federal analytics symposium presentation

8/3/2019 Federal Analytics Symposium Presentation

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Analytics and the federalgovernment

From memos to mandates

Bob DaltonApril 4, 2011


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Copyright 2011 Deloitte Development LLC. All rights reserved.1 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


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Business analytics and government: An oxymoron?


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As the most senior managers in the federal government, you know how essentialthe work you and your colleagues do is to the nation. You also are aware whathappens when your best efforts are thwarted by outdated technologies andoutmoded ways of doing business. You understand the consequences ofaccepting billions of dollars in waste as the cost of doing business and allowingobsolete 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


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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 childrens 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 aboutthe governments 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 inefficientand wasteful.

At the outset of his Administration, the President made it clear that we needed to make government workbetter, 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.pdfhttp://www.whitehouse.gov/sites/default/files/omb/memoranda/2010/AccountableGovernmentInitiative_09142010.pdf


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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 keyperformance strategies


7/28Copyright 2011 Deloitte Development LLC. All rights reserved.6 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

Presidents 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 keyperformance 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 managementpriorities, to establish Chief Operating Officers, Performance Improvement Officers, andthe 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, its 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, its the law (cont.)



Other federal acts benefitting from analytics

1966 1968 1974 1978 1993 2001 2002 2004 2007 2011

Freedom ofInformation Act

Foreign IntelligenceSurveillance Act

GovernmentPerformanceand Results Act

Omnibus CrimeControl and SafeStreets Act

Privacy Act

PATRIOT Act

E-Government Act

Intelligence Reformand TerrorismPrevention Act

Federal AgencyData MiningReporting Act

GovernmentPerformanceand ResultsModernizationAct (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 likelyto 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 otherthan 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 inFederal 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 isimportant to their agencys

mission

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

2%

3%

15%

26%

55%

It is becoming significantlyless important

It is becoming somewhat lessimportant

It is not changing

It is becoming somewhatmore important

It is becoming significantlymore important

81 percent saydata is becomingmore important



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

1%

12%

43%

47%

65%

71%

76%

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)

The data we collect helps

us prioritize requirementsfor both tactical and

strategic missionimportance.

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




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

8%

10%

12%

13%

14%

30%

36%

38%

37%

45%

55%

58%

42%

38%

34%

34%

26%

11%

14%

14%

17%

8%

5%

1%

Consistency

Timeliness

Accessibility

Usefulness

Accuracy

Security

Outstanding Good Fair Poor

Without reliable

data we cant do

our jobs.

Data is collected

but can be hardto 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.

16%

44%

23%

17%

Strongly agree Somewhatagree

SomewhatDisagree

StronglyDiasagree

84 percent see room

for improvement tofully leverage data

3%

7%

60%

64%

10%

7%

45%

69%

I dont know

Data not used

Predictive

Reactive

We use projections

to help manage riskin programs,

operations, andfinancials.




2%

7%

30%

32%

41%

41%

43%

45%

57%

60%

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

Data is scattered across

multiple sources and ispoorly organized so we are

not able to find bestsources of indeed data.

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


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66%

25%

9%

Very Important Moderately Important Minimally important

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

91 people sayimproving data

analysis is important


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Case studies


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U.S. Deloitte Analytics strategy

The vision

The mission

Leverage the power of our unmatched global industry and domain knowledge to establish Deloitteas 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 analyticinsights, performance optimization, and information management. We will know if we havesucceeded 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 anddeliver

Drive substantial value for clients

Grow revenue and profitability

Deloitte Analytics Institute

Build capabilityEstablish eminence globallyBuild capability

1Empowering

partners to sellbusiness analytics 5

Acceleratinginnovation and

commercialization4Driving marketawareness via

thought leadership3Creating and

scaling solutionsthat matter2

Growing ourcapacity to deliver

The strategy

Sales Enablement Solutions Eminence Innovation

The Deloitte Analytics Institute


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The DAI executes the initiatives of our U.S. Consulting Bold Play and DeloitteAnalytics Integrated Market Offering (IMO) in alignment with our Global DeloitteAnalytics 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 marketcross-functional high-valuesolutions in priority industries

Focus is on: Tailored solutions that meetclient demand

Integrated solutions/leveragingthe Organization

Building capabilities Differentiating Deloitte Unique value proposition

Primary Objective: Accelerate growth of global

analytics. Provide the frameworkfor analytics so member firmshave 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


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Five big trends are driving the adoption of new approaches to business analytics. Takentogether 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 todays analytical computing capacity and analytical tools can meet the challenge.

Regulations Regulators are demanding deeper insight into risk, exposure, and publicresponsiveness from financial, health care, and many other sectors requiring integrated data acrossthe enterprise.

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

New Signals Holistic signal detection from traditional internal and external structured andunstructured data plus voice, e-mails, social networks, sensor-enabled facilities, products, instrumentsmust 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 ofdecision making. Facing more information than humans can possibly process, decision makers needmore powerful tools for uncovering hidden patterns that may go undetected.


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

Deloitte Analytics: Our key differentiator

Global footprintand ability toexecute

Broadfunctional

capabilities

Deep sectorknowledge

More than 3,400 Analytics Resources,including

2,400 in Americas

710 in EMEA350 in APAC

Technology

Strategy and Ops Financial Advisory

Human Capital (includingactuarial and insuranceservices)

Risk

Public Sector

Life Sciences and Health care

Financial Services

Consumer Bus andTransportation

Manufacturing

Technology, Media, andTelecomm

Energy and Resources


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Deloitte Analytics: Our delivery model

AdvisoryAnalytics TransformationAnalytics ManagedAnalytics SubscriptionAnalytics

What is it? Use of analyticsto support businessoperations and strategy

Design and implemententerprise solutions

Outsource analyticsservices and platform

Subscription-basedanalytics w/analyticalscoring and results

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

Highly variable based onscope and duration

Example

offerings andsolutions

Analytics strategy

Pricing and profitability Customer analytics

FCPA analytics

Benchmarking analytics

PerformanceManagement strategy

Supply chain analytics

Customer analytics Product life cycle

analytics

Workforce analytics

Finance analytics

Tax analytics

Physician targeting

Life science managedmarket analytics

Safety analytics

Clinical developmentoptimizer

Recurring underwritingand claims modeling

Incentive comp

Physician targeting Benchmarking

Underwriting/claims

Risk/Fraud

Litigation spend

Pricing

World-classcapabilities

World-class advisory and technology capabilities:

Global analytics capability, including more than 3,400people

Global analytics practice more than $1B with ~25%growth in 2010

Double-digit growth in global technology business in adown economy

Leader in management consulting

Leader in business consulting

Leader in pricing

Leader in CRM

Leader in risk

Leader in forensic and dispute


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Deloitte Analytics: Our vision

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

immediately begin to address its specific needs


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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]:[email protected]


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About Deloitte

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

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