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 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 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?  Services/ Utilities  Disaster Recovery/ Back Up  Security  Business Intelligence   Help Desk Source: Center for Digital Government/ eRepublic, 2011

Trending IT Priorities and their relationship to IT Governance ** * * * * * * * * 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 ( ) % 86% WILLING TO SHARE Source: Center for Digital Government/ eRepublic, 2011

IT PROGRAM CENTRALIZATION Reaction to uncoordinated (profligate) spending, and unnecessary duplication DECENTRALIZATION Reaction to poor service, inadequate capacity and lack of trust in central provider SHARED SERVICE ENVIRONMENT Flavor of Standards Baskin Robbins 31 One of Each French Vanilla Community Defined Vanilla Centrally Dictated Architecture Fractured Hi 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 Mc Enterprise Billions Served Consistently Cost Effectively & Centrally Controlled Nimble and Robust Structure and Governance Source: Center for Digital Government/ eRepublic,

High Value Low Value High CostLow Cost New Process Current Process Realizing Value: With Effective Governance Leap and Reap Rapidly

Creep and Weep Over a Much Longer Time High Value Low Value High CostLow Cost New Process Current Process Keep the Old Process But Do Less of It Realizing Value: Without Effective Governance

Cost Value Low High Eliminate Leave As-Is Integrate Modernize Good Governance = Deliberate Decisions

Governance: Key Attributes CIO with a desk down the hall from Governor’s Office IT Rests with the Agency Head Consensus = veto AUTHORITY Cabinet Level78% Member State IT Board72% Policy Setting64% Operations74% Project Management66% IT Funding57% BENCH – SUITE OF Cs Technology74% Security95% Telecom78% Privacy/ Disclosure48% WEAKSTRONG 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 or Digital Barn Raising?

Governance & 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 Ground

() 3 Know the specifics of “As Is” vs. “To Be” How much, long, difficult? & what difference? Another Half Dozen Governance Principles Collaborate in design, build and opps If you must own it, share it 4 Support reasonable experimentation Tolerate controlled failure 5 Think about the next Platform Standardize, standardize, standardize Cost, management, security, performance 6 Source: Center for Digital Government/ eRepublic, 2011

1 Focus on the breakthrough, not the incremental improvement Use technology to change the rules, cost structure, and the way the public’s business gets done () 2 Connect policy priorities and projects Ensure that every project has tangible ties to political objectives and policy goals Understand how things will be better when you are done Another 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 |