Structuring Performance Data to Effectively Drive Management Decisions

1. Structuring Performance Data to Effectively Drive Management Decisions Tim Gribben, Josh Bull, & Mat Pascarella Office of Performance Management U.S. Small Business Administration December 5, 2012

2. Cascading Data-Driven Decision-Making • Framework of SBA’s Training Course • Permeation & Permutation of Training Embedding Performance Management

3. Cascading Data-Driven Decision-Making • Framework of SBA’s Training Course • Permeation & Permutation of Training Embedding Performance Management

4. Senior Leadership must use data-driven quarterly performance reviews of CAP and Priority Goals (GPRA Modernization Act of 2010) • Many agencies run this exercise out of their respective Performance Management Offices • However, for performance management to effect dramatic change, the more difficult task will be to integrate the same data-driven decision-making throughout the agency, especially among program managers and mid-level analysts. Performance Management as Organizational Culture

5. Recognizing a Problem & Finding the Solution

6. Making The Training “Stick” Getting buy-in from managers for maximum impact on participants, from executive leadership is key for institutionalization Managers Institutionalization • Invest in personal & professional development of employees • Surface actionable, interesting analytic questions for participants to explore • Including phrase into SBA’s new strategic plan – • “Investing in SBA’s employees through business, technical, and analytical training” Goals • ‘Lesson Learned’ continually improves course content & format • Final presentations raised by course participants turn into agency-wide projects • Future presentations to mgmt incorporate class teachings • Required to meet with their participating employees to discuss training goals and expectations • Asked to check in on participants to proffer help or feedback during training Expectations

7. Summary of SBA’s Path WHERE WE ARE NOW WHERE WE WERE IN 2009 WHAT WE DID • Identified skills gap related to data analysis / analytical presentations • Relatively few used data effectively to inform management decisions • Reliance on data summarization without insights • Created a training course to build new skills • Included it as an objective & strategy in the new strategic plan • Senior leaders and managers were also trained in the process • Data is being presented more effectively to inform management decisions • Senior leaders are using data to address management challenges

8. Cascading Data-Driven Decision-Making • Framework of SBA’s Training Course • Permeation & Permutation of Training Embedding Performance Management

9. Session Training Purpose & Format Purpose of Training: To help participants develop and structure analytic presentations that inform SBA management decisions Structure the Presentation Communicate the analysis Synthesize & Develop Recommendations Key Lessons • Structuring a management presentation • Developing a story-line • Presenting and communicating with data • Creating visual charts and graphs • Synthesizing findings into management recommendations • Developing data-driven ‘so-what’ insights

10. WHAT THE TRAINING IS Data Analysis Training Ground Rules WHAT THE TRAINING ISN’T • Training to help develop presentations that inform management decisions • Structuring • Communicating • Data Synthesis • Way to EMPOWER employee to drive SBA business decisions • Excel 101 • Powerpoint101 • How to Report Data • Oral Presentation Coaching • Understanding SBA’s Programs • Formal Assessment of . Employee’s Abilities • Risk-free environment • Interactive with assignments • Group oriented • US lecturing THEM • Rigid Curriculum

11. Session #1: Structure the Presentation Structure the Presentation Communicate the analysis Synthesize and Develop Recommendations • Two step process – “Structure the Presentation”: • Structure the management question (using an Issue True) • Organize the issues into buckets • Anticipate the data and analyses that will answer the questions • Build a story line (using a “Ghost Deck”) • Plan the work to be done • Align with managers on direction before investing the time 1 2

12. While developing the ‘Issue Tree’ to structure issues, we might consider two principles to answer ALL and the most RELEVANT questions Structure the Presentation 1 Be “Mutually Exclusive, Collectively Exhaustive” (MECE) to identify all issues… Example: How can I save money for a vacation? …and keep digging deeper (ask“So-What?” or“Why?”) to ensure the issues are relevant Example: Why is my credit card bill increasing?

13. Structure the Presentation: Organize the Issues 1 Be “Mutually Exclusive, Collectively Exhaustive” (MECE) to identify all issues Questions and analyses to consider Can I buy cheaper items? Coffee machine, not Starbucks; Shop at discount stores Can I buy fewer items? Spend less on gas by driving at 55 mph on the highway Spend LESS money How can I save money for a vacation? • Can I earn more interest on existing income? • Can I invest in stocks/funds instead of checking account • Can I earn new income? • Can I sell garage items by having a yard sale Earn MORE money

14. Build the Story-line 2 Depending on the purpose, a senior management presentation might include the following components Purpose Potential Considerations Situation Complications Options to Consider Inform a Decision Problem(s) to address Recommendations & Rationale Implementation Plan Build a Proposal Reason for Action (or context) Actions Taken Results Achieved Showcase a Success

