One of the first things I did when I took the job as CIO for Utah was to try to introduce the concept of product management. While it might seem funny to think of government as having "products," the discipline's concepts for developing software and online services to meet business needs are as applicable here as they are anywhere.
I wrote a white paper on the subject as an introduction to the discipline. We've also created a product management council for our eGovernment services. We're going through a rather draining process right now which I think will cement many product management concepts into the way we govern cross-agency development.