As part of our study on transformation of government, KPMG Peat Marwick interviewed 302 state and local officials about issues related to the 21st century.
They said technology is the answer to more effective and efficient service delivery by government. It will provide more access to the public and allow innovative ways to provide services.
The importance of technology to government and the need to keep up with change will continue to increase. Yet the majority of those public officials admitted that their organizations have not kept up with technology -- and this gap will put them further behind.
This appears to be a dichotomy. State and local leaders see technology as the fabled "silver bullet" that can save the day, yet many officials feel they may have lost the gun that has the bullet. Government knows where it stands and where it needs to be; the question is how to move forward.
A Digital Constituency
Governments must recognize that they serve an increasingly diverse customer base, and each group of customers has specific needs.
Another force will move government faster in a short period of time -- the "digital citizen." A recent survey for Wired magazine of 1,444 randomly selected Americans found that nearly two-thirds regularly use e-mail, a cellular phone, beeper, home computer or laptop. "Digital citizens," people using all these technologies, were more likely to vote, more knowledgeable about the political system, more likely to have faith in it, and more committed to change, the survey reported.
The "connected" are growing. From 1996 to 1997, the number of people worldwide accessing the Internet increased from 40 million to more than 100 million. In 1998, Internet traffic doubled every 100 days. As corporations become increasingly virtual, millions of people now telecommute from home, at least part time.
Governments may have been caught by surprise by the impact of technology on their customers' expectations. Connected people expect much more than just access to information. They demand instantaneous results in this Internet world, whether ordering a book, transferring funds, planning a vacation, enrolling in college or paying bills. And they are increasingly intolerant of long waits.
Customer-Driven Government
The interviews, plus research on demographic, political, economic, technological and organizational trends, point to a new era of government.
Indeed, the characteristics of the democratic process of this century -- decision-making by consensus, hierarchical structures, layers of regulations, checks and balances to protect the public from patronage and corruption -- are giving way to market-driven forces. We are entering an era that favors public institutions that get results by providing value and accountability to their customers.
Customers are now the ultimate definers of services provided by government. They will not accept delays, duplicative records, errors or slow responses.
Government officials must find ways to meet customer expectations while managing with reduced capital and human resources. Technology and people in charge of systems will not transform government. Technology is the "golden arrow" that points government in the right direction. It should be integrated throughout the organization, but only as part of the complete process of reengineering.
Virtual Government
To be more effective, each government organization has to focus on the core services that will add value -- the highest possible quality and the lowest possible cost. Government can no longer afford to be all things to all people.
Government officials need tools that will help them move from fixed infrastructures to virtual governments and promote a different way of looking at what they do and how they do it. In the new model, successful government agencies will no longer be risk-averse and bureaucratic, but innovative, customer-oriented, cooperative organizations that get results. Hierarchical structures will give way to team approaches that include the front-line workers in direct contact with customers.
Bureaucratic functions such us budgeting, purchasing, records, facilities, human resources, administrative services and policy must blend to help the organization:
* strategically plan to focus on core functions;
* measure performance in terms of customer satisfaction;
* know the actual costs of delivering services;
* budget for priorities, not historical spending;
* prepare for and embrace competition;
* restructure to do things differently; and
* empower employees to do their jobs better.
Where does government begin? KPMG has identified a transformation model for the new customer-based century. The model asks organizations to consider blending the right amount of technology with human resources to effectively serve this changing base of customers. Governments can begin by evaluating and changing five key elements in their organization:
* Culture -- the position and actions of individuals within the organization who make it work, including the performance of leaders individually and as a team, the agency's commitment to achieving common objectives, and its commitment to training and support.
* Vision -- is there a coherent image of the future organization and its environment, and a strategy to achieve the goals articulated in the vision?
* Enablers -- the tools that determine the performance of the organization, and how it accomplishes primary, support and management processes to generate desired outcomes in customer service.
* Competence -- the collected skills and possibilities of individuals who form the organization, and whether the synergy produces an effect larger than the sum of solitary efforts.
* Environment -- the world in which the organization operates, and how well the organization understands and responds to needs, desires, strengths, weaknesses, opportunities and challenges.
This won't be easy. There are many obstacles to transformation, from
inadequate investment in technology infrastructure to a culture of risk-avoidance. But such radical changes are necessary if government organizations are committed to customer-based service excellence. Agencies must transform or lose their relevance; those no longer relevant will simply cease to exist.
True leadership will be required to make this leap. It is critical for today's public leaders to develop a strong vision -- and enroll everyone in the organization -- to transform for the next century.
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From time to time, Government Technology invites industry to present its point of view on issues and technologies of importance to state and local government. Jack Miller is vice chairman of KPMG Peat Marwick LLP and national managing partner of the firm's health care and public-sector practice.
