Innovators Anonymous      April 1, 2013     Underwritten by:
IntroductionIf necessity is the mother of invention, Federalagencies are about to see a baby boom.The dip in Federal discr...
Executive Summary• Agency budgets are shrinking – and trending lower for the future:  • 62% of Federal managers report per...
This Time, It’s Personal  • For Federal agencies, the budget cuts have real, personal implicationsDuring the last year, ha...
A Storm Before the Bigger Storm• Federal budgets are tight and getting tighter. No relief in sightIn the coming 12 months,...
Budget Cuts Impact The Mission • Twelve percent of Feds say that budget cuts put the mission at risk  How would you rate t...
Finding the Federal InnovatorsThe budget outlook is bleak, yet where traditional leaders see trouble ahead,innovators see ...
Changing How Agencies Change• Federal Innovators have a different take on how to respond to budget cuts                   ...
A New NormalInnovators aren’t just looking for cuts, they are looking for better waysto deliver value – creating alternati...
What is Possible; What is Doable• Innovators are getting aggressive about finding new sources of funding      Federal Inno...
Some Road; Some Roadblocks• Most Feds see Congress as a roadblock, but 73% of Innovators see  agency leadership as the pri...
Back to Necessity and Invention• Innovators share one other trait: A strong belief that the current budget cuts  are devas...
Calling All Innovators Understand, and then embrace the budget realities      Calling All Innovators Look beyond just cu...
Methodology & Demographics• MeriTalk, on behalf of NIC, conducted an online survey of 200 Federal government  management p...
Thank You      Erin Leahy  eleahy@meritalk.com   703-883-9000 x139
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Meri talk & NIC: "Innovators Anonymous"

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Meri talk & NIC: "Innovators Anonymous"

