PGETIC - Global Strategic Plan to Rationalize ICT Costs in Public Administration
AMA - Agência para a Modernização Administrativa IP (Agency for the Public Services Reform)
Portugal

The Problem

In the last few years ICT became a priority for several governments when the beneficial potential of such technologies for public administrations became clear. Portugal also decided to join this movement and since then major efforts have been developed to implement transversal policies to promote increasing efficiency in public services, closer services to citizens as well as costs reduction.
However, until very recently, the different bodies of the Portuguese public administration had enough autonomy to freely acquire and manage their technological infrastructures, as well as their information and communication systems. At the same time, those bodies could make use of such autonomy to create the departments they needed to carry on the management of those tasks, instead of developing shared tools, services and know-how inside the public administration universe. This isolated way of working was leading public services to a fragmented structure where communication was almost absent. As a consequence, ICT costs soared without a significant efficiency return. Instead leading public services to a higher level of efficiency and modernization, ICT were increasing bureaucracy and developing several isolated and closed “silos”.
This pulverization became one of the main concerns of the Portuguese Government’s “Program for Restructuring the Central Administration of the State” (PRACE) which was an attempt to promote the concentration of ICT management procedures, among other goals. However, this plan failed somehow to implement this vision across central administration and, in the end, only a few departments under some ministries achieved the goals proposed. It soon became obvious that centralizing ICT inside each ministry was not enough. Instead, the idea of a transversal strategy capable to put together in the same role the whole public administration started to emerge.
Later, in 2010, the General Inspectorate of Finance assessed ICT expenses in 44 different bodies of public administration from 2005 to 2008, and concluded, in a very important report, the urgent need for better planning and rationalization on ICT domains. This lack of organization was costing an average of 3,6% of the budgets from the public institutions analyzed.
Furthermore, this situation brought several inconvenient consequences to the whole Portuguese society in general. For common citizens, heading to a public services department became exhausting due to the bureaucracy procedures and long waiting time queues. At the same time, because there was no communication inside public administration, citizens were forced to go to different public services departments and fill different forms to solve one single problem. For public servants, the absence of communication and shared solutions and know-how increased the number of tasks to perform, leading to double efforts, over-consumption of financial resources and, in some cases to literal physical exhaustion. For companies and entrepreneurs, the increase of bureaucracy and fragmentation inside public administration led to significant problems which restrained new investment projects.
That was when the Portuguese Government formed the Project Group for Information and Communication Technologies (PGICT), in order to design a Global Strategic Plan for Rationalization of ICT Costs in Public Administration (PGETIC).

Solution and Key Benefits

 What is the initiative about? (the solution)
Nowadays one of the main challenges that organizations have to face is reducing costs and optimizing their operations. Although Public Administration (PA) can be considered a particular organization, it is confronted with the same challenge.
In the 14th November of 2011, in order to address the technological component of this issue, the Portuguese Government deliberated through the Council of Ministers Resolution n.46/2011 the setting up of the “Project Group for Information and Communication Technologies” (PGICT) to create a global rationalization and cost reduction Plan in Public Administration (PA) regarding the management and use of ICT.
In order to fulfill those goals, the PGICT drew the “Global Strategic Plan for Rationalization of ICT Costs in Public Administration (PGETIC)”. This strategic plan was organized around five main action areas: (i) improvement of governance mechanisms, (ii) cost reduction, (iii) using ICT to enhance administrative change and modernization, (iv) implementing common ICT solutions and (v) stimulating economic growth.
25 measures were identified for ICT rationalization based on their transverse character and potential impact on PA as a whole. Estimations, after the PGICT’s Plan full implementation, point to savings in the Central Administration up to 500 million Euros per year in administrative expenditure, considering not only those items more directly related with ICT management (software, hardware, services and communications), but also efficiency gains, namely in facilities management, human resources and other operational costs.
The creation of the Global Strategic Plan for Rationalization of ICT Costs in Public Administration (PGETIC) meant great achievements in ICT management in the Portuguese Public Administration. It provided the public sector with an extra set of tools to enhance its operation, and represented the beginning of a global plan towards a rational use of ICT resources, with a flexible and resilient structure that allows addressing future challenges in a very fruitful way.
The formation of the Project Group and its Plan benefited citizens and enterprises both direct and indirectly. Directly because the interaction with the PA is progressively simpler, more organized and redirected having the citizens and enterprises as the main focus of the processes. Indirectly, due to more agile back-office processes as well as the predicted economic growth.
Other of the Groups’ main achievements was the capacity to gather all ministries around its Global Strategic Plan for Rationalization of ICT Costs in Public Administration, based on a sustained strategy alignment around a common goal, resulting on strong support on its implementation. It succeeded in creating and introducing this ambitious plan, addressing the Portuguese public administration as whole. In quantitative terms, the objectives of the initiative were the previously mentioned: annual savings of around 500 million euros.
Impacts were measured based on several evidences namely the successful aggregation of all the ministries around the initiative, for which and the decisions were clearly supported and there was a strong commitment to its implementation on the ground. In quantitative terms, the Plan will ultimately lead to the previously mentioned, through an annual savings of around 500 million euros.

