# Presentation: 063641

## Strategies to Maximize Delivery of Services Within the Context of Budget Constraints

**Hamilton Crowne Plaza**
**Washington, DC**
**May 6, 2004**

**Notes:**
Administration for Children and Families State Systems Summit logo.
Text on slide:
Strategies to Maximize Delivery of Services Within the Context of Budget Constraints
Hamilton Crowne Plaza
Washington, DC
May 6, 2004

## Section A Welcome & Introduction

**Notes:**
Text on slide:
Section A
Welcome and Introduction

## Welcome & Introduction

***Welcome ***
**Welcome and Brief Introductions**
**Welcome Remarks by the Administration**
**	****for Children and Families (ACF) **
**	****Sponsor**
**	****- ****	****Mark Graboyes, our ACF Federal**
**	****	****Project Officer **
**Logistics**

**Notes:**
Text on slide:
Welcome and Introduction
Welcome 
Welcome and Brief Introductions
Welcome Remarks by the Administration for Children and Families (ACF) 
Sponsor
Mark Graboyes, our ACF Federal
Project Officer 
Logistics

## Welcome & Introduction

***Methodology***
**The training summit consists of:**
**Lecture**
**Discussion**
**Questions and Answers**
**Case Scenarios**
**Exercises**

**Notes:**
Text on slide:
Welcome and Introduction
Methodology
The training summit consists of:
Lecture
Discussion
Questions and Answers
Case Scenarios
Exercises

## Welcome & Introduction

**What to Avoid in Budget Cuts**
**SITC Maximization of Resources Model**
**Step 1. Assemble Team of Decision Makers**
**Step 2. Analyze Budget for Current Year**
**Step 3. Evaluate Business Requirements**
**Step 4. Evaluate IT Requirements**
**Step 5. Review Budget With Reductions**
**Step 6. Enact Implementation Plan**
**Conclusion**

**Section A:**** **
**Section B:**
**Section C:**
**Section D:**
**Section E:**
**Section F:**
**Section G:**
**Section H:**
**Section I:**
**Section J:**

***Contents of Course Notebook***

*Welcome & Introduction*

**Notes:**
Text on slide:
Welcome and Introduction
Contents of Course Notebook
Section A: Welcome and Introduction
Section B: What to Avoid in Budget Cuts
Section C: SITC Maximization of Resources Model
Section D: Step 1. Assemble Team of Decision Makers
Section E: Step 2. Analyze Budget for Current Year
Section F: Step 3. Evaluate Business Requirements
Section G: Step 4. Evaluate IT Requirements
Section H: Step 5. Review Budget with Reductions
Section I: Step 6. Enact Implementation Plan
Section J: Conclusion

## Welcome & Introduction

*Welcome & Introduction*

***Maximization of Resources State Focus Group***
**This group is comprised of representatives of States interested in Maximization of Resources across the nation **
**The plans and components for this training summit are the direct results of the outstanding work of the     Maximization of Resources Focus Group**

**Notes:**
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Welcome and Introduction
Maximization of Resources State Focus Group
This group is comprised of representatives of States interested in Maximization of Resources across the nation 
The plans and components for this training summit are the direct results of the outstanding work of the     Maximization of Resources Focus Group

## Welcome & Introduction

*The SITC team would like to extend a very special thanks*
*to all the members of both the Maximization of Resources Focus Group and the ACF Technical Advisory Group (TAG) who devoted their time and resources to making this *
*Maximization of Resources Summit a reality*
*Focus Group States: Alabama, Arkansas, Delaware, Kentucky, Michigan, Nebraska, Ohio, South Carolina, *
*South Dakota, West Virginia, Wisconsin*
*TAG Members:  Florida, Indiana, Iowa, Maryland, Michigan, Minnesota, New Jersey, North Carolina, Texas, Virginia, *
*Washington, Washoe Tribe, Wisconsin*

**Notes:**
Text on slide:
Welcome and Introduction
The SITC team would like to extend a very special thanks to all the members of both the Maximization of Resources Focus Group and the ACF Technical Advisory Group (TAG) who devoted their time and resources to making this Maximization of Resources Summit a reality
Focus Group States: Alabama, Arkansas, Delaware, Kentucky, Michigan, Nebraska, Ohio, South Carolina, South Dakota, West Virginia, Wisconsin
TAG Members:  Florida, Indiana, Iowa, Maryland, Michigan, Minnesota, New Jersey, North Carolina, Texas, Virginia, Washington, Washoe Tribe, Wisconsin

## Welcome & Introduction

***Intended Audience***
**State Human Services (HS) Management**
**Program Management**
**Information Technology (IT) Management**

**Notes:**
Text on slide:
Welcome and Introduction
Intended Audience
State Human Services (HS) Management
Program Management
Information Technology (IT) Management

## Welcome & Introduction

**At the end of this summit, you will have the knowledge to:**
**Plan responsible budget cuts by using strategic thinking**
**Discuss alternative cost-cutting principles and strategies**
**Apply the SITC Maximization of Resources Model to the needs of your State**
**Identify core processes in your State**
**Assist your organization to become leaner and healthier through more effective and efficient process analysis and improvement**

***Summit Objectives***

**Notes:**
Text on slide:
Welcome and Introduction
Summit Objectives
At the end of this summit, you will have the knowledge to:
Plan responsible budget cuts by using strategic thinking
Discuss alternative cost-cutting principles and strategies
Apply the SITC Maximization of Resources Model to the needs of your State
Identify core processes in your State
Assist your organization to become leaner and healthier through more effective and efficient process analysis and improvement

## Section BWhat to Avoid in Budget CutsContext & Background Information

**Notes:**
Text on slide:
Section B
What to Avoid in Budget Cuts
Context and Background Information

## What to Avoid in Budget CutsContext & Background Information

**At the end of this section, you will **
**have the knowledge to:**
**Identify what has been done **
**	****in your organization to reduce**
**	****costs**
**Recognize what to avoid **
**	****when cutting budgets**
**Talk about the pitfalls of **
**	****across-the-board budget reductions**
**Discuss the benefits of mapping out**
**	****a strategy for cost savings before you are forced to do so****    **

***Section Objectives***

**Notes:**
Text on slide:
What to Avoid in Budget Cuts
Context and Background Information
Section Objectives
At the end of this section, you will have the knowledge to:
Identify what has been done in your organization to reduce costs
Recognize what to avoid when cutting budgets
Talk about the pitfalls of across-the-board budget reductions
Discuss the benefits of mapping outa strategy for cost savings before you are forced to do so

## What to Avoid in Budget Cuts Context & Background Information

**Consider creative solutions**
**Be careful**
**Think strategically **
**Steer clear of repeating mistakes from the past**
**Focus on the positive**

**Notes:**
Text on slide:
What to Avoid in Budget Cuts
Context and Background Information
Consider creative solutions
Be careful
Think strategically 
Steer clear of repeating mistakes from the past
Focus on the positive

## Not everyone makes good decisions 
when facing a deadline.

	 Develop a Strategy Before Budget Cuts Hit, by Edward Chen, Tech Republic, 11/16/2001

***when facing a deadline.***
**	**** ***Develop a Strategy Before Budget Cuts Hit, *by Edward Chen,* **Tech Republic*, 11/16/2001

*What to Avoid in Budget Cuts**Context & Background Information*

**Notes:**
Text on slide:
What to Avoid in Budget Cuts
Context and Background Information
“Not everyone makes good decisions when facing a deadline.”
Source: Develop a Strategy Before Budget Cuts Hit, by Edward Chen, Tech Republic, 11/16/2001

## What to Avoid in Budget CutsContext & Background Information

***Budget Deficit: What Has Already Been Done***
**Cuts to training personnel and their associated costs**
**Reductions in vendor rates or eliminating short-term vendor contracts completely**
**Consolidation of programs while expecting IT to respond flawlessly**
**Employee hiring freezes **
**Employee lay-offs**
**Employee travel restrictions**
**	***(Samples taken from the Maximization of Resources Focus Group)*

