Technology holds massive cost-saving potential, but the bleak budget outlook means engaging stakeholders and building solid relationships along with high-level leadership will be the most important factors in achieving innovation in government.

Technology innovation discussions at this week’s Executive Leadership Conference touched on the usual suspects — data center consolidation and the cloud – and the anticipated cost savings.

“Technology is key in making government work better and driving savings across government,” U.S. Chief Information Officer Steven VanRoekel said in a videotaped statement to conference attendees.

But the conversations in among panelists in smaller, more focused sessions Monday eventually became more about people and their crucial role in moving federal agencies beyond what many described as a “glacial pace” toward technology innovation.

Technology is key in making government work better and driving savings across government.” – Steven VanRoekel

Panelists cited better project management, CIO empowerment and tying IT goals to over federal missions as major factors in the using technology to increase ROI while also improving services. Molly O’Neill, vice president of CGI Federal and former CIO of the EPA said public-private partnerships within squeezed state budgets offer a good model for federal agencies looking for successful innovative ideas.

“It’s time for the CIO to look outside and … see how technology can save programs,” said O’Neill (in video above). “There’s nothing more telling than engaging your stakeholders. The hard things are usually the things that are pretty transformational. My own experience has been people find a way to do it. Leaders need to be able to assume some risk. … and say if we fail it will be my fault. You’d be amazed at what a motivator that is.”

Panelists said CIO involvement and leadership are crucial, as well as the relationships they build.

“The CIO’s battle buddy has got to be the CFO,” said Jonathan Breul, former federal leader who now services as executive director of the IBM Center for the Business of Government. “In this game, being able to identify real savings that are genuine and scorable … If you’re not infused tightly with your CFO, I don’t see how you move forward in the current environment.”

Jonathan Kraden, counsel for the U.S. Senate, said relationships also need to extend across agencies and beyond to achieve savings over the course of at least a decade.

“You can’t be as protective of doing it our own way. If there are savings out there through shared services it’s got to be in the tool box,” he said. “I don’t want to see every agency on the bleeding edge of technology. Given the climate that we’re in…a lot of these innovations are just in metrics. Better project management, improving government, will be of most help.”

For more coverage of the Executive Leadership Conference, see ELC here.