Analytics and the Federal Government: From Memos to Mandates

Analytics and the federal governmentFrom memos to mandates

Bob DaltonApril 4, 2011

Copyright © 2011 Deloitte Development LLC. All rights reserved.2 Analytics and the Federal Government — From memos to mandates

• A brief history of analytics in government• Urgent federal performance mandates • Analytics drivers in federal government• Study on data analytics in federal agencies• Deloitte case studies• About Deloitte Analytics and the Deloitte Analytics Institute• Q&A

Agenda


Business analytics and government: An oxymoron?


“As the most senior managers in the federal government, you know how essential the work you and your colleagues do is to the nation. You also are aware what happens when your best efforts are thwarted by outdated technologies and outmoded ways of doing business. You understand the consequences of accepting billions of dollars in waste as the cost of doing business and allowing obsolete or under-performing programs to continue year after year.”

President Obama in a memorandum to members of the Senior Executive Service, September 14, 2010

Fast forward to today


MEMORANDUM FOR THE SENIOR EXECUTIVE SERVICE

FROM: Jeffrey D. Zients, Federal Chief Performance Officer and Deputy Director for

Management, Office of Management and Budget

DATE: September 14, 2010

SUBJECT: The Accountable Government Initiative — an Update on Our Performance

Management Agenda

We face extraordinary challenges — from growing our economy to transforming our energy supply, improving our children’s education, safeguarding our Nation and restoring its fiscal health. There is a distinct role for government in addressing these challenges, but the American people have doubts about the government’s capacity to do so effectively and efficiently. According to the Pew Research Center, about two-thirds of Americans believe that “when something is run by government it is usually inefficient and wasteful.”

At the outset of his Administration, the President made it clear that we needed to make government work better, faster, and more efficiently; these goals are central to the Accountable Government Initiative.

Accountability flowing down hill

Full memo text: http://www.whitehouse.gov/sites/default/files/omb/memoranda/2010/AccountableGovernmentInitiative_09142010.pdf

http://www.whitehouse.gov/sites/default/files/omb/memoranda/2010/AccountableGovernmentInitiative_09142010.pdf


1. Driving agency top priorities– Agency focus on the implementation and execution required to improve outcomes and

deliver results– Clear service standards and defined metrics posted on a “customer service dashboard”– Fostering a culture of performance evaluation– OMB funding of $100M for agencies demonstrating how their FY 2012 priorities are

subject to evaluation

2. Cutting waste– Ensuring a high return on all spending– Ending ineffective programs

3. Reforming contracting – Reduce high-risk contracts (i.e., no-bid, Time and Expenses)– Strategic sourcing– Equipment standardization– Government-wide blanket purchase agreements

Accountable government initiative memo key performance strategies


4. Closing the IT gap– Emulate the private sector– Improve poor management of technology investments– Using the “IT Dashboard” to monitor performance of all federal IT projects– Financial system modernization projects– New framework for IT procurement and management– Lightweight solutions, including cloud computing– Data center consolidation– Enhancing cyber security and monitoring

5. Promoting accountability and innovation through open government– President’s Memorandum on Transparency and Open Government – Accountability for results by inviting public scrutiny– Publicizing performance data, including agency goals, measures, and spending– Web sites: PaymentAccuracy.gov, Recovery.gov, USASpending.gov, Data.gov

6. Attracting and motivating top talent– Updating 60-year-old personnel system to reduce 140-day average hiring process– Engage and retain top talent; leadership training

Accountable government initiative memo key performance strategies (cont.)


• 2010 Government Performance and Results Modernization Act (GPRMA) – To modernize and refine the requirements of the Government Performance and Results

Act of 1993, to require quarterly performance reviews of federal policy and management priorities, to establish Chief Operating Officers, Performance Improvement Officers, and the Performance Improvement Council, and for other purposes.

• §1124. Performance Improvement Officers and the Performance Improvement Council– Chief Operating Officer, Performance Improvement Officer – Performance Improvement Council

• §306. Agency Strategic Plans– Mission, outcome-oriented goals– Alignment with federal priorities– Resource requirements, processes– Collaboration with other agencies– Evaluation methods– Four-year plan (minimum)– Available on a public Web site

Performance: More than a memo, it’s the law


• §115. federal Government and agency performance plans– Establish balanced set of performance indicators– Results comparisons versus performance goals– Data accuracy and reliability plan– Validate measured values and data sources

• §1125. Elimination of unnecessary agency reporting– Analyzed list of all reports– Eliminate duplicative or outdated reports

Performance: More than a memo, it’s the law (cont.)


