Building a Culture of Innovation and Productivity through...
Transcript of Building a Culture of Innovation and Productivity through...
Office of the Secretary of Technology
The Honorable Aneesh P. ChopraSecretary of Technology
October 2008
Building a Culture of Innovation and Productivity throughCollaboration
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Office of the Secretary of Technology
Agenda for Discussion
I. The Productivity ImperativeI. The Productivity Imperative
II. Culture of CollaborationII. Culture of Collaboration
III. Coda ~ Spirit of CommonwealthIII. Coda ~ Spirit of Commonwealth
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Office of the Secretary of Technology
A Strong Performance Culture Launches Ideas Community
• Best State for Business(2006-8)
• Tied for Top PerformingState (2005, 2008)
• 1st in Best of the Web(2008)
Commonwealth “Ideas” PortalLaunched September 2008
“All Hands on Deck”
Source: ideas.virginia.gov
Drupal Appbuilt in less thana week – for free
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Office of the Secretary of Technology
Taxpayers Consistent on “Price” Willing to Pay for Government
Budget Shortfall
Virginia’s “Price” of State/Local GovernmentCents/$ Personal Income
Despite increased investments needed foreducation, healthcare, public safety and
transportation, Virginia’s historical tolerancefor public investments hovers below 15%
Source: Public Strategies Group; Governor Kaine July 2007 Budget Memo
Program FinancialAlternatives
ProgramPrioritization
Program Re-Engineering
Does it Addressa High Priority
Outcome?(% eligible served)
Is it RunEfficiently?
(cost /customer)
Framework for Budget ReformApproach to $2.5BN Budget Gap
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Office of the Secretary of Technology
Virginia’s Integrated, Outcome-driven Performance Management System
AgencyManagement
Practices
Effective &Efficient Agency
Operations
Virginia’sPerformanceManagement
System
Performance &ProductivityMeasures
ManagementScorecard
Agency Planning and BudgetingOutcome-Based Key Measures
Linked to Long-TermObjectives
Version “2.0”Nearly Complete
Key MeasuresCompleted in 2006
ProductivityMeasuresDue in 2008
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Office of the Secretary of Technology
Foundation of Reform a Modern, Robust IT Infrastructure
Role of IT
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Office of the Secretary of Technology
Towards a Future State with Enterprise Applications, Shared Services
Enterprise Applications
“As-Is”
BusinessIntelligence
ECMePay
men
teS
igna
ture
Portals
Lice
nsin
g
TREDS
Medicaid
TAX
Agency Applications
Shared ServicesHR PRPayroll
FM HREnterprise Applications
Payroll Procurement
Focu
s of
Effo
rt
Enterprise Applications
FM HRPayroll Procurement
Agency Applications
TREDS
TAXMedicaideP
aym
ent Va.gov
ECM
Lice
nsin
g
eSig
natu
re
Portals
DevSupport
BusinessIntelligence
HRShared Applications & Services
ePay
men
t
BICC
CentEx
PayrollFM
“To-Be”
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Office of the Secretary of Technology
Virginia DMVCost to Renew Vehicle Registration
$7.95
$3.19
By Mail
Room for Growth: Only 17.8% ofall renew als take place over the w eb
in March, up from 16.5% in March2007
ByInternet
$4.81
DMV currently uses Activity Based Costing to monitorand evaluate its activities for cost effectiveness. Thisallows DMV to determine unit costs across an array ofactivities.
Vehicle Registration Renewals represent the highestvolume activity at DMV and impact most Virginians on anannual basis.
Vehicle Registration revenue primarily supportsVirginia’s Highways, but DMV retains $4 out of everyregistration to cover administrative costs.
