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FCW : November 30, 2012
November 30, 2012 FCW.COM 31 the accountability is process-based --- did the funds get spent the way they were supposed to? --- not outcome-based. Moreover, to achieve process-based accountability, federal rules often sti e cre- ativity and innovation in organizations receiving support. The federal government could be a catalyst for innovation if it tied its funding more closely to performance. Indeed, the federal government should explicitly use its power of the purse strings to drive innovation among the recipients of those funds. It should allocate money to agencies, departments or other benefactors that implement innovative policies or approaches. The idea is to take the same amount of money but allocate it as an incentive to drive performance improvements and innovation. The Department of Education s Race to the Top initiative is a model for spurring organizational innovation. The department offered $4 billion in grants to states committed to reforming their education systems. States that are unwilling to leverage data and accountability systems to improve measurable performance out- comes, that have legislation preventing the development or expan- sion of innovative school approaches, or that cannot demonstrate effective alliances with local teachers unions on performance accountability are not eligible. After Tennessee and Delaware were awarded the rst $600 mil- lion, nonqualifying states worked to pass conforming legislation, including addressing long-standing union issues. Race to the Top should serve as a model for using performance incentives to drive innovation across a range of government agen- cies. For example, as noted, the federal government could make funding to universities partially contingent on how well universities commercialize their research. Likewise, the Department of Trans- portation could allocate funding from the Highway Trust Fund on the basis of how effectively states reduce traf c congestion. Information technology transformation One of the de ning features of many of today s innovations is their basis in information technologies --- computers, software and tele- SPONSORED BY VERIZON WIRELESS SCAN THIS QR CODE with your smartphone for the full research report TOPICS INCLUDE: Digital government: A boon for information sharing? DOD lays the foundation for better sharing Justice program emerges as model for info sharing ID management: A promising new development Time to get serious about information management To learn more, visit: www.fcw.com/InformationSharing2 Information Sharing Special Report The federal government could be a catalyst for innovation if it tied its funding more closely to performance. Stephen J. Ezell
November 15, 2012