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Koosis on Risk & Innovation

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  • This is evident in this 1997 map of the island.
  • Benefits Dramatic example, but the benefits
  • overlap
  • SOA is the current state of the art for achieving the same old (worthy) aspirations… Closely associated with
  • SOA is the current state of the art for achieving the same old (worthy) aspirations… Closely associated with
  • SOA is the current state of the art for achieving the same old (worthy) aspirations… Closely associated with
  • SOA is the current state of the art for achieving the same old (worthy) aspirations… Closely associated with
  • What are sensible risks? What are sensible kinds of investments? If you look at the example of 3Mwhich famously permitted employees to dedicate 15% of their time to independent projects or Google which even more famously allows engineers to dedicate 20% of their time to their own projects. Both companies have been very successful in generating good ideas. The post-it note developed by Art XXXX was a result of a 15% project. And Google Mail and other Google products came out of these 20% projects.
  • Not all risk taking is equal I work in an environment where on the one hand we have an entrepreneurial mayor who has tried to foster some innovation in one of the vastest bureaucracies that exist, namely NYC government. There’s a difference between the kind of risk Michael Bloomberg is famous for and has been rewarded for and the kind of risk many of the 14000 inmates incarcerated at Riker’s Island have taken. So what I want to talk to you today is about the kind of risk that leads to experimentation and innovation that leads to business value.
  • The Darwin Awards salute the improvement of the human genome by honoring those who accidentally remove themselves from it..., (example?) That’s not the kind of risk we want We’re not talking about of bungee-jumping hang-gliding thrill seekers
  • It’s an interesting premise, isn’t it? that we should cultivate more risk-taking in IT? After all, who but an IT leader would be willing to undertake a multi-million dollar Enterprise Resource Planning project, without having business user buy-in? Without establishing Board priorities? Standish group CHAOS project famously tracks the catastrophic failure of IT projects, almost always due to avoidable risks.
  • There’s a relationship between risk and innovation. Or, more more precisely, there’s a relationship between Research & Development or experimentation or Play and innovation Innovation is what we seek. we want is the results. We’re buying the hole not the drill. Risk is the price we pay for innovation.
  • There’s a relationship between risk and innovation. Or, more more precisely, there’s a relationship between Research & Development or experimentation or Play and innovation Innovation is what we seek. we want is the results. We’re buying the hole not the drill. Risk is the price we pay for innovation.
  • The civil service process is one that over time tends to retain risk averse individuals, and frankly that’s a challenge in government. We don’t pay our best IT people competitive market rates so we attract risk averse individuals who are willing to trade stability and good job security for other opportunities or we get people who enjoy the satisfaction of doing work that matters and the challenge of making change
  • What are sensible risks? What are sensible kinds of investments? If you look at the example of 3Mwhich famously permitted employees to dedicate 15% of their time to independent projects or Google which even more famously allows engineers to dedicate 20% of their time to their own projects. Both companies have been very successful in generating good ideas. The post-it note developed by Art XXXX was a result of a 15% project. And Google Mail and other Google products came out of these 20% projects. This is different from taking 20% of your market capitalization and dedicating it to a project. The Google rule generates a number of relatively small investments that don’t jeopardize the company’s overall health if one or even a number of them fail. And they go further by creating an environment that’s good at harvesting and developing ideas.
  • In nature you see a similar mechanism with genetic mutation. Genes mutate in small ways from generation to generation and some mutations survive in to subsequent generations and others fail. Mutations that really don’t work generally don’t survive into a living organism, let alone one that can survive into future generations. Genetic mutation is sort of nature’s R & D.
  • There’s a relationship between risk and innovation. Or, more more precisely, there’s a relationship between Research & Development or experimentation or Play and innovation Innovation is what we seek. we want is the results. We’re buying the hole not the drill. Risk is the price we pay for innovation.
  • This lesson was first brought home to me at NYC Probation about 5 years ago. I toured to see the span of my responsibility and I toured the boroughs. I came to a room and in this room there were 20 people typing transcribing data from one system to another. Started chatting with one of the people and asked how long have you worked here? She said well for 11 years. Have you always worked here? No. So where did you work before. And she pointed to a place across the hall and said, “I used to work there.” So clearly this is a place where change is resisted.
  • See Companion Document, pages 4 and 5
  • The procurement process is not optimized for procurement. It’s optimized to guarantee the appearance of fairness and to avoid corruption and is therefore a huge risk. It’s my biggest risk in most projects. I may not be able to purchase the eggs I need to bake my cake. Slide – 7 stages of procurement. See Companion Document, pages 4 and 5
  • Government is a monopoly. No competition. There are some other things that make it hard in government. Leadership changes very frequently. Slide of commissioner average tenure. So that makes it hard to align with business goals because these change frequently with election cycles. See Companion Document, pages 4 and 5
  • the unstated premise of the idea that we want to cultivate risk is that organizations, especially large organizations is that people become paralyzed. They’re so invested in the things that have worked for them that they become unable to try new things to the extent that they may fail to realize the risk of standing still and not doing anything while the world around you changes, while your competition, etc evolves. Certainly that’s the case in government. Talk about challenges in government
  • When we talk about innovation we can talk about doing the thing differently, or doing a different thing . Doing the thing differently would tend to be a back office efficiency and doing a different thing is more likely to be a business impacting shift. So doing the thing differently, I don’t want to undervalue it. It can be very important but for the real strategic work that tends to be doing a different thing, and for IT to be involved there IT needs to have a seat at the table with the key strategic business decision makers, your CEO in my case my commissioner.
