While I did this in 2008/9, Government 2020 point-of-view is playing out more than ever. A perpetual #collaboration mandate means ecosystem relationships, partnerships, shared outcomes.

1. © 2009 IBM Corporation© 2009 IBM Corporation
Government 2020
and the Perpetual Collaboration Mandate
Lynn Reyes
(lynn_reyes@us.ibm.com)
IBM Institute for Business Value

2. © 2009 IBM Corporation2
Long-term changes, varying by
country and region, are occurring in
the composition of populations
Economic interdependence is
blurring social, political and
cultural boundaries within a
global context Societies and governments
are becoming more attuned
to what the earth can provide
and what it can tolerate
Individuality, consumerism
at social and commercial
levels demands that
governments deliver to the
same expectations
Technology adoption and use is
changing the way individuals,
business and public institutions
function; and reshaping
relationships between them
The range, nature and
consequences of threats
(for example terrorism,
armed conflict,
tribalism, pandemics,
natural disasters) are
increasing
Source: Government 2020 and the Perpetual Collaboration Mandate,
IBM Institute for Business Value study, 2008
Six powerful drivers are reshaping societies –
and the way they are governed

3. © 2009 IBM Corporation3
The drivers compel a dynamic, continuous cycle of both strategy
and execution, so a shared frame of reference is key
Implications
Manifestations
Desired Public
Outcomes
ConstraintsAspirations
Strategies
Drivers
Desired
Outcomes
Strategies
Results
Actions
Public
Sector
Drivers, Manifestations,
Implications, Aspirations
and Constraints
Drivers, Manifestations,
Implications, Aspirations
and Constraints
Drivers, Manifestations,
Implications, Aspirations
and Constraints
Drivers, Manifestations,
Implications, Aspirations
and Constraints

4. © 2009 IBM Corporation4
The future of every society is being shaped by the unique and
specific manifestations of these drivers
United States
• High immigration with cultural
diversity
• Declining industrial base, job
shifts, trade deficits
• Leading carbon consumer
• Target of global terrorism
• Technology innovator, consumer
• E-readiness ranking*: 1
Belgium
• Open services economy with high per
capital income, but slowing growth
• Almost all urban population
• High public debt
• Low immigration
• E-readiness ranking*: 20
Japan
• High and rising median age (45.8 years)
• Rising immigration but limited experience
with cultural diversity
• High labor costs
• E-Readiness ranking*: 18
China
• Gender imbalance (1.14 males
and female under age 15)
• Rapid industrialization, impact on
environment, urbanization
• Minimal expectations of
government by citizens --
government budget 18% of GDP
• E-readiness ranking*: 56
India
• Low median age (24.8 years)
• Growing service economy
• Minimal expectations of government
by citizens; gov’t budget 16% of GDP
• Rising resource consumption with
environmental impacts
• Significant cultural diversity
• E-readiness ranking*: 54
Brazil
• Immigration and diversity
• Moderate labor costs
• Rising resource consumption
• Minimal threat of global
terrorism
• E-readiness ranking*: 42 * Source: e-Readiness Rankings 2008 – Maintaining Momentum, Economist Intelligence Unit, written in
cooperation with IBM Institute for Business Value, April 2008.
http://a330.g.akamai.net/7/330/25828/20080331202303/graphics.eiu.com/upload/ibm_ereadiness_2008.pdf
Implications
Manifestations
Desired Public
Outcomes
ConstraintsAspirations
Strategies
Drivers
Implications
Manifestations
Desired Public
Outcomes
ConstraintsAspirations
Strategies
Drivers

5. © 2009 IBM Corporation5
Environmental
Conditions are
Stable
Stabilize
Improvise
Reuse
and “get
it out”
Mobi lize
on de
mand
Miti gate
Assure
Environmental
Conditions are
Disruptive
Responses must be
Agile and Adaptive
Responses must be
Steady and Consistent
We are here
Implications
Manifestations
Desired Public
Outcomes
ConstraintsAspirations
Strategies
Drivers
Implications
Manifestations
Desired Public
Outcomes
ConstraintsAspirations
Strategies
Drivers
Hard choices, fragmented
intelligence … little time.
Speed is of the essence
The recent global financial crisis – now a global recession –
is one example