**Notes:**
Text on slide:
What to Avoid in Budget Cuts
Context and Background Information
Budget Deficit: What Has Already Been Done
Cuts to training personnel and their associated costs
Reductions in vendor rates or eliminating short-term vendor contracts completely
Consolidation of programs while expecting IT to respond flawlessly
Employee hiring freezes 
Employee lay-offs
Employee travel restrictions
(Samples taken from the Maximization of Resources Focus Group)

## What to Avoid in Budget CutsContext & Background Information

***Be Careful***
**One-time-only measures can inhibit future budget balancing:**
**Raiding rainy day or trust funds; tobacco and alcohol tax hikes; ill-advised project delays; program cuts resulting in loss of matching funds; and staff buyouts**
**Across-the-board budget reductions:**
**Penalize the efficient and effective organizations as much as the wasteful, inadequate, or unnecessary**
**Penalize smaller organizations the most due to the fact that they have less to cut**
**Provide little guidance about what services Government should deliver or how they should be delivered**

**Notes:**
Text on slide:
What to Avoid in Budget Cuts
Context and Background Information
Be Careful
One-time-only measures can inhibit future budget balancing:
Raiding rainy day or trust funds; tobacco and alcohol tax hikes; ill-advised project delays; program cuts resulting in loss of matching funds; and staff buyouts
Across-the-board budget reductions:
Penalize the efficient and effective organizations as much as the wasteful, inadequate, or unnecessary
Penalize smaller organizations the most due to the fact that they have less to cut
Provide little guidance about what services Government should deliver or how they should be delivered

## The best time for making decisions is not when you are facing a deadline.  Be proactive, map out a strategy for cost savings in your department before you are forced to do so.

Develop a Strategy Before Budget Cuts Hit

***Develop a Strategy Before Budget Cuts Hit***

*What to Avoid in Budget Cuts**Context & Background Information*

**Notes:**
Text on slide:
What to Avoid in Budget Cuts
Context and Background Information
The best time for making decisions is not when you are facing a deadline.  Be proactive, map out a strategy for cost savings in your department before you are forced to do so.
Develop a Strategy Before Budget Cuts Hit

## Section C SITC Maximization of Resources Model

**Notes:**
Text on slide:
Section C
SITC Maximization of Resources Model

## SITC Maximization of Resources Model

**At the end of this section, you will have the knowledge to:**
**Create a clear framework to follow when faced with the issues of reductions in vital resources**
**Familiarize yourself with the SITC Maximization of Resources Model**
**Understand the six steps and sub steps which form the foundation of the SITC model**
**Take a proactive approach to streamlining resources instead of a reactive one**
**Utilize the same steps if a quick decision needs to be rendered**

***Section Objectives***

**Notes:**
Text on slide:
SITC Maximization of Resources Model
Section Objectives
At the end of this section, you will have the knowledge to:
Create a clear framework to follow when faced with the issues of reductions in vital resources
Familiarize yourself with the SITC Maximization of Resources Model
Understand the six steps and sub steps which form the foundation of the SITC model
Take a proactive approach to streamlining resources instead of a reactive one
Utilize the same steps if a quick decision needs to be rendered

## Executive Summary
Communication-oriented and team-based
Ensures stakeholders’ buy-in
Designed on the principle of creating a weighting system to assign universal weights to program processes and systems
Integral component of each State’s strategic plan; proactive approach, not reactive
Begins by analyzing the big picture
Examines the core and supporting processes for each outcome
Focuses on following specific steps and making decisions based on the actions taken in each of those steps
Confirms that the business requirements and the IT requirements match

**Communication-oriented and team-based**
**Ensures stakeholders’ *****buy-in***
**Designed on the principle of creating a weighting system to assign universal weights to program processes and systems**
**Integral component of each State’s strategic plan; proactive approach, not reactive**
**Begins by analyzing the *****big picture***
**Examines the core and supporting processes for each outcome**
**Focuses on following specific steps and making decisions based on the actions taken in each of those steps**
**Confirms that the business requirements and the IT requirements match**

*SITC Maximization of Resources Model*

**Notes:**
Text on slide:
SITC Maximization of Resources Model
Executive Summary
Communication-oriented and team-based
Ensures stakeholders’ buy-in
Designed on the principle of creating a weighting system to assign universal weights to program processes and systems
Integral component of each State’s strategic plan; proactive approach, not reactive
Begins by analyzing the big picture
Examines the core and supporting processes for each outcome
Focuses on following specific steps and making decisions based on the actions taken in each of those steps
Confirms that the business requirements and the IT requirements match

## SITC Maximization of Resources Model

**1.  Assemble Team of Decision Makers**

**2.  Analyze Budget for Current Year**

**3.  Evaluate Business Requirements**

**4.  Evaluate Technical Requirements**

**5.  Review Budget With Reductions**

**6.  Enact Implementation Plan**

**MAXIMIZATION **
**OF **
**RESOURCES MODEL**

**Notes:**
Stair step diagram of Maximization of Resources Model
Text on slide:
SITC Maximization of Resources Model
Assemble Team of Decision Makers
Analyze Budget for Current Year
Evaluate Business Requirements
Evaluate Technical Requirements
Review Budget With Reductions
Enact Implementation Plan

## SITC Maximization of Resources Model

**A process view keeps the big ****picture in mind**
**Processes do not exist to support ****organizational structures**
**But... organizational structures ****can support processes**
**	***We are not going to fix the pieces. We will redesign the processes by which the work gets done.*

*Processes Deliver Value*

**Notes:**
Text on slide:
SITC Maximization of Resources Model
Processes Deliver Value
A process view keeps the big picture in mind
Processes do not exist to support organizational structures
But... organizational structures can support processes
We are not going to fix the pieces. We will redesign the processes by which the work gets done.

## SITC Maximization of Resources Model

**Notes:**
Diagram of the SITC Maximization of Resources Model
Text on slide:
SITC Maximization of Resources Model

## Section DStep 1. Assemble Team of Decision Makers

**Notes:**
Text on slide:
Section D
Step 1. Assemble Team of Decision Makers

## Step 1. Assemble Team of Decision Makers

*Step 1. Assemble Team of Decision Makers*

**Notes:**
Diagram of SITC Maximization of Resources Model
Text on slide:
Step 1. Assemble Team of Decision Makers

## Step 1. Assemble Team of Decision Makers

**At the end of this section, you will have the knowledge to:**
**Understand the importance of creating a team of stakeholders**
**Take steps to establish a **
**	****weighting system for process**
**	****analysis**

***Section Objectives***

**Notes:**
Text on slide:
Step 1. Assemble Team of Decision Makers
Section Objectives
At the end of this section, you will have the knowledge to:
Understand the importance of creating a team of stakeholders
Take steps to establish a weighting system for process analysis

## Step 1. Assemble Team of Decision Makers

***Keys to Success ***
**Bring the process people together:  experienced, motivated doers**
**Focus on the routine, not the exceptions; the norm, not the worst case**
**Ask yourself: **
**What underlying assumptions are we unwittingly following?   **
**If we changed those assumptions, could we make the process run smoother?  **
**Does each step assist to make the service *****cost-effective, accurate and timely?***
**Focus on implementable improvements that can be done now**
**Practical, feasible, and cost-effective**

**Notes:**
Text on slide:
Step 1. Assemble Team of Decision Makers
Keys to Success
Bring the process people together:  experienced, motivated doers
Focus on the routine, not the exceptions; the norm, not the worst case
Ask yourself: 
What underlying assumptions are we unwittingly following?   
If we changed those assumptions, could we make the process run smoother?  
Does each step assist to make the service cost-effective, accurate and timely?
Focus on implementable improvements that can be done now
Practical, feasible, and cost-effective

## Step 1. Assemble Team of Decision Makers

***Your Organization May Have Grown by Default ***
***Rather Than Purpose***** **
**Activities tend to accumulate and continue, building a life of their own**
**Eligibility workers may tend to follow document-based procedures for verifications that are often antiquated and sometimes no longer required even though the information is now available electronically**
**When asked why, they would say, “Because that’s the way we’ve always done it.”**

**Notes:**
Text on slide:
Step 1. Assemble Team of Decision Makers
Your Organization May Have Grown by Default Rather Than Purpose 
Activities tend to accumulate and continue, building a life of their own
Eligibility workers may tend to follow document-based procedures for verifications that are often antiquated and sometimes no longer required even though the information is now available electronically
When asked why, they would say, “Because that’s the way we’ve always done it.”