Actors and Stakeholders

 Who proposed the solution, who implemented it and who were the stakeholders?
The Portuguese government created in the 14th November 2011 the “Project Group for ICT (PGICT)” comprising a representative appointed by the Prime Minister; a representative appointed by the Minister responsible for the area of administrative modernization; a representative appointed by the Minister responsible for Public Administration; the Agency for the Public Services Reform (AMA); the Center for the Management of Government Information Network (CEGER); and the Informatics Institute of the Finances Ministry (II).
This group was set out to develop the “Global Strategic Plan for Rationalization of ICT Costs in Public Administration (PGETIC)” which was delivered to the government in December 2011.
With the official approval of the PGETIC, AMA became responsible for the implementation of the Portuguese ICT strategy, closely to the Prime-Minister cabinet, and is now at the core of the entire restructuring process inside public administration by transforming into practical and measurable projects the 25 measures established by the Project Group.
Nonetheless, the stakeholders involved on PGETIC are the Central Government, including all ministries and related public institutions and the local government represented by all municipal councils.
It was also necessary the involvement of local authorities in those measures applicable to Local Government, through the Portuguese National Association of Municipalities. It is noteworthy, given the specificities of Local Government, that obtaining the estimated savings for this was achieved through the strengthening of mechanisms and collaborative inter-government movements.
In sum, the Project Groups and its Plan involved the public administration as a whole.

(a) Strategies

 Describe how and when the initiative was implemented by answering these questions
 a.      What were the strategies used to implement the initiative? In no more than 500 words, provide a summary of the main objectives and strategies of the initiative, how they were established and by whom.
To analyze the current reality of the country with regard to ICT expenditure, comparing with the public services delivery, a benchmark was done at European level. It allowed the Project Group to understand that the Portuguese expenditure average was above the European one.
To interpret and cope with this challenge, Portugal decided to join a group of experts and authorities of public administration - thus allowing the construction of a network of working groups with different entities, to analyze this cost-related situation.
These working groups begun to make a diagnosis through analyst reports, query entities specialized in ICT, academia, associations, and other entities from the civil society. The Project Group for ICT rationalization promoted a lot of meetings, debates involving people of diverse areas, including national and international enterprises, universities and public institutions, with the objective of identifying the problems existing in Public Administration and analyzed possible solutions. Entities from the AP were heard, which exposed what they considered to be appropriate measures for the rationalization of ICT Public Administration. Additionally, international case-studies (U.S. and Brazil) were also taken into account for this diagnosis.
To tackle the problem, resulting from the applicability of the results of the benchmark, 5 axes were defined with specific global goals: (i) improving governance mechanisms, (ii) cost reduction, (iii) implementation of ICT solutions common, (iv) use of ICT to enhance administrative change and modernization and finally (v) stimulating economic growth. These goals consisted in 5 measures each, which formed the Global Strategic Plan for Rationalization of ICT Costs in Public Administration (PGETIC), to be implemented transversally in the PA, involving all the referred stakeholders.

