Data Analytics: Turning Data Into Decision Making

Transcription

1 Data Analytics: Trning Data Into Decision Making

2 Overview Defense Finance and Acconting Service (DFAS) Data Analytics Strategy and the Balanced Scorecard Operational Excellence 2

3 DFAS: Who We Are We Are The world's largest finance and acconting operation. Or Mission To lead DoD in finance and acconting by ensring the delivery of efficient, exceptional qality pay and financial information. Or Vision To be a recognized leader in DoD's financial management by consistently delivering first-class service and prodcts. Or Core Vales Integrity: Doing What is Right Service: Striving to be a Trsted Financial Partner Innovation: Creating New Ways to do Bsiness 3

4 DFAS: Or Cstomer and Operation Congress Provides Fnding $496B reqested dring DoD FY15 Bdget Reqest $1.4B for prchase of finance & acconting services Congress Provides Cost Athority Athorization to incr costs for services provided Bill Services for revene to recover costs in accordance with OSD bdget Congress $ 496B $ 1.4B Office of the Secretary of Defense $ 120B $ 138B $ 148B $ 90B $ 1.4B Prodcts & Services Bill: $ 1.4B Army Air Force Navy Marines Other DA Note: Fnding reflects FY 2015 Department of Defense (DoD) bdget reqest Payment DFAS 4

5 DFAS: Who We Serve Established in 1991 to prepare DoD for 21st Centry Financial Management DFAS Pays All DoD military personnel, retirees, annitants and civilian personnel Major DoD contractors and vendors Cstomers otside the DoD The Exective Office of the President (EOP) The Department of Energy (DOE) The Department of Veterans Affairs (VA) The Department of Health and Hman Services (HHS) 5

6 DFAS: What We Do Scope of Bsiness Processed Million Pay Transactions (6.3 million people/acconts) Paid 11.5 Million Commercial Invoices Made 5.8 Million Travel Payments Made $572 Billion in Disbrsements Maintained Million General Ledger Acconts Acconted for 1,270 Active DoD Appropriations Managed $18.3 Billion in Acconts Receivables Managed $772 Billion in Military Retirement and Health Benefits Fnds Managed Foreign Military Sales Cases reimbrsed by foreign governments valed at $424 Billion Sales & Service - $1.3B Military Pay $222.5M Civilian Pay $104.0M Retiree Pay $ 73.3M Travel Pay $ 34.6M Commercial Pay $155.3M Acconting Services $488.5M Spport to Others $ 63.0M Others $171.8M People Approx. 11,600 employees *(Civilian & Military) Located in: 10 Sites, 6 States and 3 Contries/Regions Note: Information shown is FY14 data 6

7 Mission Areas DFAS: Cstomer Workload by Site Cleveland Colmbs Indianapolis Limestone Rome Civilian Pay Military Pay Retired & Annitant Pay Travel Pay Contract Pay Vendor Pay Garnishments Ot of Service Debt Acconting Services Army Marines Navy Air Force Defense Agencies 7

8 Data Analytics Indstry Wide Not only talent management, bt data mining and predictive analysis or forecasting GE Capital: Performance metrics are a way to keep yor strategic planning activities honest. Jstin LaChance (Sr. VP of Financial Planning and Analysis) SAP Software: We live in an increasingly data-driven world, nlocking the power of data and analytics provides insights and a competitive edge. Jonathan Becher (Chief Marketing Officer) Sothwest Airlines: Provides real time Key Performance Indicators (KPI) metric dashboards related to operational and strategic goals. 8

9 DFAS Strategy and the Balanced Scorecard Operational Excellence Operational Efficiencies Excellence Adit Readiness 1. Achieved 89% Agency Operational 1. Identify enterprise (DFAS/Cstomer shared costs) Health savings opportnities 2. Achieve Agency cost savings goals 1. Achieved 95% of material/critical The Agency FY14 strategy map identifies agency strategic priorities and objectives Adit Readiness 1. Achieve 95% of material/critical FY14 FIAR FIAR milestones related to the milestones related to the Statement of Bdgetary Activity Schedle (SBA) of Bdgetary Activity (SBA) 2. Achieve Completed 85% of 100% material/critical of cstomer FY14 FIAR milestones CONOPS related to spport to remaining SBA financial adit statements Target Implemented Complete 100% of ERPs cstomer on CONOPS schedle* to spport SBA adit Bsiness 2. Developed TBSE Hman Capital Plan 4. Develop framework and implement process to ERP Systems Optimization 1. Implement to share inclde lessons ERPs optimm learned on schedle* for org observations strctre objectives identified and Environment 2. Improve talent throgh management adit Enterprise preparedness Systems reqirements and Interoperability adit findings (TBSE) 5. Acceptance Achieve 100% Rates reporting of MICP programs in the Efficiencies Achieved Address Agency s Talent Statement Agency Management of cost Assrance savings reqirements targets to optimize ERP capabilities 4. Implement *May expand approved into optimm FY15/16 organization strctre* *May extend into Y15/16 Strategic initiatives and goals are defined to meet strategic The Agency balanced scorecard provides an exective view of agency performance against priorities 9