## Step 1. Assemble Team of Decision Makers

***1.1 Create Team of Stakeholders***** **
**Identify the key organizational stakeholder groups (IT management, IT staff, program management, program staff, customers)**
**Ensure the correct players are at the table**
**Begin to build trust and buy-in for the process**

**Notes:**
Text on slide:
Step 1. Assemble Team of Decision Makers
1.1 Create Team of Stakeholders 
Identify the key organizational stakeholder groups (IT management, IT staff, program management, program staff, customers)
Ensure the correct players are at the table
Begin to build trust and buy-in for the process

## 1.2. SITC Weighting System
Purpose: 
To assign universal weights to Government services/processes to determine where and what can be trimmed when it comes to a reduction in resources and the need to streamline services
Apply the same system universally within the State Government in order to have an accurate and fair measure of the services/processes performed within a State

**Purpose: **
**To assign universal weights to Government services/processes to determine where and what can be trimmed when it comes to a reduction in resources and the need to streamline services**
**Apply the same system universally within the State Government in order to have an accurate and fair measure of the services/processes performed within a State**

*Step 1. Assemble Team of Decision Makers**	*

**Notes:**
Text on slide:
Step 1. Assemble Team of Decision Makers
1.2. SITC Weighting System
Purpose: 
To assign universal weights to Government services/processes to determine where and what can be trimmed when it comes to a reduction in resources and the need to streamline services
Apply the same system universally within the State Government in order to have an accurate and fair measure of the services/processes performed within a State

## SITC Weighting System

*Step 1. Assemble Team of Decision Makers**	*

**Notes:**
Diagram of SITC Weighting System
Text on slide:
Step 1. Assemble Team of Decision Makers
SITC Weighting System

## Step 1. Assemble Team of Decision Makers

***SITC Weighting System***
**Start by Asking**
**Does this program serve a clear public purpose?**
**Does this board or commission duplicate a similar one in ****another Agency?**
**Does this program or item duplicate what other State Agencies or the Federal Government is doing? (e.g., job placement)**
**What is our organization required to do?**

*	*

**Notes:**
Text on slide:
Step 1. Assemble Team of Decision Makers
SITC Weighting System
Start by Asking
Does this program serve a clear public purpose?
Does this board or commission duplicate a similar one in another Agency?
Does this program or item duplicate what other State Agencies or the Federal Government is doing? (e.g., job placement)
What is our organization required to do?

## Step 1. Assemble Team of Decision Makers

***SITC Weighting System***
**Do Duplicate Programs Exist?**
**Identify them**
**Apply performance measures to determine best practices**
**Duplicate or expand high performers; reassignment of **
**	****payments to poor performers**
**	**
**	**

*	*

**Notes:**
Text on slide:
Step 1. Assemble Team of Decision Makers
SITC Weighting System
Do Duplicate Programs Exist?
Identify them
Apply performance measures to determine best practices
Duplicate or expand high performers; reassignment of payments to poor performers

## SITC Weighting System
Critical
Federal/State Requirement
Significant
Not a Federal/State Requirement; may be locally mandated
Optional
Value-Added Services

**Critical**
**Federal/State Requirement**
**Significant**
**Not a Federal/State Requirement; may be locally mandated**
**Optional**
**Value-Added Services**

*Step 1. Assemble Team of Decision Makers*

**Notes:**
Diagram of SITC Weighting System
Text on slide:
Step 1. Assemble Team of Decision Makers
SITC Weighting System
Critical
Federal/State Requirement
Significant
Not a Federal/State Requirement; may be locally mandated
Optional
Value-Added Services

## Step 1. Assemble Team of Decision Makers

***SITC Weighting System***
***Critical:  Federal/State Requirement***
**Services/processes which are legislated by the Federal or State Government **
**Considered vital to the functioning of a State Government**
**Performance outcomes are often measured for each of these procedures**
**Services/processes considered **
**	****essential to operating an effective **
**	****and efficient State Government**

**Notes:**
Diagram of SITC Weighting System
Text on slide:
Step 1. Assemble Team of Decision Makers
SITC Weighting System
Critical:  Federal/State Requirement
Services/processes which are legislated by the Federal or State Government 
Considered vital to the functioning of a State Government
Performance outcomes are often measured for each of these procedures
Services/processes considered essential to operating an effective and efficient State Government

## Step 1. Assemble Team of Decision Makers

***SITC Weighting System***
***Significant:  Not a Federal/State Requirement***
**Services deemed significant by the stakeholders of a given State**
**Not a Federal/State requirement**
**Could be mandated at the County level**
**Designed to meet the unique, **
**	****individual needs of the State**
**	****and its customers**

**Notes:**
Diagram of SITC Weighting System
Text on slide:
Step 1. Assemble Team of Decision Makers
SITC Weighting System
Significant:  Not a Federal/State Requirement
Services deemed significant by the stakeholders of a given State 
Not a Federal/State requirement
Could be mandated at the County level
Designed to meet the unique, individual needs of the State and its customers

## Step 1. Assemble Team of Decision Makers

***SITC Weighting System***
***Optional:  Value-Added Services***
**Services/processes which are valuable endeavors in times of surplus budgets**
**Modification or removal of them **
**	****would not drastically, negatively**
**	****impact the quality of the services**
**	****provided or lessen achievement **
**	****of the required outcomes**

**Notes:**
Diagram of SITC Weighting System
Text on slide:
Step 1. Assemble Team of Decision Makers
SITC Weighting System
Optional:  Value-Added Services
Services/processes which are valuable endeavors in times of surplus budgets
Modification or removal of them would not drastically, negatively impact the quality of the services provided or lessen achievement of the required outcomes

## Step 1. Assemble Team of Decision Makers

***EXERCISE***
**Break up into groups of 10**
**Develop a list of select programs and program components in a given department**
**Use the Sample Weighting System Worksheet, assign weights in accordance with SITC weighting system to various services/processes**
**Appoint spokesperson**
**Return to larger group and share findings**
***	***

**Notes:**
Text on slide:
Step 1. Assemble Team of Decision Makers
EXERCISE
Break up into groups of 10
Develop a list of select programs and program components in a given department
Use the Sample Weighting System Worksheet, assign weights in accordance with SITC weighting system to various services/processes
Appoint spokesperson
Return to larger group and share findings

## 

Section E
Step 2. Analyze Budget 
for Current Year

***Section E***
***Step 2. Analyze Budget ***
***for Current Year***

**Notes:**
Text on slide:
Section E
Step 2. Analyze Budget for Current Year

## Step 2. Analyze Budget for CurrentYear

**Notes:**
Diagram of SITC Maximization of Resources Model
Text on slide:
Section E
Step 2. Analyze Budget for Current Year

## Step 2. Analyze Budget for Current Year

**At the end of this section, you will have the knowledge to:**
**Design game plan for analyzing current State budget in a given year**
**Create strategy for review and assessment of budget by program area**
**Examine labor and other direct costs (ODCs) for each program area**