Measure - DMV will reduce the average cost ofcompleting a vehicle registration renewal transaction bymoving transactions to cost effective delivery channels
Pursuing cost effective service delivery will support twoof DMV’s Key Performance Measures: Customer WaitTime and Customer Churn Rate
DMV Productivity Measure
ByIVR
ByDMVSelect
ByServiceCenter
$3.19$3.45
Avg: $5.29
Customer Choice: Majority choosea cost-effective method, but those
w ho don’t drive up DMV’s costs andw ait times for other customers
DMV Case Study Highlights Administrative Cost Savings Opportunity
Productivity Measures
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Office of the Secretary of Technology
Virginia’s Approach to Building a Culture of Collaboration
I
PromotingTransparency
II
Establishing a PolicyFramework
III
Seeding Innovation
#“Virginia Performs” Portal:Independent websitebenchmarks stateperformance against 50indicators; goal to engagepublic and private entities todeliver responsible economicgrowth, an enviable quality oflife, good government and awell-educated citizenry
#Productivity Investment Fund:Governor’s Initiative tostimulate innovativeapproaches to servicedelivery; goal to build aculture of continuousperformance improvementthrough changemanagement, processredesign, managementtraining
#Public-Private Partnerships:Alternative procurement vehiclefor innovative technology solutions
#Chief Applications Officer:Governor’s appointment to driveapplications governance, standards
#Cross-Boundary Applications: Legalauthority to contract with othergovernments for technologyservices, facilitate shareddevelopment
Three Levers
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Office of the Secretary of Technology
Small, Women and Minority Portal Shines Spotlight on Procurement
Promoting Transparency
Goal: Governor signs EO 33 calling for 40% SWAM spend goal of all discretionary agency spendingPortal: DMBE publishes agency results online inclusive of all procurement – including credit card and sub-contractor performance; tool built on Pentaho and delivered in less than 8 weeksResults: For the quarter ending March 2008, Commonwealth exceeds EO 33 goal with 41% SWAMspending (in excess of $420M); MBE performance in Technology exceeds 48%
Executive Order 33
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Office of the Secretary of Technology
Kaine Administration Focused on Multi-Government Collaboration
Cross-Boundary Applications
Goal: Lower implementation costs on enterpriseapplications through creative partnerships with othergovernments
Problem: Like all major government IT systems,services fees are the vast majority of total project costs;COTS products are strong foundations but publicsector-specific tools are developed by services firms
The Approach: In March, 2007, Virginia issued anRFP for statewide ERP software and directed thevendor community to propose creative models to sharepublic sector-specific implementation tools
Opportunity: Two public sector case studies suggestconsortiums might lower implementation fees 40-50%(North Central Texas Shared Services Center; NorthCarolina ACC Property Tax System)
Enterprise Applications ConsortiaIn Brief
Enterprise Resource Planning (ERP)REQUEST FOR PROPOSALS (RFP) 2007-17
“…the Commonwealth of Virginia isconsidering a multi-government vehicle to
provide for the sharing of valuable intellectualproperty (IP) and other assets capable of
lowering ERP implementation costs. Theseassets would be utilized by the multi-
government vehicle and made available toprospective members.”
In 2007, Governor Kaine signed legislationempowering the CIO to enter into contractswith one or more public bodies for IT services
HB 2196
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Office of the Secretary of Technology
Case Study
Three Texas Cities Collaborate to Lower Costs, Share Best Practices
Shared ERP ModelComparative Cost to Traditional Options
Separate ERPImplementation
(15%)
Implementationsreveal 90%
commonality(50%)
SoftwareUpgrade
North Central Texas COG in Brief
Goal: Develop Shared Services Center to providelow cost ERP solution that meets the needs ofmember cities
Problem: Three localities were facing a costlyupgrade to the same ERP system (including expensivehosting costs), but were trying to solve the matterindividually
The Approach: In Fall, 2003, Arlington, Carrolton,and Grand Prairie cities discussed possiblecollaboration, leading to an RFP in February, 2004
Solution: Form an unbiased party representing allthree cities in negotiation; host solution at a commonlocation; facilitate problem solving/best practicesharing across members
Strategic Value: One city had solved a commonactivity accounting problem that plagued the other 2
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Office of the Secretary of Technology
Award-Winning Open eGov Collaborative Lowers Adoption Cost
Local Collaboration
