data driven decision making - masb · out tab and netflix by 10% rather than eliminating...

Data Driven Decision Making –Leveraging Innovation and Critical Strategic Planning to Design Projects with the Greatest ROI and Long Term Benefits

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Autopilot.

We often make the wrong assumptions based on the fact that something’s familiar

This restricts our ability to spot opportunities, or identify issues before they escalate

Familiarity can be a friend or foe. Don’t get stuck on autopilot.


We’ve All Seen the Headlines.

Headlines from Google Searches

…if it [Michigan] thinks the status quo is going to be fine, we’ll have a race to the bottom, and we’re almost there right now -Thomas Haas, President, Grand Valley State University

Michigan’s public education system is dramatically failing our children - Century Education Commission – Educators, advocates and

business leaders.

We are in a furious crisis, and we can’t keep doing things the way we’ve done for decades – Amber Arellano, President of Michigan-based Education Trust-Midwest on Michigan’s flailing K12 system.

Trouble ahead for Michigan Budget – Detroit Free Press


Is the Crisis Real?

..Revenue Growth is Slowing..Expenses are Increasing

..Fund Balances are Dwindling

Is it New?


So, what does your local district expect?

1. Safe Learning Environment2. Quality of Education services3. Clean Learning Environment4. Accountability5. Dependable crisis management

Basically everything…and spend the money wisely.


So What Happens?

“Across the board cuts spreads the pain evenly and also evenly spreads the mediocrity”


Does this Make Sense in the Real World?

Across the board cuts are:

• Designed to protect essential services

• No single program gets singled out

“Same as a family deciding to cut its monthly mortgage payment, dining-

out tab and Netflix by 10% rather than eliminating restaurants and Netflix to

keep up the house payments..”


So how do we do it?

7 Deadly Sins

1. Rob Peter to pay Paul2. Use accounting tricks3. Borrow4. Sell assets5. Make something up6. Nickel and dime team members7. Delay asset maintenance or replacement

Getting Your Priorities Straight, Fabian, Collins, Johnson, 2008))


Is the Crisis Real? Is it New?

Are we in an “age of permanent fiscal crisis!?”

No, we are not, but we are in a crisis of priorities.


Philosophy of Priority-Based Decision Making

Common Sense Can and Should Prevail

Simple, Small Starts Okay

The Discussion is Worth Almost as Much as the Execution


Skip to the end. Here’s How to Do It.

It’s easy. Just:

1. Prioritize Services2. Do the Important Things Well3. Question Past Patterns of Spending4. Spend Within the Organization’s Means5. Know the True Cost of Doing Business6. Provide Transparency of Community Priorities7. Provide Transparency of Service Impact8. Demand Accountability for Results

GFOA, Anatomy, Kavanah, Johnson, Fabian)


How do you make the leap forward?

Moving away from the traditional approach:

• Asset centric decisions

• Capital/maintenance based solely on

• Age/condition

• Loudest voice in the room

• Wish-list items

• Little known impact to quality of customer service


How do you make the leap forward?

Move toward the strategic approach:

• Become customer centric

• Capital/maintenance based on impact to service delivery

• Costs/benefit analysis for all investments

• Failure consequences understood


Process Map for Priority-Driven Planning

GFOA, Anatomy, Kavanah, Johnson, Fabian)

1. Identify Available

Resources

2. Identify Your Priorities

3. Define Your Priority Results More Precisely

4. Prepare Decision Units for Evaluation

5. Score Decision Units Against Priority

Results

6. Compare Scores

Between Offers and Programs

7. Allocate Resources

8. Create Accountability

for Results


This is a lot. Anywhere Simple to Start?

These 5 items are the baseline data that should be considered in the start of data driven decision making

Develop the Data Baseline (non-technology)

1. Risk Profile of Systems & Assets2. Infrastructure Condition Assessment3. Energy & Operational Efficiency Review4. Useful Equipment Life of Systems & Assets5. Leadership Workshops to Define Service Priority


How to Prioritize: 5 Data Points for Decision Making

SERVICE PRIORITIES WORKSHOP

PREL

IMIN

ARY

ASSE

SSM

ENT INFRASTRUCTURE CONDITION

ASSESSMENT

FACILITIES RISK ASSESSMENT

USEFUL EQUIPMENT LIFE ANALYSIS

ENERGY AND OPERATIONAL SAVINGS ANALYSIS

PRELIM ASSESSMENT WORKSHOP & RECOMMENDATIONS

10101010101101010101010101010100101

1010101101010101010101010100101010101010101010

0101010101010101010101010101010101101010101010101010100101010101010101010110101010101010101010101

0101010101010101010101010101010101010

1010101010

Infrastructure Condition

Risk Assessment

Service Priorities

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjAqdexrKXVAhXoCJoKHQ6ZBGwQjRwIBg&url=http://www.emoji.co.uk/view/8065/&psig=AFQjCNEcteJCl9fJNalcwG7K3jQOQQ5jVw&ust=1501103465589602







Why data-driven decision making matters.

Infrastructure with greatest impact to the

District

Utilizing a data-driven process for making smart infrastructure decisions:

• Avoids across the board decisions

• Ensures fiscal preparation and long-term planning

• Aligns budgets with community impact and priorities

• Changes lens with which local District sees infrastructure

• Combines some of the best aspects of other budgeting processes


When it doesn’t work.

• “Data” is everywhere

• Wrong data is acted upon

• Transparency in decision making sometimes at odds with political direction

• Software industry has made it too complicated for most local districts

• The “tools” have become the focus, not the community impact

• Diminishing returns on investment in costs, and time of staff


When it does work.

Common Sense Approach

• One-size approach NOT used

• Balance needs, capabilities and desired outcome

• Leadership adopts the philosophy of priorities & impact

• Gradual implementation in process

• Technology doesn’t have to be the only answer

• Community impact and financial stewardship top priorities


Recap.

• We’re in a crisis of priority

• Financial and political environment likely to stay same or worse before better

• Challenge the AutoPilot

• Adapt different aspects of budgeting, planning and thinking

• Small steps make big differences

• Data is here, use it to your advantage, but don’t get lose sight of the goals

• Start small – think of the 5 baseline ideas


Questions.

Dr. Russell PickellSuperintendentRiverview Community Schools

Terry StoklosaSiemens Industry Inc.Phone: 616.279.9209E-mail: [email protected]

Nicole GazzenySiemens Industry Inc.Phone: 734.386.6694E-mail: [email protected]

Hard copies of this presentation available upon

request

mailto:[email protected]

mailto:[email protected]

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