This post is by Stephen Kell.
In the current climate of austerity and cost cutting, the focus of attention in the public sector is on reducing costs not on realising value from investment into initiatives. Often in reducing costs there is an impact on the services delivered to the citizens of the country.
The economic impacts can be and are measured but how do you define the social impacts? As countries come out of a period of austerity into a period of growth then there will be a desire to improve the services government delivers to its citizens but how is the impact of those improvements measured?
In a recent seminar at a government department, ‘better for less’ was being discussed in terms of: less is easily understood in terms of reducing costs, but what is better? No clear view of what better meant was proposed. This started me thinking about how you measure value in the public sector. After researching the topic I came to the conclusion that a new model taking into account both the traditional models for return on investment and the social impact of changes was needed to give a comprehensive value model. This is presented within this white paper.
A comprehensive value model is needed to ensure that the investment in new initiatives is have the maximum positive impact on the citizens. From a CIOs point of view, if the emphasis is on cost cutting within IT then the IT department will be regarded as a cost centre not as a strategic business partner and there is the danger that the business will look elsewhere for a strategic partner. By concentrating on value delivered rather costs then the IT Department can show that it can be a business partner.
So whether you are on the business side or IT, it is imperative that you have a view on what value is being delivered to the citizens utilising the services you are responsible for.
Learn more about measuring the value of public sector projects by downloading this free white paper.