The Power of Technology in Federal Agencies by GovLoop

The Power of Technology in Federal Agencies RESEARCH BRIEF

Executive Summary State and local governments have long endured staff shortages and shrinking budgets. That’s forced those agencies to reimagine the way they combine technology and personnel to build the most efficient processes that also meet citizen needs. Now, spurred by White House memorandum OMB 17-22 on increasing agency efficiency, the federal government is being challenged to do the same. To learn more about how agencies are dealing with this climate, in a recent survey, GovLoop asked 211 federal government employees if they felt their agencies were ready to confront the pressures of reform. Responses showed significant doubt regarding if and how agencies could achieve efficiency goals. Nevertheless, Terri Jones, Government Marketing Principal at Hyland, offered hope for these agencies. Hyland provides enterprise content management (ECM) software to streamline organizations’ information capture and process management. In an interview with GovLoop, Jones explained how federal agencies can use technology – specifically ECM technologies that automate and streamline agency information and processes – to achieve reform goals. To meet the directive to become more productive with fewer resources, federal agencies must reconsider the way they capture content, manage processes and allocate staff time. ECM can help leaders meet these objectives and transform operations.

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The Pressures of Federal Reform have plagued state and local governments for years and impacted program and service delivery.

OMB’s April 2017 memo provided a “Comprehensive Plan for Reforming the Federal Government and Reducing the Federal Civilian Workforce.” It calls on agencies to “create a lean, accountable, more efficient government” by scrutinizing processes, eliminating redundant programs and cutting staff. But the OMB memo gave agencies less than three months to develop a reform and reorganization plan for making those drastic changes. That tight deadline, coupled with the potential of intense budget cuts, means that agencies need to make changes fast. Many survey respondents indicated that their agencies aren’t confident in meeting OMB 17-22’s goals. In fact, less than one-quarter of respondents said their agency definitely had a plan in place to meet the memo’s directive of eliminating redundant programs and reducing the workforce (Figure 1). Additionally, only 17 percent of employees said their agency would definitely meet the deadline to formalize a strategy for increasing efficiency (Figure 2). Even if agencies continue to pursue the memo’s objectives, they are likely to be doing so under time and resource constraints. Regardless, reform would be required. Even if the administration wasn’t instituting change on an official level, federal agencies still face many of the challenges – including duplicative, paperbased processes and outdated IT systems – which

FIGURE 3 What tactics will your agency take to meet OMB memo 17-22’s directive? (Check all that apply)

The difference in state and local government is that many of those organizations have already carved a path forward to digital reform using technology. For instance, the state of South Carolina used the OnBase ECM platform to consolidate 100 financial management systems and 60 human resources systems. That consolidation led to nearly $7 million in savings by reducing duplicative programs and systems, and streamlining the way workers accessed government information.

67%

FIGURE 1 Does your agency currently have a plan in place to meet the OMB memo 17-22’s directive of eliminating redundant programs and reducing workforce? Yes No I’m not sure

According to survey respondents, federal agencies are taking note and adopting strategies already used by their state and local counterparts. For example, rather than simply reducing the workforce to meet budget constraints, leaders are beginning to pursue a number of tactics to streamline operations via technology. In fact, only 34 percent of respondents said their agencies would cut staff to meet OMB’s directive. Instead, more than half of agencies are following a multipronged approach to reform with tactics like modernizing legacy IT systems and seeking efficiencies in existing resources (Figure 3).

24%

4% 19%

17%

34%

26%

FIGURE 2 Do you anticipate that your agency will meet the June 30 deadline for formalizing a plan to meet the memo requirements? Yes, definitely

Focusing on optimization, rather than cuts, is the clear way forward. Creating efficiency in government, however, does not come without unique hurdles

Probably Maybe It’s unlikely Definitely not

74% 60%

58%

52% 34%

Becoming more efficient with existing resources

Modernizing legacy IT systems

Reducing duplicative processes

Cutting redundant programs

THE POWER OF TECHNOLOGY IN FEDERAL AGENCIES

Reducing our workforce

Challenges to Better Processes The pressure to become “lean, accountable, (and) more efficient” continues to grow in federal government. There are significant challenges, however, to making that happen. The biggest challenge, according to survey respondents? According to employees, it’s resource constraints (Figure 4). While budgets are certainly shrinking, there are other pressures exacerbating resource problems. Specifically, duplicative processes, paper-based systems and outdated technologies hinder agencies from increasing efficiency.

