Email This Page     |     Print This Page     |    

Comments?     |     Share This Link

AWARDS & RECOGNITION

2005 Awards: State IT Management Initiatives

WINNER:
Michigan
Implementation of Michigan Consolidated IT Services

In fiscal year 2001, the pressures of the economic downturn severely affected Michigan's manufacturing-based economy, decreasing the state's revenues even as it fueled demand for government services. Reductions in the state's workforce drove agencies toward increased automation, and citizen demand for Web-based and IT services escalated. In response, the Michigan Department of Information Technology (MDIT) was created in October 2001 by Executive Order No. 2001-3 to achieve a unified, cost-effective approach for managing information technology among all executive branch agencies. Information technology resources and functions from 19 state agencies were centralized, encompassing all IT personnel (1,700 plus), equipment, and activities. The department's initial charge included centralizing IT policy-making; unifying strategic information technology planning; improving information, project, and systems management; managing enterprise projects; consolidating infrastructure and application development; and addressing enterprise security needs.

"Our successes in consolidating Michigan's IT services would have been impossible without the strong support of Governor Jennifer Granholm. With the support of our Governor, our partner agencies across the state, and our more than 1,700 dedicated employees, we have been able to bring savings to Michigan while making access to government services easier for Michigan citizens."
Teri Takai, Chief Information Officer, State of Michigan Michigan used a phased approach, spanning four years and two administrations, and placed a premium on change and risk management, customer, cross-boundary and service relationships, and outreach processes. Existing organizations and functions were consolidated, several were materially strengthened or changed, and a number of new functions, processes and organizational units were created.

The consolidation enabled major reductions in staff and expenditures, while maintaining or increasing service levels. Total Interdepartmental grant spending (IDG) was reduced from $465.6 to $350.5 million (24.7%). State employee staff was reduced from 2,064 to 1,762 (15%), and contractors from 1,764 to 469 (64%), for a total reduction of 34 percent.

The debate on the merits of centralization versus decentralization has reached a tipping point. Many states are actively assessing or taking centralization or consolidation actions. The Michigan experience offers lessons on both practices that can maximize benefits as well as minimize risks. The elements of Michigan's approach are reproducible as individual initiatives or as part of overall IT consolidation for governmental units seeking cost savings, operational efficiencies, and increased effectiveness.

OTHER NOMINATIONS:
Click on the link to download program submission.

Alabama
Smart I.T. Budgeting & Strategic Planning Initiative

Iowa
State of Iowa Governance

Kansas
State of Kansas IT Vendor Management Program

New Jersey
Application Development Center of Excellence

Nevada
IT Governance

North Carolina
I-BEAM

Pennsylvania
Information Technology Governance in Pennsylvania

Wisconsin
Enterprise IT Training

Return to 2005 Awards Main Page