Dan Combs, who was Iowa&#8217;s<br \/>\nDirector of Digital Government, gave me another example of this at dinner.<span style=\"\">&nbsp; <\/span>He described how in Iowa<br \/>\nthere were 99 counties.<span style=\"\">&nbsp; <\/span>The seat of each<br \/>\nwas located, when the state was established, at a distance of a day&#8217;s ride from<br \/>\nthe next.<span style=\"\">&nbsp; <\/span>Horses typically traveled<br \/>\nabout 30 miles a day in 1850, so Iowa<br \/>\nhas lots of charming but subscale local governments in the era of the<br \/>\nautomobile.<span style=\"\">&nbsp; <\/span>Does Iowa,<br \/>\nwith a population of 3M, really need 99 county governments?<span style=\"\">&nbsp; <\/span>Maybe not, there&#8217;s<br \/>\nsome advantages and a lot of tradition in their favor.<span style=\"\">&nbsp; <\/span>I<br \/>\nguess it depends on what Iowans feel they can afford.<\/p>\n<p>I talked with a couple of legislative auditors about how the<br \/>\npart-time nature of many state legislatures affects the continuity and will<br \/>\nthey need to initiate and sustain major change that consolidation<br \/>\nrequires.<span style=\"\">&nbsp; <\/span>They noted that the pool tends<br \/>\nto be limited to people who don&#8217;t typically have a lot of inclination or<br \/>\nexperience with the management of large organizations.<span style=\"\">&nbsp; <\/span>Frequently, legislators are attorneys whose<br \/>\nfirms can cover for their absence while they serve in ways that also indirectly<br \/>\nadvance their firms&#8217; interests.<span style=\"\">&nbsp; <\/span>Or, they<br \/>\nare wealthy ranchers who can spare three months while <span><\/span>the snow covers their<br \/>\nfields<span><\/span><span>.<\/span><span style=\"\">&nbsp; <\/span>This means part of the challenge for the<br \/>\nbureaucrats is to try to educate legislators on what&#8217;s going on and how to deal<br \/>\nwith it effectively.<span style=\"\">&nbsp; <\/span>But as one put it<br \/>\nto me, &#x201C;It&#8217;s sort of like trying to teach a pig to sing:<span style=\"\">&nbsp; <\/span>it&#8217;s not very effective and it annoys the<br \/>\npig.&#x201D;<\/p>\n<p>So what&#8217;s a government to do in the face of all these<br \/>\nlimitations?<\/p>\n<p>One move is to de-emphasize new technology as the panacea.<span style=\"\">&nbsp; <\/span>Pam Ahrens is CIO of Idaho.<span style=\"\">&nbsp; <\/span>Idaho<br \/>\nhas been creative and ahead of the curve on e-government issues, but Pam noted<br \/>\nthat these days especially it&#8217;s people and not technology that&#8217;s on the<br \/>\ncritical path to change.<span style=\"\">&nbsp; <\/span>So Idaho<br \/>\nis de-emphasizing R&amp;D for S&amp;C &#x2013; search and copy &#x2013; while they focus in<br \/>\non people issues.<span style=\"\">&nbsp; <\/span>After all, she notes,<br \/>\n&#8220;Pioneers get killed, settlers get rich.&#8221;<span style=\"\">&nbsp;<br \/>\n<\/span>I had the strong sense as a visitor from Back East that I ought to take<br \/>\nher word on this.<\/p>\n<p>Another approach is to &#x201C;zero-base&#x201D; government.<span style=\"\">&nbsp; <\/span>California<br \/>\nseems to be pursuing this more radical approach.<span style=\"\">&nbsp; <\/span>Governor Arnold is quoted as saying in the<br \/>\ncourse of commissioning the California Performance Review, &#x201C;I don&#8217;t want to reorganize<br \/>\nthe boxes, I want to blow them up.&#x201D;<span style=\"\">&nbsp;<br \/>\n<\/span>Echoing this theme is the approach Michael Bloomberg is taking in New<br \/>\n  York.<span style=\"\">&nbsp;<br \/>\n<\/span>Accenture&#8217;s Ken Dircks, who is a leader in the firm&#8217;s 311 engagement<br \/>\nwith New York City, told me<br \/>\nThursday night about Hizzoner&#8217;s takeover of the New York City Board of<br \/>\nEducation.<span style=\"\">&nbsp; <\/span>On hearing an explanation of<br \/>\nwhy change would be tough to implement through a multi-tiered bureaucracy, the<br \/>\nmayor simply ordered the physical buildings of an entire layer of the bureaucracy<br \/>\npadlocked, effectively cutting &#x201C;management&#x201D; in this layer out of the process<br \/>\nand forcing a higher layer to deal directly with schools.