37%

FIGURE 4 What do you think are your agency’s biggest challenges to becoming a more “lean, accountable, more efficient” organization as OMB memo 17-22 describes? (Check all that apply)

27%

We don’t have enough resources to strategically reassess our current processes

We don’t have the technologies in place to support this goal

15%

14%

We don’t know how to approach this goal & need further guidance

Our personnel or leadership are unwilling to make the necessary cuts in staff

CHALLENGE 1: DUPLICATIVE PROCESSES One of the biggest roadblocks for agency reform are current processes, which are often duplicated across departments and agencies, said Terri Jones, Hyland’s Government Marketing Principal. “The way that government develops programs and services isn’t always a coordinated effort,” she said. “Agencies identify a problem, a bad event or a good event, or a new administration is elected and they have initiatives to run on that are important to the American people. Then leaders add a new program, a service or a grant program to an existing agency. Those things are built up over time, and they’re not necessarily coordinated.” Often, processes and the tools that support them are crafted in response to a specific problem or scenario. That creates duplication, which not only

unnecessarily increases operational costs but also makes it difficult to maintain and monitor progress on initiatives. As a result, agencies attempt to streamline workflows without full visibility into how processes are connected to other processes, initiatives and personnel. OMB 17-22 explicitly directs agencies to reduce and optimize these programs, noting that leaders should “focus the federal government on effectively and efficiently delivering those programs that are the highest needs to citizens and where there is a unique federal role rather than assuming current programs are optimally designed or even needed.” But that’s difficult when agencies don’t have the tools to locate and scrutinize their processes.

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27%

18%

46%

FIGURE 5 Looking at your organization, do you think there are significant duplicative processes and technologies? Yes, multiple Some Very few None

CHALLENGE 2: PAPER-BASED SYSTEMS When processes start on paper – say, an application completed by a citizen or a form completed by a department leader – it’s usually up to government workers to either complete that task on paper or enter that document’s information into a data system to initiate digital processes. While the latter tactic is more common, manual data entry is still time-consuming. What’s more, it’s often completed by multiple workers when a document is presented to multiple departments at the onset of a process.

What’s more, the burdens of duplicative processes are compounded by what Jones calls a “duplication of effort.” Multiple government workers often complete the same tasks, simply because they don’t have access to the information other personnel are using. As a result, two workers in different departments may be working on the same request, using the same data. Yet each employee is following his own siloed process of investigation and request completion, because he isn’t connected to the other employee or the information she’s using. That might sound like a data access or management problem, but it’s really a paper problem. As Jones explained, “An entity the size of the federal government relies on data systems to manage things. And a lot of time and money has been spent looking at those data systems. But what hasn’t been dealt with is the fact that those processes by and large are starting in a paperbased world.”

Jones impressed the need to remove or automate paper-based data processes. “There’s been a lot of work around collecting data in the federal government, but almost no effort around eliminating the paper that runs the programs and consumes so much staff time,” she said. “That’s what we need to focus on today.”

