1. Analytics in Government

2. Story - I

3. Identified $3.2M in cost and capacity savings $750,000 in immediate cost savings $1.25M in short-term capacity savings $1.2M in long-term cost and capacity savings Served as financial justification for all subsequent phases Received Federal Highway Administration Award of Excellence for Right of Way process analysis and improvement State DOT (1)

4. Objectives: to improve high cost processes identified through ABC model increase overall efficiency of Department operations generate quantifiable ROI Analyzed 41 processes using proprietary method, StorySolve ® : Documents Analyzes, and Improves or reengineers work processes Computes cost savings Reduces time requirements Enhances process quality High tech, high touch approach ensures: Measurable and realized results Positive behavioral and organizational impact State DOT (2)

5. Detailed Activity-Based Costing (ABC) model Proof of co23 processes 250 activities Data integration & automation to generate 23 report types (with multiple parameter options) Cost-related performance measures ncept process analysis $400,000 in cost and capacity savings $400,000 secured from state general fund True cost of projects and services Factual basis for outsourcing decisions Fact-based budget development and justification Identification of high cost processes for process improvement State DOT (3)

6. GOAL: Maximize the publics transportation experience by continually improving operation of the states transportation system, while respecting safety, mobility needs, and environmental concerns Customer satisfaction Traffic safety Environmental stewardship Responsive transportation system External communication GOAL: Continuously improve the Departments business and operations activities, to ensure they serve our vision effectively and economically Planning & Design Construction Maintaining & Operating Support Business alliances GOAL: Make the Department of Transportation a desirable place to work. Our efforts in this area will help the Department attract and retain the best possible employees Employee appraisal and recognition Flexible workforce Employee safety Internal communications GOAL: Manage our financial resources to optimize delivery of services Manage cash flow Maximize external financial resources Minimize administrative costs Ensure cost- Effective processes Manage our assets VISION CUSTOMER SATISFACTION BUSINESS IMPROVEMENT ORGANIZATIONAL HEALTH FINANCIAL State DOT (Strategy Map) We provide a transportation system to satisfy diverse mobility needs in a cost effective manner, while retaining concern for safety and the environment

7. Story - II

8. Costing model for government parks system Activity-based costing accurately measure costs to improve efficiency and charge correct fees for amenities Primary Total Cost per Park Total Cost per Activity Total Cost per Activity per Park (best practices) Actual to standard comparisons / Performance Measures Planning & budgeting Secondary Amenity costs Customer costs Tertiary Profitability Used to accurately price amenities (eg – soccer fields, boat docks, picnic areas, etc.) State Parks Agency

9. Story - III

10. Purpose: Analyze finance, personnel, and procurement functions Identify areas for cost improvement Price support services provided to the National Forests Motivating factors: Budget cuts were reducing available funding Workload was increasing rapidly while staffing was declining Forest Agency

11. Identified process changes that provided 32% increase in cost efficiency Detailed price list for services: Contract amendment, personnel action, purchase order, third party draft, credit card payment Price list published and used by forests to determine payment Price list has affected decisions regarding sourcing of work Forest Agency

12. Story - IV

13. Carbon Measurement for Environmental Agency - Story 4 Resources Map of carbon use Activities Carbon consumed by each activity Cost Objects Carbon used in the delivery of services and consumed by clients and projects External Sources of Carbon Sources of CO 2 : Electricity Natural gas Air travel Bio-fuels Chemicals Location Type Supplier Department/Directorate Activity Equipment Service Project Client Forest Agency

14. Story - V

15. Accurately measure TCO (including indirect costs) of asset portfolio Combine with usage for chargeback/shared services invoicing to other agencies consuming IT assets and services Improve cost, quality, and time of support processes IT Agency

17. RomaniaPoland Europe Czech RepublicCMOCFOProjectsReports 12.051%50642# LicensesWin XP 5.651%56099SLAs by CustomerNegotiate Service Level Agreement (SLAs) 6.651%58787SLAs by CustomerMonitor/review SLA support services 66.381%5979# Phone ConnectionsCommunications Systems (telephony) 7.981%59975HoursDisaster Recovery 10.761%64660# LicensesWin NT 10.731%79474# Email AccountsEmail IT Agency

18. Story - VI

19. IT Agency StorySolve, proprietary collaborative process improvement approach, to: Develop consolidated dictionary of activities Measure true cost of processes (e.g.,: technical support help desk), projects, and applications Identify cost savings through process improvement, overlaps, and redundancies Result – 25% cost savings