Management Initiatives by eni29908

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									                                                                                       State Management Initiatives
                                                                                      July 2009
                                                                                      Contact: Nikki Guilford, 202/624-5422




                                       In late 2008, the NGA Office of Management Consulting and Training (OMCT) surveyed
                                       governors’ chiefs of staff regarding management initiatives that were being undertaken in
                                       response to the growing fiscal crisis in the states. The chiefs were asked to indicate
                                       initiatives in three areas:

                                          •   Government reorganization;
                                          •   Economy and efficiency; and
Government Leadership and Management




                                          •   Performance management.

                                       Thirty-seven chiefs responded and the survey results were summarized in a management
                                       brief titled, “Selected State Responses to Economic Downturn.” Almost all the states
                                       responding indicated initiatives in one or more of these areas. At the 2009 NGA Winter
                                       Meeting, the chiefs asked OMCT to provide additional information on these state
                                       initiatives. This management brief draws from the responses to the initial survey, from
         Management Brief




                                       follow-up calls and emails to a number of the responding states, a review of current Web-
                                       based resources, and input from the National Governors Association’s Corporate Fellows.

                                       These initiatives are intended to serve as examples of the range of activities that might be
                                       undertaken by a state. OMCT has made no effort to evaluate any of these initiatives. As a
                                       result, states interested in pursuing one or more of these approaches may want to contact
                                       individual states for more information. Where possible we have provided a link to a Web-
                                       based resource which provides more information about each initiative.

                                       In this document, examples of promising state management initiatives will be divided
                                       into three categories:

                                          •   Reorganization
                                          •   Economy and Efficiency
                                          •   Performance Management

                                       Reorganization: Historically, states have developed reorganization proposals for a
                                       number of reasons including: signaling gubernatorial priorities; improving service
                                       delivery; and increasing government efficiency. While reorganizations may produce
                                       minor savings through a reduction in some senior level staff positions, significant savings
                                       or improved customer service will generally require that reorganization efforts be
                                       combined with business process changes and/or the elimination of duplicative
                                       administrative staff or facilities. Most reorganization efforts require a considerable
                                       upfront expenditure of political capital and their successful implementation may, in the
                                       short term, require significant management attention and even additional expenditures

                                           National Governors Association | 444 North Capitol Street, Suite 267 | Washington, DC 20001 | www.nga.org
before savings are realized. For these reasons, governors who are considering the
development of reorganization proposals will want to pay close attention to both the
potential costs and benefits of such an approach. It is often valuable to begin this
analysis with a clear definition of the problem that reorganization is intended to address
and the criteria that will be used to judge its success.

Economy and Efficiency: State efforts to improve government efficiency take a variety
of forms. A number of states are working to reform their procurement efforts. These
reforms focus both on reducing the cost of maintaining separate procurement offices in
departments and agencies and in the possibility of additional savings resulting from
purchasing larger quantities of goods or services. Other states are applying this same
enterprise approach to the delivery of additional government activities, particularly
support services such as accounting, communications, information technology, human
resources and space allocation. These efforts recognize the inherent inefficiency of
current arrangements whereby these functions are distributed among individual agencies
with little attention to opportunities for consolidation or service improvement.

Other states are focusing on initiatives to create a broad based “culture of change” that
encourages and facilitates ongoing efforts to examine opportunities to improve the
operation of state departments and agencies. These initiatives include systematic efforts
to examine the status of service delivery and to explore process changes that can improve
outcomes and/or reduce costs. In some states these activities are organized around a lean
government approach. In a number of states, the governor has designated a group of
staff, often in a budget or management office, to conduct management studies and to
identify potential economies for consideration. Several governors have also encouraged
suggestions from individual state employees. In a few states these economy and
efficiency reviews have been mandated by the legislature. In still other states they are
being coordinated by citizen led advisory groups or commissions.

Finally, there are a number of program specific initiatives underway that are intended to
allow for improved customer service and increased efficiency. Many of these initiatives
are technology based and rely heavily on the development of online services. In several
states, governors are also looking at opportunities to encourage the more efficient
delivery of services at the local or sub state level. In addition, some states are looking at
the opportunity of shared services across state boundaries in an effort to minimize costs
and take advantage of the economy of scale.

Performance Management: As discussed in previous OMCT publications, performance
management initiatives also can be designed to serve a number of purposes. These
purposes include: managing the implementation of gubernatorial priorities; promoting
more efficient and responsive state government; and communicating government
performance and results to the public at large. While many states have developed
mechanisms to measure and report on government performance, relatively few of those
states have developed an equally robust system for using the data to actually manage
performance. Without such a system, it is difficult to maintain interest and support for the
systems and they probably contribute little to the improvement of government. For this
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reason, governors may want to ensure that any new measurement systems are directly
tied to a management mechanism as well. In doing so, it is also important to recognize
that successful initiatives generally require a significant investment of time on the part of
the governor or the governor’s senior staff.


REORGANIZATION
Michigan – Agency Consolidation
In her 2009 State of the State address, Governor Granholm announced that she had asked
Lt. Governor Cherry to lead a comprehensive effort to ensure that state government
provides better service at less cost. One of the objectives of this effort is to reduce the
number of state agencies from eighteen to eight. The working group convened by the Lt.
Governor includes staff from the Governor’s executive office and various state
departments. Academic experts from the University of Michigan, Michigan State
University and Wayne State University are assisting in this effort. As an initial step the
working group has identified seven core functions of state government that would each
be assigned to a reconstituted state agency. Those functions include:

   •   Public safety;
   •   Education;
   •   Public systems;
   •   Well-being;
   •   Sustainability;
   •   Economic opportunity and prosperity; and
   •   Economy and effectiveness.

The working group is currently seeking public input through a series of town meetings
that are being held over the summer of 2009.