“An entity the size of the federal government relies on data systems to manage things. And we’ve spent a lot of time and money looking at those data systems. But what we haven’t ever dealt with is the fact that those processes by and large are starting in a paperbased world.” TERRI JONES Government Marketing Principal, Hyland

CHALLENGE 3: OUTDATED TECHNOLOGY To remedy process inefficiencies, agencies will require digital technologies that can streamline workflows. Technologies to overcome these duplicative and paper-based processes, however, are often lacking in federal agencies today. In fact, more than one-quarter of survey respondents said their agencies don’t have technologies in place to support OMB’s goal of becoming more efficient (Figure 8) and only 26 percent felt their technologies empowered them to serve citizens (Figure 6). Clearly, agencies need new tools but many respondents felt that they lacked the resources to invest in new technologies (Figure 8). Instead, agency workers feel forced to use technologies that are based on and promote inefficient processes. While those outdated and legacy systems present their own problems, including increasing infrastructure complexity and consuming staff time, they also provide another barrier to reform efforts. As Jones explained, past technology projects may give agency leaders a skewed view of the cost of innovation.

“If you ask staff about the question of resources, and they’re thinking back to some of the highprofile, large systems that their departments have already paid for, they’re absolutely right,” she said. “There would never be enough resources to support those. Custom-built solutions cost hundreds of millions of dollars, and they’re very difficult to upgrade or change.” Not only are large, custom-built solutions costly, they also present additional resource challenges because their deployment and management can span multiple budgeting cycles. “Political cycles that only last a certain period of time can really complicate the resourcing issue, because you’re probably talking about a decade’s worth of work – given the length and breadth of infrastructure today – but presidents run for office every four years. How long can you really anticipate access to persistent funding?” Jones said.

6% 18%

26%

50%

FIGURE 6 How well do you think your technologies and digital services allow you to meet the demands of your citizens? Very well–Our technologies empower me to serve citizens Adequate–Our technologies don’t prevent me from serving citizens Poor–Our technologies don’t help me serve citizens Very poor–Our technologies actually hinder me from helping citizens

Finding rapid deployment tools can actually alleviate many of the resource pressures already placed on budgets, while reducing duplication and eliminating paper.

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The Role of Technology in Efficient Modernization While any new technology requires upfront investment, that doesn’t mean that it will require additional resources. Instead, Jones explained that new technologies – specifically ones that can automate time-consuming tasks and reduce duplication – can actually reallocate resources and alleviate constraints. With the right technology, agencies can cut costs associated with duplication, paper-based processes and even the maintenance and upgrades of legacy tools. At the same time, they can increase efficiencies by streamlining and automating workflows. That allows workers to focus on mission-critical tasks rather than simply completing turnkey tasks like data entry. According to our survey, agencies are starting to realize the potential of IT modernization to make progress under tight budgets. Nearly 50 percent of respondents said their agency was in the process or planned to modernize IT legacy systems (Figure 7). Individually, many respondents also called out the unique role that technology could play in meeting reform mandates (Figure 8).

FIGURE 8

What role do you see technology playing in your agency meeting the OMB mandate? “Modernizing and retiring legacy systems will change the way the staff works. It can possibly remove burdensome or redundant processes, opening time to focus on [the] mission (ideally).” “If approached in a wise, thoughtful and innovative manner, technology can assist our restructuring to create a highly efficient, effective and valuable agency better serving our nation.” “Technology is necessary to both model and to track progress in meeting the goal, both for OMB and the affected agencies.” “Technology will be widely utilized across our agency due to the volume of work, to include operational demands.”

42%

10%

29%

“At CDC, the process to update information on the website is very lengthy. If we could improve this process, we could get information out to the public faster.”

19%

“Technology will have to play a central role, the only way to see significant improvements in efficiency and/or a reduction in workforce is through technology.”

FIGURE 7 Is your agency in the process, or does it have plans, to replace or modernize its legacy IT systems? Yes, we are already modernizing our systems Yes, we have plans to modernize

“Technology can play a significant role, providing it is utilized as much as possible. Teleconferencing, scan and emails, programming, automation and if personnel has the skills to use the technology correctly.”

No, we have no plans to modernize our systems I don’t know

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“Federal government has to make sure they’re looking at application development that’s rapid and that simplifies the platforms IT staff use. Being able to simplify the number of tools that agencies are supporting also changes the map about how fast they could modernize, and how fast that impact would be felt by the frontline staff.” TERRI JONES, Government Marketing Principal, Hyland

a notification to let government workers know there is an application, we’ve already eliminated a lot of data entry and time.”