In 2008, Newport News invites otherlocalities to participate; 4 Virginiancommunities and severalinternational partners collaborate
Virginia’s public-private web portalpartnership actively evaluatingsupport for open source applications
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Office of the Secretary of Technology
Approach
PIFMission
KeyOutcomes
Partner with state agencies to identify, catalyze and implement innovativesolutions which enable a simpler and more effective government for the
benefit of the citizens of the Commonwealth
• Oversight, direction, and implementation of productivityinitiatives
• Manage the Productivity Investment Fund (PIF), $3MM in“seed capital” to catalyze innovative projects
• Improve the constituent experience (e.g., better results, shortertransaction time, reduced constituent expenses)
• Increase government operating efficiency• Advance Governor’s key agency performance objectives
The Productivity Investment Fund
A Model to Spur Innovation and Productivity in State Government
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Office of the Secretary of Technology
A Portfolio Management Approach to Deliver Productivity Investments
Our PurposeElevate Performance
Cost Savings(14 Initiatives)
Service Improvements(8 Initiatives)
Governor’s Objectives(5 Initiatives)
• Productivity Investment Fund $2.3M investment 14 Projects Projected 5x ROI
Effective Public & Private Sector Governance(PIF Oversight Board & Productivity Advisory Committee)
• Digital Platforms (“One-Stops”) $299K investment 6 Projects Projected 40-50% reduction in
constituent transaction times• Process Improvements
$60K investment 2 Projects Lower costs for industry and
improve functionality
• Shared Operating Services $360K investment* 2 Projects Multi-agency effort underway
• Public-Private Partnerships $332K investment 3 Projects Public-private effort underway
*Does not include $11M dedicated towards VEAP Project Planning
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Office of the Secretary of Technology
Cost Savings Portfolio Expected to Return 5x ROI After Three Years
$1.40
$0.63$0.80
$0.02 $0.05
$1.00
$0.22
$3.70
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
DGS
TAX
DMV
DMME
DOE
ODU
Other
Total
$MM $2.3M invested
Annualized Savings Potential – Base Case
Using the base case, the 3-year return per dollar invested is approximately $5
Cost Savings
Capital: Governor Kaine established$3M fund in January 2007 tosimplify government operations
Portfolio: Across three rounds, wehave invested $2.3M to fund thefollowing savings initiatives:
Productivity InvestmentFund in Brief
DGS: Consolidated Mail Dept of Tax: E-file programs,
Bulk Upload, Upgrade iReg, KFI DMV: Workforce Mgmt System DMME: Field GIS DOE: Google Apps for K12 DOC: Release Card pilot ODU: VIDEO-D-U, Learning
Pods UVA: Improve high risk
prenatal care DOAV: Training/Travel Data-
Sharing Network
Workforce system toalign staff to demand, todeliver 10% productivitygains
ODU to leverage web-channel to expandaccess 4x at lower cost
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Office of the Secretary of Technology
Educational Attainment, Test Scores Affect Our Ability to Compete
Transforming Education
Educational AttainmentVirginia
Test Scores and Economic GrowthOECD Countries
Nation’s Governors failed to achieve 1989 goalto achieve top ranking in science and math by2000; “had the promise been fulfilled …, ourresults suggest that GDP would by 2015 be4.5% greater”–Professor Eric Hanushek, et al.
Source: Council on Virginia’s Future; “College Readiness Report”, August 2007, Virginia Community College System; “Education andEconomic Growth,” Education Next, Hanushek, Jamison, Woessman, Spring 2008
In 2006, based on Virginia’scommunity college entrance scores,developmental education wasrecommended for 76.8% of recenthigh school graduates in mathematics
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Office of the Secretary of Technology
Rural School System Equips Teachers with Open Source Applications
Savings: MecklenburgPublic Schools generates$200,000 in savings over 5years by migratingoperations to Google Apps,OpenOffice
Fund Request:Mecklenburg awarded$50,000 to documentsavings, facilitate replicationacross other school divisions
Collaboration: Soon tolaunch portal to facilitateexchange of ideas,implementation resources
Open ClassroomProject in Brief
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Office of the Secretary of Technology
Empowering Our Brightest Teachers to Publish (Free) Content
Open Education
“Open Source” Physics Flexbook
