Bill Eggers - Innovation In GovernmentPresentation Transcript
Innovation State: Why Innovative Government Doesn’t Have To Be A Contradiction Bill Eggers, Director, Deloitte Services LP
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
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, 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 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.”
Deputy Minister to the Premier and Cabinet Secretary,
Province of British Columbia
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 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 Do more... ...with less Urgent and provocative challenges Ability to meet challenges compromised
Tap all sources of service innovation Government Organization External Partners Citizens/customers Employees Internal Partners Participative and responsive government Joined-up and reinvented government Non-bureaucratic, outcome-focused government Partnered and networked government
Who is your primary source of innovation?
Private sector firms / suppliers
Other government agencies
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 Source Network Q. How can you energize large groups of people from diverse disciplines to enable flexible, customized solutions?
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
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
Tap into diverse knowledge in the field TSA Idea Factory
At TSA, instead of transforming the structure, Kip Hawley used collaborative technologies to transcend it.
"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
#3: Partner Seek new solutions Test new approaches Benefit from cross- border diffusion Overcome internal constraints Types of Partnership Public-Private Public– Public Public-Nonprofit
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
#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
How to get printed images on a potato chip?
P&G Model of Using Global Networks for Innovation Drivers New Strategy Challenges Networked Model
Increasingly difficult to create organic growth of 4-6 %
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
#5: Open source User Community Local community Citizens Development Community Specialists Open source companies Open source project Global community Government organizations Technology experts Students Government agency Nonprofits Private companies
Open source education: Ontario e-learning Drivers Targets New 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
Open Source policy development U.S. Patent and Trademark Office Source: http://www.uspto.gov/web/patents/peerpriorartpilot/
The Innovation Process: One weak link in the chain can stump the flow of innovations Idea Generation Diffusion Conversion Selection 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
Identify and rectify your pain points What can you do to overcome your weakness? Where do you falter most often? 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
Building an Innovation-Centered Organization
Closed boundaries—government’s role is to own and directly provide services
Bricks-and-mortar infrastructure—throw more resources at a problem
Invent-it-yourself and centralized approach
Traditional Model: Hierarchical Government
Some elements of partnership but government remains the primary owner 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
Plummeting costs of partnering
Growing number of problems that require cross-sector response
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
Pushing the Culture: British Columbia’s Innovation Action Plan Barriers Steps taken Future 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
S enior 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
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
No public manager wants to drink his morning cup of coffee reading a headline describing his latest screw-up in 12-point type. Innovation Risk Unacceptable situation Value
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. IDEO 3M Invites employees to “have the guts to create a straw man” that others can criticize. “ Fail often to succeed sooner.” 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.
What you can do right now
#1: Define what innovation is for you
Tesco: “Better for customers, simpler for staff, and cheaper for Tesco”
#2: Decide who takes responsibility for implementing ideas
The 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 competency
To 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.
Just remember… “ People are very open minded about new things. As long as they are exactly like the old ones.” - Charles Kettering
For Further Information… Bill Eggers Global Director, Deloitte Research-Public Sector we [email_address] 202-378-5292