A Transformation Framework for Government National Association of State Comptrollers March 11, 2015 Delivering Public Service for the Future Presenters: Peter Hutchinson, Managing Director, Accenture Former Commissioner, MN Dept. of Finance Bill Kilmartin, Director, Accenture Former Comptroller, State of MA Wendy Korthuis-Smith, State of Washington Director, Results Washington, Office of the Governor Copyright © 2015 Accenture All rights reserved. 2 Results Happen by Design Organizations produce exactly the results they are designed to produce—and none other. It’s in their DNA. Getting different results requires a different design embedded in its DNA. Copyright © 2015 Accenture All rights reserved. 3 Does your enterprise have a strategy? Do your systems know what it is? Copyright © 2015 Accenture All rights reserved. 4 Systems & processes implement strategies to deliver results Results the Public Expects Strategies deliver results Processes implement strategies Systems enable processes Copyright © 2015 Accenture All rights reserved. 5 Systems enable processes Systems are the nervous system of the enterprise • Transmitting data, • Converting data into information, • Facilitating decisions, • Converting decisions into actions/ transactions No enterprise can know more than its systems Copyright © 2015 Accenture All rights reserved. 6 Processes implement strategies Systems enable enterprise business processes • Work flows • Decision rules No enterprise can work better than its processes Copyright © 2015 Accenture All rights reserved. 7 Systems & processes embed the enterprise’s DNA No enterprise can do what its DNA won’t Accountability Who matters? Incentives Culture How are things made to matter? How it really works? Copyright © 2015 Accenture All rights reserved. Power Purpose Who decides what? What matters? 8 Government’s Dilemma Government CANNOT Deliver 21st Century results with early 20th Century DNA embedded in antiquated processes and systems “I am spending $387 million a year on workforce programs and don’t know what I am getting for my money or how to get what our state needs to compete in a global economy.” “The Commission unanimously concluded that a State of Emergency exists, which requires a fundamental transformation of the current child protection system.” a major County Copyright © 2015 Accenture All rights reserved. 9 Government’s Dilemma Unprecedented Challenges Fiscal Stress Slower growing revenue and faster growing costs Copyright © 2015 Accenture All rights reserved. Service Distress Demand for service that is better, faster, cheaper, simpler, personal, integrated, anticipatory, accessible, accountable 10 Government’s Dilemma Government CANNOT Deliver 21st Century results with 100 Year Old DNA Bureaucracy was the solution Copyright © 2015 Accenture All rights reserved. But now it’s the problem 11 DNA we inherited can’t deliver DNA of Bureaucracy Assumption: People cheat/control them Purpose Statutes and Rules Accountability Chain of command Incentives Compliance/Costs Control Centralized Culture Mistrust Copyright © 2015 Accenture All rights reserved. 12 Transform the Systems and Processes Use back-office power— the power of systems and processes—to transform front-office performance. Copyright © 2015 Accenture All rights reserved. 13 Transform the DNA in the system Bureaucracy Performance Org Assumption: People cheat/control them Assumption: People achieve/enable them Purpose Statutes and Rules Mission Accountability Chain of command Those we serve Incentives Compliance/Costs Results/Value Control Centralized Delegated Culture Mistrust Trust/empowerment Copyright © 2015 Accenture All rights reserved. 14 Transform systems and processes— deliver results Results the Public Expects Strategies that deliver results Processes that implement Systems that embed DNA Start Here Don’t replace systems and processes—transform them! Copyright © 2015 Accenture All rights reserved. 15 “Pulse” Survey of the States 1 Purpose Connect people to purpose/goals Accountability Connect people to customer feedback Incentives People care—make it rewarding Control Delegate authority Culture Encourage innovation 2 3 Bureaucratic Copyright © 2015 Accenture All rights reserved. 4 5 Performance Oriented 16 Leaders Transform the Systems Reflections from Washington State Copyright © 2015 Accenture All rights reserved. 17 Results Washington—Strategic Framework Copyright © 2015 Accenture All rights reserved. 