Creating Agility within GovernmentLEARNING FROM THE PRIVATE SECTOR AND INDUSTRY

AUGUST 18-19, 2015, MELBOURNE [30]Klaus FelscheC21 DirectionsC21Directions@gmail.com

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IT projects take years to provide outdated technology to users, … this needs to change, or else IT risks becoming irrelevant.IT departments are running a "very serious risk" of not meeting user expectations by continuing their traditional processes, which are detailed and precise, with lots of documentation defining business requirements.

Such processes take years, and, when they are done, end up delivering obsolete technology. We are just wasting our time if we go through these processes.http://www.zdnet.com.au/it-just-like-alice-in-wonderland-defence-339334268.htm?ocid=nl_TNB_22032012_fea_1

Department of Defence

CIO Greg Farr , 2012

A common issue …

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Case 1: Trying to enhance client service

RESEARCH PROJECT

Can we predict when the Department will receive information requests or visa applications by identifying trends in social media ‘chatter’ and call centre activity?

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4Research Project (Part of a PhD)• Problem 1:

• Can we be ready for a surge of visa applications and related enquiries by seeing patterns in social media channels?

• If we can then we can resource the enquiry/application channel in advance.

• Problem 2:• Most of our clients will not speak English.• If we can monitor multi-lingual Facebook, Twitter,

Weibo and call centre activity and identify patterns, client service will be enhanced.

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5Research Project - Result

• Yes, we can!• Accuracy is reasonable, tools (largely FOS) are

available.• We can see the ‘lag factor’ between an emerging issue

in any of the channels and see related patterns in other channels.

• This was a research project and has not yet been operationalised but it demonstrates capabilities using existing, available data channels – and combining internal data (call centre, visa applications) with social media data.

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Case 2: Real time Analytics to identify risk in air traveller caseload

OPERATIONAL SYSTEM

Deploy complex analytics models to assess risk in high-volume, high-speed traveller data.

Challenges: accuracy, robustness, speed, acceptance in the workplace

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7New Concept, New Technology• Replace rules-based,

intuitive risk identification based on experience with the world’s first real-time analytics border risk system

• Screening every one of the 16 million inbound travellers in seconds before they have completed their check-in at the overseas airport

BRIS

Refused Clearance

Manual Inspections

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8New Concept, New Technology• 18 months from concept

to full operations• 2 months in the lab• 10 months as a

dynamic prototype• 6 months to deploy as

a full production system

• Less than $1 million• Delivered 2013• Conservative ROI to date

• $24 million and rising• Basis for new systems

BRIS

Refused Clearance

Manual Inspections 100 000 l

250 000 R 12 000 000 $

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9Agility in Big Industry:A question to Amazon

Q: How does Amazon enable innovation?

A: When someone has an idea, they just take a set of transaction data and test it. If this is promising, we look at a business case to see if and how we can implement it. (Rajeev Sastogi, Amazon India, BDS, 10 Aug 2015)

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10Lesson for GovernmentInnovation through experimentation is part of the organisational DNA:

• Amazon supports experimentation• technical support for experimentation is readily available.

• Time and opportunity are available for staff to test ideas.

• A mechanism for moving a proven (in the lab) idea into full production is in place.

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10 Tips:Creating Agility

Lessons Learnt from a case study: The Border Risk Identification System

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12The Tips1.  Attract, develop and retain smart

people. • The best software, most powerful platforms,

highest possible funding level will do little to enhance performance.

• Smart people understand the business and are solution-focussed. They know their trade.

• In most cases you will need team members (different skills but able to work well with others.)

• Hint: retain smart people by letting them achieve.

Of Interest:

A RAAF Fighter pilot gets paid less than a QANTAS jet pilot.

Q. How does the RAAF keep its fighter pilots?

A. They let them fly and do barrel rolls – the latter is frowned upon by QANTAS.

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13The Tips2.  Allow people time and opportunity to think.

• People are unlikely to think ‘outside the square’ while drowning in work.

• Create windows of opportunity to ‘think’

3.  Provide an opportunity for people to test their ideas.

• Amazon example. The lab needs to be secure and managed without constraining experimentation.

