CIOs and Budget Directors: Better Together?

Transcription

1 CIOs and Budget Directors: Better Together? October 15, 2013 David Gustafson David Behen John Nixon Scott Pattison Jerry Mechling 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This publication may not be reproduced or distributed in any form without Gartner's prior written permission. If you are authorized to access this publication, your use of it is subject to the Usage Guidelines for Gartner Services posted on gartner.com. The information contained in this publication has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information and shall have no liability for errors, omissions or inadequacies in such information. This publication consists of the opinions of Gartner's research organization and should not be construed as statements of fact. The opinions expressed herein are subject to change without notice. Although Gartner research may include a discussion of related legal issues, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner is a public company, and its shareholders may include firms and funds that have financial interests in entities covered in Gartner research. Gartner's Board of Directors may include senior managers of these firms or funds. Gartner research is produced independently by its research organization without input or influence from these firms, funds or their managers. For further information on the independence and integrity of Gartner research, see "Guiding Principles on Independence and Objectivity."

2 The IT problems have changed Benefit/Cost 1.0 scale scale scale B/C growth > 1,000,000 times over past 30 years New Apps Apps for: IT staff Police Health workers Teachers Tax collectors The public Etc. high volume, routine authority low volume, non-routine negotiation from thousands to millions or billions of users from routines to innovation from support only to strategic catalyst 2

3 The relationship needs to change History: Government as lagging sector, IT as cost center CIOs focused on IT turf, happy to avoid politics Budget directors focused on balanced budget, need to serve politics Future: New normal severe pressure, long-term, turbulent Must get beyond hunkering down Must get better together 3

4 Options: involved, value, feasible, priority? Options I V F P RELATIONSHIP/PROCESS EXPENDITURE PORTFOLIOS REVENUE PORTFOLIOS

5 Options: involved, value, feasible, priority? Options I V F P RELATIONSHIP/PROCESS CIO/Budget relationship: Improve it Budget guidance: Analyze cross-boundary targets Visioning: Bring civil service views to electeds Business cases: Assess full R.O.I., not just IT Line leadership: Engage in IT analysis Oversight involvement: Engage in IT analysis EXPENDITURE PORTFOLIOS R&D: Target learning at performance gaps Infrastructure: Build to open future options XB investments: Integrate programs, jurisdictions Budget process: Support with top tools, service REVENUE PORTFOLIOS Revolving funds: Use for early mover innovations Capital funds: Use to spread investment costs User fees: Use to the extent that users benefit PPPs: Use to better share risks and rewards 5

6 Options: involved, value, feasible, priority? Options I V F P RELATIONSHIP/PROCESS CIO/Budget relationship: Improve it Budget guidance: Analyze cross-boundary targets Visioning: Bring civil service views to electeds Business cases: Assess full R.O.I., not just IT Line leadership: Engage in IT analysis Oversight involvement: Engage in IT analysis EXPENDITURE PORTFOLIOS R&D: Target learning at performance gaps Infrastructure: Build to open future options XB investments: Integrate programs, jurisdictions Budget process: Support with top tools, service REVENUE PORTFOLIOS Revolving funds: Use for early mover innovations Capital funds: Use to spread investment costs User fees: Use to the extent that users benefit PPPs: Use to better share risks and rewards

7 Options: involved, value, feasible, priority? Options I V F P RELATIONSHIP/PROCESS CIO/Budget relationship: Improve it Budget guidance: Analyze cross-boundary targets Visioning: Bring civil service views to electeds Business cases: Assess full R.O.I., not just IT Line leadership: Engage in IT analysis Oversight involvement: Engage in IT analysis EXPENDITURE PORTFOLIOS R&D: Target learning at performance gaps Infrastructure: Build to open future options XB investments: Integrate programs, jurisdictions Budget process: Support with top tools, service REVENUE PORTFOLIOS Revolving funds: Use for early mover innovations Capital funds: Use to spread investment costs User fees: Use to the extent that users benefit PPPs: Use to better share risks and rewards

8 Are these your priorities? 1. Relationship: Focus on improving the personal and institutional relationship between the budget director and CIO. 2. Budget priority client. Make the budget staff and process a priority IT client. 3. Business case analysis. Develop business cases that assess the full R.O.I. of IT initiatives, not just the technology issues and costs. 4. Capital funds. Use capital funds for multi-year investments (or have external service providers absorb start-up costs). 5. Budget guidance. Pick priority cross-boundary issues for analysis in the budget preparation season. To strengthen the budget director/cio relationship, what should we avoid and what should we do? 8

9 Better together? Go for it!!! 9