18 Results Washington—Timeline 2013: Design & Develop 2014: Implement & Experiment 2015: Operationalize Strategic Framework Results Reviews New Standards Measure Maps Open Performance Partnership Expansion Improvement Plans Strategic Alignment Goal Councils Goal 1 Goal 5 Goal 4 Goal 2 Goal 3 Stakeholder Previews Rollout Copyright © 2015 Accenture All rights reserved. Enterprise Agencies Boards Commiss ions Early Results Accenture Implementation Roadmap 14 Strategies 19 Results WA | Implementation Roadmap Strategies Plan & Assess Execute Ongoing Implementation The resulting integrated plan provides insight into each of the strategy action plans at a high-level. Owner ID Strategy Results Washington 1.A Make the Results Personal 2.G Convene Regular Reviews of Results WA 5.A Promote Innovation 5.B Expand and Strengthen the Lean Culture 5.C Create a Customer-Centric Culture 1.D Build a Roadmap to Results 2.A Establish Standards for Customer Service 2.B Expand Digital Service 4.B Use Cross-Agency, Jurisdiction, Stakeholder Results Teams 2.E Gather and Disseminate Customer Feedback 2.C Make Voluntary Compliance More Likely 1.B Use Results WA to Inform Budget & Policy Priorities 3.A Celebrate Performance 3.B Align Individual Performance to Results WA Goal Councils Agencies Governor’s Office & OFM Copyright © 2015 Accenture All rights reserved. 2013 2014 2015 2016 20 Strategy Action Plan: Create Clarity of Purpose & Direction EXAMPLE 1.A Make the Results Personal—Overview Strategy Description: What’s the idea? Activities (Planning currently underway) Use personal stories to capture and convey the importance and purpose of the work people do in state government. These stories will give meaning to the metrics. They will give life to results reporting. In the next 6 months: • Engage Agency Communication Leads • Review best practices related to effective storytelling • Embed plan for developing case studies in Results WA Communication Plan and determine how to measure success • Begin each Results WA Results Review with a compelling story that shows what difference achieving that goal makes to the people of Washington Goal: What does success look like? For each Results WA Goal, powerful and compelling stories from Washingtonians (external) and state employees (internal) answer the question: What difference do we make for the people of Washington? When asked, state employees can say “I know what difference I make for the people of Washington.” Also gather stories to provide insight into when WA government is falling short of making a difference for Washingtonians. Current Situation: What is currently in place related to this strategy? • Some programs use Logic Models to connect line work to outcomes • Some agency measures are mapped to state outcome measures • Results information is captured through a combination of agency results forums, periodic reports, and performance metric systems In 6-12 months: • Make storytelling part of all Cabinet, Results WA, and agency meetings • Develop a repository of stories (aligned to the Results WA Communications Plan) In 12+ months: • Track results against success measures • Ask employees if they know what difference they make for the people of Washington • Share best practices, recognize performance, and adjust strategy as needed Gaps: What are the current challenges that must be addressed? • Current practices focus on the metrics but not on their meaning Critical Elements for Success • Current practices connect with people’s heads but not their passions or sense of purpose • Strong engagement of Agency Communication Leads Copyright © 2015 Accenture All rights reserved. • Connection to Strategy 2.E, Gather and Disseminate Customer Feedback 21 EXAMPLE Strategy Action Plan: Create Clarity of Purpose & Direction (Cont.) 1.A Make the Results Personal—Overview Delivery & Pace: What needs to happen and by when? For each Results WA Goal, powerful and compelling stories from Washingtonians (external) and state employees (internal) answer the question: What difference do we make for the people of Washington? When asked, state employees can say “I know what difference I make for the people of Washington.” Also gather stories to provide insight into when WA government is falling short of making a difference for Washingtonians. Suggested Owners Lead: Results WA Engagement Mgr. Support: Agency Communication Leads and Goal Councils Resources Required People: Low Technology/Tools: Low Funds: Low Definition of Success: What does success look like in practical terms? • Stories and case studies highlight both successes and areas for improvement, not just positive stories which can be seen as fluff. • Leadership has visibility into the challenges/hurdles that are encountered by Washingtonians and state employees in serving their customers. • Collaboration with stakeholder groups helps spread the word and to give Results WA important third-party validation. • Personal stories and case studies represent the voice of all Washingtonians. • Managers and employees are motivated to listen to the voice of the customer on a regular basis, and see how they make a difference and add value. Copyright © 2015 Accenture All rights reserved. Notes & Additional Considerations • Gathering stories at the agency/unit level will be a major part of the “asks” for communication directors and their agency Lean teams • Incorporate collecting stories into Strategy 2.E, Gather and Disseminate Customer Feedback 22 Contact Information: Peter Hutchinson: Peter.C.Hutchinson@accenture.com Bill Kilmartin: William.Kilmartin@accenture.com Wendy Korthuis-Smith: Wendy.Korthuis-Smith@gov.wa.gov Copyright © 2015 Accenture All rights reserved. 23