Redefining the Wking Relationship Local Govt and Industry

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    www.digitalcommunities.com

    Cause for Optimism:Redefning the Working Relationshipbetween Local Government and Industry

    By Todd Sander, director o the Digital Communities program, with the assistance o

    the Large Jurisdiction Chie Inormation Ocer Working Group

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    The e.Republic, Inc. Digital Communi-

    ties Large Jurisdiction Chie Inormation

    Oicer (CIO) Working Group is com-

    prised o members rom the very largest

    cities and counties in the United States

    and industry executives representing

    some o the worlds leading inorma-

    tion and communications technology

    (ICT) companies. Because o the size o

    the governments involved, the number

    o citizens they serve and the amount

    o money they spend on ICT tools, the

    strategies they employ have a very real

    inluence on how their industry part-

    ners position themselves and respond

    with products and services to the needs

    o local government. We believe that bybringing the public and private sector

    together at the same table, it allows all

    participants to urther the shared goal

    o improving public service through the

    eective use o IC T.

    Each year, Digital Communities

    convenes ace-to-ace meetings or

    members. In addition, members have

    access to an online collaboration and

    inormation-sharing site to acilitate

    discussion and the exchange o ideas

    between the meetings. These venues

    provide a sae place or both govern-

    ment and industry to demonstrate the

    courage necessary to speak and to listen.

    In an eort to respect and reward that

    courage, some quotations in this paper

    are included without attribution to a

    specifc individual, jurisdiction or company

    Evaluation, assessment and analysis o the

    substance o the comments is more likely

    to promote understanding and progres

    than a ocus on the source.

    A wide variety o topics are typically

    discussed, but during the past two meet

    ings members have placed a particula

    ocus and priority on a single question

    In todays economic, political and busi

    ness environment, what constitutes a

    successul relationship between govern

    ment and industry?

    This white paper is a product o tha

    dialogue and collaboration. It is presented

    not to answer the question, but rather to

    urther identiy and clariy the issues tha

    separate and rustrate government and

    Cause for Optimism: Redefning the Working Relationshipbetween Local Government and Industry

    Introduction

    Courage is what it takes to stand upand speak; courage is also what ittakes to sit down and listen.

    Winston Churchill

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    industry and to broaden the conversation. Itis the consensus o all group members that

    a better and more complete understand-

    ing o the pressures and demands aced by

    both government and industry is necessary

    to establish and maintain more successuland productive working relationships in the

    uture. The group has not yet agreed upon

    a defnition o successul relationship that

    meets everyones needs, but members have

    committed to continuing and broadeningthe conversation. A satisactory answer to

    that key question is necessary i both the

    public and private sector are to enjoy a suc

    cessul and prosperous uture.

    There is a classic vaudeville routine that

    begins with a person coming to see his or

    her doctor. The doctor says, What seems to

    be the problem? The patient says, It hurts

    when I do this. The doctor replies, Well

    then, dont do that!

    The ongoing discussion between gov-

    ernment and industry has oten taken the

    orm o that doctor/patient conversation

    with each alternating between the role o

    doctor and that o patient. Government

    tells industry that the traditional structure

    o contracts and licenses no longer works.

    Pressures to downsize and consolidate

    organizations and to operate with sig-

    niicantly reduced and oten uncertain

    budgets make the rigidity o historical

    agreements unworkable. Government is

    looking or industry to propose a new andmore lexible relationship based on greater

    collaboration.

    Industry tells government that regi-

    mented and rigid procurement rules

    prevent them rom proposing their best

    and most creative solutions or ear o

    being judged non-compliant i they stray

    rom the checklist or, even worse, disquali-

    ied or violating procurement rules that

    severely limit interaction and inormation

    exchange i they attempt to engage and

    work together with government outside

    the bounds o the procurement process.

    They are let with no option but to propose

    the traditional, speciied, amiliar and rigid.

    Industry is look ing or government to open

    the door to a new relationship with new

    and more lexible procurement processes.

    In essence, each is saying that the pain

    and rustration they eel is the responsibil

    ity o the other and each is waiting or the

    other to act with more certainty to clear the

    path to shared success.

    Shared Pain

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    industry allows us to pool our resources and

    licenses, says Quinn.