6. © 2009 IBM Corporation6
Drivers Implications (examples)
Changing
demographics
§ Amplified demand on the physical and social infrastructure
§ Acceleration in social, health and pension costs further
challenged by global financial crisis, upsetting budget plans
§ National cultures in transition
§ Increased accessibility by government
Accelerating
globalization
§ Public and private investments must reflect new economic
realities and cycles
§ Economic interdependence grows, for example financial markets
§ Emerging and less developed countries will create more and better paid high tech jobs
§ Talent (and related education programs) is more critical than ever to economic strategies
§ Communication and cultural compatibility become differentiators
§ Distribution and communication networks are becoming critical to global economy, stabilityŒ
We’re also
observing some
cross-cutting
trends
§ Ongoing effort to change the rules of the game of government
§ Increased use of performance management
§ Growth in providing competition, choice and incentives
§ Drive to perform on demand
§ Heightened focus on engaging citizens
§ Increased use of networks and partnerships
ΠSource: Government 2020 and the Perpetual Collaboration Mandate, IBM Institute for Business Value study, 2008
 Source: Six Trends Transforming Government, IBM Center for the Business of Government, 2006
Every nation (or jurisdiction)
uniquely experiences the set of
drivers and manifestations, the
implications of which officials
should understand
Implications
Manifestations
Desired Public
Outcomes
ConstraintsAspirations
Strategies
Drivers
Implications
Manifestations
Desired Public
Outcomes
ConstraintsAspirations
Strategies
Drivers
While the six drivers are nearly universal, specific implications
and their magnitude vary by country and region, among others

7. © 2009 IBM Corporation7
What makes people “confident” in government?
What makes government “relevant”?
Today? Tomorrow?
Are we making “progress” towards our desired
outcomes?
How do we “know”?
Are there desired public outcomes that we share?
Do we have a shared understanding of what they mean?
NetworkNetworkOutcomeOutcome
PublicOutcome
NetworkNetworkOutcomeOutcome
PublicOutcome
A safe and sustainable
food supply
Preserved, protected
cultural heritages
“Good
government”
A vibrant, thriving
arts & humanities life
Fair access
to markets
Protected peace
Improved collective
problem-solving
An equipped and
competitive workforce
Sustainable
energy supply
Healthy environment
Sustainable
economic growth
Healthy communities
A relevant, accessible health system
Better ways to “connect”
Fair application and
enforcement of the law
Attractive employment
Relevant, enforceable laws
Available, affordable money & credit
Positive relationships
with global neighbors
A thriving innovation
ecosystem
Mitigated security risks
Improved community well-being
Safe and reliable
transportation
Affordable, accessible
places to live
Vibrant, healthy
industries
Prevented conflicts
Safe, responsible
energy use
A relevant and affordable
social safety net
Safer communities
Financial stability
ILLUSTRATIVEILLUSTRATIVE
LEGEND
l Public Outcome
l Civil Society
l Private Sector
l Public Sector
Figure adapted from: Barabasi, A. Linked, “Afterlink: Hierarchies
and Communities”, p. 233. Penguin Group, New York, © 2003

8. © 2009 IBM Corporation8
What makes people “confident” in government?
What makes government “relevant”?
Today? Tomorrow?
Are we making “progress” towards our desired
outcomes?
How do we “know”?
Are there desired public outcomes that we share?
Do we have a shared understanding of what they mean?
Figure adapted from: Barabasi, A. Linked, “Afterlink: Hierarchies
and Communities”, p. 233. Penguin Group, New York, © 2003

9. © 2009 IBM Corporation9
Are we making “progress” towards our desired outcomes?
How do we “know”?
How does our organization’s performance contribute to
progress toward those outcomes?
How do we “know”?
There is work to be done to define – and distinguish – and align
performance and progress

