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“IT—The Statewide View”

A presentation to:

NGA’s Management Seminar

October 11, 2003; 10:45am-Noon CDT

New Orleans, LA

Presented by:

Gerry Wethington, NASCIO President and CIO of MissouriAldona Valicenti, former NASCIO President and CIO of Kentucky

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Why is the CIO critical to state government?

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Vision

• The state chief information officer (CIO) provides an IT vision for state government that is of interest to more than just “techies.”

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Skills and Benefits

• Critical skills: communications, coalition-building, and change-management

• A technology-savvy state government is a key indicator to the business community that your state is serious about developing a strong IT-based economy.

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Common IT Standards

• The state CIO establishes and enforces a statewide “architecture,” or common standards for all information systems in order to...– eliminate duplicative spending and foster the

implementation of systems that are flexible enough to meet your government’s ever-changing needs, and

– generate new cost savings while continuing to fund major education, health, and homeland-security programs.

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Accountability

• Your CIO should have an IT-project review process based on business cases requiring agencies to show how proposed projects are relevant to the governor’s goals.

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ROI and Business Cases

• Help your CIO hold them accountable to produce promised benefits/savings once new systems go on-line.

• See NASCIO’s “Business Case Basics and Beyond: A Primer.”

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Procurement

• The state CIO can help set statewide IT procurement rules that prevent agencies from bypassing statewide standards.

• The CIO can help streamline the statewide IT procurement process to ensure accountability, reduce costs, and speed up the procurement cycle.

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Lobbying and Expertise

• The state CIO can help the governor make appeals for IT investments and reforms to the state legislature.

• The CIO can also serve as a trusted expert on other IT-related issues such as fighting spam and promoting high-tech economic development.

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Leveraging Resources

• When it comes to making self-service digital government a key goal of your governor’s agenda to better serve citizens, the state CIO can leverage statewide IT infrastructure in partnership with county and municipal governments. This can reduce the cost of supporting the localities and generate revenue.

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Supporting First Responders

• The state CIO is a critical part of the state’s first response team for homeland security since state and local law enforcement, health, and public safety workers depend on IT to do their jobs.

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Streamlining Government

• With a view that cuts across all disciplines and organizations, the state CIO can help the governor reengineer business processes.– States have already realized most of the

benefits to be gained from automating inefficient processes.

– New savings will be found in BPR, consolidating infrastructure, and integrating otherwise disparate systems so that they can share information electronically.

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What structures work? Where do we start?

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No magic bullets

• The best structure is one that (in the context of your state’s governance culture) allows the state CIO…– to take a statewide view of IT,– support horizontal business processes (not

vertical programs),– move the state toward conducting business

electronically,– leverage strategic resources, and– maintain security and privacy.

State CIO Reporting

Source: NASCIO 2003 survey and staff research

CIO reports to Governor (28)

CIO reports to Executive Cabinet Head or IT Board (22)

WA

OR

CA*

NV*

ID

MT

AZNM

UT CO

WY

ND

SD

NE

KS

OK

TXLA

MO*

AR

IA

MNWI

MI

IL*IN*

OH*

KY

TN

ALMS

FLAK

ME

GA

SC

NC

VAWV

MD

DE

NJ*PA*

NY*

VT

NH

MA

CTRI

HI*

KEY:

_=CIO is sub-departmental

*=CIO established by E.O.

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CEO Support

• The environment for CIO success must be developed by the governor in dialogue with the entire cabinet. This requires an investment of political capital with little chance of up-front glory.

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Long-Term Success

• The governor can broadcast deep and long-term support for IT transformation by establishing the CIO position in legislation and appointing or developing an IT-savvy executive leadership.

• The CIO needs a reliable revenue stream that can be used to promote statewide projects that return savings to the general fund and an IT investment fund. Too many CIOs lament: “When I turn a profit, they take it from me. When I lose money, they make me eat it.”

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Key Questions

• Can the CIO develop statewide standards through some sort of statewide consensus-building process?

• Can those standards be enforced through project oversight and procurement review?

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NASCIO National Findings I

• Approx. 40 CIOs have management responsibility for the following areas:– Information Integration (43)– State Broadband (40)– Technical Innovation/Research (39)

• Approx. 20 CIOs have management responsibility for the following areas:– K-12 Public Schools (24), Public Community

Colleges (22), Public Universities (25), Public Virtual Universities (20), Public Libraries (22), and Tele-medical Services (19)

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NASCIO’s National Findings II

• 40+ CIOs have some degree of enterprise responsibility for the following services:– Architecture Standards, Outsourcing, Planning,

Policies (General), Privacy Policies, Procurement, and Project Mgt.

• 30+ CIOs have some degree of enterprise responsibility for the following services:– Budgets, Performance Mgt., Bus. Proc. Re-

Engineering, and Training

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NASCIO’s National Findings III

• 40+ CIOs have some degree of enterprise responsibility for the following services:– Application Dev., Infrastructure Dev.,

Mainframe/Data Ctr., Portal Dev., Security, Server Supt., and Telecom.