    That approach may work, but it necessi-

    tates a state or other large entity negotiating

    with a vendor on behal o itsel and all the

    smaller cities and counties within it, and a

    desire by those local governments to be

    included and bound by the terms and condi-

    tions to which the state agrees. It also requires

    a solid assessment o the potential size o the

    enterprise and the number o system users

    the agreement may cover so industry can price

    it appropriately. Identiying all those poten-

    tially covered by the agreement and more

    specifcally the number that will actually use

    the agreement is oten very dicult. One

    reason is that without the executive authority

    to compel participation, many jurisdictions will

    simply opt out thereby eliminating much o

    the beneft o an enterprise agreement.

    Ira Levy, CIO o Howard County, Md.,

    believes the answer lies in engaging elected

    ocials in helping change historical systems.

    I have seen success in the reduction o bar-

    riers in creating partnerships and exibility

    when elected ocials and senior manage-

    ment are part o the initial goal setting, says

    Levy. I certainly do not mean that CIOs arenot good negotiators but new models usually

    require process redesign well beyond just the

    technology and procurement departments

    and only when everyone is working together

    are barriers removed.

    The issue becomes even more compli-

    cated as cities and counties look to create

    service relationships with other jurisdic-

    tions where none existed beore. There is

    no history or the larger jurisdiction to draw

    upon when it licenses a system it may wish

    to share. It is impossible or a jurisdiction to

    appropriately scope and scale its contract

    with the vendor when it doesnt know how

    many potential others may be interested in

    sharing the system. That is why government

    wants greater exibility. Creating new rela-

    tionships is not easy. The biggest problem

    our local government has with consolidation

    or sharing is politics. We cant even agree to

    share resources internally because no one

    wants to give up control, says Robert Patterson,

    CIO o Allegheny County, Pa.

    Industry wants to be exible and to help

    get as many people as possible using their

    tools and systems. However, they need to

    have some frm sense o the size o the imple-mentation they are supporting. Is it likely to

    be 100 users? 1,000? 10,000? Without gov-

    ernment identiying specifc jurisdictions

    in advance and the associated probable

    number o users, industry has no data on how

    to develop a pricing plan. Dan Gillison rom

    Sprint says, Without more data rom govern-

    ment we are let with the deault approach

    o structuring an agreement based on seat

    charges or services so we are able to accu

    rately contract or that service and accurately

    track it rom initial use to billing.

    Some see the beginning o a shit starting

    to take place in the way sotware is licensed

    and paid or. Historically, customers paid a large

    upront license ee and small ongoing main

    tenance and support ees or a perpetual

    license granting the right to use the sotware

    orever, even i maintenance was discontin

    ued. This model was fne or projects that were

    unded through large grants or bonds where a

    great deal o capital was available at the star

    o the project. To accurately scope their license

    purchase, organizations needed to correctly

    estimate the ultimate size o the IT environ

    ment right rom the start. In act, the pas

    purchases o perpetual licenses are a catalysor much o the discussion taking place now

    over transer rights or asset disposal as orga

    nizations look or more exibility and legacy

    systems are terminated or downsized.

    Paul Christman o Quest Sotware thinks

    that in the uture a move rom perpetua

    licenses to term licenses where governmen

    pays a at ee or the license, maintenance

    and support that expires at the end o the

    The biggest problem our local government has withconsolidation or sharing is politics. We cant even agreeto share resources internally because no one wants to

    give up control.

    Robert Patterson, CIO, Allegheny County, Pa.

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    contract term may create more ex-

    ibility in todays uncertain environment.

    I believe this model fts an inrastruc-

    ture as a service oering that is sold by a

    centralized organization, says Christman.

    Term licenses are the right unit or new

    ICT organizations to buy because it is the

    same unit they will resell to their clients.

    ICT organizations have more exibility to

    pay as you go and buy what you need

    rather than guess upront how big their IT

    environment is or will be. Unused licenses

    expire and retire automatically. There is no

    need to transer licenses since there is no

    perpetual asset to manage. Simply put,

    term licenses, with their lower upront

    costs, create more exibility and are less

    risky or the buyer. In many cases it is

    the best answer, but ultimately, sotware

    pricing and packaging options need to be

    available to support both exible, virtual-

    ized models unded rom multiple sources

    and those more centralized and unded

    by a single source.But even as things change, industry, like

    government, is bound by budgetary con-

    straints and reporting requirements and

    they want government to understand that

    there are limits on how exible they can

    be. Dan Gillison explained it this way: For

    an agreement to be supportable by indus-

    try it must take into account that private

    sector organizations have their own fnancial

    governance demands as well as ederal

    government compliance and corporate

    reporting requirements that must be met

    under Sarbanes-Oxley legislation.