  • There’s a relationship between risk and innovation. Or, more more precisely, there’s a relationship between Research & Development or experimentation or Play and innovation Innovation is what we seek. we want is the results. We’re buying the hole not the drill. Risk is the price we pay for innovation.
  • How much does your company want to invest? What level of risk is appropriate for your company?
  • See Companion Document, page 11
  • Business alignment: The innovation that matters is business innovation, and business innovation belongs to the business owners. It’s innovation that impacts the core mission and goals of your organization. We talk in IT about our job being to do the right thing and to do the thing right. In other words project/portfolio management and project execution.
  • When we talk about innovation we can talk about doing the thing differently, or doing a different thing . Doing the thing differently would tend to be a back office efficiency and doing a different thing is more likely to be a business impacting shift. So doing the thing differently, I don’t want to undervalue it. It can be very important but for the real strategic work that tends to be doing a different thing, and for IT to be involved there IT needs to have a seat at the table with the key strategic business decision makers, your CEO in my case my commissioner.
  • When we talk about innovation we can talk about doing the thing differently, or doing a different thing . Doing the thing differently would tend to be a back office efficiency and doing a different thing is more likely to be a business impacting shift. So doing the thing differently, I don’t want to undervalue it. It can be very important but for the real strategic work that tends to be doing a different thing, and for IT to be involved there IT needs to have a seat at the table with the key strategic business decision makers, your CEO in my case my commissioner.
  • There’s a relationship between risk and innovation. Or, more more precisely, there’s a relationship between Research & Development or experimentation or Play and innovation Innovation is what we seek. we want is the results. We’re buying the hole not the drill. Risk is the price we pay for innovation.
  • See Companion Document, pages 4 and 5
  • There’s a relationship between risk and innovation. Or, more more precisely, there’s a relationship between Research & Development or experimentation or Play and innovation Innovation is what we seek. we want is the results. We’re buying the hole not the drill. Risk is the price we pay for innovation.
  • There’s a relationship between risk and innovation. Or, more more precisely, there’s a relationship between Research & Development or experimentation or Play and innovation Innovation is what we seek. we want is the results. We’re buying the hole not the drill. Risk is the price we pay for innovation.
  • Have you ever seen so much hype around a technology? Only slide with spinning
  • SOA is the current state of the art for achieving the same old (worthy) aspirations… Closely associated with
  • Vision
  • Vision
  • There’s a relationship between risk and innovation. Or, more more precisely, there’s a relationship between Research & Development or experimentation or Play and innovation Innovation is what we seek. we want is the results. We’re buying the hole not the drill. Risk is the price we pay for innovation.
  • There’s a relationship between risk and innovation. Or, more more precisely, there’s a relationship between Research & Development or experimentation or Play and innovation Innovation is what we seek. we want is the results. We’re buying the hole not the drill. Risk is the price we pay for innovation.

Koosis on Risk & Innovation Koosis on Risk & Innovation Presentation Transcript

  • Creating a Risk-Taking, Business-Thinking Culture David Koosis, CIO & Deputy Commissioner NYC Department of Correction May 7, 2008 Leading IT for Top Line Growth: A CIO Forum on Leadership and Innovation
  • Where I live
  •  
  • NYC Correction is part…
  • …of a large complex process http:// www.ojp.usdoj.gov/bjs/flowchart.htm
  • Opportunity: Repeat Customers
    • average length of stay 46.7 days.
    • 41% of those discharged are rearrested within one year
    • 34% of those discharged are readmitted within one year
    • 67% are rearrested within three years
  • Opportunity: Coordinated Services
    • ~75% have some form of addiction
      • 20% require detoxification upon admission
    • 32% are illiterate
    • 40% require some form of mental health services
      • ~12% have severe mental illness
    • 30% of those leaving jail end up in a homeless shelter
  • The technical view in four seconds…
  • The Application Stack ADMINS OpenVMS DEC Alpha DECNET ADMINS Jail Management System DECFORMS RDB Inmate Banking System Inmate Phone System C Windows Intel TCP/IP Harris POTS Inmate Property System Gang Mug shot Analytics Transpo Firearms Academy ID Investigate Legal Etc. Silos VB Access dBASE SuperBase Delphi OmniForm Excel
  • Systems at Risk ADMINS OpenVMS DEC Alpha DECNET ADMINS Jail Management System DECFORMS RDB Inmate Banking System Inmate Phone System C Windows Intel TCP/IP Harris POTS VRU PBX Inmate Property System Gang Mug shot Analytics Transpo Firearms Academy ID Investigate Legal Etc. Silos VB Access dBASE SuperBase Delphi OmniForm Excel
  • ADMINS Jail Management System RDB Inmate Banking System Inmate Phone System Inmate Property System Silos External Systems “ Enterprise Service Bus” J2EE Inmate Lookup Service and other “services” DB/2 WebSphere / Tomcat Linux Inmate data every 15 minutes
  • “ Enterprise Service Bus” Inmate Lookup Service basic inmate pedigree and status information This serves more than half of existing data exchanges. DB/2 Lookup Subscribe Notify HTML RSS VoiceXML NIEM GJXDM External Systems NYC Data Share “ At the glass” integration
  • The conceptual view
  • What We Talk About When We Talk About RISK
  • Successful risk-taker
  • Not-so-successful risk-takers
  • Really unsuccessful risk-taking
    • The Darwin Awards salute the improvement of the human genome by honoring those who accidentally remove themselves from it...
