Service-Oriented Government
Proposal
February 11, 2011
Problem Statement
• Michigan has a persistent structural deficit of over
$1.6B
• We currently have 18 unique departments/agencies
within the executive branch of our state government
• Each department/agency features functional support
groups that are redundant with functions found in
other organizations
• Most if not all government efficiency analyses to date
in MI appear to focus on specific departments or
narrow sets thereof rather than the organization as a
whole
Objectives
• Lower the cost of government by sharing
common administrative functions
– Cut $1.6B for Structural Deficit Elimination
– Cut $2.4B for MBT Elimination
– Cut $1.2B for Personal Property Tax Elimination
• Improve customer service by streamlining
communication channels
• Improve stakeholder accountability
• Increase transparency to bill impacts
Current Organization
Service-Oriented Organization
Stakeholders
Citizens
Businesses
Local
Governments
Shared
Services
Education
Labor
Counties
Department of
State*
Energy
Townships
Office of Management
and Budget**
Insurance
Cities
IT
Public Safety
Environment
Regions
HR
State Police
Economic
Development
History, Arts, &
Libraries
Natural
Resources
Agencies
Corrections
Elections
Community
Health
Human Services
Civil Rights
Marketing
Attorney General’s
Office ***
Transportation
Project
Management
* Service Delivery
** Finance
*** Legal
Generic Stakeholder Organization
Executive Director,
Stakeholder Group
State Legislative
Liaison
Executive Liaison
Federal Legislative
Liaison
Communications
Director
Senior Analyst,
Legislative Impact
Senior Analyst,
Services
Performance
Generic Agency Organization
Executive
Director, Agency
Director, Shared
Service
Management
Analyst,
Legislative
Impact
Analyst, Service
Delivery
Performance
Service Group A
Director
Service Group B
Director
Service A1 Lead
Service B1 Lead
Service A1
Support
Service B1
Support
Generic Shared Service
Organization
Executive
Director, Shared
Service
Stakeholder A
Service
Coordinator
Director, Service
Sub-Area 1
Service Sub-Area
1 Staff
Stakeholder B
Service
Coordinator
Director, Service
Sub-Area 2
Service Sub-Area
2 Staff
Director, Service
Sub-Area 3
Service Sub-Area
3 Staff
Roles and Responsibilities
Stakeholders
• Represent pertinent stakeholder
group and associated agencies in
discussions with
• Legislature
• Executive Branch
• Judiciary
• Coordinate communications with
non-government organizations
pertinent to stakeholder domain of
responsibility
• Keep agencies apprised of pending
legislation
• Provide bill impact assessments to
legislature and executive branch
• Establish and monitor performance
scorecard for associated agencies
5-10 Employees Max
Agencies
• Execute unique operations
pertinent to domain of
responsibility
• Leverage shared service
organization resources for all work
not unique to the agency
• Support stakeholder organizations
• Assess bill impacts
• Provide subject matter expertise
for implementation of new
statutes
• Improve operations to meet or
exceed the performance scorecard
expectations defined by the parent
stakeholder organization
• Establish service level agreements
with shared service organizations
• Monitor service level performance
of shared service organizations
supporting their operations
• Monitor project performance
~50-100 Employees
Shared Services
• Provide centralized administrative
support for agencies to support
their core operations
• Provide functional resources
necessary to implement projects
• Implementation of statutes within
Shared Services, Agencies or
Stakeholder Organizations
• Implementation of projects
intended to streamline operations
and
• Execute support operations in
accordance with service level
agreements with agencies
• Ensure effective performance of
project portfolio
Staffed As Required to Support Funded
Services
Transition Plan
Legislative
Enablers
•Government
Services Task
Force
(Complete
List of
Services by
Department)
•Price of
Government
Bill (Core
Operations vs
“Projects”)
•Stakeholder
Transparency
Bill
(Scorecards)
Shared Services
•Appoint
Shared
Service
Director
(COO)
•Establish
Shared
Service
Financing
Model
•Define
Service Level
Agreement
Template
•Design and
Implement
Resource
Management
Information
System
Business
•Appoint
Business
Stakeholder
Director
•Establish
Service Level
Agreements
for each
Agency
•Transition
staff to
shared
services as
applicable
Citizens
•Appoint
Citizen
Stakeholder
Director
•Establish
Service Level
Agreements
for each
Agency
•Transition
staff to
shared
services as
applicable
Local
Government
•Appoint Local
Government
Stakeholder
Director
•Establish
Service Level
Agreements
for each
Agency
•Transition
staff to
shared
services as
applicable
Stretch Opportunities
Committee Alignment
• Align stakeholder organizations with top-tier legislative committees
• Align agencies with legislative sub-committees
State Dashboard
• Stakeholder Scorecards
• Citizen Scorecard
• Business Scorecard
• Local Government Scorecard
• Pending Impacts to Each Scorecard
Impact Assessment Process
• All bills accompanied by stakeholder impact assessments
Summary
• Provides opportunity to eliminate redundant
functions within state government and
streamline the delivery of services to our key
stakeholders
• Provides basis for significant cost reductions that
could enable the elimination of taxes that impede
the growth of private sector jobs
• When the inevitable budget creep occurs, it will
do so in the confines of four organizations rather
than 18. This should provide better visibility and
mitigate the risk of uncontrolled growth.