Other federal acts benefitting from analytics

1966 1968 1974 1978 1993 2001 2002 2004 2007 2011

Freedom of Information Act

Foreign Intelligence Surveillance Act

Government Performance and Results Act

Omnibus Crime Control and Safe Streets Act

Privacy Act

PATRIOT Act

E-Government Act

Intelligence Reform and Terrorism Prevention Act

Federal Agency Data Mining Reporting Act

Government Performance and Results Modernization Act (GPRMA)


• Drive performance, productivity, and results• Improve visibility throughout organization• Enhance budget management and cost control• Identify fraud, abuse, and waste• Prioritize programs and initiatives • Manage programs and initiatives• Share information and collaborate among agencies• Enhance services and communication with citizens• Comply with regulatory guidelines and mandates

Analytics throughout the federal government


• Availability of increased data volume, velocity, and variety– From traffic cameras to e-mails to public data

• Demand for sharper insights– E.g., war on terrorism

• High performers that outperform peers, even in the public sector, are more likely to value fact-based decision making

• Balance security controls and limits with transparency and accountability• Institutionalizing the analytical approach• Redesign interagency processes around a single version of the truth

Beyond reporting: From hindsight to insight to foresight


Identifying opportunities for analytics

WHO — Stakeholders • Executives, line managers and staff, program office, inspectors, auditors, customer service

• Policy makers and information consumers in agencies other than the agency that collected, produced the data

• Agency customers and the public, including private business

WHAT — Information • Operations and analysis of operational performance• Transactions• Mission data and metrics• Resources• Workforce• Customer service

WHY — Objectives • Effective, efficient operations• Quality customer support and service• Oversight, transparency, and accountability• Response to procedural mandates• Safety and security


Government business council study: Data analysis in Federal agencies, 2011

83%

14%3%

Very Important Moderately Important Minimally important

Data Importance to Agency Mission(Percentage of respondents, n=317)

97 percent say data is important to their agency’s

mission

Changing Importance of Data(Percentage of respondents, n=313)

It is becoming significantly less important

It is becoming somewhat less important

It is not changing

It is becoming somewhat more important

It is becoming significantly more important

2%

3%

15%

26%

55%

81 percent say data is becoming more important


Government business council study: Data analysis in Federal agencies, 2011 (cont.)

I don't know

Other

External publication — sharing data with the public

Inter/intraagency collaboration

Strategic analysis

Improve internal processes

Comply with mandates (e.g., program evaluation)

1%

12%

43%

47%

65%

71%

76%

“The data we collect helps us prioritize requirements

for both tactical and strategic mission

importance.”

Reasons for Agency Data Collection(Percentage of respondents, n=307)



Ratings of Data Quality(Percentage of respondents, n=283)

Consistency

Timeliness

Accessibility

Usefulness

Accuracy

Security

8%

10%

12%

13%

14%

30%

36%

38%

37%

45%

55%

58%

42%

38%

34%

34%

26%

11%

14%

14%

17%

8%

5%

1%

Outstanding Good Fair Poor

“Without reliable data we can’t do

our jobs.”

“Data is collected but can be hard

to access.”



Use of Collected Data(Percentage of respondents, n=303)

Leveraging of Data(Percentage of respondents, n=304)

“The data collected by my agency is consistently leveraged for its full potential.”

Strongly agree Somewhat agree

Somewhat Disagree

Strongly Diasagree

16%

44%

23%

17%

84 percent see room for improvement to fully leverage data

I don’t know

Data not used

Predictive

Reactive

3%

7%

60%

64%

10%

7%

45%

69%

“We use projections to help manage risk

in programs, operations, and

financials.”



None of the above

Other

Not a leadership priority

Lack of stakeholder involvement

Insufficient system resources

Processes to manage and use data

Cultural resistance to change

Lack of in-house skills

Difficulty in consolidating data

Limited staffing/time

2%

7%

30%

32%

41%

41%

43%

45%

57%

60%

“Data is scattered across multiple sources and is poorly organized so we are not able to find best sources of indeed data.”

Agency-wide Impediments to Enhancing Data Analysis(Percentage of respondents, n=289)



66%

25%

9%

Very Important Moderately Important Minimally important

Important of Improving Data Analysis Capabilities(Percentage of respondents, n=290)

91 people say improving data

analysis is important

Case studies


U.S. Deloitte Analytics strategy

The vision

The mission

Leverage the power of our unmatched global industry and domain knowledge to establish Deloitte as the leading provider of client solutions powered by analytics

We will build a $2B business by 2014 and inspire our people and clients by focusing on analytic insights, performance optimization, and information management. We will know if we have succeeded when we:

• Seize the competitive market and differentiate Deloitte in the view of clients and analysts• Develop Deloitte Analytics opportunities, solutions, skills, and ability of our people to sell and

deliver• Drive substantial value for clients• Grow revenue and profitability

Deloitte Analytics Institute

Build capabilityEstablish eminence globallyBuild capability

1Empowering

partners to sell business analytics 5

Accelerating innovation and

commercialization4Driving market awareness via

thought leadership3Creating and

scaling solutions that matter2

Growing our capacity to deliver

The strategy

Sales Enablement Solutions Eminence Innovation

The Deloitte Analytics Institute


The DAI executes the initiatives of our U.S. Consulting Bold Play and Deloitte Analytics Integrated Market Offering (IMO) in alignment with our Global Deloitte Analytics program

One U.S. DA Program executed by DAI

Deloitte Analytics IMOGlobal Deloitte Analytics

• Primary Objective:• Respond to real client demand

in the U.S. by taking to market cross-functional high-value solutions in priority industries

• Focus is on:– Tailored solutions that meet

client demand– Integrated solutions/leveraging

the Organization– Building capabilities– Differentiating Deloitte– Unique value proposition

• Primary Objective:• Accelerate growth of global

analytics. Provide the framework for analytics so member firms have “freedom within a frame”

• Focus is on: – Single, global point of view– Clear, consistent messaging– Global framework across

analytics value chain– Tools/approaches – Connecting experts– Facilitating knowledge sharing

• Primary Objective:• Accelerate growth of the U.S.