    As service delivery models continue

    to change, licensing is still an area where

    there needs to be greater understanding

    between the public and private sector.

    One CIO said, I realize that the private

    sector needs to be proftable, but the

    licenses must be priced airly or we will

    begin to see government scale back

    and continue to drop licenses. But what

    is airly? I out o economic neces-

    sity or rustration government drops

    licenses or stops paying or maintenance

    then everyone potentially loses. Govern-

    ments run systems without the beneft o

    vendor support and vendors are denied

    the income streams they need to improve

    and enhance their product oerings.

    Perhaps one impediment to greater

    understanding o licensing cost structure is

    a perception on the part o many in govern-ment that there is always a better deal to be

    had. Negotiated contracts like GSA sched-

    ules or US Communities are oten seen by

    CIOs as simply a starting point or urther

    negotiations. Is it possible then or there to

    be more openness and visibility into indus-

    try approaches to government pricing so

    that through increased transparency every-

    one knows more about what everyone else

    is paying? More open pricing data wouldgive government some added assurance

    they are not paying more than a neighbor

    ing jurisdiction or the same product o

    service, but additional transparency may

    create a serious competitive disadvantage

    or industry.

    Group discussion on this topic wa

    recently summarized by Phil Bertolini. We

    need the private sector to be more exible

    in their licensing models, but the conver

    sation turned to the lack o exibility in

    government procurement. Flexibility goe

    both ways i we are going to change things

    In todays environment, government wil

    become very exible i value is brought to

    the table.

    Both government and industry group

    participants seem to understand and

    appreciate the need or new and innova

    tive licensing schemes to be developed

    that will support a undamental change

    in government operations. A move away

    rom, or at least something in addition to, a

    per seat or even a fxed single enterprise

    license seems to be required. Perhaps the

    answer is the term licensing discussed

    beore; perhaps not. Unortunately, at thi

    point it does not appear that government

    can describe with enough certainty o

    industry what a new collaborative struc

    ture may look like to provide industry

    with a way to calculate a air and reason-able return on their intellectual property

    Meanwhile, government is asking industry

    to propose new licensing and suppor

    models that will then help structure new

    collaborative or multi-jurisdictional coop

    eratives. Unortunately, both sides seem

    to be stalled in a which comes frst, the

    chicken or the egg? conundrum each

    waiting on the other.

    Flexibility goes both ways i we are going to changethings. In todays environment, government will become

    very exible i value is brought to the table.

    Phil Bertolini, County Administrator and CIO, Oakland County, Mich.

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    Government Practices:Rigid and Outdated?

    Government has been clear in its call or

    greater vendor exibility in supporting chang-

    ing ICT organizational and support structures.

    But there are two parts to the success equa-

    tion and two points o view on where and in

    what order the most benefcial changes need

    to take place. Government says contracts and

    industry says procurement. They are eec-

    tively talking about two sides o the same coin.

    IT procurement processes vary by state,

    by county, by city and by agency and that

    can lead to complexity, uncertainty and even

    apprehension when procuring new tech-

    nology solutions, says Lisa Young. There

    needs to be greater exibility or vendors to

    oer creative solutions in a timely manner.

    One option is or government to shit rom

    buying goods to buying broader solutions or

    advanced technology such as cloud comput-

    ing, virtualization and shared services through

    multi-vendor contracts.

    Government willingly concedes that

    changes to procurement are in order

    and while they may be necessary, simply

    changing procurement is not sucient.

    Government seems to be looking or a di-

    erent kind o proposal than those that have

    been typically received.

    I believe that government would become

    more creative and agile, in regard to procure-

    ment, i the vendor community illustratedtangible value or proceeding, says Bertolini.

    Deriving value over a 10- to 20-year time-

    rame does not cut the mustard in todays

    tough economy. The value must be realized in

    the short term.

    But while government says it wants more

    ocus on near-term return on investment and

    help making the business case or invest-

    ment, industry still eels constrained and

    oten prohibited rom oering their best

    solutions and thinking by rigid procurement

    processes.