Additional information:

May 2009 News Release: “Cherry Workgroup on Streamlining Government Identifies Seven
Core Functions of State Government”
http://www.michigan.gov/ltgov/0,1607,7-169--215454--,00.html

New Jersey – Multi-agency Reorganization
The state has implemented two multi-agency reorganizations. It has merged the
Commerce Department into the Economic Development Authority. It has also eliminated
the Department of Personnel, transferring its functions to the Civil Service Commission
and to other state agencies. It is continuing to look for overlapping functions among
other agencies as part of the ongoing budget process. For example, it has decided to
eliminate state hospital inspections and to rely on federal inspections.


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Additional information:

Reorganization Plan No. 001-2007: Commerce, Economic Growth and Tourism
Commission (PDF): http://www.njstatelib.org/digit/r424/r4242007.pdf

New Jersey Civil Service Commission: A Brief History of Civil Service in New Jersey
http://www.state.nj.us/csc/about/history.htm

Pennsylvania - Nursing Home Oversight
Pennsylvania is moving the oversight of nursing homes from the Department of Public
Welfare and combining this function with the current Department of Aging in a new
Department of Aging and Long Term Living. This reorganization is intended to provide
for a more intense focus on issues of concern to the elderly.

Additional information:

Pennsylvania Department of Aging: http://www.aging.state.pa.us/

2009-10 Executive Budget Facts: Department of Aging and Long-Term Living (PDF)
http://www.governor.state.pa.us/portal/server.pt/gateway/PTARGS_0_2_24980_2985_36
8304_43/http%3B/pubcontent.state.pa.us/publishedcontent/publish/cop_general_govern
ment_operations/pagov/media/latest_news/09_10_fs_aging_final.pdf

Pennsylvania – Management Activities
Also in Pennsylvania, the Bureau of Management Consulting and the Office of
Management and Productivity have been combined into a single unit, the Governor’s
Office of Executive Management.

Texas – Sunset Review
The Texas Sunset review system has contributed greatly to the efficiency and
effectiveness of state agencies. Every 12 years the Sunset Advisory Commission, a 12-
member joint legislative body, reviews an agency's functions and practice in order to
determine whether the agency is performing its statutory duties satisfactorily. As many
as 20 or 30 state agencies are reviewed every year; each agency is required to submit a
self-evaluation, undergo a public hearing process, and respond to committee
recommendations. A recommendation must be made by the commission to the
legislature and a bill passed during legislative session for the agency to be continued.

In 2003, Texas reorganized the state’s 12 health and human services agencies into five:
the Health and Human Services Commission, the Department of Aging and Disability
Services, the Department of State Health Services, Department of Assistive and
Rehabilitative Services, the Department of Family Protective Services. The Texas Sunset
Commission recommended the multi-agency reorganization and the creation of the
Health and Human Services Commission to oversee the other four departments. Today,
HHSC has an annual budget of $16 billion and employs 9,300 workers. The HHSC also
administers the following programs: Medicaid, Children's Health Insurance Program,
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    National Governors Association | 444 North Capitol Street, Suite 267 | Washington, DC 20001 | www.nga.org
Temporary Assistance for Needy Families, Food Stamps and Nutritional Programs,
Family Violence Services, Refugee Services, and Disaster Assistance.

In 2005, the Texas Sunset Commission found the State Board of Barber Examiners and
the Texas Cosmetology Commission to be ineffective in enforcing their acts and
administratively operating their agencies. In response, the Texas Legislature passed SB
411 abolishing both agencies and relegating the regulation of barbers and cosmetologists
with the Department of Licensing and Regulation (TDLR.) Both professions have
benefited from the administrative reforms and regulations imposed by TDLR and have
adopted safer business practices.

Additional information:

Texas Sunset Advisory Commission: http://www.sunset.state.tx.us/



ECONOMY AND EFFICIENCY
Procurement Reform
A number of states are seeking to improve the way they conduct business by
implementing improvements to their procurement functions.

Georgia – Procurement Transformation Initiative
Georgia is working to transform the statewide procurement function including the
development of a world class eProcurement system. It also includes a comprehensive
statewide training and certification program and process improvement efforts are being
implemented.

Additional information:

CSG 2008 Innovations Awards Program Application, Georgia Procurement Transformation
Initiative (PDF)
http://ssl.csg.org/innovations/2008/2008Southapplications/08S26GAPROCUREMENTTRANS.p
df

Oregon – Department of Administrative Services Strategic Improvement Project
The Oregon Department of Administrative Services’ State Procurement Office is
conducting a Strategic Procurement Project. The Project uses eight broad strategies,
including:

   •   Elevate procurement to the strategic level in business management;
   •   Lifecycle management of risk;
   •   Expand e-procurement;
   •   Maximize strategic procurement;
   •   Enrich the skills and professionalism of procurement staff in all agencies;
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   •   Expand outreach and training to vendors and agencies; and
   •   Organize performance management for the procurement team.

Oregon’s goal is to redesign its procurement system as an essential, strategic, enterprise-
wide activity. Its goal is to identify and implement practical actions to create a world-
class procurement system.

Additional information:

State Procurement Office: SPO Strategic Improvement Project
http://www.oregon.gov/DAS/SSD/SPO/SIP-Project.shtml

Michigan – Master Computing Contract
The State of Michigan Department of Management & Budget, Purchasing Operations has
announced the award of three categories of the Michigan Master Computing Contract
(MMCC) / MiPrint to EDS, an HP company. The MMCC is designed to address the
purchase of commodities and limited services concerning the aggregation of statewide
information technology client needs. This is a mandatory use contract by all state
agencies with oversight by the State of Michigan Department of Information Technology,
Contract Administration. The contract award is for five years, with two possible one-
year extensions. Categories awarded include: desktop and portable hardware, server and
Local Area Network (LAN) hardware and peripherals, and software and support.

