Data Analytics Play a Crucial Role in Decision-Making at Federal Agencies Amid Budget Constraints

Lack of "actionable" data impedes use for planning and budgeting

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Nov 15, 2011, 10:00 ET

WASHINGTON, Nov. 15, 2011 /PRNewswire/ -- More than 70 percent of federal government managers believe budgetary cost constraints are increasing the importance of data collection to make decisions about their programs, but 58 percent of respondents report that using the data externally in a "meaningful" way remains challenging, according to a new study by the Government Business Council and Deloitte.

"Information is currency in both business and government; but the research found that many federal agencies don't have reliable data readily available, even as there are difficult financial decisions looming," says Erin Dian Dumbacher, associate director of research at GBC. "The study shows that 45 percent of managers say that their agencies are engaging in predictive analytics, yet fewer than one third assess the quality of their data for accuracy."

The research findings of current government data analysis and data-based decision making practices draws upon the recently-published study, "Demanding More, Federal Agencies' Data Use to Drive Mission and Meet Mandates," The study is based on focus groups data and a survey which included senior-level federal employees from Senior Executive Service to GS/GM level 11.

Additional key report findings include:

Complicated processes, insufficient technical and staff resources are contributing to limited and inconsistent data collection in federal agencies.
Many agency leaders are unable to plan for the increasingly diverse demands from Office of Management and Budget (OMB), Government Accountability Office (GAO) and other departments. Nearly half of the survey participants struggle to make data both accessible and actionable.
Given the challenges of collection, many managers are unlikely to use data to determine cost-savings or take a closer look at their programs or functions. More than half (56 percent) of the respondents say their agency or program may consider downsizing the federal workforce in order to achieve cost-savings, while only 23 percent of respondents will analyze data to review the outcomes of programs, reduce improper payments or consolidate their business systems.

"Analytics can help agencies extract real value out of their existing data and can reveal under-performing programs, fraud, waste, and abuse," said Brad Eskind, principal, Deloitte Consulting LLP and federal technology and analytics leader. "Analyzing data can help agencies uncover these kinds of insights and realize important savings. Preemptive steps like this can help agencies allocate their limited resources more effectively, make more strategic cuts, and emerge as leaner and more effective organizations."

To download the full report, please visit: www.govexec.com/gbc/report/data_mission

To learn more about the survey findings, please visit www.deloitte.com/us/federalanalyticsreport

For more information about Deloitte's Federal Government Services, please visit www.deloitte.com/federal

About Government Business Council Industry Insights

As Government Executive Media Group's research intelligence division, the Government Business Council (GBC) is dedicated to advancing the business of government through analysis, insight and analytical independence. As an extension of Government Executive's 40 years of exemplary editorial standards and a commitment to the highest ethical values, the GBC joins with industry leaders to study influential decision-makers from across the federal government and produce intelligence-based research and analysis.

About Government Executive Media Group

As part of Atlantic Media Company, Government Executive is dedicated to the mission of "informing and challenging the national discourse" through serving managers and executives across government. Through its unmatched reach among federal decision makers and industry leading marketing services, Government Executive Media Group is uniquely capable of helping companies achieve breakthrough business results in the federal market. For more information about Government Executive Media Group, visit www.GovernmentExecutive.com/mediakit.

About Deloitte Analytics

Deloitte, a leader in audit, tax, consulting, risk, and financial advisory services, has delivered analytics related services and solutions to public and private sector clients for decades in support of such areas as business intelligence, forensic and regulatory investigations, performance management, advanced analytics, data management and more. For more information on Deloitte Analytics, visit http://www.deloitte.com/deloitteanalytics.

As used in this document, "Deloitte" means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

SOURCE Deloitte