Of course, not all technologies will fit the bill. As Jones noted, custom-built tools that require significant configuration and maintenance will only further strain agency resources. They are also unlikely to produce the efficiency and productivity results that federal government seeks, as they complicate IT infrastructures and the processes they support. “Federal government has to make sure they’re looking at application development that’s rapid and that simplifies the platforms IT staff use,” Jones said. “Being able to simplify the number of tools that agencies are supporting also changes the equation for how fast they could modernize, and how fast that impact would be felt by the frontline staff.” But more than simply consolidating tools, Jones encouraged agencies to seek a platform that could automate many of the cost-consuming tasks associated with outdated technologies and processes. Survey respondents agreed – 56.8 percent of them said automation would play a role in their agency’s tactics to meet the demands of OMB 17-22 (Figure 9). Specifically, agencies should seek technologies that automate data capture and organization so that information can be quickly accessed and analyzed by government workers. Enterprise content management (ECM) systems do just that. Jones offered a scenario: “Imagine if a citizen could apply for a service through a federal agency. If they can complete that electronically and attach images of any supporting documents, and then that can be routed to intake automatically, with

By automating data capture from scanners, electronic locations and mobile devices, and ingesting data in a variety of ways, ECM automatically extracts data from incoming documents. This reduces paper costs, minimizes manual data entry and speeds up processes. Platforms like OnBase by Hyland can also automate repetitive tasks while delivering meaningful exceptions to the right people at the right time. That saves times on turnkey requests while allowing workers to focus on high-level needs. “Plus, that information can be stored in a central place where other staff can access that information. So you’re letting peers build on that information rather than having a citizen provide the same data multiple times or have employees searching for data across the agency,” Jones said.

35%

15%

42%

FIGURE 9 What role do you see automation playing in your agency’s tactics to meet the demands of OMB 17-22? Automation will be critical to our strategy Automation will be one of many components of our strategy Automation will not be a factor in our strategy I don’t know

Jones said she’s witnessed state and local organizations handle 40 percent more workload with the same amount of staff and resources, simply by applying automated ECM technology. In one instance, the town of Gilbert was able to save 16 hours of working time per month by using OnBase AnyDoc to automatically index documents. As a result, Gilbert employees processed more than 250,000 documents in a year and a half – a record for the town. Federal government could achieve the same results if it pursued similar platforms to capture and manage its information.

THE POWER OF TECHNOLOGY IN FEDERAL AGENCIES

Using an ECM Platform to Achieve Reform Objectives Technology can play a crucial role in helping federal agencies achieve their efficiency goals without cutting staff or overstretching their budgets. Specifically, an ECM platform can automate and streamline processes while reducing paper-based work. It’s important, however, that leaders thoughtfully select ECM tools that fit agency needs and processes. As one survey respondent pointed out, “It’s not about the technology that will be utilized, it’s about using the right technology to benefit the processes needed to streamline our efforts.” In addition to providing automation capabilities, leaders should seek an ECM platform that encompasses these six critical capabilities:

1. CAPTURE 100110100 001001101 110101001

No matter where your agency’s documents are located or what format they come in, your platform should be able to capture them right at their source. Data capture helps eliminate costly, paper-based processes. “Even if people have to complete paper-based forms now, we can capture that electronically and create virtual project files that are just so much easier to handle, and much less expensive to manage over time,” Jones said. Capture functionality also reduces duplication. By automatically reading paper forms and translating them into digital information, an ECM can eliminate manual data entry. Once data is captured in a digital format, your platform should also automatically index, organize and classify your documents, as well as the data they contain, into a single system.