Among other things, the Master Contract is intended to allow Michigan to manage
information technology acquisitions at an enterprise level in order to reduce direct and
hidden costs associated with information technology ownership and support the State’s
continuation of the Consistent Client Architecture (CCA) program, which is aimed at
standardizing information technology products procured by the State.

MMCC will also serve as an important instrument in the partnership efforts between the
state and local governments that facilitate collaboration and reduces bureaucracy. The
state extends its services to any city, village, county, township, school district,
intermediate school district, non-profit hospital, institution of higher education,
community or junior college.

Pennsylvania – Procurement Services Center
The state of Pennsylvania has created a procurement State Services Center that will
increase the collaboration among state agencies that purchase similar good and services.
Unlike the current process that often relies solely on individual agency procurement
officers who must often be “jacks of all trades,” the Center will allow buyers to specialize
in a specific industry in order to procure better pricing and products. Although the shared
service staff will work closely with agency technical and administrative staff, the
reorganization will centralize will centralize strategic procurement activities like
analyzing historical data, developing RFPs and RFQs, and negotiating contracts.


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Additional information:

Bureau of Procurement, Department of General Services
http://www.dgs.state.pa.us/procurement/cwp/view.asp?A=3&Q=125590

Virginia – eProcurement (eVA)
Prior to 2001, the Commonwealth of Virginia’s procurement was decentralized across
more than 180 state agencies, institutions and other public bodies. The autonomous
buying entities relied on outdated, inefficient and redundant systems, which added to the
cost of doing business and prevented the Commonwealth from leveraging its purchasing
power. Seeking to adopt the practices of a well-run Fortune 500 business, Virginia
partnered with CGI to develop electronic Virginia (eVA), a statewide e-procurement
application.

eVA is an end-to-end, government-to-business network that streamlines Virginia’s
purchasing processes. As of February 2008, eVA had connected more than 170 agencies
and 490 localities to 32,000 vendors, sold 5 million items, and processed 1.6 million
orders. Hosted by CGI, eVA is the largest state e-procurement application in use today.

The eVA application generates up to a 70 percent reduction in processing time from
solicitation to award and up to a 50 percent reduction in processing costs. Founded on the
‘best-of-breed principle,’ eVA is able to leverage industry-leading products, tools and
technologies, integrating them to create a scalable, reliable and accessible platform.

The entire bid evaluation process can be conducted electronically, from posting submitted
bids on the Internet, to submitting, capturing, tabulating, and compiling team evaluations.
eVA also supports the creation, modification, and distribution of contracts, master
agreements, and purchase orders to vendors. Management of the total procurement
lifecycle is available to all state agencies, universities and colleges, and local
governments that are part of the procurement community.


Commissions
A number of states are seeking to improve the way they conduct business and deliver
services by the formation of review and recommendation commissions.

Connecticut – Commission on Enhancing Agency Outcomes (Legislative)
The Commission on Enhancing Agency Outcomes was created by the legislature to
identify opportunities to reduce costs and enhance governmental services. It was
specifically charged with looking at a number of agency mergers.

Additional information:

Commission on Enhancing Agency Outcomes
http://www.cga.ct.gov/gae/CEAO/


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Maine – Commission to Recommend the Streamlining of State Programs and
Services
Governor Baldacci has proposed the creation of an independent BRAC “Commission to
Recommend Streamlining of State Programs and Services” that would be charged with
consolidating and streamlining government agencies in order to save $30 million in 2011.
This approach aims to remove the difficult work of reinventing and reforming
government from the politically-charged atmosphere of the State House.

Additional information:

May 2009 News Release: “Governor Baldacci Presents Plan to Close $569 Million Budget Gap”
http://www.maine.gov/tools/whatsnew/index.php?topic=Gov+News&id=71904&v=Article-2006

Nevada – Spending and Government Efficiency Commission (SAGE)
Governor Gibbons created the SAGE Commission by executive order to make
recommendations that will identify: areas of government spending where savings can be
found, areas where increased efficiencies in state government operations can be found,
and means to improve state governmental services to citizens. The Commission includes
members appointed from lists provided by the majority and minority leadership of the
Senate and the Assembly. The SAGE Commission submits recommendations directly to
Governor Jim Gibbons every 90 days.

Additional information:

Nevada Spending and Government Efficiency Commission (SAGE Commission)
http://www.sagenevada.org/

SAGE Commission Recommendation Reports
http://www.sagenevada.org/recommendations

North Carolina – Budget Reform and Accountability Commission
Governor Purdue used an Executive Order to establish the North Carolina Budget Reform
and Advisory Commission. The Commission comprised of citizens from the private
sector, local government representatives and academics. The Commission will advise the
governor on statewide goals and indicators, tax policy, measures that improve efficiency,
cost-savings, and effectiveness of program functions and delivery of services, and other
matters related to government performance and efficiency.
Additional information:

Executive Order No. 5: Establishing the North Carolina Budget Reform and Accountability
Commission (BRAC)
http://www.governor.state.nc.us/NewsItems/ExecutiveOrderDetail.aspx?newsItemID=429


Lean Management and Enterprise Solutions
A number of states are utilizing the principles of process improvement and enterprise
wide solutions to deliver quality customer service to its citizens.
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 Arizona – FARE Statewide Collections
While many private collections providers focus exclusively on delinquent accounts, some
providers can also help with initial fee and fine enforcement, providing end-to-end
transaction support so government employees can focus on core competencies. A strong
court collections solution includes data entry, imaging, telephone and Web-based
payment services, payment collection and processing, and integration with the court’s
case management system.