***Section Objectives***

**Notes:**
Text on slide:
Step 2. Analyze Budget for Current Year
Section Objectives
At the end of this section, you will have the knowledge to:
Design game plan for analyzing current State budget in a given year
Create strategy for review and assessment of budget by program area
Examine labor and other direct costs (ODCs) for each program area

## Step 2. Analyze Budget for Current Year

***2.1 ******	******Design Strategy for Review & Criticism of ******	******Budget by Program Area ***
**Review allocation of costs broken down by program area or system**
**Closely scrutinize labor, ODCs, and capital expenditures **
**Develop a spreadsheet which lists each program area and the associated line items**
**Total the results **
**Review findings**

**Notes:**
Text on slide:
Step 2. Analyze Budget for Current Year
2.1 Design Strategy for Review & Criticism of Budget by Program Area 
Review allocation of costs broken down by program area or system
Closely scrutinize labor, ODCs, and capital expenditures 
Develop a spreadsheet which lists each program area and the associated line items
Total the results 
Review findings

## Step 2. Analyze Budget for Current Year

***2.2 Examine Labor & Other Direct Costs (ODCs)***
**Check number of full-time equivalents (FTEs) currently being utilized per program area**
**Further study number of FTEs per process **
**Forecast existing labor costs for the remainder of the year based on current staffing pattern**
**Look at associated costs of ODCs per FTE for each program area**
**Report findings to the larger stakeholder team**

**Notes:**
Text on slide:
Step 2. Analyze Budget for Current Year
2.2 Examine Labor & Other Direct Costs (ODCs)
Check number of full-time equivalents (FTEs) currently being utilized per program area
Further study number of FTEs per process 
Forecast existing labor costs for the remainder of the year based on current staffing pattern
Look at associated costs of ODCs per FTE for each program area
Report findings to the larger stakeholder team

## Section F
Step 3. Evaluate Business Requirements

***Step 3. Evaluate Business Requirements***

**Notes:**
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Section F
Step 3. Evaluate Business Requirements

## Step 3. Evaluate Business Requirements

**Notes:**
Diagram of SITC Maximization of Resources Model 
Text on slide:
Step 3. Evaluate Business Requirements

## Step 3. Evaluate Business Requirements

***Section Objectives***
**At the end of this section, you will have the knowledge to:**
**Develop a strategy for evaluating existing budget for current programs and services**
**Characterize core processes within the Agency**
**Identify supporting processes for the core processes**
**Recognize the need to assign universal weights to key services/processes**
**Comprehend the necessity of conducting process/systems analysis**
**Explore alternative cost-cutting principles and strategies**
**Design procedure for deciding areas to be reduced and by what percentage**
**Recognize the need to obtain stakeholders *****buy-in***

**Notes:**
Text on slide:
Step 3. Evaluate Business Requirements
Section Objectives
At the end of this section, you will have the knowledge to:
Develop a strategy for evaluating existing budget for current programs and services
Characterize core processes within the Agency
Identify supporting processes for the core processes
Recognize the need to assign universal weights to key services/processes
Comprehend the necessity of conducting process/systems analysis
Explore alternative cost-cutting principles and strategies
Design procedure for deciding areas to be reduced and by what percentage
Recognize the need to obtain stakeholders buy-in

## Step 3. Evaluate Business Requirements

***3.1  Determine Existing Budget for Current Program and Services***
**Break down budget for each program and service area**
**Examine labor and ODCs for each area **

**Notes:**
Text on slide:
Step 3. Evaluate Business Requirements
3.1  Determine Existing Budget for Current Program and Services
Break down budget for each program and service area
Examine labor and ODCs for each area

## Step 3. Evaluate Business Requirements

**Identifies fundamental activities or group of activities that are so critical to an organization’s success that failure to perform them will result in deterioration of the organization**
**Recognizes what an organization is primarily about, follows the mission or vision, based on higher authority (legislation, policy makers, senior management)**
**Consumes most of the organization’s ****time and/or activities**
**Becomes the *****customer***** of supporting**
**	****processes **

***3.2 Define Core Processes***

**Notes:**
Text on slide:
Step 3. Evaluate Business Requirements
3.2 Define Core Processes
Identifies fundamental activities or group of activities that are so critical to an organization’s success that failure to perform them will result in deterioration of the organization
Recognizes what an organization is primarily about, follows the mission or vision, based on higher authority (legislation, policy makers, senior management)
Consumes most of the organization’s time and/or activities
Becomes the customer of supporting processes

## Step 3. Evaluate Business Requirements

***What Is a Process?***

**Notes:**
Diagram of Core Process TANF
Text on slide:
Step 3. Evaluate Business Requirements
What is a Process?

## Step 3. Evaluate Business Requirements

***Potential Core Processes***
***Temporary Assistance to***
***Needy Families (TANF)***
**Eligibility Determination & Intake**
**Benefit Determination & Issuance**
**Record & Track Services**
**Ongoing Case Management **
**Outcome Reporting**

**Notes:**
Text on slide:
Step 3. Evaluate Business Requirements
Potential Core Processes
Temporary Assistance to Needy Families (TANF)
Eligibility Determination & Intake
Benefit Determination & Issuance
Record & Track Services
Ongoing Case Management 
Outcome Reporting

## Step 3. Evaluate Business Requirements

***Conduct Process Improvement***** **
**Develop a “Case for Action”**
**Model the Process & ****Properties**
**Identify Bottlenecks & ****Problems**
**Brainstorm Alternative Improvements**
**Model The New Process**
**Draft a Plan for Implementation**

**Notes:**
Text on slide:
Step 3. Evaluate Business Requirements
Conduct Process Improvement 
Develop a “Case for Action”
Model the Process & Properties
Identify Bottlenecks & Problems
Brainstorm Alternative Improvements
Model The New Process
Draft a Plan for Implementation

## Step 3. Evaluate Business Requirements

***This has all been great... But... we have dozens of processes in our organization!***

**Which one should we do first?**

**Notes:**
Text on slide:
Step 3. Evaluate Business Requirements
This has all been great... But... we have dozens of processes in our organization!
Which one should we do first?

## Step 3. Evaluate Business Requirements

***Develop a Case for Action***** **
**Identify:**
**Major problem areas**
**What is broken or unwieldy**
**What is being required that is impeding good service**
**List chief *****customer *****complaints**
**Explore why the process is incapable of:**
**Overcoming the complaints**
**Adequately addressing the customer’s needs**
**Meeting new requirements**
**Theorize what will happen if no change occurs**

**Notes:**
Text on slide:
Step 3. Evaluate Business Requirements
Develop a Case for Action 
Identify:
Major problem areas
What is broken or unwieldy
What is being required that is impeding good service
List chief customer complaints
Explore why the process is incapable of:
Overcoming the complaints
Adequately addressing the customer’s needs
Meeting new requirements
Theorize what will happen if no change occurs

## Step 3. Evaluate Business Requirements

***3.3 Identify Supporting Processes ***
**Distinguish processes that exist only to support core processes/business objectives**
**Measure the positive or negative impact they have on the core processes**

**Notes:**
Text on slide:
Step 3. Evaluate Business Requirements
3.3 Identify Supporting Processes 
Distinguish processes that exist only to support core processes/business objectives
Measure the positive or negative impact they have on the core processes

## Step 3. Evaluate Business Requirements

***Identification of Processes***** **
**Enabling or supporting processes:**
**Exist only to support core processes/business objectives**
**Can be measured by the positive or negative impact they have on the core processes**
**Core processes are the *****customer***** of enabling processes**

**Notes:**
Text on slide:
Step 3. Evaluate Business Requirements
Identification of Processes 
Enabling or supporting processes:
Exist only to support core processes/business objectives
Can be measured by the positive or negative impact they have on the core processes
Core processes are the customer of enabling processes