10. © 2009 IBM Corporation10
Each society’s desired outcomes, aspirations and constraints
strongly shape and lead to the goals, ideals, decisions
and actions for progress
Drivers Desired Outcomes Aspirations (To …) Constraints
Changing
demographics
§ See previous slide for
examples
§ Provide the right balance
between social security
(safety) & social services
Political and
operational constraints
§ Availability of budgets for government programs (fiscal sanity*)
§ Citizens’ views of the role of government, for example government by contractors?*
§ Organization & Management: Structure: speed and efficiency of government
processes, for example governing without boundaries* , results really do matter*
and “expect surprises”*
Economic constraints
§ Workforce skills, education and training (crisis of competence*)
§ Availability of capital, the impact of regulation, bureaucracy, administration
§ Scientific and technical capabilities, for example e-Government is only the
beginning*
§ Increased global competition
Social constraints
§ Citizen expectations for working conditions; service, living standards; privacy
(security and privacy in the Flat World*); social responsibility (for example “green
leadership”*),
§ Receptivity to real or virtual immigration
§ Information overload*
Other constraints
§ Physical – Aging and/or damaged roads, bridges, telecom infrastructure
§ Natural tensions – for example Conflict between economic development needs and
environmental interests
§ “Maturity” and “Readiness” of sectoral and/or social segments
Accelerating
globalization
§ Sustain and grow industry
vitality and competitiveness
Rising
Environmental
Concerns
§ Be a model for safe and
responsible energy use
Evolving Societal
Relationships
§ Embrace the best aspects of
new approaches without
undermining social stability
Growing Threats to
Social Stability and
Order
§ Promote stable societies
within political borders while
being engaged in the global
economy
Expanding Impact of
Technology
§ Demonstrate sustained and
sustainable innovation
leadership
Considering implications, aspirations, desired
outcomes and constraints together in light of
the drivers sets the stage for suitable and
specific strategies
* Source: Ten Challenges Facing Public Managers, IBM Center for the Business of Government, 2008
EXAMPLES
Implications
Manifestations
Desired Public
Outcomes
ConstraintsAspirations
Strategies
Drivers
Implications
Manifestations
Desired Public
Outcomes
ConstraintsAspirations
Strategies
Drivers

11. © 2009 IBM Corporation11
Aligning drivers to aspirations and constraints forms the
foundation of effective strategy development
§ What makes us distinctive?
§ Where do we want to go? What does that look like?
§ What trade-offs can and should we make?
§ Where are we today? Where can we “leapfrog” others?
§ Are we ready to change? How do we get there?
– What are the risks and how do we mitigate them?
– What do we really need? Do we know who to talk to?
– What sequence of actions should we take? When?
– How do we best manage our stakeholder relationships so that they also take
ownership in the change process?
How will strategies be adapted to an
increasingly interconnected environment?
Resulting strategies should then be used to drive operational alignment
Implications
Manifestations
Desired Public
Outcomes
ConstraintsAspirations
Strategies
Drivers
Implications
Manifestations
Desired Public
Outcomes
ConstraintsAspirations
Strategies
Drivers

12. © 2009 IBM Corporation12
Collaboration is a catalyst to the future –
a structural priority and crucial to operational success
Which of the following Government Structure Factors will have
the greatest impact on your business in the next three years?
52.4%
42.9%
33.3%
28.6%
23.8%
0.0
%
10.0
%
20.0
%
30.0
%
40.0
%
50.0
%
60.0
%
70.0
%
80.0
%
90.0
%
100.
0%
Interoperability and Cross-agency collaboration
Fragment Funding Policies / Approaches
Other
Collaboration with private sector
Organization exceeding requests and issues
(n=21)
Collaboration has emerged as a key issue and a required competency
Source: IBM Business Consulting Services, The Global CEO Study 2008

13. © 2009 IBM Corporation13
• Leaders are as enthusiastic about collaborating with external partners as their
private sector counterparts
• The challenges are profound:
– How to redefine the “enterprise” as a network
of public, private and nonprofit organizations
– How to encourage the flow of new ideas
and nurture them through to adoption
– How to flexibly respond to rapidly changing
conditions to fulfill the mission
Source: IBM Global CEO Study 2008; n (Global) =350; n (Government) = 107; Strong focus on Business Model
Innovation type includes 6 to 7 scores on a 1 to 7 scale (69% of total population)
Global CEOs
Public Sector Leaders
Global CEOs
Public Sector Leaders
41%
67%
54%
67%
Work Within
Organization
Intense Collaboration
with External Partners
41%
67%
54%
67%
Work Within
Organization
Intense Collaboration
with External Partners
Enterprise Model Innovation Focus
Leaders are looking “within” and “outside” to innovate
ways of delivering existing and new services