15. 15 Key Lessons: Structure the Presentation • How to Build an Issue Tree • Mutually exclusive, collectively exhaustive (MECE) • Start as MECE as possible. It’ll help as you build. • How to Turn an Issue Tree into Relevant Questions • Keep asking “so-what” and“why” • Approaches for building a story line • Situation, complication, resolution • Constructing a “ghost deck”

16. Session #2: Communicate the Analysis Structure the Presentation Communicate the analysis Synthesize and Develop Recommendations 1 • Determine your message 2 • Identify the comparison 3 • Select the best chart type MATERIAL ADAPTED FROM GENE ZELAZNY’S “SAY IT WITH CHARTS”

17. Determine Your Message 1

18. Identify the Comparison 2 5 types of comparison Source: Gene Zelazny, “Say it with Charts”

19. Select the Best Chart Types 3 Key types of charts Pie chart Bar chart Column chart Line chart Dot chart

20. Exercise!!! 3

21. 21 Key Lessons: Communicate the Analysis • Determine the message • Identify the comparison • Component, Item, Time Series, Frequency Distribution, Correlation • Select the chart type • Pie, Column, Bar, Line, Scatter, or Other

22. Session #3: Synthesize & Develop Recommendations Communicate the analysis Structure the Presentation Synthesize and Develop Recommendations • How to Synthesize & Develop Management Recommendations 1 • Examples of Synthesis 2

23. 1 Tips for Synthesis

24. Potential Components of a Synthesis 1

25. Email Example: Before synthesis… 2 Dear Elizabeth W., How are you? I hope this note finds you well. I must say, I have not been doing too well—everything seems to be going wrong. My life is in shambles. For example, I had to pull two all-nighters last week for a very big report that was due last Friday. My boss said he told me about in two months earlier, but I totally forgot about it until he asked for a semi-final draft last Wednesday. I scrambled and just barely got it done—though I am so exhausted now. OMG. And then this weekend was really sad because it was my 30th birthday on Saturday, and nobody came to my party!!!  On Wednesday, I sent people a text message Friday night saying “come to my house tomorrow for dinner at 8 pm”. Half of my friends already had plans, and the other half went to my old house—because I forgot to tell them I moved!! Then they got mad at me for all the hassle. So my dog and I alone ate the 5 trays of meatloaf I cooked. Ugh. And to top it off, I got a call from my bank, and they are going to repossess my car! Apparently I missed three months of payments (I totally forgot to send them my new address for the bills!). And when I tried to use my credit card at the grocery store, it didn’t even work, as it had been shut off after reaching my credit limit. Now I’m hungry and can’t drive to work. What is wrong with me? Why do I have the worst luck? Sincerely, Josh 275 Words

26. Email Example: After Synthesis… 2 Dear Josh, It seems you have a lot going on in your life. You may need some personal training in the areas of: • Time Management • Communication • Organizational Skills Have you tried using a Life Coach? Let me know if I can help. Good Luck! Sincerely, Elizabeth W. 49 Words

27. 27 Email Example: Model Structure for an Answer 2 Dear Josh, You’re disorganized—you need to better plan/schedule your work activities, social gatherings, and finances. • At work, you haven’t anticipated deadlines or managed workload, causing work to build. Keeping a better team calendar may help. • In social settings, you don’t plan events with advance notice and clear instructions, leading to damaged relationships. You should communicate better with friends, and send formal party invitations. • Financially, you have missed several due dates, damaging your credit standing. Consider on-line ‘bill pay’ and other tools to easily update your records and manage your expenses. Sincerely, Elizabeth W. 96 Words

28. 28 Email Example: Model Structure for an Answer 2 96 Words Lead with the answer What is the action? Track the options Dear Josh, You’re disorganized—you need to better plan/schedule your work activities, social gatherings, and finances. • At work, you haven’t anticipated deadlines or managed workload, causingwork to build. Keeping a better team calendar may help. • In social settings, you don’t plan events with advance notice and clear instructions, leading to damaged relationships. You should communicate better with friends, and send formal party invitations. • Financially, you have missed several due dates, damaging your credit standing. Consider on-line ‘bill pay’ and other tools to easily update your records and manage your expenses. Sincerely, Elizabeth W. Highlight implications Maintain a structure Actionable recommendations

29. Although SBA Express loans have relatively higher purchase rates, larger SBA Express loans are higher performing 2 Because larger SBA Express loans are better performing, raising the caps on SBA Express above $350K may have a modest impact on program cost PowerPoint Example Note: Normalized purchase rate is defined as SBA purchase amount as a percent of SBA-guaranteed portion of the total disbursement amount.