  • Isn’t IT risky enough? The FBI's Upgrade That Wasn't $170 Million Bought an Unusable Computer System By Dan Eggen and Griff Witte Washington Post Staff Writers Friday, August 18, 2006; Page A01 As far as Zalmai Azmi was concerned, the FBI's technological revolution was only weeks away. TSA: Computer glitch led to Atlanta airport scare Friday, April 21, 2006; Posted: 8:37 a.m. EDT (12:37 GMT) Passengers wait outside Atlanta's Hartsfield-Jackson International Airport after being evacuated Wednesday.
  • Risk and Innovation
  • ( the drill and the hole)
  • Innovation (who has an iPhone?)
  • Risk (who remembers a Newton?)
  • “ 20% time ”
  •  
  • Why? organizations get stale
  • “ have you always worked here?”
  • A Tough Procurement Process Average procurement time http://www.nyc.gov/html/selltonyc/pdf/procurement_indicators_2006.pdf optimized to appear competitive and fair, and to avoid scandal
  • The Five Stages of Government Procurement DENIAL ANGER BARGAINING DEPRESSION ACCEPTANCE With apologies to Elisabeth Kübler-Ross, M.D. “On Death and Dying”
  • Executive Turnover Microsoft: Merrill Lynch: NYC Correction: Hewlett Packard: CEO average tenure: ~7 years* NYC Commissioner average tenure: ~3 years *Booz Allen Hamilton Inc. (2002) Chief Executives Since 1990
  • The risk of doing nothing
  • plant seeds water & weed harvest!
    • Sit at the grownup table understand business goals and the appetite for risk
    innovate
  •  
  • What’s your portfolio? Mandatory X% project pipeline Infrastructure X% Realize measurable business benefits (revenue generation or cost savings) Confer competitive advantage, e.g., incubating new platforms Optimize the use of existing IT assets and reduce IT costs Legal or regulatory compliance Business Enablement X% Innovation X% Infrastructure X% Innovation X% Business Enablement X% IT Management Discussion © CIO Executiveboard
  • Do the right thing Do the thing right
  • Do the thing differently Do a different thing
  • Do the thing differently Provide operational efficiency Do a different thing With business units, co-develop new products & services R I S K V A L U E
  • 2) Don’t do IT projects DOC IT doesn’t do IT projects; we do “Department of Correction projects . innovate
  • DOC Agency Goals shape IT Initiatives Agency Goals Objectives IT Initiatives
    • Real-Time Correction Center
    • Intranet
    • Communicate events, policies, goals, quickly and consistently throughout the agency
    Communication Communicate goals, policies, status, events, and management metrics quickly and consistently
    • Video Surveillance System
    • Jail Management System
    • Biometric Tracking
    • Inmate Phone System (possibly call recording)
    • Know the history of all incoming inmates
    • Know the location of every inmate at all times
    • Eliminate extortion, drugs, criminal activity in the jail
    Custody & Control Security and safety for inmates, officers, civilians, and the public
    • Discharge Planning System
    • E-Payment System
    • Inmate Visitor System
    • Discharge Plans for all
    • Reduce burden to families
    Care Housing, sobriety, employment, services to reduce recidivism; reduce burden to families
  • 3) Walk in their shoes get your people in the field at least 2 days a year innovate
  • 3) Use web services really. innovate
  • First, the hype… Service Oriented Architecture
  • SOA = Same Old Aspirations
    • Loosely coupled reusable software systems
    • Event-driven, end-to-end, real-time integration of business processes
  • Services look like business
    • The packaged app no longer defines the boundaries of software systems
    • Business processes spanning across organizations, take center stage
    • This is a natural evolution of IT increasingly aligned with business
  • 4) Create a SWAT team with a mission, a passionate techy, and a disciplined PM innovate
  • A goal is a dream with a plan and a deadline. innovate
  • 5) Celebrate success publicly recognize accomplishment innovate
  • Thank you David Koosis [email_address] http:// www.linkedin.com/in/davidkoosis