## Step 3. Evaluate Business Requirements

*Step 3. Evaluate Business Requirements*

**Contractor management**
**Procurement**
**IT helpdesk**
**Facilities/building maintenance**
**Legal**
**Training**
**Management reporting**
**Employee recruiting and hiring/HR**
**Planning and research**
**Public affairs**
**Finance**
**Administrative/management**
**Policy and procedure development**
**Quality assurance/performance analysis**
**Strategic planning/business analysis **

**Notes:**
Text on slide:
Step 3. Evaluate Business Requirements
Potential Supporting Processes
Contractor management
Procurement
IT helpdesk
Facilities/building maintenance
Legal
Training
Management reporting
Employee recruiting and hiring/HR
Planning and research
Public affairs
Finance
Administrative/management
Policy and procedure development
Quality assurance/performance analysis
Strategic planning/business analysis

## Step 3. Evaluate Business Requirements

***3.4 Assign Weights***** **
**Utilize the SITC Weighting System**
**Examine core processes and business requirements **
**Designate appropriate weight**

**Notes:**
Diagram of the SITC Weighting System
Text on slide:
Step 3. Evaluate Business Requirements
3.4 Assign Weights 
Utilize the SITC Weighting System
Examine core processes and business requirements 
Designate appropriate weight

## Step 3. Evaluate Business Requirements

***3.5 Conduct Process/Systems Analysis ***
**Analyze processes and plan process improvement**
**Explore a force field analysis **

**Notes:**
Text on slide:
Step 3. Evaluate Business Requirements
3.5 Conduct Process/Systems Analysis 
Analyze processes and plan process improvement
Explore a force field analysis

## Step 3. Evaluate Business Requirements

***Force Field Analysis***

**Barriers to ****Implementation**

**Strategies to Overcome ****the Barriers**

**Improved Process**

**Notes:**
Diagram of Force Field Analysis
Text on slide:
Step 3. Evaluate Business Requirements
Force Field Analysis
Barriers to Implementation
Strategies to Overcome the Barriers
Improved Process

## Step 3. Evaluate Business Requirements

***3.6 Explore Alternative Cost-Cutting Principles and Strategies ***
**Streamline services**
**Consider alternatives **
**Maintain staff morale**
**Develop resource list**
**Be creative and innovative while preserving the integrity of the service**
**Prepare an executive summary **

**Notes:**
Text on slide:
Step 3. Evaluate Business Requirements
3.6 Explore Alternative Cost-Cutting Principles and Strategies 
Streamline services
Consider alternatives 
Maintain staff morale
Develop resource list
Be creative and innovative while preserving the integrity of the service
Prepare an executive summary

## Step 3. Evaluate Business Requirements

**Install process-efficiency or savings-generating equipment, such as mail sorters, electronic thermostats, burst forms, removing lamps from vending machines, replacing State car fleet with smaller, energy-efficient vehicles (Maximization of Resources Focus Group)**
**Adopt a *****pay for performance***** payment model for TANF contractors (SITC)**
**Reduce or eliminate optional programs that perform poorly (SITC)**
**Create competition among programs or between contractors and/or State Agencies; refund/renew entity who achieved superior  outcomes while reducing costs (SITC)**

***3.6 Explore Alternative Cost-Cutting Principles and Strategies (continued)***

**Notes:**
Text on slide:
Step 3. Evaluate Business Requirements
3.6 Explore Alternative Cost-Cutting Principles and Strategies (continued)
Install process-efficiency or savings-generating equipment, such as mail sorters, electronic thermostats, burst forms, removing lamps from vending machines, replacing State car fleet with smaller, energy-efficient vehicles (Maximization of Resources Focus Group)
Adopt a pay for performance payment model for TANF contractors (SITC)
Reduce or eliminate optional programs that perform poorly (SITC)
Create competition among programs or between contractors and/or State Agencies; refund/renew entity who achieved superior  outcomes while reducing costs (SITC)

## Step 3. Evaluate Business Requirements

**Plan ahead: Delegate project components to younger staff and mentor to build institutional knowledge and capability; prepare for position succession**** (Maximization of Resources Focus Group)**
**Reduce or eliminate non-mandatory services and ask “Should Government be doing this at all?”  (This could have some IT benefits also if significant amount of IT capacity is equally reduced e.g., data center closures****) ****(*****Government Insights: Possible IT Budget Cuts, *****by J. Kost; *****TechRepublic*****, 2/27/03)**
**Pursue aggressively cross-training to develop *****generic,***** cross-program service coordinators****  (Maximization of Resources Focus Group)**

***3.6 Explore Alternative Cost-Cutting Principles and Strategies (continued)***

**Notes:**
Text on slide:
Step 3. Evaluate Business Requirements
3.6 Explore Alternative Cost-Cutting Principles and Strategies (continued)
Plan ahead: Delegate project components to younger staff and mentor to build institutional knowledge and capability; prepare for position succession (Maximization of Resources Focus Group)
Reduce or eliminate non-mandatory services and ask “Should Government be doing this at all?”  (This could have some IT benefits also if significant amount of IT capacity is equally reduced e.g., data center closures) (Government Insights: Possible IT Budget Cuts, by J. Kost; TechRepublic, 2/27/03)
Pursue aggressively cross-training to develop generic, cross-program service coordinators  (Maximization of Resources Focus Group)

## Step 3. Evaluate Business Requirements

**Explore public/private partnerships (SITC)**
**Eliminate redundant data to better monitor cases from an enterprise perspective: **
**Utilize common data**
**Standardize processes and forms across programs, e.g., verification and eligibility**
**	****(Maximization of Resources Focus Group)**

***3.6 Explore Alternative Cost-Cutting Principles and Strategies (continued)***

**Notes:**
Text on slide:
Step 3. Evaluate Business Requirements
3.6 Explore Alternative Cost-Cutting Principles and Strategies (continued)
Explore public/private partnerships (SITC)
Eliminate redundant data to better monitor cases from an enterprise perspective: 
Utilize common data
Standardize processes and forms across programs, e.g., verification and eligibility
(Maximization of Resources Focus Group)

## Step 3. Evaluate Business Requirements

**Streamline policies and regulations:**
**Eliminate those that are outdated and hinder productivity **
**Re-craft rules to be equivalent across programs (SITC)**
**Conduct targeted case management:**
**Redirect staff activities to focus on management of specific cases to ensure compliance with program regulations, leading to maximization of Federal revenues (Maximization of Resources Focus Group and SITC)**

***3.6 Explore Alternative Cost-Cutting Principles and Strategies (continued)***

**Notes:**
Text on slide:
Step 3. Evaluate Business Requirements
3.6 Explore Alternative Cost-Cutting Principles and Strategies (continued)
Streamline policies and regulations:
Eliminate those that are outdated and hinder productivity 
Re-craft rules to be equivalent across programs (SITC)
Conduct targeted case management:
Redirect staff activities to focus on management of specific cases to ensure compliance with program regulations, leading to maximization of Federal revenues (Maximization of Resources Focus Group and SITC)

## Step 3. Evaluate Business Requirements

***Our Proposed Strategies Can ***
**Prevent degradation of:**
**Service quality and delivery**
**Employee morale and motivation**
**Plan stability**
**Bolster:**
**Mission fulfillment**
**Responsibilities and priorities**
**Communication**
**Foster:**
**A customer-focused, process-structured, big picture-oriented organization**

**Notes:**
Text on slide:
Step 3. Evaluate Business Requirements
Our Proposed Strategies Can 
Prevent degradation of:
Service quality and delivery
Employee morale and motivation
Plan stability
Bolster:
Mission fulfillment
Responsibilities and priorities
Communication
Foster:
A customer-focused, process-structured, big picture-oriented organization

## Step 3. Evaluate Business Requirements

***3.7 Decide Areas to Be Reduced and by What Percentage***
**Eliminate positions not people, take personalities out of the equation**
**Communicate with all levels of employees and the public**
**Reward departments and individuals for cost savings**
**Do not make across-the-board cuts**

