Bill Eggers - Innovation In Government
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Bill Eggers - Innovation In Government

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  • Imagine you just purchased an expensive product from a company online, only to get home and discover it wasn’t working correctly. This particular company has dozens of different businesses and literally hundreds of products and services. You have no idea what number to call to address your issue. The last thing you want is to get stuck in automated customer service hell listening for hours to an annoying voice telling you to press yet another number on your phone.   Only this situation almost never happens with this particular organization because it is famous for having a single, easy to remember number you can call for any complaint or question related to any of its myriad businesses. Every caller reaches a real live person within 10 seconds of placing the call. It gets better. Because the company has such well trained customer service representatives and has invested in developing a highly sophisticated customer relationship management system, 85 percent of the time your issue can be addressed and questions answered by the original person who took your call. No getting transferred from person to person, no getting put into an automated system.   It gets better still. Within minutes of getting off the phone you receive an email acknowledging your call, specifying how it will be resolved and giving you a tracking number so you can go online anytime and see just who is working on your complaint. A few days later you get a letter from the CEO telling you how your issue has been addressed. It’s the Cadillac of customer service.  

Bill Eggers - Innovation In Government Bill Eggers - Innovation In Government Presentation 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.”
    • Jessica McDonald,
    • 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?
    • Employees
    • Private sector firms / suppliers
    • Nonprofits
    • Other government agencies
    • Citizens
  • 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?
  • #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
  • 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
  • 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.
    • TSA IdeaFactory
    • Collects input
    • Best ideas “rise to the top”
    Vision/Leadership Data/Feedback Ownership Innovation
  • #2: Replication
    • "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 %
    • 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
  • #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
      • Drivers
      • 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
  • Questions & Answers
  • A member firm of Deloitte Touche Tohmatsu