ACS has helped Arizona improve court collections performance without risk, structuring
a contract with no up-front investment by the state. ACS has partnered with the Arizona
Supreme Court, Administrative Office of the Courts (AOC) since 2003 to help the
Fines/Fees and Restitution Enforcement (FARE) program. This statewide program
provides for data entry, special collections, Web and Interactive Voice Response (IVR)
payment processing, vehicle registration hold processing, interception of state income tax
refunds and lottery winnings, out-bound calling, lockbox processing and customer
service. More than 1.4 million cases have been assigned and the AOC has collected
$132.4 million in state and local revenue for the participating courts since 2003.

Colorado - Government Efficiency and Management Review (GEM)
In early 2007, Governor Ritter launched the Government Efficiency and Management
(GEM) Performance Review, a top-to-bottom look at how state government can improve
and deliver services more efficiently and cost-effectively to the people of Colorado.
After more than a year of work, the GEM Review identified more than 90
recommendations and $205 million in five-year cost-savings, customer-service
efficiencies and other benefits.

Additional information:

Government Efficiency and Management Review, “GEM Review Identifies $205M in Savings &
Efficiencies”
http://www.colorado.gov/cs/Satellite/GovRitter/GOVR/1198314076903

Indiana – Government Efficiency
In 2005, Indiana established the Department of Government Efficiency and Financial
Planning (GEFP) within the Office of Management and Budget in order to identify
opportunities to reform Indiana State government and save tax dollars through cost
savings and improved services. GEFP's objectives include: to make state government
more accountable to taxpayers through transparent performance measurement and to help
state agencies and quasi-governmental agencies provide best-in-class performance for
services they should provide, and help state agencies cease those activities that are
duplicative or wasteful.

Additional information:

Government Efficiency & Financial Planning, Indiana Office of Management & Budget
http://www.in.gov/omb/2344.htm

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Iowa - Lean Management
Lean is a collection of principles, methods and tools that improve the speed and
efficiency of any process by eliminating waste. Although Lean originated in Toyota’s
manufacturing operations, known as the Toyota Production System, the tools have been
successfully applied in organizations across all sectors. Iowa state government
successfully implemented more than 60 business process improvement events in 18
different departments during the first three years of implementation.

Additional information:

Office of Lean Enterprise, Iowa Department of Management: http://lean.iowa.gov/

Kentucky – Governor’s Call for State Employee Suggestions
Governor Beshear issued a call to state employees seeking their input on ways to make
agencies become more efficient, innovative, productive and accountable. The state
provides a Web site that can be used to submit suggestions.

Additional information:

Innovation, Economy and Efficiency Video, Governor Steve Beshear
http://governor.ky.gov/ideas.htm

Innovation, Economy and Efficiency Ideas Submission Form
https://secure.kentucky.gov/renewalservices/Finance/

Minnesota – Drive to Excellence
The Drive to Excellence is a state-government reform initiative that focuses on serving
citizens better through the reform of the "infrastructure" of state government: transactions
with citizens, businesses and other governments; management of state assets and business
processes; and the human and technological systems that make it all possible. The over-
arching objective is to encourage government to act together as an enterprise, rather than
as a loose confederation of somewhat independent agencies, on those matters that they
have in common. Drive to Excellence seeks to identify common processes across
government that can be improved with common solutions, such as standardized
computers or a universal system for managing the state's 5,000-plus buildings.

Additional information:

Program Updates, The State of Minnesota's Drive to Excellence
http://www.state.mn.us/portal/mn/jsp/home.do?agency=Excellence

Minnesota – Enterprise Lean
Enterprise Lean is a coordinated state government initiative for improving the
organizational performance and results in Minnesota's state government agencies. Using
time-tested process Lean approach, while also embracing Six Sigma tools and total

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quality management philosophies, Enterprise Lean has a simple goal of helping state
government work better for its customers and employees.

Additional information:

Minnesota's Enterprise Lean: http://www.lean.state.mn.us/

New Jersey – Cross Agency Initiative
A Cross Agency Initiatives Team, chaired by the State Treasurer is using input from
career employees to identify outdated services that might be eliminated and common
services that might be consolidated or shared.

For example, the Team is looking at making greater use of technology to reduce the need
for inter-agency messenger service and is looking at other issues such as facilities,
purchasing, warehousing, parking, document scanning, printing, automotive use and
parking. Other examples include a significant reduction in the number of assigned
vehicles with a greater reliance on the use of pool cars. This initiative will reduce the
overall size of the state’s fleet and improve its overall fuel efficiency as older cars are
sold. Efforts are being made to improve staff utilization through cross-training as in the
case of bank and insurance examiners. A Workforce Reduction Board has been created
to help plan for the most effective use of the remaining workforce in the face of an early
retirement initiative and the likelihood of continued freezes and possible layoffs.

New Jersey – Mandate Review
The executive branch is conducting a review of all legislative and regulatory mandates in
an effort to identify those that can no longer be supported by a reduced workforce.

North Carolina – Improving Access to Academic Computing Resources
North Carolina State has worked with IBM to create a virtualization model to deliver
more resource support across the university at lower cost. The new “cloud-computing”
model offers the school significant improvement in access, efficiency and convenience.
This shared service is also being expanded to include pilots at community colleges and
K-12. Up to seventy-five percent savings are expected in software licensing costs along
with increased capacity to shift computing capacity between instructional, research and
administrative needs.

