analytics and the federal government: from memos to mandates
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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
Copyright © 2011 Deloitte Development LLC. All rights reserved.3 Analytics and the Federal Government — From memos to mandates
Business analytics and government: An oxymoron?
Copyright © 2011 Deloitte Development LLC. All rights reserved.4 Analytics and the Federal Government — From memos to mandates
“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 You also are aware what happens when your best efforts are thwarted by outdated technologies and outmoded ways of doing business.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
Copyright © 2011 Deloitte Development LLC. All rights reserved.5 Analytics and the Federal Government — From memos to mandates
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
Copyright © 2011 Deloitte Development LLC. All rights reserved.6 Analytics and the Federal Government — From memos to mandates
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
Copyright © 2011 Deloitte Development LLC. All rights reserved.7 Analytics and the Federal Government — From memos to mandates
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.)
Copyright © 2011 Deloitte Development LLC. All rights reserved.8 Analytics and the Federal Government — From memos to mandates
• 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
Copyright © 2011 Deloitte Development LLC. All rights reserved.9 Analytics and the Federal Government — From memos to mandates
• §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.)
Copyright © 2011 Deloitte Development LLC. All rights reserved.10 Analytics and the Federal Government — From memos to mandates
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)
Copyright © 2011 Deloitte Development LLC. All rights reserved.11 Analytics and the Federal Government — From memos to mandates
• 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
Copyright © 2011 Deloitte Development LLC. All rights reserved.12 Analytics and the Federal Government — From memos to mandates
• 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
Copyright © 2011 Deloitte Development LLC. All rights reserved.13 Analytics and the Federal Government — From memos to mandates
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
Copyright © 2011 Deloitte Development LLC. All rights reserved.14 Analytics and the Federal Government — From memos to mandates
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
Copyright © 2011 Deloitte Development LLC. All rights reserved.15 Analytics and the Federal Government — From memos to mandates
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)
Copyright © 2011 Deloitte Development LLC. All rights reserved.16 Analytics and the Federal Government — From memos to mandates
Government business council study: Data analysis in Federal agencies, 2011 (cont.)
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.”
Copyright © 2011 Deloitte Development LLC. All rights reserved.17 Analytics and the Federal Government — From memos to mandates
Government business council study: Data analysis in Federal agencies, 2011 (cont.)
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.”
Copyright © 2011 Deloitte Development LLC. All rights reserved.18 Analytics and the Federal Government — From memos to mandates
Government business council study: Data analysis in Federal agencies, 2011 (cont.)
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)
Copyright © 2011 Deloitte Development LLC. All rights reserved.19 Analytics and the Federal Government — From memos to mandates
Government business council study: Data analysis in Federal agencies, 2011 (cont.)
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
Copyright © 2011 Deloitte Development LLC. All rights reserved.21 Analytics and the Federal Government — From memos to mandates
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
Copyright © 2011 Deloitte Development LLC. All rights reserved.22 Analytics and the Federal Government — From memos to mandates
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”
Copyright © 2011 Deloitte Development LLC. All rights reserved.23 Analytics and the Federal Government — From memos to mandates
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.
Copyright © 2011 Deloitte Development LLC. All rights reserved.24 Analytics and the Federal Government — From memos to mandates
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
Copyright © 2011 Deloitte Development LLC. All rights reserved.25 Analytics and the Federal Government — From memos to mandates
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
Copyright © 2011 Deloitte Development LLC. All rights reserved.26 Analytics and the Federal Government — From memos to mandates
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
Copyright © 2011 Deloitte Development LLC. All rights reserved.27 Analytics and the Federal Government — From memos to mandates
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 (
deloitteanalytics@deloitte.com)
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
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