Meri talk & NIC: "Innovators Anonymous"
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- 1.Innovators AnonymousApril 1, 2013 Underwritten by:
2. IntroductionIf necessity is the mother of invention, Federalagencies are about to see a baby boom.The dip in Federal discretionary funding isnt justa problem on graph paper; it has real-liferamifications inside of Federal agencies. Howbig is that impact? How are agencies reacting?What does this mean for citizens?In December 2012, MeriTalk surveyed 200Federal managers to determine how deep thecuts were and how that would impact agencyprograms.We then looked at how agencies wereresponding to the new challenges comparingdata from respondents focused on innovationwith those looking at standard approaches.Sound interesting to you? You might well be aFederal innovator. 2 3. Executive Summary Agency budgets are shrinking and trending lower for the future: 62% of Federal managers report personal experience with tighter budgets 73% of respondents believe that their budget will be even lower in 2015.19% believe that their budget in 2015 will be much lower Shrinking budgets put agency missions at risk: Respondents describe the impact of budget cuts as devastating (12%) orsignificant (58%) to their agencys mission performance Just 4% of respondents report no mission impact Innovators see a different way of funding government services: 34% of Federal Innovators are already looking at alternative fundingapproaches Federal Innovators believe that as much as one quarter of their agencysbudget could be addressed by new funding/service methods 42% of Federal innovators see self-funding as a viable approach 3 4. This Time, Its Personal For Federal agencies, the budget cuts have real, personal implicationsDuring the last year, have you personally experiencedthe impact of Federal budget tightening? The average agency cut is 16%Yes, in my16%programs 62%Yes, in theprograms Idepend on51%84%No 14%0% 20% 40% 60% 80% Take Away: Make No Mistake, Budget Realities are Real4 5. A Storm Before the Bigger Storm Federal budgets are tight and getting tighter. No relief in sightIn the coming 12 months, do you expect toIn FY 2015, what do you expect your agencysexperience more or less budget pressure?budget to be? 32%19%More Much Much 85% LowerMuch73%Same13% Same22%Less 2%Higher5% 02040 60 80 100020 40 6080 Take Away: Going to Get Worse Before It Gets Worser5 6. Budget Cuts Impact The Mission Twelve percent of Feds say that budget cuts put the mission at riskHow would you rate the impact of Federalbudget tightening on the ability of your agency to maintain its current level of missionWhat steps has your agency taken toperformance?respond to the Federal budget tightening?DevastatingStep % Stopped hiring55% Cut or reduced services 51% Significant Reduced Federal employees 51% Cut or eliminated capital investment29% Increased transaction processing time 25% Minimal Take Away: Cuts for Government Translate to Cuts for Citizens 6 7. Finding the Federal InnovatorsThe budget outlook is bleak, yet where traditional leaders see trouble ahead,innovators see opportunity. One-in-five Feds has a bias toward innovation.What does a Federal innovator look like? Innovators SayOthers Say They want change, believing that How much does your agency need to change how itexecutes its mission? their agencies need to do a lot of things differently from today 100%A Lot 0% In fact, they spend a lot of timeHow much of your time do you spend getting your agency tooperate or to look at things differently?driving their agency to do things differently32% % of Time 21% They look for examples outside ofWhere do you tend to find the best new ideas for your agency?government and are less beholden39%Outside23% to their Federal peers7.3% From Peers 24%Take Away: Some Feds are Looking to do Things Differently 7 8. Changing How Agencies Change Federal Innovators have a different take on how to respond to budget cutsWhat other changes in operations has your agency considered inresponse to budget cuts?Close field offices56% 50%Cut infrequently-used 46% 48%programsOutsourcing 46% 20%Slow modernization 42% 36%Delay capital investment 42% 37%Charge fees for services 42% 25% Same services, slower39% 27%deliveryDo nothing9% 0%10%20% 30% 40% 50% 60% 70% 80% 90% 100% InnovatorsPeer GroupTake Away: Dont Just Do Nothing 8 9. A New NormalInnovators arent just looking for cuts, they are looking for better waysto deliver value creating alternative funding options for their agenciesof innovators are already looking 34%at alternative fundingapproaches for their agenciesTake Away: If You Are Standing Still, You Are Being Left Behind9 10. What is Possible; What is Doable Innovators are getting aggressive about finding new sources of fundingFederal Innovators believe that as much as one quarterof their agencys budget could be addressed by newfunding/service methodsWhat factors are most important in your consideration ofalternative funding approaches? Validation that they are cost neutral 54% Clear support from OMB44% Clear support from Congress 43% Success at another Federal agency 43%Take Away: Innovators Mix Optimism with Realism10 11. Some Road; Some Roadblocks Most Feds see Congress as a roadblock, but 73% of Innovators seeagency leadership as the primary obstacle to alternative funding What are the most significant obstacles to implementing this type of approach to funding government? Congress 63% Agency Leadership51% Resistance to Fees47% Limited Best Practices 45% Legal Department 32% Agency Culture 30%Operational Risk24%0% 10%20% 30% 40%50%60% 70%Take Away: Biggest Obstacle Isnt Really An Obstacle11 12. Back to Necessity and Invention Innovators share one other trait: A strong belief that the current budget cutsare devastating putting their agencies missions at risk How would you rate the impact of Federal budget tightening on the ability of your agency to maintain its current level of mission performance? Innovators SayOthers Say22% 9% Devastating Take Away: Necessity is the Mother of Invention. Initiative is the Father 12 13. Calling All Innovators Understand, and then embrace the budget realitiesCalling All Innovators Look beyond just cuts for Do you believe that your agency answers to budget issuescan and should do thingsdifferently? Investigate innovative funding modelsDo you have a bias towardaction? Collaborate on innovative ways to fund programs and Do you look outside of agencies deliver servicesfor new ways of doing things? Join us:http://www.govloop.com/group/ nic 13 14. Methodology & Demographics MeriTalk, on behalf of NIC, conducted an online survey of 200 Federal governmentmanagement professionals in December 2012. The report has a margin of error of+/- 6.89% at a 95% confidence level. 100% of respondents have Federal Manager Sample management responsibilities. Program management 41% 100% of respondents work in agencies with programs that Administration 29%would be easily funded by an alternative funding approach. Finance14% Citizen services 9% 14 15. Thank YouErin Leahyeleahy@meritalk.com 703-883-9000 x139