14. © 2009 IBM Corporation14
ΠReduce costs
 Find new revenue
sources
Ž Drive new
regulatory initiatives
 Collaborate
broadly and better
§ Do more with the same or
less – hiring freezes, budget
reallocations, contract
renegotiations
§ Gain efficiencies through
consolidation and shared
services
§ Improve collection rates on
declining tax bases
§ Gather new revenues from
(e.g. enforcement and
permitting, road charging)
§ Continue to streamline trade
§ Restructure governance and
oversight of the financial
sector nationally and globally
§ Improve internal and external
collaboration within / across
borders and institutions
§ Enable rapid assimilation and
deployment of expertise and
knowledge
§ Enable co-creation, ideation,
scenario planning
§ Perform community outreach
and education
 Drive innovative
business models
‘ Ensure public
safety
’ Maintain social
stability
“ Stimulate
economic activity
§ Grow new financial and
delivery vehicles – asking
the private sector to invest
with government for long
term stability and return
§ Shared risk-reward,
benefits-based contracting,
joint ventures
§ Regionalization and
aggregation of smaller
government entities
§ A protected and resurgent
segment in recession
§ Education remains a priority
for stability and workforce
development
§ Social services “safety net”
must broaden
§ Many national governments
will create stimulus
packages – some, bold with
the intent to position for
long-term competitiveness –
that will flow to consumers
and industry.
§ Protect locally specific
spending (e.g. tourism).
Especially in an economic downturn, governments will focus
intensely on eight strategic priorities in the near- and mid-term

15. © 2009 IBM Corporation15
What will it take?
A mandate of perpetual collaboration
But first, what is “Collaboration”?
§ A recursive process in a relationship …
§ … where participants (e.g. people,
organizations) work together as co-equal
partners towards an intersection of
common goals.
§ Each gives up some of their
independence and autonomy through
formal or informal agreements.
§ In the process, each becomes partially
dependent on the other for their
individual, as well as joint success.
And the “Perpetual Collaboration
Mandate”?
§ A state of practice where the enabling elements of
collaboration:
– Incorporate broad, innovative perspectives into
a shared frame of reference;
– Enable situational and contextual awareness;
and
– Help “systematize” and accelerate the change
needed
§ Collaboration elements fall into four broad
categories
– Relationships
– Learning
– Management structure
– Enabling operating models
Source (adapted): Four Strategies to Transform State
Governance, IBM Center for the Business of Government, 2008
Source: Government 2020 and the Perpetual Collaboration
Mandate, IBM Institute for Business Value, 2008

16. © 2009 IBM Corporation16
The dimensions of perpetual collaboration are all essential …
Management Structure
Organization, Culture and
Governance
Learning
Knowledge Creation and
Sharing, Taxonomy
Enabling Operating Models
Partnerships,
Intermediaries and
Exchanges
Relationships
Personalized Interaction
and Services, Networks
Perpetual
Collaboration
Source: Government 2020 and the Perpetual Collaboration Mandate, IBM Institute for Business Value, 2008
So that governments and their stakeholders understand and
leverage their interconnectedness and dynamic governance to
interact and innovate in entirely new ways

17. © 2009 IBM Corporation17
Changing
Demographics
Rising
Environmental
Concerns
Evolving
Societal
Relationships
Expanding
Impact of
Technology
Accelerating
Globalization
Growing Threats
to Social Stability
and Order
Citizen
Engagement
Public
Technology
Infrastructure
Management
Efficiency and
Effectiveness
Standards and
Standards
Adoption
Government
Sourcing and Tasking
Citizen Self
Responsibility
Access
to Public
Information
Defense and
Security
Emergency
Preparedness
and Response
Policing and
Public
Security
Economic Vitality
For Aging
Citizens
Social, Financial
Programs for
Pensioners
Workforce and
Skills
Development
Research.
Science and
Innovation
Strategic
Intelligence
Water and
Food Supplies
and Safety
Wellness Programs
Citizenship
Initiatives
Economic
Competitiveness
and Policy
Immigration
Control
Urbanization
Transportation
and Congestion
Outcomes and
Value Based
Healthcare
Primary
Education
for Children
Higher Education
Customs and
Border
Management
“Green Agenda”
Energy
Supply and
Consumption
ILLUSTRATIVE
Environmental
Innovation and
Stewardship
Lands and
Physical
Infrastructure
… because many programs should be refurbished
as strategies are aligned with existing realities

18. © 2009 IBM Corporation18
SCOPE OF COLLABORATION
COLLABORATION
CAPABILITYMATURITY
Emerging
Chance and
point-specific
Embedding
Anticipatory and
sustained
Extending
Adaptive and
increasingly influential
Expanding
Synchronous and co-
creating net new value
SYSTEMIC
SYSTEMIC
Progress Towards
Desired Public
Outcomes
Evolving
Reactive, but
gaining momentum
Beginner
Ad hoc, but
communicating
Discoverer
Aware and
cooperating
Practitioner
Competent and
coordinating
Virtuoso
Leading,
contextualizing
Maestro
Innovating and
impactful
ILLUSTRATIVE
Environmental
Conditions are
Stable
Stabilize
Ana
lyze
Improvise
Reuse and
“get it
out”
Tar
get
Fore
cast
Mobi lize
on de mand
Miti gate
Assure
Environmental
Conditions are
Disruptive
Responses must be
Agile and Adaptive
Responses must be
Steady and Consistent
Are you ready?
Are we?
Who is “we”?
Impact on success and progress depends on situational and
contextual awareness, desired outcome(s), scope, and maturity

19. © 2009 IBM Corporation19
§ Intertwined and accelerating, the impacts can be
particularly acute
§ Now more than ever, Public Sector Leaders are
challenged to drive transformational change in
ways they have never done before
– Across all levels of government
– Across jurisdictions
– Across sectors
– Across nations
§ Our analysis suggests that approaches and
solutions will need to be more global in nature,
involving high levels of collaboration
– Smarter government
Source: Government 2020 and the Perpetual Collaboration Mandate,
IBM Institute for Business Value study, 2008
The drivers demand responses that transcend
traditional boundaries

20. © 2009 IBM Corporation20
First, it will take a change in mindset and
a shared frame of reference
Implications
Manifestations
Desired Public
Outcomes
ConstraintsAspirations
Strategies
Drivers
Desired
Outcomes
Strategies
Results
Actions
Public
Sector
Drivers, Manifestations,
Implications, Aspirations
and Constraints
Drivers, Manifestations,
Implications, Aspirations
and Constraints
Drivers, Manifestations,
Implications, Aspirations
and Constraints
Drivers, Manifestations,
Implications, Aspirations
and Constraints

21. © 2009 IBM Corporation21
Second, the basic building blocks need to be put in place
B
A
C
Alignment
Strategy and organization
aligned both vertically,
horizontally to support the
collaboration needed to
move forward
Boundaries
Strategic relationships with
the extended enterprise
defined, enabled and
managed
Commitment
Agreement on roles,
responsibilities, authorities,
accountabilities and
agreements; and, ongoing
commitment to a climate for
collaboration
Source: The Power of Many – the ABCs of Collaborative Innovation Throughout the Enterprise,
IBM Institute for Business Value, © 2007

22. © 2009 IBM Corporation22
Perpetual
Collaboration
On DemandIntegratedAccess
Flexible
Integrated
Experimental
Information and Technology Capabilities
BusinessCapabilities
Organization, Culture
&
Governance
Reactive
Aligned
Adaptive
Public Enterprise
of the Future
Public Enterprise
of the Future
Where are you today?
How to respond?
Lead by example
or react?
Third, actual change needs to occur along three dimensions
starting with a mandate of perpetual collaboration

23. © 2009 IBM Corporation23
Public Sector Summaries of the Core Traits
1. Hungry for change
2. Innovative beyond customer imagination
4. Disruptive by nature
3. Globally integrated
5. Genuine, not just generous
have fewer levers at their disposal than the private sector, but are defining
new ways of working and using new technologies to develop and deliver
innovative services to citizens
developing citizen centric solutions to deliver enhanced, tailored
services and provide increased transparency and accountability
pursuing transformation programs as a means of meeting elevated
expectations, despite financial constraints. Implementing sophisticated
approaches to manage complex change
exploring ways to better integrate public sector operations, even in
some cases, internationally
seizing the opportunity to better lead by example and developing new
socially responsible approaches to build on the momentum in the Private
Sector – some are more advanced than others
The Global CEO Survey identified five core traits
for the Public Enterprise of the Future

24. © 2009 IBM Corporation24
§ Focus on core missions: economic prosperity, environmental wellness, public well-being, and a
safe world
§ Collaborate through transparent approaches that enable governments to gain and retain public
trust
§ Lead to gain and retain influence while driving necessary changes in their societies
§ Prioritize and execute plans, making choices clear, engaging local political groups in decision
making, with increased attention on protecting human and property rights
§ Evaluate and improve actions taken in response to drivers, implemented at a pace that gives new
initiatives a chance to succeed
§ Continuously seek and find ways to mix top down and bottom up development and
implementation of solutions for problems and desires
§ Adopt and consistently apply standards and encourage trends in chosen areas
§ Demonstrate accountability while expecting personal responsibility of others
Successful governments by 2020 will share a number of
achievements and behaviors