    Rather than evaluating proposals on the

    merit o the technical solution only, or best

    value, government should incentivize indus-

    try to provide alternate solutions that will

    meet or exceed the requirements rom a busi-

    ness and technical standpoint combined,

    says Ed White rom McAee. In addition, when

    bids are deemed non-compliant due to the

    act that they are not regimented in how they

    respond to the request (i.e. omissions or addi-

    tions) it orces industry to reply at the most

    base level being compliant to the letter

    o the law, answering the mail with nothingmore or nothing less. There is no room or cre-

    ativity without penalty.

    Government procurement practices have

    indeed historically and traditionally penal-

    ized proposals or omissions or unrequested

    additions. In act, ailing to adhere to the

    letter o the law in procurement processes

    have led to challenges and protests rom

    vendors charging that government is ailing

    to compare apples to apples in a air and

    open manner.

    Balancing air and open with increased

    collaboration is no easy task, but it is something

    each side is looking or. Regular governmen

    and industry collaboration is needed to allow

    or open communication without the accusa

    tion that it is providing unair advantage to

    those who participate. State and local gov

    ernments need a mechanism similar to the

    ederal Critical Inrastructure Partnership Advi

    sory Council (CIPAC) model which is exemp

    rom the traditional constraints o the Federa

    Advisory Committee Act (FACA), which limits

    the timerame and scope o what the advi

    sory committee can accomplish, suggestWhite. However, the ederal model beneft

    rom its applicability to a single governmen

    enterprise. State and local governments are al

    governed by separate and individual policies

    and codes making it potentially more dicul

    to establish a more collaborative process.

    Another industry suggestion or improve

    ment would have government begin planning

    or projects sooner and invite vendors to give

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    basic pricing at that time. Terri Jones romHyland Sotware says, I think government

    agencies need to begin their research earlier

    and not mistake the request or proposal

    (RFP) process or research. By consulting

    with their colleagues at other agencies

    or in other jurisdictions, they can identiy

    best practices or deployment early on and

    include them in their eventual RFP process.

    Simply relying on a traditional and rigid RFP

    process without talking to vendors or other

    customers in advance may not result in the

    best deployment, the best vendor or the

    lowest price.

    Industry would like to see greater col-

    laboration and open communication

    among agencies to share best practices,

    business processes and operational

    models in order to identiy areas where

    technology innovation can be shared and

    delivered eciently. Government would

    like to see that too. The question is how

    can that best be accomplished?

    One proposal rom government would

    have industry take more responsibility or

    helping establish a compelling business case

    or investment in addition to explaining the

    unction and beneft o a tool or system. By

    better leveraging the expertise o vendors

    that want to support the public partner-

    ship, I think many o us could have access

    to better data to fnd the ROI aspects that

    are not a part o the standard sales process,says Steve Emanuel, CIO in Montgomery

    County, Md. I believe that vendors that have

    done well in the last 5 to 10 years may have

    options that we can explore and that these

    principles o best practice, implementation

    lessons learned and access to the next level

    o technology and strategy will help public

    sector develop the right business case, the

    eciency and fscal rewards.

    Some signifcant questions still remain.For example, what will industry need rom

    government to be able to provide that

    kind o analysis? How will such analysis be

    worked into a air and open procurement

    process and how ar is government willing

    to go in opening its business practices and

    records to industry?

    Sharing Risk: Vendor Strategies and

    New Technology Models

    Government and industry working

    together not just as customer and sup-

    plier, but as partners developing strategy,

    business case justifcations and ultimately

    sharing risk and reward is a airly signifcant

    change over the status quo in most jurisdic-

    tions. It is something both sides say they

    want but at present the operational param-

    eters o a new relationship like that have not

    been ully defned.

    Perhaps the diculty stems rom the

    act that there are multiple acets to such

    a relationship. There are contractual and

    operational components complicated by

    a changing support environment. The old

    structures and contractual relationshipand business models ocused on service

    silos and individual agency and departmen

    needs are giving way to broad enterprise

    and even multi-jurisdictional strategies. The

    technology itsel is also changing. More

    robust, capable and aordable systems are

    able to accommodate multiple users in a

    shared environment and are acting as a

    magnet pulling people toward an uncertain

    uture. We used to be able to predict need

    and outcomes over a 2 to 3 year period o

    time, but with the current rate o techno

    logical change combined with changes in

    political and organizational priorities, we are

    lucky these days to predict needs and satis

    action outcomes six months to a year out

    That makes investment decisions (people

    services and solutions) ten times harder,

    says Emanuel.