2. MANAGE With all your data, documents and processes on a single platform, you can better manage your information. Structured processes, with predictable steps and outcomes that can be mapped on a flowchart, can be optimized and improved with a platform like OnBase. Specifically, make sure your platform can automate repetitive process steps, leaving only exceptions and unpredictable processes for your knowledge workers to manage. This automated management saves both time and effort, allowing workers to focus on priority tasks. It also gives users – including remote and field staff – greater visibility into agency information because all documents and data are collected in a single, organized system.

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3. ACCESS More than capturing and organizing your information, the ideal ECM platform will also make critical content available to the people who need it, wherever they are, from almost any device or application. That enables agency workers to work the way they are most comfortable and most productive. Creating an accessible experience that is unique to user preferences makes adoption far more likely.

4. INTEGRATE One of the biggest costs associated with custom-built technologies is the need to manually configure and upgrade them to interact with other systems and processes. Because many agency users leverage more than one IT system to complete their jobs, it’s necessary to connect your ECM to other technologies. But this doesn’t have to be cumbersome or costly. A software-based ECM platform can drastically reduce maintenance and integration costs. OnBase, for instance, is built to integrate seamlessly with core applications without the addition of custom code. With that automated solution, not only is content instantly available directly from those connected applications, the systems also synchronize data in real time, behind the scenes.

5. MEASURE You can only improve what you measure. An ECM platform should enable users and agency leaders to monitor and report on the information and activities it facilitates. “There is a reporting component to this, and it really rides on the idea that once you’ve automated a process and made it paperless, that you are better able to monitor what’s going on,” Jones said. “One of the long-term struggles under OMB 17-22 will be the continuous improvement issue.” With a single view of agency processes, leaders can identify and eliminate bottlenecks and prepare for audits with immediate insight into what information they have and what information they need – without involving IT administrators.

6. STORE Ultimately, consolidating your content into one system eliminates the need to manage it across a variety of databases, systems and physical storage locations. But your platform should do more to maximize storage. As with any system that manages government information, leaders should seek an ECM platform that can securely store and protect content from disaster throughout its entire lifecycle. But more than just protecting government data, an ECM should maximize storage to reduce costs and increase efficiency. For instance, OnBase automatically destroys content when it expires, in accordance with legal retention requirements to ensure that unnecessary documents aren’t retained simply to take up space.

OnBase can provide all six of these critical capabilities to empower agencies to move beyond paper-based, duplicative processes and complex IT infrastructures. Ultimately, the right ECM platform saves agencies money, reduces staff workloads and improves processes – the very objectives set by OMB 17-22 and demanded by pressures on federal government. THE POWER OF TECHNOLOGY IN FEDERAL AGENCIES

Conclusion

State and local governments have already proved these cost- and time-saving benefits can be attained with the right technology. These agencies have leveraged ECM capabilities to confront the new realities of government – where citizens expect superior, online service even as agencies’ financial and labor resources decline. With the new administration putting equal pressure on the federal government to strike this balance, more agencies will seek resources that increase efficiency and minimize workload. An enterprise content management system like Hyland’s OnBase platform can do just that by capturing information, automating turnkey tasks, reducing duplication and streamlining workflows.

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About Hyland Hyland is a leader in providing software solutions for managing content, processes and cases for organizations across the globe. For over 25 years, Hyland has enabled more than 15,500 organizations to digitalize their workplaces and fundamentally transform their operations. Named one of Fortune’s Best Companies to Work For® since 2014, Hyland is widely known as both a great company to work for and a great company to do business with. For more information, please visit Hyland.com.

About GovLoop GovLoop’s mission is to “connect government to improve government.” We aim to inspire public-sector professionals by serving as the knowledge network for government. GovLoop connects more than 250,000 members, fostering cross-government collaboration, solving common problems and advancing government careers. GovLoop is headquartered in Washington, D.C., with a team of dedicated professionals who share a commitment to connect and improve government. For more information about this report, please reach out to info@govloop.com. www.govloop.com | @GovLoop

THE POWER OF TECHNOLOGY IN FEDERAL AGENCIES

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