With the current economic climate many organizations are searching for ways to reduce costs.  To achieve performance improvement while simultaneously reducing costs, an organization needs to take a thoughtful approach to the cost reduction measures and clearly communicate the vision of the program.  In the case of the Federal Government, effective cost-cutting measures need to go beyond simple across-the-board budget cuts.  Lasting structural changes need to be put in place in effort to change the effectiveness and efficiency of Federal Government processes.  This vision of structural efficiency needs to be communicated to all employees so they can be a part of its implementation.   

Whatever the vision, it must take into account the challenges and potential benefits of new sources of information, new collaborative tools and a workforce in transition.  In an article entitled “Seven Management Imperatives,” in the 2011 Business of Government Magazine, Michael Keegan notes that the first imperative is to “act with strategic intent.”  Mr. Keegan goes on to explain that, “Today’s increasingly complex public management problems do not respect bureaucratic boundaries.”  With the advent of new technology, a multi-generational and mobile workforce and new, complex challenges, the ability to implement a shared vision within an organization will require more than a day in the boardroom and a traditional top-down directive.  It will require:

• Agility – The mission, while remaining intact, should allow for flexibility and the agency should have the systems and infrastructure in place to adjust the mission according to new data, changing needs, changing workforce ,and emergency scenarios.
• The Collection and Analysis of Real-Time Data – Agencies are currently gaining access to information which, if used properly, should lead to more appropriate, timely decision making and the ability to predict and prepare for scenarios in which the mission must be modified. 
• The Use of New Forms of Connectivity – This is used to engage the workforce and allow them to share in the creation as well as the implementation of initiatives. Not only will collaboration within the workforce help develop a sense of pride and ownership in the shared vision, it will also foster information sharing, collaboration and the use of new modes of communication within an increasingly mobile, multi-generational workforce.

For real world examples of these management principles in action, check out the Center for The Business of Government Fellow, John Kamensky’s blog, “A Results Oriented Commerce Department” in which he profiles Gary Locke, former Commerce Secretary and US Ambassador to China.  Kamensky recounts Locke’s accomplishments at Commerce explaining that he “re-framed the department’s strategic goals around three themes (economic growth, science and information, and environmental stewardship) and used a Balanced Scorecard approach to monitor progress and drive data-based decision-making.”  Some of Locke’s cost-cutting accomplishments highlighted in Kamensky’s blog include:

• The use of priority-based budgeting as a conceptual framework for managing internal budget debates.
• Cost savings initiatives totaling $250 million achieved by re-thinking the way 16 programs were delivered.  He also said they saved $142 million via administrative and acquisition reforms, of which $39 million was reinvested in improved operations.
• When he took office, the 2010 Census was rated by GAO as one of the programs “most likely to fail,” but in the end, it was accurate, timely, and 25 percent under budget – returning $1.9 billion in unused appropriations to the Treasury.

How to Successfully Implement the Vision:

Establishing the energy vision and communicating it to all employees is critical to successfully implementing the vision.  The approaches discussed in the “Seven Management Imperatives” provide a guide to engage employees to own and implement the organization’s vision so that energy use can be managed and costs taken out.

Coming Up Next:

Now that we have discussed how to effecitvely communicate and implement a shared vision, please join us tomorrow as we get into the details on energy strategies your organization should consider.

Tim Fain is an Associate Partner and Service Area Leader within IBM’s Global Business Services Public Sector. Mr. Fain has more than 30 years of technical, managerial, and consulting experience. Specifically his experience involves developing organizational, economic development and environmental and energy sustainability strategies; improving business models and processes; and helping organizations develop transformation roadmaps. He uses his extensive knowledge of Federal regulatory and budgetary processes, e-Government principles and methodologies, and strategic planning to help public sector clients address policy, service, and transformational challenges.

Prior to joining IBM, Tim spent eight years at the Office of Management and Budget where he worked on a broad range of Federal government information technology and policy issues. A former US Navy Submarine Officer, Tim holds a BS in Metallurgical Engineering, a MA in National Security Studies, and a MPP in International Trade and Finance.

Tim Fain (tfain@us.ibm.com)

Alex Turman is a Senior Business Strategy Consultant with IBM’s GBS Federal practice. He has been with IBM for six years. He began his career at IBM with the Center for the Business of Government. He has supported Federal Government Wide Acquisition Contracts at NASA, SSA and Army. He is involved extensively in developing IBM’s sustainability and energy and environment offerings.

Alex Turman (aturman@us.ibm.com)

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