Public Value and ROI Measurement in Government Sector

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Al-Khouri, A.M. (2008) 'Public Value and ROI Measurement in Government Sector', FutureGov Summit, October 15-17, Bali, Indonesia.

Al-Khouri, A.M. (2008) 'Public Value and ROI Measurement in Government Sector', FutureGov Summit, October 15-17, Bali, Indonesia.

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  • 1. Emirates Identity AuthorityPresentation:Public Value and ROI Measurement inGovernment SectorOctober 2009 By: Dr. Ali M. Al-Khouri Director General, Emirates Identity Authority United Arab EmiratesNational Vision ... For Better FutureOur Vision: To be a role model and reference point in proofing individual identity and build www.emiratesid.ae © 2009 Emirates Identity Authority. All rights reservedwealth informatics that guarantees innovative and sophisticated services for the benefit of UAE
  • 2. Agenda • Government IT Projects and Statistics • Common Myths in Public Sector • Stakeholders Interests and Objectives • ROI Dimensions • Reflection www.emiratesid.ae © 2009 Emirates Identity Authority. All rights reserved
  • 3. The risks of IT innovation in government www.emiratesid.ae © 2009 Emirates Identity Authority. All rights reserved
  • 4. Governments investment in IT Projects• Substantial expenditure in IT projects• Criticised for not measuring full value of IT investments• Inability to demonstrate a return on investment based upon a well grounded measures www.emiratesid.ae © 2009 Emirates Identity Authority. All rights reserved
  • 5. IT projects research and statistics successful Partial 10% failure 20% Failure 70 % www.emiratesid.ae © 2009 Emirates Identity Authority. All rights reserved
  • 6. Some Common Myths in the Public Sector• Government services are essential and, therefore, may not need this level of evaluation• Absences of revenues and profits make the concept of ROI inappropriate• Little or no hard data in government organisations• Investment decisions in the public sector take place in a context of political and policy influences www.emiratesid.ae © 2009 Emirates Identity Authority. All rights reserved
  • 7. Some Common Myths in the Public Sector• Government services are essential and, therefore, may not need this level of evaluation Global environment is changing• Absences of revenues and profits make the government organisations practices and concept of ROI inappropriate acceptance of new concepts only• Little or no hard private sector organisations. limited to data in government organisations• Investment decisions in the public sector take place in a context of political and policy influences www.emiratesid.ae © 2009 Emirates Identity Authority. All rights reserved
  • 8. Stakeholder interests• Delivery of benefits to citizens• Enhancing the value of government as a public asset www.emiratesid.ae © 2009 Emirates Identity Authority. All rights reserved
  • 9. Public Sector IT Projects Objectives • Every government IT project Profit have its own unique goals, Cost value propositions, and stakeholders. Product- Quality ivity Time Efficiency Effectiveness Impact www.emiratesid.ae © 2009 Emirates Identity Authority. All rights reserved
  • 10. The Three Dimensions of ROI Financial Social Political Public ROI ROI ROI ROI direct, measurable indirect and difficult- motivational feasibility benefits and costs to-measure of the project, or the public good benefits and costs for benefits and costs interested parties (champions, opponents, decision-makers) www.emiratesid.ae © 2009 Emirates Identity Authority. All rights reserved
  • 11. Paradigm shift to a Result-Based Approach• Assessment of performance effectiveness• Specific objectives for behaviour & business impact• Results expectation communicated to participants• Environment prepared to support change• Partnership established with key managers & clients• Measurement of results and cost/benefit analysis• Planning and reporting is outcome focused www.emiratesid.ae © 2009 Emirates Identity Authority. All rights reserved
  • 12. Motivating & Restraining Forces to Public ROI Business Public exposure Excessive waste Lack of alignment Process of failure/error(e.g., paper work, approval with government cycles, bureaucracy) policies Shrinking annual Strong Multiple Scale & Complexity budgets silo-culture stakeholders Efficiency Service Enhancement Quality Government Economic improvement Public Citizen Policy Policy Engagement Reform Effectiveness Objectives and Trust Agenda www.emiratesid.ae © 2009 Emirates Identity Authority. All rights reserved
  • 13. Public value chain – a simple approach Operational Technology Public Value Strategy Implementation Outcome Public Value Technology Program Vision Strategy Impact www.emiratesid.ae © 2009 Emirates Identity Authority. All rights reserved
  • 14. Public Sector - some practices www.emiratesid.ae © 2009 Emirates Identity Authority. All rights reserved
  • 15. Emirates Identity AuthorityNational Vision ... For Better FutureOur Vision: To be a role model and reference point in proofing individual identity and buildwealth informatics that guarantees innovative and sophisticated services for the benefit of UAEThank you www.emiratesid.ae © 2009 Emirates Identity Authority. All rights reserved Dr. Ali M. Al-Khouri Director General, Emirates Identity Authority United Arab Emirates ali.alkhouri@emiratesid.ae