Analytics in Government. Story - I Identified $3.2M in cost and capacity savings $750,000 in...

Analytics in Government

Story - I

Identified $3.2M in cost and capacity savings $750,000 in immediate cost

savings $1.25M in short-term capacity

savings $1.2M in long-term cost and

capacity savings Served as financial justification for

all subsequent phases Received Federal Highway

Administration Award of Excellence for Right of Way process analysis and improvement

State DOT (1)

Objectives:• to improve high cost processes identified through ABC model• increase overall efficiency of Department operations• generate quantifiable ROI

Analyzed 41 processes using proprietary method, StorySolve®:• Documents

• Analyzes, and

• Improves or reengineers work processes

• Computes cost savings

• Reduces time requirements

• Enhances process quality

“High tech, high touch” approach ensures:• Measurable and realized results

• Positive behavioral and organizational impact

State DOT (2)

Detailed Activity-Based Costing (ABC) model• Proof of co23 processes

• 250 activities

• Data integration & automation to generate 23 report types (with multiple parameter options)

• Cost-related performance measures

ncept process analysis• $400,000 in cost and capacity savings

• $400,000 secured from state general fund

True cost of projects and services Factual basis for outsourcing decisions Fact-based budget development and justification Identification of high cost processes for process improvement

State DOT (3)

GOAL: Maximize the public’s transportation experience by continually improving operation of the state’s transportation system, while respecting safety, mobility needs, and environmental concerns

Customersatisfaction

Trafficsafety

Environmentalstewardship

Responsivetransportation

system

Externalcommunication

GOAL: Continuously improve the Department’s business and operations activities, to ensure they serve our vision effectively and economically

Planning& Design

Construction Maintaining& Operating Support Business

alliances

GOAL: Make the Department of Transportation a desirable place to work. Our efforts in this area will help the Department attract and retain the best possible employees

Employeeappraisal and recognition

Flexibleworkforce

Employeesafety

Internalcommunications

GOAL: Manage our financial resources to optimize delivery of services

Managecash flow

Maximizeexternal financial

resources

Minimizeadministrative

costs

Ensure cost-Effective processes

Manageour assets

VISION

CUSTOMERSATISFACTION

BUSINESSIMPROVEMENT

ORGANIZATIONALHEALTH

FINANCIAL

State DOT (Strategy Map)

We provide a transportation system to satisfy diverse mobility needs in a cost effective manner, while retaining concern for safety and the environment

Story - II

Costing model for government parks system Activity-based costing accurately measure costs to improve

efficiency and charge correct fees for amenities Primary Total Cost per Park Total Cost per Activity Total Cost per Activity per Park (best practices) Actual to standard comparisons / Performance Measures Planning & budgeting

Secondary Amenity costs Customer costs

Tertiary Profitability Used to accurately price amenities (eg – soccer fields, boat docks, picnic areas, etc.)

State Parks Agency

Story - III

Purpose: Analyze finance, personnel, and procurement functions

Identify areas for cost improvement

Price support services provided to the National Forests

Motivating factors: Budget cuts were reducing available funding

Workload was increasing rapidly while staffing was declining

Forest Agency

Identified process changes that provided 32% increase in cost efficiency

Detailed price list for services: Contract amendment, personnel action, purchase order, third party draft,

credit card payment

Price list published and used by forests to determine payment

Price list has affected decisions regarding sourcing of work

Forest Agency

Story - IV

Carbon Measurement for Environmental Agency- Story 4

Resources

Map of carbon use

Activities

Carbon consumed by each activity

Cost Objects

Carbon used in the delivery of services

and consumed byclients and projects

External Sources of Carbon

Sources of CO2:• Electricity• Natural gas• Air travel• Bio-fuels• Chemicals

Location

Type

Supplier

Department/Directorate

Activity

Equipment

Service

Project

Client

Forest Agency

Story - V

• Accurately measure TCO (including indirect costs) of asset portfolio

• Combine with usage for chargeback/shared services invoicing to other agencies consuming IT assets and services

• Improve cost, quality, and time of support processes

IT Agency

RomaniaPolandEurope Czech Republic CMO CFO Projects Reports

IT Agency

RomaniaPolandEurope Czech Republic CMO CFO Projects Reports

12.051%50642# LicensesWin XP5.651%56099SLAs by CustomerNegotiate Service Level Agreement (SLAs)6.651%58787SLAs by CustomerMonitor/review SLA support services

66.381%5979# Phone ConnectionsCommunications Systems (telephony)7.981%59975HoursDisaster Recovery

10.761%64660# LicensesWin NT10.731%79474# Email AccountsEmail

IT Agency

Story - VI

IT Agency

StorySolve, proprietary collaborative process improvement approach, to:• Develop consolidated dictionary of

activities• Measure true cost of processes (e.g.,:

technical support help desk), projects, and applications• Identify cost savings through process

improvement, overlaps, and redundancies• Result – 25% cost savings