Additional information:
October 2008 Press Release: “North Carolina State University and IBM Extend Access to
Educational Resources through Cloud Computing”
http://vcl.ncsu.edu/news/general-announcements/north-carolina-state-university-and-ibm-
extend-access-educational-resourc

Oregon – Human Service Transformation
The Oregon Department of Human Services is in the midst of a multiyear project using
Lean management methodologies to transform itself into a world-class organization that
will be able to deliver human services in a more effective and cost efficient manner.
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    National Governors Association | 444 North Capitol Street, Suite 267 | Washington, DC 20001 | www.nga.org
Additional information:

DHS Transformation Initiative, Oregon DHS
http://www.dhs.state.or.us/tools/transformation/

Pennsylvania – Internal Consulting
 In Pennsylvania, the Office of Strategic Services was established within the Office of
Administration to work with state agencies to identify and implement cost saving and
efficiency enhancing programs. The Office also coordinates initiatives that involve
multiple agencies.

Additional information:

Pennsylvania Office of Strategic Services
http://www.portal.state.pa.us/portal/server.pt/community/strategic_services/405

Pennsylvania – Finance Transformation
The Finance Transformation Project, led by the Office of Budget, is a business
transformation project that is intended to improve financial operations and service
delivery in areas such as procure-to-pay, accounts receivable, grants, accounting, audits
and reporting. Partners include the Office of the Budget, the Office of Administration,
the State Treasures and key state agencies.

Additional information:

“Finance Transformation,” Pennsylvania Office of the Budget
http://www.financetransformation.state.pa.us/portal/server.pt/community/finance_transfo
rmation/4178


More Effective Service Delivery
A number of states are transforming the manner by which they provide direct services to
their citizens.

Alabama – Medicaid QTool Electronic Health Record, Web Portal
More than two years ago, the Alabama Medicaid Agency won a $7.6 million federal
Medicaid transformation grant to create a new, statewide electronic health information
system that will save money, reduce duplication and most importantly, fill in gaps that
lead to better patient care. The effort, known as Together for Quality, is a three-part
initiative that has attracted national attention for its ability to bring a diverse group of
partners together to design and implement the innovative system. There are three
components: The QTool electronic health record which can be accessed in real-time via a
web portal; Q4U, a care management program for patients with chronic diseases such as
asthma or diabetes; and Q-X, an electronic system for state agencies to exchange data on
shared clients.

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QTool is now being pilot tested in nine Alabama counties where physicians are
discovering the value of having Medicaid and Blue Cross/Blue Shield claims information
on past doctor visits, hospital stays, tests and medications when examining their Medicaid
patients—all at their fingertips in real time. E-prescribing, the ability to electronically
send a patient’s prescription to the pharmacy was added in March 2009. More features
will be added in the upcoming months by Alabama Medicaid and ACS, which assisted in
developing the Web-based tool.

Louisiana – Department of Social Services Customer Service
The Louisiana Department of Social Services (DSS), Office of Family Support, Support
Enforcement Services (SES) awarded a contract to ACS in December of 2004 to provide
full-service child support customer services. ACS implemented a comprehensive call
center operation including a 24-hour interactive voice response (IVR) system,
complemented with customer service representatives. The call center relieves state staff
from receiving and responding to routine inquiries and provides timely and accurate
information regarding child support questions and concerns. In fact, 80 percent of
inquiries can be answered 24 hours a day, seven days a week. A unique element is the
Customer Notification System (CNS), which reminds child support case participants of
important appointments, such as court hearings, and office interviews. The use of the
CNS has significantly increased the show rates for all appointments thereby decreasing
the need for staff to reschedule appointments.

When Hurricane Katrina hit Louisiana in August 2005, ACS not only extended work
hours to answer questions and help deliver child support checks to displaced customers,
but also responded to a request from the DSS for call center support. Leveraging the child
support call center, ACS immediately established a toll-free call center to help quickly
direct citizens to emergency information and resources. In less than six hours, ACS
established 1-888-LA-HELP-U to manage a large volume of calls and generated a
feedback loop for relaying callers’ needs to the state. After Hurricane Katrina,
LA-HELP-U was maintained by the state and now provides IVR information for the
following programs:

   •   Supplemental Nutrition Assistance Program (SNAP) – formerly food stamps
   •   Family Independence Temporary Assistance Program (FITAP)
   •   Earned Income Tax Credit (EITC)
   •   Child Care
   •   LA DSS Emergency Support (only activated during an emergency event)

ACS recently established another service within the existing call center operations to
provide application support services for families that need to pre-apply for food benefits
in the event of an emergency. This call center will support the State of Louisiana
throughout the hurricane season.



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Indiana – Bringing Social Services into the 21st Century
The State of Indiana has teamed with IBM to update the way in which social services,
such as temporary cash assistance, food stamps and Medicaid are delivered. As a result
of this effort, Indiana has completely transformed its processes and infrastructure, adding
features such as a call center and Internet self-service areas. The project also simplified
the delivery network and introduced standardized procedures, workflows and business
processes.

The project is expected to provide savings of up to $490 million over ten years as well as
to reduce the potential for error and improve citizen and client interaction with state
agencies.

Additional information:

Indiana Family & Social Services Administration
http://www.in.gov/fssa/

Michigan – Women, Infants and Children (WIC) Program Electronic Benefits
Transfer
The Michigan WIC EBT project is serving as a national model for other state WIC
programs. After extensive design sessions with the state WIC staff, ACS designed and
implemented a pilot WIC EBT program that operated in Jackson County for
approximately 12 months. The Michigan WIC EBT project is now rolled out statewide
and serving 277,000 participants and 154,000 families monthly who use the WIC EBT
card to access and redeem WIC benefits. Participants benefit from the ability to integrate
their WIC shopping into a regular shopping trip, increasing convenience and eliminating
the stigma commonly associated with using special coupons at the checkout.

WIC EBT also has benefits for the state of Michigan and authorized WIC vendors. More
than 1,900 vendors accept WIC EBT, 1,000 of which also accept Supplemental Nutrition
Assistance Program (SNAP) EBT. WIC vendors are paid on a timelier basis, clerk
training is reduced, and because the system automatically validates WIC-approved items,
errors are caught at the checkout lane instead of weeks later in an audit. Benefits for the
state include cost reductions for eliminating paper coupon processing, reduced Treasury
Department fees, and streamlined program administration. Also, ACS’ online real-time
system enhances data collection and analysis, making it easier for state administrators to
more effectively manage budget dollars.

