In our last post, we introduced the first principle government agencies should adopt in effort to dramatically cut costs while simultaneously driving improved performance; the importance of government agencies to understand their current environment. Today we will wrap up the two other principles to predict future outcomes and learn how changes impact those outcomes. Principle 2: Predict Future Outcomes

Welcome back and happy new year. In our last post in 2011, we wrapped up our discussion on how one commercial organization, Wal-Mart, has effectively used analytics to improve its operational performance. We also provided some examples of government departments and agencies that have implemented analytics and explained how they are using analytics to improve their service to citizens.

Based on these insights and trends, this forum presents seven management imperatives that government leaders and public managers must pursue in order to successfully manage in this new environment.

The federal government faces an estimated annual structural budget deficit of $500 billion –700 billion. Deficits of this magnitude represent a major threat to the economic health of the nation. A plan to reduce and eliminate this structural deficit is urgently needed.

Within this constant of change, the demands of government continue to grow, even as appetites for major, longer term investments lessen, especially when returns are unclear or unpredictable. With increased demand for services, constrained budgets, and growing deficits, governments are feeling the pressure to do more and better sooner, with less. Complicating matters, President Obama is demanding transparency and accountability across government functions.

Change seems to come upon us faster, is more complex in its nature, and is a great deal more uncertain in its effects. Within this constant of change, the demands of government continue to grow, even as appetites for major, longer term investments lessen, especially when returns are unclear or unpredictable. With increased demand for services, constrained budgets, and growing deficits, governments are feeling the pressure to do more and better sooner, with less. Complicating matters, President Obama is demanding transparency and accountability across government functions.

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Globalization, increasing and asymmetric threats, technological advance, fundamental changes in demographics, amazing innovations in healthcares and emerging environmental considerations --- all are changing the world around us, our daily lives, our ecosystem and even our patterns of thinking.