Secretaries Chopra, Morris and the Dept of Education are pleased to announce our Founding Members ofthe 21st Century Physics Collaborative to create and compile supplemental materials in an open–source formatthat can be used to strengthen existing physics content. Led by retired NASA Scientist Jim Batterson, the teamis: Mike Fetsko, Henrico Co.; David Slykhuis, Mark Mattson, Tom O’Neil, JMU/ Shenandoah Governor’sSchool; Bruce Davidson (retired), Angela Cutshaw, Newport News; Mark Clemente, VA Beach/NationalInstitute of Aerospace; Andy Jackson, Harrisonburg; David Stern (retired), NASA Goddard; John Ochab, JSargeant Reynolds; Professor Tapas Kar, Utah State University, and Pranav Gokhale (student),Montgomery County, MD. The Commonwealth is partnering with CK–12 (www.ck12.org) on this initiative asthey will provide the free, open–source technology platform; goal to publish 02/09
Source: virginia.ck12.org
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Office of the Secretary of Technology
HealthcareInformationTechnology
Standards Panel(HITSP)
NationwideHealth
InformationNetwork
ArchitectureProjects (NHIN)
The HealthInformationSecurity and
PrivacyCollaboration
(HISPC)
The CertificationCommission for
HealthcareInformationTechnology
(CCHIT)
AmericanHealth
InformationCommunity 2.0
Virginia Driving National Health IT Strategy Despite Fiscal Pressure
CMS EHRAward toleveragenational
certification toassist physicians
Virginia servingon a leadershipteam to develop
policies andguidelines
GovernorKaine signed
legislationrequiring
interoperabilitystandards for
state purchases
Virginiahonored to host
two NHINimplementation
pilot sites
Transforming Healthcare
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Office of the Secretary of Technology
Administrative Simplification
Payer-Provider Collaborative to Lower Transaction Costs
The VHEN CharterFollowing an initial summit in Richmond with Virginia payers and providers discussing scope and focus for aVirginia Administrative Exchange modeled on NEHEN, the VHEN workgroup formalized a charter inOctober 2007; charter members include 9 health plans and 7 health systems including MCV, UVA, Riverside,Anthem-Wellpoint, Aetna, and DMAS
Provider Eligibility Verification by
Type of Method
(Average labor cost per transaction)
None ($0)
3 4 %
IVR ($0.88)
1 %
Web ($1.37)
1 5 %Fax ($1.96)
0 %
270/271 ($0.25)
4 3 %
Phone ($2.70)
7 %
Source: CORE Patient Identification Survey, 2006; funded, in part, by California HealthCare Foundation
Goal: Lower transaction costs associated withverifying a patient’s insurance eligibility by jointlyprocuring a common portal for Virginia providersto use when interacting with Virginia Payers
Scope: Allow a provider to retrieve up-to-dateeligibility information on a patient from anyparticipating Virginia health plan from a singlepoint of entry.
Timeline: RFI responses due August 15th, 2008;vendor selection expected October 29th, 2008;implementation in 2009
Universal EligibilityPortal
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Office of the Secretary of Technology
Develop EHR Applications Center of Excellence in Rural Virginia
Goal: Establish a public-privatepartnership to support multiple EHRapplications in a shared services center
Problem: Deliver EHR services at low-cost in an environment that encouragesrapid best practice adoption
Strategy: Simplify EHR acquisition,drive public sector adoption, andpromote rural economic development
“E-Store for EHRs”
In October, 2006, Virginiainvested $150K in theOnePartner Advanced
Technology and ApplicationsCenter, expected to employ 40
health IT jobs
Vision of the Future
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Office of the Secretary of Technology
Inpatient, ED, Outpatientprocedures
All discharge summaries fromInpatient stays
All Operative notes
All ED visit summaries
Letters
Phone calls
Encounter summaries
All inpatient, ED, outpatientvisit diagnosis in the daterange requested
All Lab results (chem, hem,urinalysis, blood gases etc.)
All reports from CT Scan,Pathology/Biopsy, X-ray,MRI, Cardiac Catheterization,EEG, ECG/EKG, PET Scan,Pulmonary Function, CardiacReports and Tests
Pilot Project to Lower Costs, Increase Quality, Promote Safety for Military, VAEndorse Hampton Roads pilot linking civilian and military/VA health systems; potentialinitiatives leverage CCD reporting through PHR systems for pediatric consultantsbetween Portsmouth Naval and civilian providers; additional “value cases” to bedeveloped as opportunities arise
Hampton Roads Uniquely Positioned as National Leader on HIE*
*Health Information Exchange
Social Security Number
Name
Gender
Birth time
Address
Phone number
Next of Kin information
Demographics Problems/Results Procedures/Summary
HITSP-Approved Continuity of Care Document
Coda ~ Instill a Spirit of Commonwealth
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Office of the Secretary of Technology
A Global Call for Innovators to Serve the World’s Poor, Profitably
Virginia’s “Bottom of the Pyramid”
•Nearly 1MM Virginians lack health insurance•Nearly 1MM Virginians lack a GED
•Nearly 750k Virginians live in poverty•Nearly 450k Virginians secured a payday loan