The [social] future of public financial management

Version 7 section I skate to where thepuck is going • brief discussionto be, not towhere it has been. Wayne Gretzky 1

Version 7 section • brief discussionThe [Social] Future of Public Financial Management and Governance ICGFM Spring Conference 2012 Doug Hadden

disclaimer 3

research 4

social media open datasocial networking open governmente-government government 2.0e-governance 5

Social in government? 6

Version 7 section There is nothing more difficult to carry out, normore doubtful of success, nor • brief discussion more dangerous to handlethan to initiate a new order of things. Niccolo Machiavelli 7

What will be the nature of publicfinancial management across the next decade?

Recognizing the limitations of prediction 9

example: flying cars 10

Upside down 11

Version 7 section Arab Spring• brief discussion 12

Version 7 section Tea Party• brief discussion 13

Version 7 section Occupy• brief discussion 14

Version 7 section• brief discussion Source: Time Magazine 15

Version 7 section • brief discussionAnalog Governance 16

Version 7 section Digital Governance• brief discussion 17

Version 7 sectionDemocracy isn’t democracy…• brief discussion 18

Version 7 section• brief discussion 19

Version 7 section• brief discussion Broadcast can 20

Version 7 section manipulate• brief discussion 21

Version 7 section Change• brief discussion 22

Version 7 section1969… • brief discussion Source: NASA 23

Version 7 section 2012• brief discussion 24

Version 7the We are living in sectionmiddle of the largest • increase in brief discussionexpressive capabilityin the history of the human race Clay Shirky 25

Version 7 section 1. Mobile• brief discussion 27

VersionCoIT 2. 7 section (Consumerization of IT)• brief discussion 28

Version 7 section 3. Gamification• brief discussion 29

Version 7 section 4. Social & Crowdsourced• brief discussion 30

Version 7 section 5. Transparent• brief discussion 31

Version 7 section 6. Visualized• brief discussion 32

Version 7 sectionThe Symmetry of Open Government 3 community data Government 2.0 Open Government • brief discussion 1 transparency 2 participation 3 collaboration 4 employee participation Source: Gartner

Version 7 section It briefthe framework which • is discussion changes with each newtechnology and not just the picture within the frame. Marshall McLuhan 34

Version 7 section Digital Age Democracy A New Era of Digital Governance Industrial Era • brief discussionDemocracy RepresentativeCitizens Passive Consumers Broadcast, Mass,Politics Polarized National,States Monocultural 35 Source: Mills Davis, Microsoft

Version 7 section Digital Age Democracy A New Era of Digital Governance Industrial Era Digital Era • brief discussionDemocracy Representative ParticipatoryCitizens Passive Consumers Active Partners Broadcast, Mass,Politics One-to-One Polarized Global, Local, National,States Virtual, Monocultural Multicultural 36 Source: Mills Davis, Microsoft

Version 7 section Government 2.0 in Context• brief discussion External Scope Internal Transactional Social Focus Source: Batorski, Hadden

Version 7 section• brief discussion Society 2.0 40

Version 7 sectionMostdiscussion assumptions• brief of our have outlived their uselessness. Marshall McLuhan 41

Version 7 sectionWarning…• brief discussion 42

Version 7 section From specialist and• brief discussion 43

Version 7 section & institutions• brief discussion 44

Version 7 section• brief discussion Self-organizing groups 45

Version 7 section• brief discussion Crowd sourced 46

how does this change Version 7 section the nature of PFM? • brief discussion 48

Version 7 section learning: collaboration• brief discussion 50

Version 7 sectionlearning: e-learning & distance • brief discussion learning 51

Version 7 section learning:• brief discussion knowledge management 52

Version 7 sectionbudget: participatory budgeting • brief discussion 54

Version 7 sectionbudget: outcomes management: • brief discussion monitoring and evaluation 55

budget: “government as platform” Version 7 section (open data) • brief discussion Source: Tim O’Reilly 56

Version 7 sectionrisk management: citizen-aided• brief discussion Audit 58

Version 7 section • brief discussionrisk management: Crowdsourcing 59

Version 7 section +innovation• brief discussion 60

Version 7 section Benefits from IT-Enabled Connected Government Internal External To Provider Agencies and Governments To Consumer Citizens and Businesses • brief discussion1. Avoidance of duplication 1. Faster service delivery2. Reduction in transaction costs 2. Greater efficacy 3. Increased flexibility of service use3. Simplified bureaucratic procedures4. Greater efficiencies 4. Innovation in service delivery5. Richer communications & coordination 5. Greater participation and inclusion6. Enhanced transparency 6. Greater citizen empowerment7. Greater information sharing 7. Greater openness and transparency8. Secure information management Source: Dr. Pallab Saha

