Becoming a Data Detective Cracking the Case of Better Decision Making and Culture Change

1
Becoming a Data Detective - Cracking the Case of
Better Decision Making and Culture Change
The Government Finance Officers Association

• Presented by
• Laurie Ohmann, The Public Strategies Group
  Chris Swanson, Municast

2

• Using Data for Decision-Making Culture Change

3
Being a Data Detective

• Detective
• one employed or engaged in detecting lawbreakers
  or in
• getting information that is not readily or
  publicly accessible
• Merriam-Webster Online

4
Cracking the Case

• Creating a culture of data-driven decision making
  is a journey
• Movement
• Away from culture of judgment and gotcha
  mentality
• To culture of learning and improvement
• Is both strategic and tactical

5
Cracking the Case

• Strategic
• Accountability to your customers
• Understand gap between desired and current
  performance looks for patterns trends
• Begs questions about which path to pursue
• Anticipates issues and challenges

6
Cracking the Case

• Tactical
• The how of implementing strategy
• More management than leadership - but great
  management required!
• Can utilize a range of tools for data collection
  analysis

7
Data-driven Framework

• Chart
• Explore
• Discover

8
Data-driven Framework

• Charting
• Start with organizational results
• Paint the big picture
• Create a strategy map of the important levers in
  getting from here to there

9

10
Charting the Course

• Clarify the Data Plan
• What do we want to accomplish?
• What data do we need to do that?
• How will the data be used?
• By whom? What are their expectations?
• How do our customers fit into this?

11
Lessons from Charting

• Limit the number of key results for the
  organization
• Align performance metrics and data collection
  from the top down through the organization
• Dont make data collection onerous

12
Data-driven Framework

• Chart
• Explore
• Discover

13
Exploring the Data

• From Data to Information
• Tests the theory of the enterprise
• Includes data analysis quality control
• Works the data by linking, uncovering details
  or themes, or envisioning it from others
  perspective

14
Lessons from Exploring

• Use both performance and diagnostic data
• Being in the question takes practice!

15
Data-driven Framework

• Chart
• Explore
• Discover

16
Data Discovery

• Putting the pieces together to draw conclusions
• Learning the a-ha moments
• Moving from understanding to action

17
Lessons from Discovery

• Talk about the data and what youre learning
• Have learning be consequential

18
Data-Driven Decisions

• Requires an investment in collecting the right
  data
• Getting it right, or at least better, takes time
  and attention
• Happen more frequently if managers at all levels
  talk about data and have consequential actions
  from their learning

19

• Using Data for Trend Correlation Analysis

20
Key Data Variables

• Key Variables to Collect and Analyze
• Financial History
• Economic Indicators
• Operating Metrics

21
Trend and Correlation Analysis

• Analyze trends in recurring revenues and spending
  determine annual growth rate by account type,
  and other key metrics such as per capita and of
  total measurements.
• Identify recurring and non-recurring factors
  impacting revenue and spending growth.
• Analyze relationships between major variables
  such as, property and sales tax revenues compared
  with residential and commercial development,
  economic cycles, population growth, etc.

22
Collect Key Indicators
23
Trend Analysis - Ex Property Tax, Annual Change
24
Trend Analysis - Ex Licenses and Permits, Per
Capita
25
Trend Analysis - Ex Charge for Services, of
Total
26
Correlation Analysis Property and Sales Taxes
27
Correlation Analysis Service Charges Per Capita
and CPI
28
Correlation Analysis Public Safety Spending
Crime Rate
29
Use Data for Creating Forecast Assumptions
30
And as the Basis for Sensitivity Analysis
31
Use Same Data For Benchmarking
32
Data Analysis Summary

• Collect a wide variety of financial, economic and
  operational data to analyze correlations, trends
  and identify key metrics for future measurements.
• Use same data for preparing and analyzing
  strategic plans, financial summaries, performance
  measurement, long-term financial plans,
  benchmarking and other studies,
• All of the above can be analyzed with spreadsheet
  software with strong database capabilities such
  as Microsoft Excel.

33
Questions?
34

The Government Finance Officers Association
Give us your feedback http//www.gfoa.org/index.p
hp?optioncom_contenttaskviewid797Itemid1

• Future Internet Courses
• November 5, 2008 - Transcending the Cost of
  Mistrust
• December 11, 2008 - Creating Radical Change in
  Internal Services The Iowa
  Experience

35
Contacts

• Laurie Ohmann, CEO, The Public Strategies Group
• www.psg.us
• Email laurie_at_psg.us
• Phone [phone]
• Chris Swanson, Government Finance Research Group
  (GFRG)/Municast
• www.municast.com
• Email Chris_at_MuniCast.com
• Phone [phone] ?