30. Although SBA Express loans have relatively higher purchase rates, larger SBA Express loans are higher performing 2 A DESCRIPTIVE LEAD HIGHLIGHT THE INSIGHT Because larger SBA Express loans are better performing, raising the caps on SBA Express above $350K may have a modest impact on program cost THE SO-WHAT HIGHLIGHT THE INSIGHT PowerPoint Example Note: Normalized purchase rate is defined as SBA purchase amount as a percent of SBA-guaranteed portion of the total disbursement amount.

31. 31 Key Lessons: Synthesize & Develop Recommendations • Synthesize EVERYWHERE • Ask “so-what”, “why”, or what does this mean • Lead with the answer (depending on the context) • Foreshadow • Develop actionable recommendations • Don’t just summarize. Highlight the insights

32. Session #4: Applying the lessons…THE CONTEST • Teams of 2-4 participants • Judges will be “VIP” SBA panel Who? • Develop and present a 5-10 page management PowerPoint presentation on any SBA-specific topic. Work should: • Exhibit command of structuring and story-lining • Use data-driven charts and graphs effectively • Contain clear, actionable management recommendations and synthesis What? • To show everyone what they have learned • To have fun Why? • Prizes for best weekly assignments • GRAND PRIZE for best final presentation • Lunch at White House with Administrator What can I win?

33. Competition Checklist: Criteria to Consider for Data-Driven Presentations

34. Cascading Data-Driven Decision-Making • Framework of SBA’s Training Course • Permeation & Permutation of Training Embedding Performance Management

35. Permeation: Cultural shift created in the SBA Results of HQ Classes • 1st Class Winner: Senior level task force formed that developed a comprehensive plan to address retirements and led to a VERA/VSIP action. • 2nd Class Winner: Analysis being used to inform Agency efforts for boosting volume of loans going to underserved markets.

36. Performance data highlighted a management question that needed exploration SBA’s Average Time-to-Hire was Worse than Agency Target

37. An Issue Tree was created to ask relevant questions and inform the data analysis • Questions to Assess • How many employees are eligible to retire? • Ease of execution? • Cost implications? • Continuity in critical missions? • Mentorship opportunities? • Infusion of new talent? How can SBA reduce time to hire? Pre-Interview PMF SBA Steps Candidate Steps Program Office OHCM Interview Offer Direct Hire Authority Excepted Service Veterans Part-Time Reemployment (2010 NDAA) STEP Cut # of steps Utilize hiring flexibilities … Cut time per step

38. How can SBA mitigate effects of impending retirement tsunami? Further Data Analysis Led To: CURRENTLY RISK In 5 years, Retirement & VERA eligible employees will outpace ineligible employees by 66% (2 out of 3 GS will qualify for an immediate annuity through voluntary or early retirement) +3 Years +5 Years

39. How can SBA loan dollars more effectively go to underserved communities? Questions and analyses to explore Increase the number of banks lending money in underserved communities • How many banks are serving small businesses in underserved communities? • What are characteristics of banks in underserved communities? (Size, national branch, local bank, etc)? Increase Supply of Loan to Underserved Community Increase the # of SBA programs targeting underserved businesses • What loan programs do banks use most in underserved communities? • What are the characteristics/criteria for these loan programs? Increase the number of businesses that qualify for loans • What percentage of SBs are approved for loans through targeted underserved programs? Increase Demand for Loan Programs by Underserved Community • Are SBA loan programs evenly distributed to underserved communities, by Region? • Are SBA loans programs reaching the high concentration of underserved small businesses that they are created for? Increase outreach to underserved business communities

40. Lender Outreach can be tailored to be region specific A chart was used that highlighted insights… USM Need not aligned with results Highest concentration of Lenders Region 9’s Best Practices should be shared .

41. Permutations:The Training Course at SBA Good BETTER BEST • PRIMARY • Full Course • 4 to 6 weeks, each2-3 hrs • Individual & Group homework • Deep dive into agency’s data sets & team-defined ACTIONABLEprojects • Incentives for final presentation • Example Audience: Headquarters staff or dedicated field office • CONDENSED • Seminar • 1.5 days • More in-depth look at principles • Built-in homework • Pre-defined options and data sets for the final presentations • Example Audience: regional/national conference attendees • BASIC • Principles • 4 hours • Covers basic topics much like this presentation • Example Audience: Senior Leadership

42. Interested in Finding Out More? CONTACT Tim Gribben Director, Office of Performance Management Timothy.Gribben@SBA.gov (202) 205-7565 Josh Bull Program Analyst & Budget Analyst, Office of Performance Management and Office of CFO Joshua.Bull@SBA.gov (202) 205-7603 Mat Pascarella Program Analyst, OCFO Mathew.Pascarella@sba.gov (202) 205-6102 U.S. Small Business Administration 409 3rd Street, SW, Ste 6000 Washington DC 20416