• DIBP and the ATO have multiple labs – each able to support different levels of experimentation and security settings largely dictated by the data used in the lab.

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14The Tips4.  Provide a mechanism for taking good ideas further. Recognise potential value early.

• Lab results can demonstrate potential business value.• If a great idea doesn’t leave the lab it is worth little.• In our experience, a dynamic prototype can expose the

idea to end users and executives who can then identify resources to implement the concept.

5.  Accept failure as a positive (failing for the right reason and early, cheaply).

• Fear of failing prevents experimentation.• Accepting failure as a positive encourages innovation.

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15The Tips6.  Seize unexpected opportunities.

• There are numerous example where experimenting to find one solution has resulted in the discovery of others.

• Smart people with an understanding of your business will seize unexpected opportunities and you need to be in a position to exploit this opportunity.

• Examples:• BRIS• UK92480

Angina Pectoris is the name for chest pain—specifically, spasms in the heart's coronary arteries. The pharmaceutical company Pfizer developed a pill named UK92480 to help constrict these arteries to relieve pain. The pill failed its primary purpose, but the secondary side effect was startling.

The drug became known as Viagra. Pfizer sold $288 million worth in the first quarter of 2013.

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16The Tips7.   Deliver incrementally towards strategic goals. Consider a 'spiral', iterative development. Be prepared to make changes as you progress and learn but focus on the strategic vision.

• Around 40% of large ($15m +) projects fail and 17% go so badly as to threaten the existence of the organisation.

• Queensland Department of Health payroll project, which ended in debacle with costs estimated at $1.2 billion

• The abandoned NHZ record system (UK) has cost £10 billion.

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17The Tips8.    If the thing you're doing is new to the organisation, educate the organisation as you progress.

• Consider the value of an agile prototype.• Show the ‘product’• Get comments• Make changes quickly• Show again.

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18The Tips9.     Treat innovation as a culture, not a project. Don't put innovation into an organisational 'box’.

• Grant ‘permission to think’ throughout the organisation, not just in an Innovation Section!

• Reward ideas• Rewards should be appropriate noting that

professionals tend to value seeing their ideas being taken up and used more than a $200 bonus.

• Leverage the world of ideas:• Internal crowd sourcing• Global Crowd Sourcing, competitions, ‘hacks’

Kaggle

Identify individual users across their digital devices

7.5 days316 teams189 scripts$10,000

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19The Tips10.     People first, not platforms, not process, not tools.

• Platforms:• Commodity hardware for lab work is cheap and

readily available. If it fails, get a new one!• Software is either free, cheap or already installed

(eg MS Office). Before committing to an expensive solution, look around – your smart people will assist!

• People:• Build a core team that understands the business,

understands the data and tools.• Ensure that the team has good leadership.

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•Close to real-world environment

•Follow/mimic normal business processes

•Limit exposure (range/depth)

•Build Business case•Confirm design

•Develop business processes

• Take lessons learnt from prototype

• Incorporates design lessons from prototype

• Low cost• Mimic much of the

operational environment

• Measure potential business impacts

• Small cost for failure

• Build business case

•Low Cost•Minimal Consequence if failure•Freedom to try innovative concepts•Requires suitable infrastructure•Administrative processes must be flexible

1. Lab 2. Test

3. Prototy

pe4.

Production - Deployment

Here is a Process that Works

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21Innovation InhibitorsC21 Directions

How does that idea fit into the corporate architecture?

That isn’t our responsibility?

Do you have an approved project?

Do you have funding?

Where is the governance documentation / architectural solution / …

Where is the legal / privacy clearance?

We have other priorities (eg stabilising existing platforms).

Do it with existing corporate tools.

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22High Entry Cost Traditional Waterfall project methodology mixed with conservative governance:

• Project Manager: $100 000 - $200 000 pa• Business Analyst: $100 000 - $200 000 pa• Architect (Part-Time): $100 000• Security Assessment: $100 000• + Hardware• + Software Licensing• +

Result:A good but unproven idea will require considerable lead time and almost half a mission dollars to get a start.

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