Consulting Analytics practice• Focus is on:

– Empowering partners to sell analytics

– Growing our capacity to deliver– Creating and scaling solutions– Driving marketplace eminence– Accelerating innovation

Consulting Bold Play

U.S. Deloitte Analytics Institute (DAI)

Define “DA”


Five big trends are driving the adoption of new approaches to business analytics. Taken together they underscore an unforgiving demand for improved performance — and a wake-up call for more disciplined risk management.

What is driving business analytics?

Data Volumes and Technology Capacity — Global data volumes continue to grow exponentially. Luckily today’s analytical computing capacity and analytical tools can meet the challenge.

Regulations — Regulators are demanding deeper insight into risk, exposure, and public responsiveness from financial, health care, and many other sectors requiring integrated data across the enterprise.

Profitable Growth — The need to remain competitive compels investments in analytics infrastructure and tools to improve insight into financial, economic, environmental, and market information. The goal? More informed and responsive decisions.

New Signals — Holistic signal detection from traditional internal and external structured and unstructured data plus voice, e-mails, social networks, sensor-enabled facilities, products, instruments must be integrated and monitored for real-time operational insight and decision making.

Hidden Insight — The growing complexity of global business has raised the stakes at all levels of decision making. Facing more information than humans can possibly process, decision makers need more powerful tools for uncovering hidden patterns that may go undetected.


Our unique structure and approach to serving clients enables us to merge our leading industry, business, and technical expertise across a breadth of services, including strategy and operations, technology, human capital, risk, and financial advisory services

Deloitte Analytics: Our key differentiator

Global footprint and ability to

execute

Broad functional

capabilities

Deep sector knowledge

• More than 3,400 Analytics Resources, including

–2,400 in Americas

–710 in EMEA

–350 in APAC

• Technology

• Strategy and Ops

• Financial Advisory

• Human Capital (including actuarial and insurance services)

• Risk

• Public Sector

• Life Sciences and Health care

• Financial Services

• Consumer Bus and Transportation

• Manufacturing

• Technology, Media, and Telecomm

• Energy and Resources


Deloitte Analytics: Our delivery model

AdvisoryAnalytics

TransformationAnalytics

ManagedAnalytics

SubscriptionAnalytics

What is it? Use of analytics to support business operations and strategy

Design and implement enterprise solutions

Outsource analytics services and platform

Subscription-based analytics w/analytical scoring and results

Project size $1M to $4M $4M to $50M Highly variable based on scope and duration

Highly variable based on scope and duration

Example offerings and solutions

• Analytics strategy• Pricing and profitability• Customer analytics• FCPA analytics• Benchmarking analytics• Performance

Management strategy

• Supply chain analytics • Customer analytics• Product life cycle

analytics• Workforce analytics• Finance analytics• Tax analytics

• Physician targeting• Life science managed

market analytics• Safety analytics• Clinical development

optimizer• Recurring underwriting

and claims modeling

• Incentive comp• Physician targeting• Benchmarking• Underwriting/claims• Risk/Fraud• Litigation spend• Pricing

World-class capabilities

World-class advisory and technology capabilities:• Global analytics capability, including more than 3,400

people• Global analytics practice more than $1B with ~25%

growth in 2010• Double-digit growth in global technology business in a

down economy

• Leader in management consulting• Leader in business consulting• Leader in pricing• Leader in CRM• Leader in risk• Leader in forensic and dispute


Deloitte Analytics: Our vision

The process of delivering analytics business results is one of continuous improvement. Starting anywhere in the analytics cycle, an organization can

immediately begin to address its specific needs


Deloitte Analytics resources and participation

Learn about Deloitte Analytics• Deloitte Analytics on Deloitte.com• Deloitte Analytics IMO on Deloittenet• Deloitte Analytics Institute on KX

– Overview/Leadership– Pursuit COE/Sales material– Indiana/Kelley School certificate program in BA– Eminence/publications– Deloitte Analytics Symposium proceedings

• Global Deloitte Analytics Site

Get Involved with Deloitte Analytics• Social Media

– LinkedIn (Real Analytics group)– Twitter (@DeloitteBA)– Real Analytic Insights site (TBD)– Certificate program in BA– Share advanced analytics or other reusable BA

solutions– Arrange to publish articles and/or join the Deloitte

Analytics Speakers Bureau– Volunteer opportunities with the DAI (

[email protected])

mailto:[email protected]

About DeloitteDeloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

Copyright © 2011 Deloitte Development LLC. All rights reserved.Member of Deloitte Touche Tohmatsu Limited