**Notes:**
Text on slide:
Step 3. Evaluate Business Requirements
3.7 Decide Areas to Be Reduced and by What Percentage
Eliminate positions not people, take personalities out of the equation
Communicate with all levels of employees and the public
Reward departments and individuals for cost savings
Do not make across-the-board cuts

## Step 3. Evaluate Business Requirements

**Preserve cash flow and income potential**
**Assess opportunity costs**
**Enlist the people who have the knowledge to make the decisions**
**Cut positions, not people; take personalities out of the discussions**
**Negotiate! (potential to gain more and save)**
**Maintain staff morale: do not cut training; communicate with staff**
**Let the public know what is happening**
**Reward departments and individuals for cost savings **
**Ensure benefits payments are made timely**
**Avoid making across-the-board cuts**

***Principles for Cost-Cutting***

**Notes:**
Text on slide:
Step 3. Evaluate Business Requirements
Principles for Cost-Cutting
Preserve cash flow and income potential
Assess opportunity costs
Enlist the people who have the knowledge to make the decisions
Cut positions, not people; take personalities out of the discussions
Negotiate! (potential to gain more and save)
Maintain staff morale: do not cut training; communicate with staff
Let the public know what is happening
Reward departments and individuals for cost savings 
Ensure benefits payments are made timely
Avoid making across-the-board cuts

## Step 3. Evaluate Business Requirements

***3.8 Obtain Stakeholders’ Buy-In***** **
**Focus on what is practical, feasible, and cost-effective**
**Remain open to feedback**
**Keep communication flowing**
**Be willing to negotiate **

**Notes:**
Text on slide:
Step 3. Evaluate Business Requirements
3.8 Obtain Stakeholders’ Buy-In 
Focus on what is practical, feasible, and cost-effective
Remain open to feedback
Keep communication flowing
Be willing to negotiate

## Step 3. Evaluate Business Requirements

***EXERCISE***
**Divide group in half**
**Conduct a sample process analysis workshop**
**Decide on one core process to analyze**
**Analyze one core process following the steps previously discussed**
**Use flips charts; write down findings for the group**
**Appoint spokesperson**
**Return to the larger group and share the results**** **
***	***

**Notes:**
Text on slide:
Step 3. Evaluate Business Requirements
EXERCISE
Divide group in half
Conduct a sample process analysis workshop
Decide on one core process to analyze
Analyze one core process following the steps previously discussed
Use flips charts; write down findings for the group
Appoint spokesperson
Return to the larger group and share the results 

## Section GStep 4. Evaluate IT Requirements

**Notes:**
Text on slide:
Section G
Step 4. Evaluate IT Requirements

## Step 4. Evaluate IT Requirements

**Notes:**
Diagram of SITC Maximization of Resources Model 
Text on slide:
Step 4. Evaluate IT Requirements

## Step 4. Evaluate IT Requirements

***Section Objectives***
**At the end of this section, you will have the knowledge to:**
**Plan an approach for determining existing budget for current IT requirements and processes**
**Recognize core IT processes within the Agency**
**Distinguish supporting processes for each core process**
**Understand the necessity of assigning universal weights to key processes**
**Appreciate the importance of conducting process/systems analysis**
**Be aware of the need to map IT processes to core business requirements**
**Discover alternative cost-cutting principles and strategies**
**Create guidelines for determining areas to be reduced and by what percentage**
**Recognize the importance of obtaining stakeholders *****buy-in***

**Notes:**
Text on slide:
Step 4. Evaluate IT Requirements
Section Objectives
At the end of this section, you will have the knowledge to:
Plan an approach for determining existing budget for current IT requirements and processes
Recognize core IT processes within the Agency
Distinguish supporting processes for each core process
Understand the necessity of assigning universal weights to key processes
Appreciate the importance of conducting process/systems analysis
Be aware of the need to map IT processes to core business requirements
Discover alternative cost-cutting principles and strategies
Create guidelines for determining areas to be reduced and by what percentage
Recognize the importance of obtaining stakeholders buy-in

## Step 4. Evaluate IT Requirements

***4.1 Determine Existing Budget for Current IT Requirements and Processes***** **
**Breakdown budget for each IT requirement and associated process**
**Examine labor and schedule for deployment of services if applicable **

**Notes:**
Text on slide:
Step 4. Evaluate IT Requirements
4.1 Determine Existing Budget for Current IT Requirements and Processes 
Breakdown budget for each IT requirement and associated process
Examine labor and schedule for deployment of services if applicable

## Step 4. Evaluate IT Requirements

***4.2 Define Core IT Processes ***
**Supports a fundamental activity or group of activities that are so critical to an organization’s success, that failure to perform them will result in deterioration of the organization**
**Sustains the critical functions of an organization**
**Exists solely to make the core processes more effective and efficient **

**Notes:**
Text on slide:
Step 4. Evaluate IT Requirements
4.2 Define Core IT Processes 
Supports a fundamental activity or group of activities that are so critical to an organization’s success, that failure to perform them will result in deterioration of the organization
Sustains the critical functions of an organization
Exists solely to make the core processes more effective and efficient 

## Step 4. Evaluate IT Requirements

***4.3 Identify Supporting IT Processes***** **
**Exist only to support core IT processes/business objectives**
**Measured by the positive or negative impact they have on the core processes **

**Notes:**
Text on slide:
Step 4. Evaluate IT Requirements
4.3 Identify Supporting IT Processes 
Exist only to support core IT processes/business objectives
Measured by the positive or negative impact they have on the core processes

## Step 4. Evaluate IT Requirements

***Stages of Process Improvement***** **
**Eliminate non-value-added steps:**
**Straighten the cowpath**
**Improve the value-added steps:**
**Streamline the required steps on the path**
**Automate the improved value-added steps:**
**Make the cows fly**

**Notes:**
Text on slide:
Step 4. Evaluate IT Requirements
Stages of Process Improvement 
Eliminate non-value-added steps:
Straighten the cowpath
Improve the value-added steps:
Streamline the required steps on the path
Automate the improved value-added steps:
Make the cows fly

## Step 4. Evaluate IT Requirements

***4.4 Assign Weights ***
**Utilize SITC Weighting System**
**Examine core IT processes and requirements**
**Designate appropriate weight **

**Notes:**
Diagram of SITC Weighting System
Text on slide:
Step 4. Evaluate IT Requirements
4.4 Assign Weights 
Utilize SITC Weighting System
Examine core IT processes and requirements
Designate appropriate weight

## Step 4. Evaluate IT Requirements

***4.5 Conduct Process/Systems Analysis***** **
**Analyze processes and plan process improvement**

**Notes:**
Text on slide:
Step 4. Evaluate IT Requirements
4.5 Conduct Process/Systems Analysis 
Analyze processes and plan process improvement

## Step 4. Evaluate IT Requirements

***4.6 Map IT Processes to Business Requirements***** **
**Ensure that the core IT processes match the needs of the core business requirements**
**Make any necessary changes in assumptions of core processes on both sides of the Agency (program and IT) **

**Notes:**
Text on slide:
Step 4. Evaluate IT Requirements
4.6 Map IT Processes to Business Requirements 
Ensure that the core IT processes match the needs of the core business requirements
Make any necessary changes in assumptions of core processes on both sides of the Agency (program and IT)

## Step 4. Evaluate IT Requirements

***4.7 Explore Alternative Cost-Cutting Principles and Strategies***** **
**Streamline services**
**Consider alternatives **
**Maintain staff morale**
**Be creative and innovative while **
**	****preserving the integrity of the service**
**Develop resource list**
**Prepare an executive summary **

**Notes:**
Text on slide:
Step 4. Evaluate IT Requirements
4.7 Explore Alternative Cost-Cutting Principles and Strategies 
Streamline services
Consider alternatives 
Maintain staff morale
Be creative and innovative while preserving the integrity of the service
Develop resource list
Prepare an executive summary