    As they contemplate the nature o the

    change and the role their industry partner

    will play, CIOs routinely throw around term

    like partnership and shared risk. This i

    especially true when they are talking abou

    new technologies or support models like

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    cloud computing. For example, Phil Bertolini

    says, I believe that the hybrid cloud is a way

    to bring the partners together to reap the ben-

    efts. Government would beneft rom lower

    costs and the vendors would beneft and

    proft rom oering the cloud-based services.

    Utilizing governments inrastructure creates

    a trusted relationship that the vendors/part-

    ners can trade o o. Steve Emanuel took the

    concept one step urther: In the hybrid cloud

    the government would be providing the phys-

    ical data center and lending its reputation to

    the partnership. The vendors would supply the

    technical inrastructure and reap the profts.

    This kind o relationship would be considered

    sharing the risk.

    That kind o proposal raises some signif-

    cant questions. For example, exactly what

    risk is being shared? Who are the eligible

    customers or such a service oering; who

    decides that and who recruits them? What

    happens when something goes wrong? Whois legally liable and or what are they liable? Is

    it appropriate or even legal or a private entity

    to make a proft utilizing governments inra-

    structure? Some states have prohibitions

    against giting public assets in this ashion

    that may bar such a relationship. Is it appropri-

    ate or a government to lend its reputation

    to a private entity? I it did, would industry

    view that as valuable?

    Despite some unanswered questions, there

    is interest in fnding a way to provide services

    based on a new and dierent relationship

    between government and industry. Numer-

    ous CIOs have said they are interested in

    participating in a service solution that includes

    both government and industry working as

    joint providers. Emanuel says, I remember

    asking one vendor that is in the storage busi-

    ness, what it would take or them to consider

    building cloud-type storage in my colleagues

    data center. While my accessing their storage

    capacity would be a service I would purchase

    rom them as a private company, I have ewer

    security concerns about buying cloud services

    knowing that a government colleague would

    be assisting in the management o security

    and connectivity.

    That kind o arrangement might ease the

    nerves o CIOs, but it isnt clear that it would

    signifcantly reduce cost or greatly improve the

    services provided and received under currentmodels. However, industry is interested in

    working closely with government to explore

    the potential o new relationships and struc-

    tures as long as both parties are willing and

    able to change.

    There have been many types o share in

    savings models brought orward over the

    years. Some around award ees i the vendor

    exceeds specifc service level agreements

    (SLA) or other benchmarks, but nothing thahas been derived rom a collaborative per

    spective around business models, points ou

    Ed White. I through close collaboration

    it is determined that there is a need or

    new model, then the government should be

    willing to participate in promoting that mode

    and encouraging use by other jurisdictions, o

    without use it is destined to ail.

    That view would seem to require that gov

    ernment not only take on an active role in

    defning a new, joint business model but som

    signifcant responsibility as part o the part

    nership or successully marketing it. Would

    government participating in a partnership

    relationship like this with a private entity and

    marketing their services to other government

    place them in competition with other private

    sector companies and perhaps in violation o

    procurement or other statutes? White doesn

    think so as long as what government promote

    and endorses is the concept o doing busines

    in a better way and not a specifc contracto

    or solution.

    There are clearly some signifcant que

    tions that have yet to be asked and answered

    but both government and industry seem to

    be in ull agreement that this is the time to

    undamentally rethink the nature o what con

    stitutes a successul relationship and evaluat

    the possibility o moving beyond the historica

    provider to a customer relationship and into

    a truer orm o partnership.

    Partnership: Be Careful What You

    Ask For

    The term partnership is generally use

    as the most common descriptor o a new

    and dierent kind o relationship between

    government and industry. The notion o

    government and industry working togethe

    in partnership, or perhaps more accurately

    In the hybrid cloud the governmentwould be providing the physical datacenter and lending its reputation to thepartnership. The vendors would supplythe technical inrastructure and reap theprofts. This kind o relationship would beconsidered sharing the risk.