<\/p>\n<p>Well now.<span style=\"\">&nbsp; <\/span>But part of<br \/>\nme feels it&#8217;s insufficient.<span style=\"\">&nbsp; <\/span>Colin<br \/>\nPowell&#8217;s &#x201C;Pottery Barn&#x201D; rule likely applies here as well &#8212; &#x201C;You break it, you<br \/>\nown it.&#x201D;<span style=\"\">&nbsp; <\/span>So part of owning it is showing<br \/>\nthe way ahead.<span style=\"\">&nbsp; <\/span>And a general principle I<br \/>\nbelieve in is that people are better at reacting than acting.<span style=\"\">&nbsp; <\/span>Show them something real they can try out and<br \/>\nuse and you&#8217;ll have more impact than if you describe it to them in principle.<\/p>\n<p>Maybe open-source software can help make this<br \/>\nexperimentation more feasible and affordable.<span style=\"\">&nbsp;<br \/>\n<\/span>Friday morning I attended a session on open-source in government.<span style=\"\">&nbsp; <\/span>The format was a debate between Daniel<br \/>\nGreenwood from MIT&#8217;s Ecommerce Architecture Program and Stuart McKee, former<br \/>\nWashington State CIO and now a government-sector &#x201C;evangelist&#x201D; at Microsoft<br \/>\n(&#x201C;advocate for Microsoft to the public sector and vice versa&#x201D;).<span style=\"\">&nbsp; <\/span>Is open source ready for government, and vice<br \/>\nversa?<span style=\"\">&nbsp; <\/span>I won&#8217;t summarize the discussion,<br \/>\nexcept to say of course that it depends on the specific need and the specific<br \/>\nopen-source project under consideration.<span style=\"\">&nbsp;<br \/>\n<\/span>But I did find a few recent, interesting articles on Microsoft and<br \/>\nopen-source in government.<span style=\"\">&nbsp; <\/span>Reading them<br \/>\nI&#8217;m reminded of Gandhi: &#x201C;First they ignore you, then they fight you, then you<br \/>\nwin&#x201D;.<\/p>\n<p style=\"margin-left: 14.15pt; text-indent: -14.15pt;\">\n<ul>\n<li><span>&#x201C;Microsoft is expanding a program to give government organizations<br \/>\naccess to some of its tightly guarded software blueprints amid growing<br \/>\ncompetition from rivals who make such source code freely available&#8230;&#x201D; <a href=\"http:\/\/www.wired.com\/news\/business\/0,1367,65018,00.html?tw=rss.BIZ\">Wired<br \/>\n9\/19\/04<span style=\"\">&nbsp; <\/span><\/a><\/span><\/li>\n<\/ul>\n<ul>\n<li><span>&#x201C;Microsoft chief executive Steve Ballmer told resellers at the European<br \/>\nPartner conference that anyone in danger of losing business to Star Office<br \/>\nshould email him and he would send in the cavalry&#8230;&#x201D; <a href=\"http:\/\/www.theregister.com\/2004\/10\/06\/ballmer_staroffice_charge\/\">The<br \/>\nRegister10\/6\/04<\/a><\/span><\/li>\n<\/ul>\n<p>The<br \/>\nnext NECCC annual meeting is in Boston<br \/>\nnext November.<span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This week I attended the National Electronic Commerce Coordinating Council meetings in Boise, Idaho.&nbsp; The theme of the conference was &#x201C;Government in the Digital Age: Myths, Realities &amp; Promises &#8211; A Candid Assessment and Road Map for Success.&#x201D; (I went on behalf of the E-Government Executive Education (3E) Project at Harvard&#8217;s JFK School of Government [&hellip;]<\/p>\n","protected":false},"author":298,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","meta":{"footnotes":""},"class_list":["post-49","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/archive.blogs.harvard.edu\/cesarbreadev\/wp-json\/wp\/v2\/pages\/49","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/archive.blogs.harvard.edu\/cesarbreadev\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/archive.blogs.harvard.edu\/cesarbreadev\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/archive.blogs.harvard.edu\/cesarbreadev\/wp-json\/wp\/v2\/users\/298"}],"replies":[{"embeddable":true,"href":"https:\/\/archive.blogs.harvard.edu\/cesarbreadev\/wp-json\/wp\/v2\/comments?post=49"}],"version-history":[{"count":0,"href":"https:\/\/archive.blogs.harvard.edu\/cesarbreadev\/wp-json\/wp\/v2\/pages\/49\/revisions"}],"wp:attachment":[{"href":"https:\/\/archive.blogs.harvard.edu\/cesarbreadev\/wp-json\/wp\/v2\/media?parent=49"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}