## Step 4. Evaluate IT Requirements

**Information Technology **
**Consolidate computing infrastructure **
**Pursue strategic sourcing/centralize procurement **
**Capitalize on the strengths and knowledge of IT business analysts by reassigning them to projects identified as having strategic importance and potentially crucial to making short-term process improvements and costs savings (Maximization of Resources Focus Group)**

***4.7 Explore Alternative Cost-Cutting Principles and Strategies (continued)***

**Notes:**
Text on slide:
Step 4. Evaluate IT Requirements
4.7 Explore Alternative Cost-Cutting Principles and Strategies (continued)
Information Technology 
Consolidate computing infrastructure 
Pursue strategic sourcing/centralize procurement 
Capitalize on the strengths and knowledge of IT business analysts by reassigning them to projects identified as having strategic importance and potentially crucial to making short-term process improvements and costs savings (Maximization of Resources Focus Group)

## Step 4. Evaluate IT Requirements

**Consider uniting computing infrastructure:**
**Includes sharing the data center, mainframes, and enterprise servers   **
**Consolidate networks:**
**Fewer platforms require less maintenance, support, and training**
**	***(Government Insights: Possible IT Budget Cuts)*

***4.7 Explore Alternative Cost-Cutting Principles and Strategies (continued)***

**Notes:**
Text on slide:
Step 4. Evaluate IT Requirements
4.7 Explore Alternative Cost-Cutting Principles and Strategies (continued)
Consider uniting computing infrastructure:
Includes sharing the data center, mainframes, and enterprise servers   
Consolidate networks:
Fewer platforms require less maintenance, support, and training
(Government Insights: Possible IT Budget Cuts)

## Step 4. Evaluate IT Requirements

**Implement Interactive Voice Response (IVR) technology to address common questions:**
**Digital signatures**
**Document imaging to streamline processes (Maximization of Resources Focus Group)**
**Replace program staff with IT staff and increase volume of system development projects designed to make processes and services more efficient (Maximization of Resources Focus Group)**

***4.7 Explore Alternative Cost-Cutting Principles and Strategies (continued)***

**Notes:**
Text on slide:
Step 4. Evaluate IT Requirements
4.7 Explore Alternative Cost-Cutting Principles and Strategies (continued)
Implement Interactive Voice Response (IVR) technology to address common questions:
Digital signatures
Document imaging to streamline processes (Maximization of Resources Focus Group)
Replace program staff with IT staff and increase volume of system development projects designed to make processes and services more efficient (Maximization of Resources Focus Group)

## Step 4. Evaluate IT Requirements

**Streamline policies and rules to encourage automation and simplify system logic (and development):**
**Review data elements on existing screens and determine which are needed (Maximization of Resources Focus Group)**

***4.7 Explore Alternative Cost-Cutting Principles and Strategies (continued)***

**Notes:**
Text on slide:
Step 4. Evaluate IT Requirements
4.7 Explore Alternative Cost-Cutting Principles and Strategies (continued)
Streamline policies and rules to encourage automation and simplify system logic (and development):
Review data elements on existing screens and determine which are needed (Maximization of Resources Focus Group)

## Step 4. Evaluate IT Requirements

**Use one system for multiple programs:**
**Automating eligibility, reporting, tracking and enforcement supported by a single data warehouse (Show Me the Money: Budget Cutting Strategies for Cash-Strapped States, by William D. Eggers)**
**Enforce data integration to better monitor cases from an enterprise perspective, especially where data can be shared, to reduce fraud, abuse, and overpayments (Show Me the Money: Budget Cutting Strategies for Cash-Strapped States, by William D. Eggers)**

***4.7 Explore Alternative Cost-Cutting Principles and Strategies (continued)***

**Notes:**
Text on slide:
Step 4. Evaluate IT Requirements
4.7 Explore Alternative Cost-Cutting Principles and Strategies (continued)
Use one system for multiple programs:
Automating eligibility, reporting, tracking and enforcement supported by a single data warehouse (Show Me the Money: Budget Cutting Strategies for Cash-Strapped States, by William D. Eggers)
Enforce data integration to better monitor cases from an enterprise perspective, especially where data can be shared, to reduce fraud, abuse, and overpayments (Show Me the Money: Budget Cutting Strategies for Cash-Strapped States, by William D. Eggers)

## Step 4. Evaluate IT Requirements

***4.8 Decide Areas to Be Reduced and by What Percent***
**Eliminate positions not people**
**Communicate with all levels of employees and public**
**Ensure IT areas being cut do not impact core business or program requirements negatively**
**Reward departments and individuals for cost savings**
**Avoid making across-the-board cuts **

**Notes:**
Text on slide:
Step 4. Evaluate IT Requirements
4.8 Decide Areas to Be Reduced and by What Percent
Eliminate positions not people
Communicate with all levels of employees and public
Ensure IT areas being cut do not impact core business or program requirements negatively
Reward departments and individuals for cost savings
Avoid making across-the-board cuts 

## Step 4. Evaluate IT Requirements

***4.9 Obtain Stakeholders’ Buy-In***** **
**Focus on what is practical, feasible, and cost-effective**
**Remain open to feedback**
**Keep communication flowing**
**Be willing to negotiate **

**Notes:**
Text on slide:
Step 4. Evaluate IT Requirements
4.9 Obtain Stakeholders’ Buy-In 
Focus on what is practical, feasible, and cost-effective
Remain open to feedback
Keep communication flowing
Be willing to negotiate

## Step 4. Evaluate IT Requirements

***EXERCISE***
**Break into groups of 10**
**Decide on three key IT requirements**
**Match back to business requirements from Section D**
**Use the Business Requirements Table and IT Requirements Table to complete the blanks for three requirements**
**Appoint spokesperson**
**Return to larger group to share results **
**	**

**Notes:**
Text on slide:
Step 4. Evaluate IT Requirements
EXERCISE
Break into groups of 10
Decide on three key IT requirements
Match back to business requirements from Section D
Use the Business Requirements Table and IT Requirements Table to complete the blanks for three requirements
Appoint spokesperson
Return to larger group to share results

## Section HStep 5. Review Budget With Reductions

**Notes:**
Text on slide:
Section H
Step 5. Review Budget With Reductions

## Step 5. Review Budget With Reductions

**Notes:**
Diagram of SITC Maximization of Resources Model
Text on Slide:
Step 5. Review Budget With Reductions

## Step 5. Review Budget With Reductions

***Section Objectives***
**At the end of this section, you will have the knowledge to:**
**Understand the need for ensuring that the business requirements and IT requirements match**
**Summarize requirements**
**Appreciate the critical nature of making solid decisions**
**Draft an outline including the fundamental aspects of an implementation plan**

**Notes:**
Text on Slide:
Step 5. Review Budget With Reductions
Section Objectives
At the end of this section, you will have the knowledge to:
Understand the need for ensuring that the business requirements and IT requirements match
Summarize requirements
Appreciate the critical nature of making solid decisions
Draft an outline including the fundamental aspects of an implementation plan

## Step 5. Review Budget With Reductions

***5.1 Ensure Business Requirements and IT Requirements Match ***
**Systematically evaluate that the business requirements and IT requirements match from:**
**Programmatic perspective**
**Budgetary perspective **

**Notes:**
Text on Slide:
Step 5. Review Budget With Reductions
5.1 Ensure Business Requirements and IT Requirements Match 
Systematically evaluate that the business requirements and IT requirements match from:
Programmatic perspective
Budgetary perspective

## Step 5. Review Budget With Reductions

***5.2 Summarize Requirements***** **
**Utilize weighting system to capture and sum up all requirements one final time **

**Notes:**
Diagram of SITC Weighting System
Text on Slide:
Step 5. Review Budget With Reductions
5.2 Summarize Requirements 
Utilize weighting system to capture and sum up all requirements one final time