Missouri – Boosting Disaster Preparedness Across the State
The Missouri Office of Homeland Security has worked with IBM Global Technology
Services and IBM Business partner NC4 to design and implement the Missouri
Emergency Resource and Information Center to provide simple, integrated, Web-based
access to diverse incident management systems, resources and databases, along with
collaboration tools, to first responders across the state. The system is expected to enable
faster, better coordination of emergency response efforts, enhance emergency
preparedness and provide access to a statewide incident management system.
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Additional information:

“State of Missouri Office of Homeland Security: Boosting Disaster Preparedness Across the
State” (PDF)
ftp://ftp.software.ibm.com/software/solutions/pdfs/ODC03071-USEN-
00_MissouriFinal_110708.pdf

North Carolina – Electronic Payment Card for Unemployment Benefits
To cut costs without compromising service, government agencies of all sizes are
replacing checks with electronic payment cards (aka prepaid debit cards). Converting
funds distribution to an electronic solution yields dramatic savings to states, and enhances
service to constituents by eliminating check mailing delays, increasing security and
providing round-the-clock customer service. ACS has helped states save an average of
$2 per check by avoiding printing and mailing costs, as well as dramatically reducing
returned mail processing needs. The Employment Security Commission of North
Carolina awarded a contract to ACS in August 2005 to implement and operate an EPC
Services program for unemployment insurance benefits. The program complements the
direct deposit payment option and eliminates paper checks. With the new debit card, a
person receiving unemployment insurance can immediately go to anywhere MasterCard
is accepted and use the card to purchase goods. They can often get cash at the same
point-of-sale, eliminating check-cashing fees. The card is welcome at over 8,000 ATMs
across North Carolina and at thousands of merchants. Account information can be
obtained from ATMs and via a secure website. By eliminating paper checks, the state
achieved a savings of $4.2 million in the first year.

Pennsylvania – Recouping Medicaid Overpayments
The Commonwealth of Pennsylvania Medicaid Program enrolls approximately 67,000
participating healthcare providers that render services to more than 1.7 million
individuals. Annual expenditures exceed $15 billion.

The Department of Public Welfare (DPW) wanted to identify and recoup more
overpayments to providers by augmenting the auditing work of the Bureau of Program
Integrity. DPW engaged CGI to audit inpatient, outpatient and professional claims to
determine if they were reimbursed properly according to the DPW’s MA regulations.
Currently, Clinical Auditing staff performs reviews of inpatient medical records for DRG
validation and medical necessity and reviews of outpatient and professional claims for
overpayments based on reimbursement rules. The department uses CAS 5.0 claims
auditing software, powers audits and identifies and tracks improperly paid claims leading
to an efficient and effective process.

Over the last three years, CGI has identified more than $40 million recoveries for
recoupment. Additionally, CGI automated the offset adjustment process of provider
overpayments through an interface that was created between CAS 5.0 and the
Department’s MMIS vendor. This effort also enhanced provider relations and minimized
provider burden through a Provider Call Center operated and managed by qualified CGI
staff.
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    National Governors Association | 444 North Capitol Street, Suite 267 | Washington, DC 20001 | www.nga.org
Virginia – Tax Partnership Project
In the mid-1990s, Commonwealth of Virginia tax officials recognized the need to
improve customer service and operational efficiency. In 2006, the Commonwealth
implemented a modernized tax revenue program through the efforts of The Virginia Tax
Partnership Project. Working with CGI to modernize its technology and processes,
Virginia’s Department of Taxation (VATAX) was able to generate over $232 million in
additional revenue (as of 2006) through a comprehensive reengineering program that
included the adoption of electronic tax filing and a state-of-the-art integrated revenue
management system along with an organizational change management initiative.
VATAX’s operational effectiveness dramatically improved—further helping the bottom
line—while taxpayers benefited by gaining access to new services and an enhanced
service orientation.

VATAX’s entire technology platform was replaced with the latest in network
infrastructure and Web-based technologies, linking individual taxpayers, businesses, and
employees to VATAX’s services. CGI initially took on the project funding risk and
financed the hardware, software, and services; through a benefits-funding arrangement
with Virginia, CGI’s remuneration for the project came from the incremental revenue
stream.

Today in Virginia, a business is able to register, file its returns, pay its taxes, and obtain
account-related assistance without filling out paper forms or speaking with customer
service agents. The new electronic capabilities enhance Virginia’s position as an
appealing place to conduct business.


Other General Management Initiatives

Minnesota and Wisconsin – Interstate Collaboration
Governor Pawlenty and Governor Doyle signed executive orders in January 2009
directing agencies in both Minnesota and Wisconsin to work with their counterparts to
explore opportunities for collaboration and shared services between the two states. The
working group issued its report in March and identified over 80 projects where the
neighboring states might work together to improve efficiency. It is estimated that the
initiatives in the report might save about $10 million in one-time costs.

Additional information:

Executive Order #272: Relating to Identification of Potential Cooperative Service Arrangements
with Minnesota State Agencies
http://www.wisgov.state.wi.us/journal_media_detail.asp?locid=19&prid=3893

Wisconsin Minnesota Collaboration Report (March 31, 2009)
http://www.wisgov.state.wi.us/docview.asp?docid=16272


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    National Governors Association | 444 North Capitol Street, Suite 267 | Washington, DC 20001 | www.nga.org
Minnesota – Shared Services at the Local Level
Minnesota is creating incentives to encourage the development of intra-state shared
services by allowing localities to “buy back” up to fifty percent of scheduled cuts in local
assistance. Areas of exploration include regional centers for service delivery and the
consolidation or sharing of a variety of back office functions, including information
technology, personnel and legal services.