    Steve Emanuel, CIO, Montgomery County, Md.

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    public-private partnership has been dis-

    cussed or many years. In 2006, the National

    Association o State Chie Inormation O-

    cers (NASCIO) Corporate Leadership Council

    (CLC) explored the issue.

    In looking at the defnition o partnership

    they postulated, The nature o partner-

    ships are oten in the eye o the beholder,

    however, there is a key distinguishing actor

    o public-private partnerships: the transer

    o risk between partners. The appropri-

    ate allocation o risk is the big question

    to answer, but always necessary to the

    success o the partnership.

    The appropriate allocation o risk is at the

    heart o the discussions the CIO Working

    Group has been having. It is perhaps

    more complicated now than ever beore,

    though, as fscal conditions are driving gov-

    ernments to seek out more complicated

    relationships with non-traditional partners

    in search o sustainable economic and

    technical exibility.

    Working Group members recognize

    that i there is going to be success, someundamental things have to happen and

    there are other things they would like to

    see change.

    One CIO would like to see agreements

    organized this way: The public-private

    partnership will be successul i frm goals

    are established and agreed to at the outset

    o the relationship. For example, the stated

    goals o the deal should be: cost-eective

    price, quick implementation, exible licens-

    ing model and invoicing system, solid

    technical roadmap to ease upgrades, and

    increased unctionality that meets our

    needs. This will allow or objective metrics

    to measure success o the business partner-

    ship and mitigate the transaction risk or

    both parties.

    Those are indeed fne metrics rom a

    government customer standpoint, but

    what in there speaks to a partnership

    where both risks and rewards are shared

    equally? Perhaps more to the point, how

    and by whom will, cost eective, quick,

    exible, and solid be defned? The

    CIOs approach may go a long way toward

    making a traditional sale and implemen-

    tation successul but it doesnt seem to

    provide a oundation or partnership.

    The uncertainty some industry

    members o the group have demonstrated

    when challenged by government to

    enthusiastically engage in discussion o

    greater and more open collaboration is

    understandable. One sotware companyexecutive put it this way: For government

    the historical view o collaboration has

    always been one-way, restricted, govern-

    ment to industry. The mindset is that open

    collaboration is not allowed. That needs to

    be changed. It has to be championed rom

    within the government. As long as the reg-

    ulatory mechanisms are there or it to take

    place then it will ourish and grow.

    Industry has always been in avor oclose collaboration, as long as it is thei

    company that enjoys the beneft o that

    collaboration. Moving toward a true part

    nership model, by defnition, means tha

    under uture agreements some companie

    will be even closer to their historical cus

    tomers while others will be essentially le

    on the outside. Another question that ha

    yet to be answered is: What are the appro

    priate regulatory mechanisms that wi

    allow or the creation o closer partnership

    while respecting the legal mandates or ai

    and open competition?

    There is one major point on which the

    group seems to have come to consensus

    To successully identiy and implemen

    new working relationships, the operat

    ing principles and constraints that each

    public and private must operate

    under need to be demystiied and bette

    understood.

    Government is bound by laws and

    policies that vary rom jurisdiction to juris

    diction. It is also under unprecedented

    fscal pressure, resulting in budgets and

    sta levels being routinely cut.

    However, government isnt alone in

    acing pressure. The private sector wants to

    successully work with government, but like

    government, there are budgets that mus

    be adhered to and per ormance goals tha

    must be met. O ten what may be perceivedby government as private sector reluctance

    to engage in reewheeling negotiations

    stems rom industrys need to meet com

    pliance and reporting requirements placed

    on it by some level o government. New

    relationships, whatever orm they may take

    need to be built upon a ull and reciproca

    understanding o the business and lega

    realities both parties must navigate.

    To successully identiy and implement new workingrelationships, the operating principles and constraintsthat each public and private must operate underneed to be demystifed and better understood.

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    There is a good reason the changing

    nature o the relationship between the

    public and private sector has been at the

    top o the CIO Working Group agenda or

    the past year. The more group members

    interact and talk with each other, the clearer

    it has become: The old way o doing things

    simply isnt working very well or govern-

    ment or industry.

    There are many questions that still need

    to be answered beore signiicant change is

    likely. First among them seems to be, Who

    moves irst?

