building a business case michael colburn phd, pe [email protected]@insight.rr.com...

Building a Business Case

Michael Colburn PhD, [email protected] 614/231-1777

mailto:[email protected]

Michael J. Colburn, PhD, PE2

Session Objectives

To review the results of a ROI study for a software implementation project

To learn how to turn data into information To understand 10 critical success factors for

conducting a ROI study

What is Northwoods?

Northwoods and Compass Software

Michael J. Colburn, PhD, PE 4

Northwoods Consulting Partners

•Streamline work processes•Maintain regulatory compliance•Ease the burden of work on their

employees

Northwoods provides consulting services and develops computer software for Human Services agencies in five states. Its services help county agencies:

Michael J. Colburn, PhD, PE 5

Compass Software

• Electronic document management, storage and retrieval

• Distributed scanning of documents at the point they enter the agency

• Electronic forms• Schedule and client-flow management• Caseload balancing

Northwoods Compass Software is designed to meet the specific needs of Human Services. It provides:


ROI Study Objectives

What Impact does Northwoods Systems have on: Intake and Redetermination interview time Processing receipt of documents Responding to requests for information Waiting line at the front desk


The Big Question

What impact does system improvement have on organizational performance?


Analysis Approach

Data

Information

Action

Decision


Interview Time Analysis

Documenting the methods Collecting the data Analyzing the results


Documenting the Method

See sample forms


Collecting the Data

See sample forms


Analyzing the Results

Redetermination Interviews

0

5

10

15

20

25

30

35

40

45

Inte

rvie

w T

ime

Paper Northw oods


Processing Document Receipt



Documenting the Methods

See sample forms


Collecting the Data

See sample forms



Processing Documents

0

1

2

3

4

5

6

Tim

e P

er

Do

cu

me

nt

Manual Northwoods

Mail Drop Offs


Responding to Information Requests



Documenting the Methods

See sample forms


Collecting the Data

See sample forms



Responding To Information Requests

0

5

10

15

Tim

e P

er O

ccur

ence

Manual Northwoods


Waiting Line

Multiple Waiting Line Servers

Customer ExitArrivals

• •• ••


Waiting Line Analysis

Service time studies Arrival time estimates Analyzing the results


Line Length vs Capacity

Capacity

Line q

(S=

2)

1.00.90.80.70.60.5

20

15

10

5

0

Avg Line Length vs Service Capacity

Model 3: Service Rate - 20 per hour (S= 2)


Wait Time vs Capacity

Capacity

Wait q

(m

in)

(S=

2)

1.00.90.80.70.60.5

60

50

40

30

20

10

0

Avg Wait Time vs Service Capacity

Model 3: Service Rate - 20 per hour (S= 2)


What people said

You should have seen it last week. The line went out the door and around the building.


Expected Variation (within service capacity)

0

5

10

15

20

25

9 am 10 am 11 am Noon 1 pm 2 pm 3 pm 4 pm 5 pm

Time of Day

Ave

rag

e L

ine

Len

gth


Service capacity exceeded (1 hour)

0

5

10

15

20

25

9 am 10 am 11 am Noon 1 pm 2 pm 3 pm 4 pm 5 pm

Time of Day

Ave

rge

Lin

e L

eng

th


Waiting Line Conclusions

When arrival rate is less than 70% capacity, line length should be moderate.

As the arrival rate approaches 100% capacity, line length increases exponentially

When the arrival rate exceeds 100% capacity, the line length is out of control

Northwoods system helps, but does not guarantee out of control situations.


The Big Question

So What ?


Caseworker Capacity

Manual

IT=55 5 RD = 205 min. 5 RfI Other Activities

0 60 120 180 240 300 360 420 480

IT=55 5 RD=125 5 RfI Other Activities 23

Northwoods

Possible Uses for Additional Capacity

Additional

Capacity

IT 2 RD 2RfI 55 50 10


Savings Estimate Scenario

50 caseworker size agency Caseworker conducts five redetermination

interviews per day Caseworker processes five requests for

information per day There are 100 drop-offs per day


Caseworker Savings – RD Interviews

A. Number of Redetermination interviews per year 57,500.B. Time savings per Redetermination interview = 16 minutes.C. Estimated Yearly Time savings = A x B

= 57,500 RD x 16 min/RD = 920,000 minutes

D. Full Time Equivalent Caseworkers = C ÷ 69,000 minutes* = 920,000 ÷ 69,000 min/caseworker

= 13.3 caseworkers


Caseworker Savings – process info req

A. Number of requests for information per year 57,500.B. Time savings per information request = 8 minutes.C. Estimated Yearly Time savings = A x B

= 57,500 RFI x 8 min/RFI = 460,000 minutes

D. Full Time Equivalent Caseworkers = C ÷ 69,000 minutes* = 460,000 ÷ 69,000 min/caseworker

= 6.7 caseworkers


Total Caseworker Savings

RD Interviews = 13.3 caseworkers

RFI’s = 6.7 caseworkers

Total = 20.0 caseworkers


Total Caseworker Savings

0

10

20

30

40

50

60

Manual Northwoods

Ca

se

wo

rke

rs


Other Savings

Front Desk Time (approximately one person) Mail processing time Paper, toner, file cabinets Quality – no loss documents or time delays Caseworker morale


Critical Success Factors

Document the processes Anticipate variables that may impact the

results Err on the side of detail Ensure large enough study size for accuracy Ensure broad enough study to be

representative


Critical Success Factors

Hanging out is good to do Maintain a “Columbo” attitude Data is not information Sometimes bad news is good news Always ask the “So What” question