(b) Implementation

 b.      What were the key development and implementation steps and the chronology? No more than 500 words
The first step for the creation of the Global Strategic Plan for Rationalization of ICT Costs in Public Administration (PGETIC) was on the 14th November 2011, with the Ministers Council Resolution n.46/2011 that formally created the Project Group for ICT, named PGICT.
As mentioned before, the Group was composed by a representative appointed by the Minister responsible for the area of administrative modernization; a Representative appointed by the Minister responsible for Public Administration; the Agency for the Public Services Reform (AMA); the Center for the Management of Government Information Network (CEGER); and the Informatics Institute from the Ministry of Finance (II).
The Resolution also defined the Strategic Plan’s objectives: a) Promote the study and analysis of the structures of ICT Public Administration; b) To study and develop a global strategic plan rationalization and cost reduction in ICT in Administration public; c) Implement the measures contained in the global Strategic which fit directly perform; d) Monitor and ensure proper and timely implementation measures the overall Strategic Plan be handled by other entities.
For the PGETIC’s development, the Project Group promoted a lot of meetings, debates involving people of diverse areas, including national and international enterprises, Universities, Public Organizations with the objective of identifying the problems existing in Public Administration and analyzed possible solutions.
In 7th February 2012, these meetings and debates resulted on the consolidation and definition of the 25 measures to be implemented on Public Administration. This Strategic Plan was named “Global Strategic Plan for Rationalization of ICT Costs in Public Administration (PGTIC)”, to be implemented on a timeline of 2012 – 2016 and formally published in the Ministers Council Resolution n.12/2012.
The next step was defining how this strategy would be implemented. As so, the governance model of the Plan was formalized in the Ministers Council Resolution n.60/2012, on the 10th July 2012, based on the creation of 3 committees: a) The committee for implementing PGETIC; b) The advisory board for PGETIC; c) The technical committee of PGETIC. The committee for implementing PGETIC is responsible for defining how the measures will be implemented. The advisory board PGETIC verifies and advice for the type and the model of solutions need to be implemented. Finally, the technical committee of PGETIC is responsible to define technically the solutions.
These committees have regular meetings to align strategies and share the results obtained. Bellow this three committees are public entities and Ministries responsible for implementing the resolutions defined superiorly. To manage all this process, AMA ensures the Project Management to guarantee the correct implementation of the defined measures and the communications across all entities involved.

(c) Overcoming Obstacles

 c.      What were the main obstacles encountered? How were they overcome? No more than 500 words
The main challenge the Project Group found when creating the Global Strategic Plan for Rationalization of ICT Costs in Public Administration (PGETIC) was gathering different organizations, with distinct cultures and working procedures.
To create a Project Group to debate and generate consensually solutions to such sensible matters as budget reductions, group and share services and promote operational changes, was a challenge successfully surpassed.
This issue was overcome with the great involvement of key government members, which emphasized the advantages for all interveners of speaking and getting aligned. The Project Group gave all interveners from the PA active voice in proposing solutions and led them to share their perspective and vision to solve the ICT fragmentation and over-cost situation.
With this strategy, all stakeholders felt they were part of the solution and not of the problem, logically implicating consensual solutions and a great proactivity in order to overcome this challenge. As so, it was possible to define a strategic, cross-sector and transversal Plan to effectively address the Public Administration as a whole.

(d) Use of Resources

 d.      What resources were used for the initiative and what were its key benefits? In no more than 500 words, specify what were the financial, technical and human resources’ costs associated with this initiative. Describe how resources were mobilized
The resources involved in the creation of the Project Group for ICT and its Global Strategic Plan for Rationalization of ICT Costs in Public Administration were associated with human resources.
The representatives of the Project Group worked with each other while civil servants of their actual institutions, and the meetings and debate involved did not demand for additional costs.
There was a great commitment of key members of the Government in order to explain the stakeholders involved, and all the Public Administration players, the importance and benefits of the initiative to Portugal.
Obviously, for the implementation of the defined measures and technical developments, financial support will be required.

Sustainability and Transferability

  Is the initiative sustainable and transferable?
The Project Group and its Global Plan itself is a Sustainability Plan for ICT to the whole Portuguese Public Administration.
The Global Strategic Plan for Rationalization of ICT Costs in Public Administration (PGETIC) underlined the need for rationalization initiatives to be implemented across all sectors of the Public Administration. It was set to meet the needs and circumstances presented. Based on the five lines of action, distributed by 25 measures to be implemented, it was designed to enhance a national cross change and help achieving the goals of cost and ICT rationalization.
It is then fully replicable at the national level, and also internationally, because this issue is on the agendas of almost every country. It provides a set is measures and initiatives that can be fully replicated in other countries.

Lessons Learned

 What are the impact of your initiative and the lessons learned?
With the proposed measures an estimated gradual and sustained reduction of ICT costs over the next three years, compared to 2011 for Central Government, is expected.
The major lessons learned were that, to implement a plan with this comprehensiveness and complexity it is fundamental to mobilize all stakeholders involved and give them active voice to propose solutions. It is necessary to commit all organizations affected with the implementation of the measures.
Last, but most important, it is fundamental to obtain a highest level of commitment and responsibility of the Govern decision-making.

Contact Information

Institution Name:   AMA - Agência para a Modernização Administrativa IP (Agency for the Public Services Reform)
Institution Type:   Government Agency  
Contact Person:   Cláudia Gonçalves
Title:   External Relations Officer  
Telephone/ Fax:  
Institution's / Project's Website:  
E-mail:   claudia.s.goncalves@ama.pt  
Address:   Rua Abranches Ferrão
Postal Code:   1600-001
City:   Lisboa
State/Province:  
Country:   Portugal

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