Canadian Government Executive - Volume 26 - Issue 04

22 / Canadian Government Executive // September/October 2020 By Munir Chagpar Millennial Outlook A nalytics is a relatively new buzz- word in professional circles. The Institute for Operations Research and the Management Sciences (INFORMS) defines analytics as the “scientific process of transforming data into insight for making better decisions.” Used strategically and systematically, ana- lytics has the potential of assisting public servants to address government challeng- es associated with budget pressures, in- creased service demand, and rising citizen expectations. There has been a massive proliferation of data and a variety of analytical software tools available. Dr. E. S. Levine, chief sci - entist of the U.S. Department of Homeland Security’s Office of Risk Management and Analysis, has observed a rapid increase in incorporating analytics in the public sec- tor’s drive towards evidence-based deci- sion-making. Traditionally and arguably still today, public administration is at risk of operat- ing in silos. Public institutions in Canada will benefit from investing in in-house analytics offices that provide industry- standard advice and support across busi- ness functions. Case for shared analytics offices Analytics offices should be developed much the same way as other shared ser- vices such as human resources, project management, and information technology. They can be modelled centrally or locally. A centralized model enables analytics professionals to have visibility of avail- able data, business processes, and requests across multiple business functions. They are in a better position to propose broader rather than specific solutions. A shared lo- cal unit, on the other hand, embeds analyt- ics professionals quickly in the business to gain a better grasp of business operations and offer contextualized solutions. Nesta, an innovation foundation based in the United Kingdom, published case studies of nine British public institutions with analytics offices. While their composi- tion varied, all the offices studied use data from different sources to diagnose the magnitude and breadth of service deliv- ery problems and identify opportunities for improvement. Most importantly, these offices are changing the way public sector organizations work, enabling better col- laboration. McKinsey & Company conducted an ex- tensive, primary research survey of over 1,000 organizations across industries and geographies to understand how compa- nies have been able to scale analytics across their enterprise. It found that an analytics transformation usually requires new skills, new roles, and new organiza- tional structures. It also found that scaling analytics capability can be a competitive advantage, which is missing in many or- ganizations. Leadership support It is fundamental to get support at the top of the organization for a culture of analyt- ics to be corporately embedded. Without a strategic framework, alongside consistent buy-in to using analytics, it is difficult to incorporate analytics into data-driven decision making. The public sector can- not afford to be left behind. For example, the City of New York has actually codified into municipal law an analytics office that would “... prioritize risk more strategically, deliver services more efficiently, enforce laws more effectively, and increase trans- parency.” The paradox is that analytics offices that are meant to tackle budget pressures themselves require set-up and operating budgets. The two are not at odds; there is no need for a big investment upfront. The size and breadth of analytics offices vary according to perceived needs. More importantly, analytics offers return on in- vestment—evidence-based solutions that reduce costs in policy development and program implementation. The initial bud- getary investment is modest to achieve promising returns. Risk can be managed prudently by piloting in the first instance. The advent of Big Data means that analytics is here to stay. To avoid falling into the trap of creating and resourcing highly localized, siloed analytics units, public servants need to recognize analyt- ics as an essential shared service. Senior leaders must proactively create analytics offices with economies of scale and inter- nal capacity to provide decision-makers with the analytical tools to make better, evidence-informed decisions. Munir Chagpar is a Policy Manager at the Canadian Council of Insurance Regulators Secretariat. He is a candi- date for the Master of Public Policy, Administration and Law at York Univer- sity (munir@chagpar.org ). Analytics is a shared service I think - value in this era of technology is delivered horizontally, not in vertical silos. – Carly Fiorina (2004), Former CEO of Hewlett-Packard