    Phil Bertolini says, Governments must

    learn to work closer with the private sector

    to survive and the private sec tor must learn

    to work closer with government to remain

    proitable. We need each other! But irst,

    governments need to learn to work with

    each other more closely; in many cases

    this is where the partnerships break down.

    Maybe the private sector could create

    innovative licensing models that reward

    government cross-boundary partnerships.

    So then, what would these innovative

    licensing models look like and how can

    industry be expected to accomplish this

    when government, by its own admission,

    oten has diiculty working in a coopera-tive environment?

    It would seem that Steve Emanuel has

    identiied a undamental prerequisite or

    change when he says, I keep coming back

    to trying to better understand how govern-

    ment best aligns with the private sector

    capabilities that surround us. To a large

    degree, Steves view is shared by his CIO

    peers. Does this mean that government is

    willing to align itsel according to the capa-

    bility industry is positioned to provide, or

    will the traditional demand or industry

    to conorm to the unique and individual

    desires o separate government entities

    continue to prevail?

    The stakes are high or both government

    and industry. Phil Bertolini summarizes

    CIO concern when he says, I we do not

    ind a way to change the way we work

    together then the drag on government IT

    will become so strong it may kill innova-

    tion as we know it. As revenues continue

    to decline, the ability to remain innovative

    is strained. New models need to be devel-

    oped and tested. We cannot keep moving

    orward in our old paradigm.

    Ed White sees it the same way on the

    industry side. I things dont change we

    will only see status quo, consolidation

    and missed opportunity. There will be

    limited innovation without better collabo-

    ration between government and industry.

    Shrinking budgets will orce industry into a

    consolidation that promotes a risk-adverse

    posture. This will in turn drive industry to

    deliver to the lowest common denomina-

    tor to remain competitive, thereby stiling

    innovation. There will be some innovativethinkers that will remain, but without gov-

    ernment having access to them through an

    easy, collaborative mechanism, the oppor-

    tunity to beneit rom their advances and

    new ideas will be missed.

    The good news is there is cause or

    optimism. Government and industry are

    committed to continuing their dialogue in

    an eort to better understand each other

    and to ind a better way to work togethe

    I believe that there are business entitie

    that are looking at government as mor

    than a customer, but we need to ind

    way to develop an approach that talks to

    the government need, iscal condition and

    legislative constraints while ensuring tha

    businesses are not over extended, incor

    porating new and unnecessary risk, say

    Steve Emanuel.

    So perhaps the solution to the problem

    o who moves irst isnt an either/or sce

    nario ater all. Through the current proces

    o interaction and engagement both gov

    ernment and industry are developing a

    better understanding o the challenge

    and opportunities they share. The best wa

    to make real and lasting progress and to

    improve the working relationship between

    government and industry is or both side

    to continue down the path together. Ate

    all, together they share the responsibilit

    or answering the only question that really

    matters and that is, How can governmen

    best provide the services citizens need

    and expect? By keeping the conversation

    going in a spirit o good will and with the

    courage to both stand up and speak and

    sit down and listen there is no doubt thaby their continuing to work together tha

    question will be satisactorily answered.

    Summary and Next Steps

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    The Center or Digital Government and Government Technologywould like to thank the

    Digital Communities CIO Leadership Group members or their support and assistance in the

    creation o this report, with special recognition to the ollowing task orce members or their

    specifc contributions.

    2011 e.Republic. All rights reserved.

    www.digitalcommunities.

    IndustryMembers:

    Peter Anderson Fort Worth, Texas, Chie Inormation Ocer

    Glenn Angstadt Chester County, Pa., Chie Inormation Ocer

    Phil Bertolini Oakland County, Mich., Deputy County Executive and CIO

    Mike Bilardo Hyland-OnBase

    Paul Christman Quest Sotware

    Otto Doll Minneapolis, Minn., Chie Inormation Ocer

    Steven Emanuel Montgomery County, Md., Chie Inormation Ocer

    Daniel Gillison Sprint

    Terri Jones Hyland-OnBase

    Ira Levy Howard County, Md., Chie Inormation Ocer

    Catherine Maras Bexar County, Texas, Chie Inormation Ocer

    Robert Patterson Allegheny County, Pa., Chie Inormation Ocer

    Gary Quinn Suolk County, N.Y., Chie Inormation Ocer

    Edward White McAee

    Lisa Young AT&T