  1. 1. Innovators Anonymous April 1, 2013 Underwritten by:
  2. 2. IntroductionIf necessity is the mother of invention, Federalagencies are about to see a baby boom.The dip in Federal discretionary funding isn’t justa problem on graph paper; it has real-liferamifications inside of Federal agencies. Howbig is that impact? How are agencies reacting?What does this mean for citizens?In December 2012, MeriTalk surveyed 200Federal managers to determine how deep thecuts were and how that would impact agencyprograms.We then looked at how agencies wereresponding to the new challenges – comparingdata from respondents focused on innovationwith those looking at standard approaches.Sound interesting to you? You might well be aFederal innovator. 2
  3. 3. Executive Summary• Agency budgets are shrinking – and trending lower for the future: • 62% of Federal managers report personal experience with tighter budgets • 73% of respondents believe that their budget will be even lower in 2015. 19% believe that their budget in 2015 will be much lower• Shrinking budgets put agency missions at risk: • Respondents describe the impact of budget cuts as devastating (12%) or significant (58%) to their agency’s mission performance • Just 4% of respondents report no mission impact• Innovators see a different way of funding government services: • 34% of Federal Innovators are already looking at alternative funding approaches • Federal Innovators believe that as much as one quarter of their agency’s budget could be addressed by new funding/service methods • 42% of Federal innovators see self-funding as a viable approach 3
  4. 4. This Time, It’s Personal • For Federal agencies, the budget cuts have real, personal implicationsDuring the last year, have you personally experienced the impact of Federal budget tightening? The average agency cut is 16%Yes, in my 16%programs 62%Yes, in theprograms Idepend on 51% 84% No 14% 0% 20% 40% 60% 80% Take Away: Make No Mistake, Budget Realities are Real 4
  5. 5. A Storm Before the Bigger Storm• Federal budgets are tight and getting tighter. No relief in sightIn the coming 12 months, do you expect to In FY 2015, what do you expect your agency’sexperience more or less budget pressure? budget to be? 32% 19%More Much Much 85% Lower Much 73%Same 13% Same 22%Less 2% Higher 5% 0 20 40 60 80 100 0 20 40 60 80 Take Away: Going to Get Worse Before It Gets Worser 5
  6. 6. Budget Cuts Impact The Mission • Twelve percent of Feds say that budget cuts put the mission at risk How would you rate the impact of Federalbudget tightening on the ability of your agency to maintain its current level of mission What steps has your agency taken to performance? respond to the Federal budget tightening?Devastating  Step %  Stopped hiring 55%  Cut or reduced services 51% Significant  Reduced Federal employees 51%  Cut or eliminated capital investment 29%  Increased transaction processing time 25% Minimal   Take Away: Cuts for Government Translate to Cuts for Citizens 6
  7. 7. Finding the Federal InnovatorsThe budget outlook is bleak, yet where traditional leaders see trouble ahead,innovators see opportunity. One-in-five Feds has a bias toward innovation.What does a Federal innovator look like? Innovators Say Others Say They want change, believing that How much does your agency need to change how it executes its mission? their agencies need to do a lot of things differently from today 100% A Lot 0% In fact, they spend a lot of time How much of your time do you spend getting your agency to operate or to look at things differently? driving their agency to do things differently 32% % of Time 21% They look for examples outside of Where do you tend to find the best new ideas for your agency?government and are less beholden 39% Outside 23% to their Federal peers 7.3% From Peers 24% Take Away: Some Feds are Looking to do Things Differently 7
  8. 8. Changing How Agencies Change• Federal Innovators have a different take on how to respond to budget cuts What other changes in operations has your agency considered in response to budget cuts? Close field offices 56% 50% Cut infrequently-used 46% 48% programs Outsourcing 46% 20% Slow modernization 42% 36%Delay capital investment 42% 37%Charge fees for services 42% 25% Same services, slower 39% 27% delivery Do nothing 9% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Innovators Peer Group Take Away: Don’t Just Do Nothing 8
  9. 9. A New NormalInnovators aren’t just looking for cuts, they are looking for better waysto deliver value – creating alternative funding options for their agencies of innovators are already looking 34% at alternative funding approaches for their agencies Take Away: If You Are Standing Still, You Are Being Left Behind 9
  10. 10. What is Possible; What is Doable• Innovators are getting aggressive about finding new sources of funding Federal Innovators believe that as much as one quarter of their agency’s budget could be addressed by new funding/service methods What factors are most important in your consideration of alternative funding approaches?  Validation that they are cost neutral 54%  Clear support from OMB 44%  Clear support from Congress 43%  Success at another Federal agency 43% Take Away: Innovators Mix Optimism with Realism 10
  11. 11. Some Road; Some Roadblocks• Most Feds see Congress as a roadblock, but 73% of Innovators see agency leadership as the primary obstacle to alternative funding What are the most significant obstacles to implementing this type of approach to funding government? Congress 63% Agency Leadership 51% Resistance to Fees 47% Limited Best Practices 45% Legal Department 32% Agency Culture 30% Operational Risk 24% 0% 10% 20% 30% 40% 50% 60% 70% Take Away: Biggest Obstacle Isn’t Really An Obstacle 11
  12. 12. Back to Necessity and Invention• Innovators share one other trait: A strong belief that the current budget cuts are devastating – putting their agencies’ missions at risk How would you rate the impact of Federal budget tightening on the ability of your agency to maintain its current level of mission performance? Innovators Say Others Say 22% 9%    Devastating       Take Away: Necessity is the Mother of Invention. Initiative is the Father 12
  13. 13. Calling All Innovators Understand, and then embrace the budget realities Calling All Innovators Look beyond just cuts for Do you believe that your agency answers to budget issues can and should do things differently? Investigate innovative funding models Do you have a bias toward action? Collaborate on innovative ways to fund programs and Do you look outside of agencies deliver services for new ways of doing things? Join us: http://www.govloop.com/group/ nic 13
  14. 14. Methodology & Demographics• MeriTalk, on behalf of NIC, conducted an online survey of 200 Federal government management professionals in December 2012. The report has a margin of error of +/- 6.89% at a 95% confidence level. 100% of respondents have Federal Manager Sample management responsibilities. Program management 41% 100% of respondents work in agencies with programs that Administration 29% would be easily funded by an alternative funding approach. Finance 14% Citizen services 9% 14
  15. 15. Thank You Erin Leahy eleahy@meritalk.com 703-883-9000 x139

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