Utah - “Working 4 Utah”
In June, 2008 Governor Huntsman announced “Working 4 Utah,” an initiative creating a
four day work week with extended hours for the state’s administrative offices. The
change, which began in August, was intended to conserve energy, save money and
improve air quality.

Additional information:

June 2008 News Release: “Governor Huntsman Announces Extended Government
Service Hours”
http://www.utah.gov/governor/news_media/article.html?article=1724

Massive Collaboration – Technology Enabled Innovation
A growing array of web based tools can speed the development of massive collaborations
to bring diverse groups together to consider and develop solutions to complex problems,
particularly problems that will require the cooperation across governmental and sector
lines. While there are considerable risks associated with such efforts to broaden citizen
and stakeholder involvement, there are a number of possible benefits, including:

   •   Better solutions through the wisdom of crowds;
   •   Improved sense of community; and
   •   Greater inclusion in the decision making process.

Additional information:

Management Insights, “Will Massive Collaboration Work for You?”
January 2009 article, Governing.com
http://www.governing.com/column/will-massive-collaboration-work-you


PERFORMANCE MANAGEMENT
American Recovery and Reinvestment Act
The enactment of the ARRA is causing many states to develop new mechanisms to
oversee planning and implementation of the provisions of the act. In addition, states are
in the process of developing a variety of new Internet based tools to improve
transparency and monitor implementation. The federal site at Recovery.gov provides
links to many of these state sites.
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    National Governors Association | 444 North Capitol Street, Suite 267 | Washington, DC 20001 | www.nga.org
Additional information:

Recovery.gov: State, Local, Tribal and Territorial Information
http://www.recovery.gov/?q=content/state-local-tribal-and-territorial-resources&mode=map

Selection of State Performance Initiatives
Governors are increasingly utilizing performance data to help them in a number of
critical areas, including:

   •   Evidence Based Decision Making—using performance data to help evaluate
       program and policy options and to direct investments to maximize their impact;
   •   Managing Gubernatorial Priorities—using performance data to mobilize and
       manage the resources needed for speedy implementation of the governor’s
       priorities;
   •   Managing Gubernatorial Appointees—using performance data to define
       expectations for department and agency heads and to hold appointees accountable
       for meeting those expectations;
   •   Improving Government Transparency and Public Understanding—using
       performance data to focus public attention on goals and to help communicate how
       government programs contribute to those goals; and
   •   Promoting Economy and Efficiency—using performance data to identify and
       address low performing programs and opportunities for a wide range of
       management improvement.

Some examples of state performance based initiatives include:

   •   Maryland: StateStat, http://www.gov.state.md.us/statestat/index.asp
   •   Washington: Government Management Accountability & Performance (GMAP),
       http://www.accountability.wa.gov/
   •   Indiana: Results IN, http://www.in.gov/omb/2342.htm
   •   Iowa: Results Iowa, http://www.resultsiowa.org
   •   Louisiana: Louisiana Performance Accountability System (LaPAS),
        http://www.doa.louisiana.gov/opb/LAPAS/LAPAS.HTM
   •   Michigan: Michigan Cabinet Action Plan, http://www.michigan.gov/cabinetplan
   •   Minnesota: Department Results, http://www.departmentresults.state.mn.us/
   •   Oregon: Oregon Progress Board, http://www.oregon.gov/DAS/OPB/
   •   Pennsylvania: Governor’s Report on State Performance,
       http://www.portal.state.pa.us/portal/server.pt/community/performance_reports/46
       77
   •   Tennessee: Agency Strategic Plans: Performance Measures,
        http://www.state.tn.us/finance/bud/planning/2008SPVol2.pdf
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    National Governors Association | 444 North Capitol Street, Suite 267 | Washington, DC 20001 | www.nga.org
   •   Virginia: Virginia Performs, http://www.vaperforms.virginia.gov/

North Carolina – New Executive Orders
Governor Perdue took office in January and has issued three executive orders outlining a
series of management initiatives. In Executive Order 3, she calls for the creation of “On-
Site and State-Stat Performance Management and Accountability.” This initiative
commits North Carolina to the establishment of a comprehensive performance and
budget system that incorporates performance management and accountability techniques
that include strategic planning, improvement of management functions and a formal
program review and accountability program.

Executive Order 4 directs the Office of Budget and Management to build and maintain a
website to be called NC OpenBook, a single searchable website on state spending for
grants and contracts. The state is also developing an expanded on-line resource that will
provide additional performance data and historical context relating to the state budget.

Additional information:

Executive Order No. 3: On-Site and State-Stat Performance Management and Accountability
http://www.governor.state.nc.us/NewsItems/ExecutiveOrderDetail.aspx?newsItemID=427

Executive Order No. 4: OpenBook Government for North Carolina
http://www.governor.state.nc.us/NewsItems/ExecutiveOrderDetail.aspx?newsItemID=42
8

Pennsylvania
The Pennsylvania Budget Office’s Deputy Secretary for Performance Management is
managing an ongoing effort to develop and implement a stronger system of performance
measures. In addition, the state has obtained licenses for business objects software that
will allow agencies to create and monitor a “Managers’ Dashboard” on a real time basis.
Three pilots are expected to be operational by June and the system will be expanded
further next year. The initial focus will be on management information in areas such as
human resources, budget and procurement.

Texas – Legislative Budget Board
The Legislative Budget Board (LBB) maintains a self-reporting performance system for
state agencies called the Automated Budget and Evaluation System of Texas (ABEST.)
State agencies are required to report on their goals, objectives, strategies, performance
measures, and other items of appropriations every biennium. These reports are
considered by the Legislature when drafting the General Appropriations Act each
legislative session. In addition, the LBB "conducts reviews analyzing the effectiveness
and efficiency of the policies, management, fiscal affairs, and operations of state
agencies." These reviews are used in making recommendations to the legislature.




