JOHN C. CARROW

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Reengineering a City
 
A key ingredient in the recipe for making technology work: the threat to
privatize.
 
 
Three years ago, when John Carrow became Philadelphia's first-ever chief
information officer, the city's information systems and services were as
bankrupt as its treasury. Desktop computers in 45 departments were two
generations out of date. A number of large-scale technology
projects--including a $3 million payroll, personnel and pension
implementation--had crashed and burned. The last place anyone at City
Hall turned to for help was from the technical staff at any of a
half-dozen municipal data centers.
 
Carrow was brought in at cabinet-level rank as part of Mayor Edward
Rendell's plan to reengineer Philadelphia government. His mission was
more than responding to pressure to "do something about the computers."
The Rendell administration was banking on technology to have a large
role in pulling Philadelphia out of a decade of insolvency and into an
era of over-the-top services supported by a seamless network of
integrated data systems accessible to private citizens as well as 7,000
bureaucrats in 200 city buildings.
 
Carrow started by developing a strategic plan for more than $80 million
in annual IT spending fragmented among individual program budgets. Then,
drawing off of a 16-year career at General Electric Corp., he created a
business-oriented Mayor's Office of Information Services to implement
the plan.
 
For the IT staff, the direction was clear: Satisfy your "customers" in
other city departments, or else information services will be outsourced.
"At my first all-hands staff meeting, I said I was going to operate the
department as a business," Carrow recalls. "And if, as a business, we
can't satisfy our customers, we might as well turn the business over to
the private sector and let them run it."
 
"He made us wake up and empowered us," says Liza Casey, GIS program
manager, who like other IT administrators was given unprecedented
authority for decisions aimed at standardizing hardware, software and
operations support.
 
"In terms of culture change, you'd be hard-pressed to find a place where
more IT change had taken place in such a short time," says Michael
Masch, a former Philadelphia budget director who is now budget director
at the University of Pennsylvania.
 
Taking advantage of an innovative Philadelphia revolving loan fund known
as the "Productivity Bank," which helps fund the upfront costs of
technology upgrades that will pay for themselves through improved
efficiency, Carrow forged partnerships with department heads on
long-term initiatives to improve services, reduce spending and generate
additional revenue. The Revenue Department, for example, used $10
million in Productivity Bank loans to modernize and integrate its
internal tax collection systems, including one $500,000 application that
generated $9 million all by itself by identifying and withholding wage
taxes from individuals who work in the city but live in surrounding
suburbs.
 
In law enforcement, the Productivity Bank invested more than $30 million
in IT projects such as mobile data terminals to speed up police response
time; photo imaging and fingerprint scanning; and a prisoner tracking
system that uses bar codes and photo wristbands.
 
Joe Connovitch, president of the National Association of State
Information Resource Executives and director of the Pennsylvania Bureau
of Automated Technology Management, says cities are starting to look
beyond their traditional "stovepipe" information systems towards
Philadelphia for "John Carrow-type possibilities" across the entire
enterprise of municipal administration. "They're looking for people who
understand how the breadth and depth of technology can be used to
improve government service," says Connovitch. "It takes a guy like John
Carrow to put it all together."
 
By Marilyn J. Cohodas
Steven M. Falk photograph