• 30+ CIOs have some degree of enterprise responsibility for the following services:– Desktop Mgt.

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How do we save IT dollars?

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Business Processes

• Focus on common processes, such as licensing and benefits, where the same mechanism can be built once and redeployed many times.

• Remember, the CIO supports a horizontal infrastructure, not a vertical line of business.

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Consolidations

• Consolidate commodity services where agency-by-agency variation leads to duplication, inconsistency, and waste.– Telecommunications– Help Desk/User Support– Network Services– Desktop/Seat Management– Data Center/Mainframe Support– Security Services– IT Training/Certifications

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Streamlining

• Eliminate minor variations in similar business processes so that systems can be deployed with a minimum of customization. This also reduces maintenance costs (TCO).

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• Require certified project managers to oversee development and implementation. It’s the only way to keep projects on budget and on time.

• It’s not a real savings unless it can be identified, captured, and reallocated.

• Give the CIO power to review procurements for compliance with standards.

• Look for outsourcing opportunities, but beware of the political implications of offshore sourcing.

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Why is IT policy important?

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IT is Integral

• IT is the underpinning of nearly all state government, which is primarily a producer of information, services, and funding.

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Long-Term Outlook

• A formal IT policy provides continuity and consistency.– 26% of state legislators are new.– In 22 state legislative chambers, the majority

party holds less than 55% of the seats.– A change of just one seat would change control

of five chambers. – 29 governors are working with split chambers

(12) or both chambers held by the opposite party (17).

2002 Gubernatorial Transition

Source: NASCIO staff research as of Nov. 14, 2002

New governor, same party (4)

Changed parties (20)

WA

OR

CA*NV*

ID*

MT

AZNM

UT CO*

WY

ND

SD

NE*

KS

OK

TX*LA

MO

AR*

IA*

MNWI

MI

ILIN

OH*

KY

TN

ALMS

FL*AK

ME

GA

SC

NC

VAWV

MD

DE

NJPA

NY*

VT

NH

MA

CT*RI

HI

KEY:

No election (14) or no change* (12)

Partisan Alignment in the States

Source: NCSL

Republicans hold both legislative chambers (21)

Democrats hold both legislative chambers (16)

WA

OR

CA

NV

ID

MT

AZ NM

UT CO

WY

ND

SD

NE

KS

OK

TXLA

MO

AR

IA

MNWI

MI

IL INOH

KY

TN

ALMS

FLAK

ME

GA

SC

NC

VAWV

MD

DE

NJ

PA

NY

VT

NH

MA

CT

RI

HI

KEY:

Split legislature (12)

Background color of state name indicates governor’s

party.

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NASCIO Survey (April 2003)

• Who gets IT?– 47% of CIOs say their governor gets IT.– 32% say their governor gets it but is

constrained by budget concerns.– 21% say their governor doesn’t get IT yet, but

is interested in learning more.

• What about the budget crisis?– 79% of CIOs see the current budget situation as

a “real opportunity to bring about change.”

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Some Examples from the States

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G2C: TNII

• Tennessee has outsourced management of the Tennessee Information Infrastructure (TNII) in order to establish universal service, encourage economic investment by business, and facilitate usage of telemedicine, telejustice, distance learning, GIS, and Internet 2.

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G2B: Employer Filed Claims

• Michigan has web-enabled its employer-filed claims (EFC) process, allowing the state to eliminate manual processing and more than 80,000 face-to-face intake interviews as well as the related delays due to backlogs and scheduling.

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G2G: CalPERS

• California has web-enabled its Public Employees’ Retirement System (CalPERS), which serves more than one million people and pays over $6.3 billion annually. State and local entities can manage accounts on-line or via paperless integration. This has reduced ten or more weeks of processing down to five days.

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Innovation: KYVAE

• Kentucky has expanded its educational services citizens without high school diplomas and low literacy levels via the Virtual Adult Education (KYVAE) portal access to an “anytime, anywhere” curriculum and career planning. KYVAE’s job bank will also help job seekers assess skill gaps and recommend targeted instruction.

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Management: MO IT Mentoring

• Missouri’s IT Advisory Board (ITAB) has implemented a web-based IT Mentoring program that provides a community of interest and a body of knowledge about state IT and state government in general for new departmental and agency CIOs.

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NASCIO Support for Your State

• For AL, AR, CT, FL, GA, IA, KS, KY, LA, MA, ME, MN, MO, MS, NE, NC, ND, NH, OK, PR, RI, SC, SD, TN, TX, and VT:– Chris Dixon

E-mail: cdixon@amrinc.netPh.: (859) 514-9148

• For AK, AZ, CA, CO, DC, DE, HI, ID, IL, IN, MD, MI, MT, NJ, NM, NV, NY, OH, OR, PA, UT, VA, VI, WA, WV, WI, and WY:– Mary Gay Whitmer

E-mail: mwhitmer@amrinc.netPh.: (859) 514-9209