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    National Governors Association | 444 North Capitol Street, Suite 267 | Washington, DC 20001 | www.nga.org
Additional information:

Legislative Budget Board (LBB)
http://www.lbb.state.tx.us


ADDITIONAL RESOURCES

National Governors Association: Resources for Governors’ Staff
The NGA’s Office of Management Consulting and Training maintains several web pages
relating to the role of the governor in the leadership and management of state
government. These pages will be updated periodically and include information on:

   •   Performance Management Systems
   •   Government Reorganization
   •   State Government Management
   •   Economy and Efficiency Studies

To access these resource pages, please visit www.nga.org/governors. Click on the
section titled “For Governors’ Staff” and then “Leadership and Management of State
Government.”

Stateline.org: http://www.stateline.org
Stateline.org is a nonprofit, nonpartisan organization that chronicles political, policy and
management developments in the fifty states. Using a variety of search terms—such as
management improvement, reorganization, performance management, and economy and
efficiency—will produce listings of stories highlighting state initiatives in these important
areas.

Governing: http://www.governing.com/
Governing provides in-depth coverage and analysis of government management, policy
and politics at the state and local level. Selecting “Management” within the “By Topic”
listing provides access to the latest news and relevant articles and resources on the
Governing site. Some articles include:

   •   Smart Management: “The Sweet Spot in Sour Times,” November 2008
       http://www.governing.com/column/sweet-spot-sour-times
   •   Management Insights: “Excelling in Times of Fiscal Stress,” October 2008
       http://www.governing.com/column/excelling-times-fiscal-distress
   •   Tech Talk: “Texas Ten Step” (Large IT Procurement), January 2009
       http://www.governing.com/column/texas-ten-step
   •   Technology: “The Fix-IT Man” (Colorado IT), January 2009
       http://www.governing.com/article/fix-it-man

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    National Governors Association | 444 North Capitol Street, Suite 267 | Washington, DC 20001 | www.nga.org
   •   Management Insights: “Prudent Privatization,” January 2009
       http://www.governing.com/column/prudent-privatization

Pew Center on the States: http://www.pewcenteronthestates.org/
Pew's Center on the States (PCS) works to advance state policies that serve the public
interest. PCS conducts credible research, brings together diverse perspectives, and
analyzes states’ experiences to determine what works and what does not. The PCS works
with a wide variety of partners to identify and advance nonpartisan, pragmatic solutions
for pressing problems affecting Americans. The PCS operates major initiatives in
corrections and public safety, early education, elections and government performance.

A recent publication, “Trade-off Time: How Four States Continue to Deliver,” reports on
four states—Indiana, Maryland, Utah and Virginia—that are leaders in measuring the
performance of government programs and that are using those measurements to drive
smart budget cuts and new spending to create the foundation for a better economic and
fiscal future.

Trade-off Time: How Four States Continue to Deliver (February 2009 Report)
http://www.pewcenteronthestates.org/report_detail.aspx?id=48868

National Association of State Budget Officers: http://www.nasbo.org
The National Association of State Budget Officers (NASBO) monitors budget and
management issues in the states and collects detailed information on the budget processes
in individual states, including how performance data is collected and reported, and links
to state Web sites with performance data. In addition, information on budget processes and
performance management can be found in the 2008 report, “Budget Processes in the States.”

Budget Processes in the States (Summer 2008 Report, PDF)
http://www.nasbo.org/Publications/PDFs/2008%20Budget%20Processes%20in%20the%20States
.pdf

The Council of State Governments: http://www.csg.org
The Council of State Governments (CSG) has a new web resource relating to the
transformation of state government that includes information on several performance
management initiatives. In addition, the Council of State Governments, along with the
Urban Institute, has created the first-ever State Comparative Performance Measurement
Project. Funded by the Alfred P. Sloan Foundation, this national initiative seeks to
collect, analyze and publish comparative performance data so states can better set
reachable targets for their services as well as identify successful state practices.

Additional information:

State Governance Transformation: http://www.csg.org/sgt
State Comparative Performance Measurement Project: www.csg.org/cpm



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    National Governors Association | 444 North Capitol Street, Suite 267 | Washington, DC 20001 | www.nga.org
IBM Center for the Business of Government: http://www.businessofgovernment.org/
The IBM Center for the Business of Government connects public management research
with practice. Since 1998, the Center has helped public sector executives improve the
effectiveness of government with practical ideas and original thinking. The Center
sponsors independent research and creates opportunities for dialogue on a broad range of
public management topics. Its publications focus on the major management issues facing
all governments today: e-government, financial management, human capital
management, managing for performance and results, market-based government, and
innovation, collaboration and transformation.

SPECIAL ACKNOWLEDGEMENT
The NGA Office of Management Consulting and Training (OMCT) would like to express
a special thanks to all those state officials who responded to the initial survey and
provided additional details about their promising practices. OMCT would also like to
thank the following NGA Corporate Fellows: ACS, CGI, EDS, an HP Company, and
IBM, for also contributing promising practices to this NGA management brief.



Additional Information

The NGA Office of Management Consulting & Training (OMCT) provides governors, chiefs of
staff and governors’ staff members with valuable resources and management services on the
leadership and management of state government and organizing and operating the governor’s
office. Many OMCT publications are accessible online at www.nga.org/omct.

This NGA management brief was written by Barry Van Lare, Senior Advisor, NGA Office of
Management Consulting & Training. For more information on OMCT services and publications,
please contact Nikki Guilford, Director of OMCT (202/624-5422; nguilford@nga.org).




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