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Managing Information for Impact

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  • 1. NTEN Nonprofit Tech Academy Presented by Donny C. Shimamoto, CPA.CITP, CGMA Managing Information for Impact
  • 2. Speaker Biography Donny C. Shimamoto, CPA.CITP, CGMA  Donny Shimamoto, CPA.CITP, CGMA, is the founder and managing director of IntrapriseTechKnowlogies LLC, a CPA consultancy focused on organizational development and advisory services for the middle market and nonprofits. Donny is a recognized national expert in IT management and international author/speaker on business intelligence initiatives. Donny helps many nonprofits by bridging accounting and IT to strengthen organizational governance and risk management, improve business processes through technology, and increase the effectiveness of decision-making through business intelligence and evidence-based management.  In addition to being a frequent speaker for the Nonprofit Technology Network (nten.org), Donny is the chairman of the AICPA’s Information Management & Technology Assurance Executive Committee and past Governing Council member. Donny was recognized as one of the 2013 Top 100 Influential People by Accounting Today, Top Thought Leaders by CPA Practice Advisor in 2012, 2013 & 2014, received the 2009-2010 President’s Award from the Hawaii Society of CPAs, was named to CPA Technology Advisor’s 40 Under 40 list in 2007 & 2009, and was also a Hawaii Top High Tech Leader in 2004.  Donny works with a variety of nonprofits including foundations, social service agencies, educational institutions, and membership associations.
  • 3. Audience Polls – Demographics  Organization Type/Size – Small Org – Medium Org – Large Org – CPA Firm  Part of Organization – Accounting/Finance – IT – