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Gov.
Mark R. Warner and Secretary of Technology George C.
Newstrom plunked down a 125-page Commonwealth of Virginia Strategic Plan for Technology on September
25 that could transform the way the Commonwealth
purchases information technology products and
delivers services to citizens and businesses. When
implemented, the plan could save hundreds of
millions of dollars over several years and, not
incidentally, set off a process of reengineering
government that goes far beyond any single
administration or General Assembly session.
Initial
reviews are positive. Secretary Newstrom and a team
of IT experts inside and outside government
assembled the first comprehensive look at
information technology functions and procurement in
state government. That is a singular achievement in
and of itself. The plan is rooted in a strong desire
by Warner and key members of the General Assembly to
anchor a strong CIO function in the Secretary of
Technology's office. By selecting George Newstrom,
an experienced EDS executive, the governor took the
first step toward this information technology
blueprint for state government.
To
be sure, this is a plan for wonks, not Virginians
with real lives. Cozying up with a report on IT and
state government isn’t at the top of any normal
person’s list for a fun weekend. But policy
junkies will find it a worthwhile read: The Warner
administration outlines four potentially
revolutionary initiatives on the information
technology side:
-
Deliver
more services online through interactive
e-government.
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Consolidate
the IT infrastructure and centralize services.
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Plan,
budget and track IT spending with a new capital
planning and funding process.
-
Manage
IT procurement better.
That
sure beats mindless television where I live.
There
are other, external initiatives -- increase federal
research and development dollars, commercialize
intellectual property, promote technology-based
economic development and expand broadband,
particularly in rural areas. But these initiatives
will compete in the short-term for scarce budget
dollars. Until Governor Warner makes his budget
priorities known in mid-October, policy makers will
focus attention on the Commonwealth IT plans and
their prospect to free up budget dollars instead.
Now
for the fun. The first initiative will
“revolutionize service delivery” to citizens by
creating a customer-facing Internet portal that
standardizes website design across agencies, makes
greater use of online licensure and provides more
interactive forms. The goal is to install fully
interactive, integrated online business processes
for the executive branch by mid-2004. Why is this
initiative necessary? A recent statewide survey
shows only 50 percent of state forms for citizens
and businesses are accessible electronically, and
most of those are static and non-interactive. Fewer
than five percent of Virginia's
600,000 licensed professionals can renew licenses
online. None can file an initial application online.
They must submit the forms by traditional means –
mail or fax -- and government clerks must re-key the
data.
In
consolidating IT infrastructure and service
delivery, the administration proposes to build a
"technology utility" complete with
security plan and newly rationalized finance,
planning, budgeting and human resources systems.
Consolidation of data centers, servers, vendor
platforms, storage and help-desk functions across
agencies and departments are first priorities. Why?
Agency strategic plans in 2001 show 52 legacy
systems for budgeting, accounting, personnel,
benefits, payroll and fixed asset management.
Strategic plans for 2002-2004 suggested 13 more
financial management systems, three more payroll
systems and three more human resource systems
planned. The result is inconsistent service, impeded
access, duplicated effort, inefficient use of
resources, overcapacity, non-standardization and
uneven security
Currently,
most IT projects are evaluated and prioritized at
the agency level. Newstrom envisions a capital
planning process that would emphasize strategic
investments in enterprise-wide IT projects. However,
his ambitious proposals to plan, budget and track
information technology expenditures likely would
require General Assembly action in 2003. An
executive order kicking off joint development of
systems and legislation will task the Secretaries of
Technology and Finance with developing the details
of legislation to be proposed.
Finally,
the Department of Information Technology will
involve customers, vendors and business partners in
a process to develop and implement best practices
for more effective, more timely IT procurements. The
plan cites the need to leverage resources and
technology investments across approximately 100
statewide contracts for IT goods and services. The
goal, again, is legislation to be considered by the
General Assembly in 2003 that will match long-term
projects across the government
"enterprise" with long-term funding and
accountabilities.
It
gets better. These initiatives are riding the wave
of concern about state government revenues and
expenditures going forward. The plan acknowledges
"the time is ripe for consolidating
technologies" and recent estimates support that
conclusion. A KPMG study discussed before the Wilder
Commission earlier in the year, for example,
documents potential savings from more rational,
integrated government IT functions at $100 million
or more. Few things get the attention of red-eyed
government financial planners than positive
nine-figure numbers. So the details of this
technology plan for state government will a must
read for cabinet officers, agency heads, vendors and
state IT employees.
So
what's not to like? Start with change, itself.
Remember Garth in the movie Wayne's
World, who summons up the courage to admit that
moving a local-access show to prime time is
uncomfortable? "We fear change," he
concludes.
Wayne
's
ex-girlfriend later tries to hang onto their
relationship by suggesting, "Just because we
broke up doesn't mean we can't see each other
anymore." To which
Wayne
pointedly answers, "Actually it does: That's
what breaking up means."
State
government agencies and departments fear change. For
that matter, so do successful vendors. They're
humans, and inertia is one of the most enduring of
human traits. What is there now, for better or
worse, works for them. "Just because we are
changing state government IT functions and
procurement doesn't mean my agency or department
needs to change" is a predictable litany.
"Actually it does: That's what change
means," is the Warner-Newstrom answer contained
in the technology strategic plan.
But
there’s more. Change
is something that you jingle in your pocket. Warner
and Newstrom are talking transformation -- entirely new ways of defining problems,
engineering solutions and doing business. Just as
information technology has helped and forced
transformations on business and industry, state
government is about to become more than a sum of its
agencies, departments and service offerings. IT
informs decisions. IT accelerates actions. IT
facilitates measurement and accountability. IT keeps
state government open 24-7. IT transforms the nature
of work itself.
Deliberations
in the Wilder Commission concluded that state
government is not well prepared for transformation.
The predominant culture, the commission suggested,
resists both change and long-term thinking. Now,
however, state government agencies, departments and
employees face a real "transform it or lose
it" choice by the Governor and General
Assembly. Much of the next six months will be spent
by the governor, the secretary, the General
Assembly, state government and the private sector
alike pinching and prodding toward a new attitude, a
new culture and a different future for Commonwealth
government.
Here's
the exciting conclusion: The improved, integrated
information technology tools being offered in the
Warner-Newstrom vision are precisely what agencies
and departments need to find, focus and deliver on
their strategic priorities. That's what business
guru Peter Drucker means when he says, "The
only way you can manage change is to create
it."
--
Sept. 30, 2002
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