analytics in government. story - i identified $3.2m in cost and capacity savings $750,000 in...
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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