Traditional ViewpointVersion 7 section Control1. Not on work time2. Company confidential • brief discussioninformation3. Privacy concerns4. Regulatory compliance & e-discovery5. Control over content & opinion6. Process to codify knowledge7. Return on investment? Source: Nick Semple

Traditional vs. Government 2.0 Viewpoint Version 7 section Control bar Chaos 1. People will use the tools1. Not on work time anyway2. Company confidential 2. Internal and external social • brief discussioninformation networking3. Privacy concerns 3. Free expression of ideas4. Regulatory compliance & e- 4. Individualization ofdiscovery information context5. Control over content & opinion 5. Expertise vs. opinion6. Process to codify knowledge 6. Non standard tools7. Return on investment? 7. Burden on infrastructure 8. Secure information management Source: Nick Semple

Version 7 section Barriers? • brief discussiondigital divide, poverty, bandwidth, capacity, literacy 64

Version 7 section Leapfrog? Developing Countries Developed Countries • brief discussion1. High governance impact 1. Moderate governance impact2. More holistic thinking 2. More specialist thinking3. Low trust for government data 3. High trust for government data4. Need for auditors 4. Less need for auditors5. Digital divide & connectivity 5. Digital divide less critical6. Single information systems 6. Multiple information systems 66

Version 7 section Government 2.0 Maturity • brief discussionCasual 1Initial Source: Gartner 67

Version 7 section Government 2.0 Maturity • brief discussionCasual Transparent 1 2Initial Developing Source: Gartner 68

Version 7 section Government 2.0 Maturity • brief discussionCasual Transparent Participatory 1 2 3Initial Developing Defined Source: Gartner 69

Version 7 section Government 2.0 Maturity • brief discussionCasual Transparent Participatory Collaborative 1 2 3 4Initial Developing Defined Managed Source: Gartner 70

Version 7 section Government 2.0 Maturity • brief discussionCasual Transparent Participatory Collaborative Engaged 1 2 3 4 5Initial Developing Defined Managed Optimizing Source: Gartner 71

Version 7 section Socialization and Consumerization• brief discussion Channels Constituent-Centric Services Policymaking ProcessesD Business Processesa (Financials, HR, Budgeting, Procurement)ta Custom Packaged External Applications Applications Services Infrastructure Source: Gartner

Version 7 section Transition• brief discussion From broadcast to “in network” 73

Version 7 sectionInitiative • brief discussionGovernment Data TransparencyCitizen AuditCitizen Outcome ManagementParticipatory BudgetingPublic service capacity buildingCitizen capacity building 74

Version 7 sectionInitiative • brief discussion corruptionGovernment Data Transparency Anti-Citizen AuditCitizen Outcome ManagementParticipatory BudgetingPublic service capacity buildingCitizen capacity building 75

Version 7 sectionInitiative • brief discussion Government corruption efficiencyGovernment Data Transparency Anti-Citizen AuditCitizen Outcome ManagementParticipatory BudgetingPublic service capacity buildingCitizen capacity building 76

Version 7 sectionInitiative • brief discussion Government corruption efficiencyGovernment Data Transparency effectiveness Anti- GovernmentCitizen AuditCitizen Outcome ManagementParticipatory BudgetingPublic service capacity buildingCitizen capacity building 77

Version 7 sectionInitiative • brief discussion Government corruption efficiencyGovernment Data Transparency effectiveness Anti- Government Social InclusionCitizen AuditCitizen Outcome ManagementParticipatory BudgetingPublic service capacity buildingCitizen capacity building 78

Version 7 section Reduce Corruption Develop Improve Economy Efficiency• brief discussion ImproveReduce Debt Effectiveness Increase Increase Social Taxes Inclusion 79

Version 7 section Internet Evolution to 2020 3.0 4.0 • brief discussion Increasing knowledge The Semantic Web: The Ubiquitous Web: Connects Connects connectivity Knowledge Intelligence 1.0 The Web: 2.0 Connects The Social Web: Information Connects People Increasing social connectivity Source: Mills Davis: Project 10x,Source: Mills Davis 80

Version 7 section speed• brief discussion 81

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The [social] future of public financial management

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