10 Agency Health: The Fondation Program Goal Manage the Agency like a bsiness Corporate View Vision Statement Establish an endring performance management capability enabling every level of management to effectively plan, measre, and manage operational health Cstomer Operations Operations Spport Objectives Performance Measres and Indices Goals and Targets Mltiple Views of Operational Health Single Sorce of Performance Data Leadership and Accontability Cascade/Manage Standard Performance Data to Spport Analysis at All Levels Develop Standard Measres and Assess Performance Against Targets Spport Decision-Making Capability at the Site, Prodct Line, and Cstomer Levels Identify Proponents for All Performance Elements to Establish Single, Objective Sorces of Data Establish Clear Accontability for Goals, Targets, and Performance Reporting at All Levels 10

11 Metric Development and Operational Health Detailed metrics are developed for each organization Thresholds are developed to determine whether a metric is red/yellow/green Metrics are aggregated reslting in an Operational Health score for each organization 11

12 Enable Management Decisions at All Levels Strategic Performance Manager DFAS Director, Agency Exectives Prpose Manage Agency Mission and Resorces Manage Agency Strategy Exection Manage overall Agency Operational Health Track Adit Readiness progress/milestones Operational Operational Directors, Operational Managers Cstomer Management, Client Exective Teams Identify Operational Improvement Opportnities Manage Resorces Manage performance and priorities in alignment with cstomer reqirements Commnicate performance to cstomers Tactical Spervisors and Managers Analyze and manage monthly performance in alignment with Agency and cstomer priorities 12

13 Enabling Management Decisions at All Levels Strategic Is the Vision being achieved? Operational Performance Manager Management Qestions DFAS Director, Agency Exectives Are agency strategic objectives being met? Are agency financial objectives being met (revene / expenses)? Are agency cstomers satisfied? Are or people eqipped to meet ftre needs? Planning Horizon Long Term (3-12 months) Tactical Performance Tools Corporate Bsiness Model Agency Balanced Scorecard Adit Readiness Dashboard 13

14 Enabling Management Decisions at All Levels Strategic Operational Are bsiness otcomes being achieved? Are cstomer reqirements being met? Tactical Performance Manager Management Qestions Planning Horizon Performance Tools Directors, Senior Managers Where do I have performance isses? Are cstomers satisfied? How can we operate more efficiently? What are ftre resorce needs? Am I operating within bdget? Where are process improvement opportnities? Mid Term (1-3 months) Organization scorecards Bsiness cycles (processing capacity) Performance dashboards 14

15 Enabling Management Decisions at All Levels Strategic Performance Manager Management Qestions Branch Managers, Spervisors What is my expected workload and processing capacity next week? Are my internal stakeholders satisfied? Do I need to hire more staff? Am I execting too mch overtime? Operational Planning Horizon Near-term (1-4 weeks) Tactical Is the day-to-day operation efficient/effective? Are improvement targets being met? Performance Tools Organization scorecards Bsiness cycles (processing capacity) Performance dashboards 15

16 Performance Tools Performance Dashboards display data throgh different views to facilitate analysis Trend analysis Control charts Comparative workload views Scorecards Throghpt / Bsiness Cycle analysis Variance analysis Focs of discssions and analysis is improvement planning 16

17 Example Bsiness Cycle Analysis Why the decline in invoices paid? AP - Invoices Bsiness Cycle What is my forecasted workload? Why is there an increase in overage invoices?

18 Sccess: Agency Operational Health DFAS Agency Health 95.0% 94.0% 93.0% 92.0% 91.0% 90.0% 89.0% 88.0% 87.0% 86.0% 85.0% 84.0% Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jn-14 Jl-14 Ag-14 Sep-14 Depty Director Operations directed annal analysis for Area s of Focs Strategically select areas and actions to improve performance Selections based on Data Analytics AoH Target 18

19 Jeff Mittman Video

20 DFAS The Employer of Choice

21 10 10 Paragon Paragon Drive, Drive, Site Site 1 Montvale, Montvale, New New Jersey Jersey U.S.A. U.S.A. (800) (800) (201) (201)