## Step 5. Review Budget With Reductions

***5.3 Make Decisions ***
**Bring together stakeholders to ensure *****buy-in***** on all final decisions **

**Notes:**
Text on Slide:
Step 5. Review Budget With Reductions
5.3 Make Decisions 
Bring together stakeholders to ensure buy-in on all final decisions

## Step 5. Review Budget With Reductions

***5.3 Make Decisions (continued)***
**Prepare an Executive Summary **
**Part A: Strategic cost-cutting recommendations**
**List of core processes**
**List of process improvements (with combined savings and opportunity costs)**
**Brief consolidated implementation plan and timeline**
**Part B: Tactical cost-cutting recommendations**
**Contractors and contracts**
**Capital assets, equipment, and supplies**
**Program**
**Information technology **

**Notes:**
Text on Slide:
Step 5. Review Budget With Reductions
5.3 Make Decisions (continued)
Prepare an Executive Summary 
Part A: Strategic cost-cutting recommendations
List of core processes
List of process improvements (with combined savings and opportunity costs)
Brief consolidated implementation plan and timeline
Part B: Tactical cost-cutting recommendations
Contractors and contracts
Capital assets, equipment, and supplies
Program
Information technology

## Step 5. Review Budget With Reductions

***5.4 Create Implementation Plan***** **
**Use management tool such as a Gantt Chart to track tasks and associated timeframes to guarantee a smooth, seamless delivery of services **

**Notes:**
Text on Slide:
Step 5. Review Budget With Reductions
5.4 Create Implementation Plan 
Use management tool such as a Gantt Chart to track tasks and associated timeframes to guarantee a smooth, seamless delivery of services

## Step 5. Review Budget With Reductions

***EXERCISE***
**Divide group in half **
**Appoint scribe**
**Use flip charts; draft implementation plan using Gantt chart as a model**
**Appoint spokesperson**
**Return to the larger group and share the results**
**	**

**Notes:**
Text on Slide:
Step 5. Review Budget With Reductions
EXERCISE
Divide group in half 
Appoint scribe
Use flip charts; draft implementation plan using Gantt chart as a model
Appoint spokesperson
Return to the larger group and share the results

## Section IStep 6. Enact Implementation Plan

**Notes:**
Text on Slide:
Section I
Step 6. Enact Implementation Plan

## Step 6. Enact Implementation Plan

**Notes:**
Diagram of SITC Maximization of Resources Model 
Text on Slide:
Step 6. Enact Implementation Plan

## Step 6. Enact Implementation Plan

***Section Objectives***
**At the end of this section, you will have the knowledge to:**
**Create a solid understanding of an efficient and effective ****implementation plan**
**Recognize the necessity of adhering to a predetermined implementation plan**
**Take into consideration timeframes, **
**	****political factors, employee morale, **
**	****and systems modifications needed to enact plan **

**Notes:**
Text on Slide:
Step 6. Enact Implementation Plan
Section Objectives
At the end of this section, you will have the knowledge to:
Create a solid understanding of an efficient and effective implementation plan
Recognize the necessity of adhering to a predetermined implementation plan
Take into consideration timeframes, political factors, employee morale, and systems modifications needed to enact plan

## Step 6. Enact Implementation Plan

***Develop Implementation Plan***** **
**Consolidate recommended improvement details and force field analysis results into an implementation plan**
**Part A: Tactical process improvement**
**Part B: Strategies to overcome implementation barriers**
**Necessary components**
**Timeframes**
**Milestones**
**Dependencies**
**Resources**
**Responsibilities**
**Tasks (and subtasks)**
**Measurements**
**Marketing, communications, and  ****customer education**
**Set up implementation team(s)**

**Notes:**
Text on Slide:
Step 6. Enact Implementation Plan
Develop Implementation Plan 
Consolidate recommended improvement details and force field analysis results into an implementation plan
Part A: Tactical process improvement
Part B: Strategies to overcome implementation barriers
Necessary components
Timeframes
Milestones
Dependencies
Resources
Responsibilities
Tasks (and subtasks)
Measurements
Marketing, communications, and  customer education
Set up implementation team(s)

## Step 6. Enact Implementation Plan

***Conducting Implementation ***
**Discuss strategies to overcome implementation barriers (force field analysis results)**
**Develop an implementation plan**
**Establish and set in motion implementation team(s)**
**Maintain effective **
**	****communication**
**Implement improvements**
**Measure success**

**Notes:**
Text on Slide:
Step 6. Enact Implementation Plan
Conducting Implementation 
Discuss strategies to overcome implementation barriers (force field analysis results)
Develop an implementation plan
Establish and set in motion implementation team(s)
Maintain effective communication
Implement improvements
Measure success

## Section JConclusion

**Notes:**
Text on Slide:
Section J
Conclusion

## Conclusion

***Points to Remember***
**Not everyone makes good decisions when facing a deadline **
**Map out a strategy for cost savings in your department before you are forced to do so**
**Conduct process analysis on core processes and determine the best cuts (no rash decisions) that keep the *****big picture***** in mind**
**Consider alternatives**
**Lessons learned**

## Conclusion

***Summit Summary***
**In summary, you have explored and gained knowledge on the following:**
**Planning intelligent budget cuts by using strategic thinking**
**Discussing alternative cost-cutting principles and strategies**
**Applying the SITC Maximization of Resources Model to the needs of your State**
**Identifying core processes in your State**
**Assisting your organization to become leaner and healthier through more effective and efficient process analysis and improvement**

**Notes:**
Text on Slide:
Conclusion
Summit Summary
In summary, you have explored and gained knowledge on the following:
Planning intelligent budget cuts by using strategic thinking
Discussing alternative cost-cutting principles and strategies
Applying the SITC Maximization of Resources Model to the needs of your State
Identifying core processes in your State
Assisting your organization to become leaner and healthier through more effective and efficient process analysis and improvement

## End of PresentationThank You

**Notes:**
Text on Slide:
End of Presentation
Thank You

## Appendix A Acronyms & Glossary

**Notes:**
Text on slide:
Appendix A
Acronyms and Glossary

## Appendix A

| ACF | Administration for Children and Families |  |
| --- | --- | --- |
| DHHS | Department of Health and Human Services |  |
| FTE | Full Time Equivalent |  |
| HS | Human Services |  |
| IT | Information Technology |  |
| IVR | Interactive Voice Response |  |
| ODCs | Other Direct Costs |  |
| SITC | State Information Technology Consortium |  |
| TAG | Technical Advisory Group |  |
| TANF | Temporary Assistance for Needy Families |  |

*Appendix A*

***Acronyms & Glossary***

**Notes:**
Table of definitions
Text on slide:
Appendix A
Acronyms and Glossary

## Appendix B

*** ******Sources***

**Notes:**
Text on slide:
Appendix B
Sources

##  Appendix B

**Primary sources of information used to develop this topic include:**
**State Information Technology Consortium (SITC) Team experience**
**Software Productivity Consortium (SPC) Team experience**
**ACF Technical Advisory Group (TAG)**
**Maximization of Resources Focus Group**
**Books:**
**Chen, Edward. Develop a Strategy Before Budget Cuts Hit**
**Government Insights: Possible IT Budget Cuts**
**Eggers, William D. Show Me the Money: Budget Cutting Strategies for Cash-Strapped States, Manhattan Institute, July 2002**

**Notes:**
Text on slide:
Appendix B
Primary sources of information used to develop this topic include:
State Information Technology Consortium (SITC) Team experience
Software Productivity Consortium (SPC) Team experience
ACF Technical Advisory Group (TAG)
Maximization of Resources Focus Group
Books:
Chen, Edward. Develop a Strategy Before Budget Cuts Hit
Government Insights: Possible IT Budget Cuts
Eggers, William D. Show Me the Money: Budget Cutting Strategies for Cash-Strapped States, Manhattan Institute, July 2002