Roadmap to the 21st Century in Public Financial Management: Aligning PFM Reform and Social Media

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I skate to
where the
puck is going
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to be, not to
where it has
been.
Wayne Gretzky
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The [Social] Future of Public Financial
Management and Governance
ICGFM Spring Conference
2012
Doug Hadden

3. disclaimer
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4. research
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5. social media
open data
social networking
open government
e-government
government 2.0
e-governance
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6. Social in government?
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There is nothing more
difficult to carry out, nor
more doubtful of success, nor
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more dangerous to handle
than to initiate a new order of
things.
Niccolo Machiavelli
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8. What will be the nature of public
financial management across the
next decade?

9. Recognizing the
limitations of
prediction
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10. example: flying cars
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11. Upside down
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Arab Spring
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Tea Party
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Occupy
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Source: Time Magazine
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Analog Governance
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Digital Governance
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Democracy isn’t democracy…
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Broadcast can
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manipulate
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Change
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1969…
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Source: NASA
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2012
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We are living in section
middle of the largest
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expressive capability
in the history of the
human race
Clay Shirky
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1. Mobile
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28. VersionCoIT
2. 7 section
(Consumerization of IT)
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3. Gamification
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4. Social & Crowdsourced
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5. Transparent
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6. Visualized
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The Symmetry of Open Government
3 community data Government 2.0
Open Government
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1 transparency
2 participation
3 collaboration
4 employee participation
Source: Gartner

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It briefthe framework which
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is discussion
changes with each new
technology and not just the
picture within the frame.
Marshall McLuhan
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Digital Age Democracy
A New Era of Digital Governance
Industrial Era
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Democracy Representative
Citizens Passive Consumers
Broadcast, Mass,
Politics
Polarized
National,
States
Monocultural
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Source: Mills Davis, Microsoft

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Digital Age Democracy
A New Era of Digital Governance
Industrial Era Digital Era
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Democracy Representative Participatory
Citizens Passive Consumers Active Partners
Broadcast, Mass,
Politics One-to-One
Polarized
Global, Local,
National,
States Virtual,
Monocultural
Multicultural
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Source: Mills Davis, Microsoft

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Government 2.0 in Context
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External
Scope
Internal
Transactional Social
Focus
Source: Batorski, Hadden

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Government 2.0 in Context
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External
Scope
Internal
Transactional Social
Focus
Source: Batorski, Hadden

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Government 2.0 in Context
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External
Scope
Internal
Transactional Social
Focus
Source: Batorski, Hadden

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Society 2.0
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Mostdiscussion assumptions
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have outlived their
uselessness.
Marshall McLuhan
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Warning…
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From specialist and
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& institutions
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Self-organizing groups
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Crowd sourced
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48. how does this change
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the nature of PFM?
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learning: collaboration
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learning: e-learning & distance
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learning
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learning:
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management
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budget: participatory budgeting
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budget: outcomes management:
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monitoring and evaluation
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56. budget: “government as platform”
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(open data)
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Source: Tim O’Reilly
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risk management: citizen-aided
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Audit
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risk management: Crowdsourcing
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+innovation
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Benefits from IT-Enabled Connected Government
Internal External
To Provider Agencies and Governments To Consumer Citizens and Businesses
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1. Avoidance of duplication 1. Faster service delivery
2. Reduction in transaction costs 2. Greater efficacy
3. Increased flexibility of service use
3. Simplified bureaucratic procedures
4. Greater efficiencies 4. Innovation in service delivery
5. Richer communications & coordination 5. Greater participation and inclusion
6. Enhanced transparency 6. Greater citizen empowerment
7. Greater information sharing 7. Greater openness and transparency
8. Secure information management
Source: Dr. Pallab Saha

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ViewpointVersion 7 section
Control
1. Not on work time
2. Company confidential
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information
3. Privacy concerns
4. Regulatory compliance & e-
discovery
5. Control over content & opinion
6. Process to codify knowledge
7. Return on investment?
Source: Nick Semple

63. Traditional vs. Government 2.0 Viewpoint
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Control bar Chaos
1. People will use the tools
1. Not on work time
anyway
2. Company confidential 2. Internal and external social
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information networking
3. Privacy concerns 3. Free expression of ideas
4. Regulatory compliance & e- 4. Individualization of
discovery information context
5. Control over content & opinion 5. Expertise vs. opinion
6. Process to codify knowledge 6. Non standard tools
7. Return on investment? 7. Burden on infrastructure
8. Secure information
management
Source: Nick Semple

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Barriers?
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digital divide, poverty, bandwidth, capacity, literacy
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Leapfrog?
Developing Countries Developed Countries
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1. High governance impact 1. Moderate governance impact
2. More holistic thinking 2. More specialist thinking
3. Low trust for government data 3. High trust for government data
4. Need for auditors 4. Less need for auditors
5. Digital divide & connectivity 5. Digital divide less critical
6. Single information systems 6. Multiple information systems
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Government 2.0 Maturity
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Casual
1
Initial
Source: Gartner
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Government 2.0 Maturity
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Casual Transparent
1 2
Initial Developing
Source: Gartner
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Government 2.0 Maturity
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Casual Transparent Participatory
1 2 3
Initial Developing Defined
Source: Gartner
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Government 2.0 Maturity
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Casual Transparent Participatory Collaborative
1 2 3 4
Initial Developing Defined Managed
Source: Gartner
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Government 2.0 Maturity
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Casual Transparent Participatory Collaborative Engaged
1 2 3 4 5
Initial Developing Defined Managed Optimizing
Source: Gartner
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Socialization and Consumerization
• brief discussion Channels
Constituent-Centric Services Policymaking Processes
D Business Processes
a (Financials, HR, Budgeting, Procurement)
t
a Custom Packaged External
Applications Applications Services
Infrastructure
Source: Gartner

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Transition
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From broadcast
to “in network”
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Initiative
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Government Data Transparency
Citizen Audit
Citizen Outcome Management
Participatory Budgeting
Public service capacity building
Citizen capacity building
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Initiative
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corruption
Government Data Transparency
Anti-
Citizen Audit
Citizen Outcome Management
Participatory Budgeting
Public service capacity building
Citizen capacity building
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Initiative
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Government
corruption
efficiency
Government Data Transparency
Anti-
Citizen Audit
Citizen Outcome Management
Participatory Budgeting
Public service capacity building
Citizen capacity building
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Initiative
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Government
corruption
efficiency
Government Data Transparency
effectiveness
Anti-
Government
Citizen Audit
Citizen Outcome Management
Participatory Budgeting
Public service capacity building
Citizen capacity building
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Initiative
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Government
corruption
efficiency
Government Data Transparency
effectiveness
Anti-
Government
Social Inclusion
Citizen Audit
Citizen Outcome Management
Participatory Budgeting
Public service capacity building
Citizen capacity building
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Reduce
Corruption
Develop Improve
Economy Efficiency
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Improve
Reduce Debt
Effectiveness
Increase
Increase
Social
Taxes
Inclusion
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Internet Evolution to 2020
3.0 4.0
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Increasing knowledge
The Semantic Web: The Ubiquitous Web:
Connects Connects
connectivity
Knowledge Intelligence
1.0
The Web: 2.0
Connects The Social Web:
Information Connects People
Increasing social connectivity
Source: Mills Davis:
Project 10x,
Source: Mills Davis 80

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speed
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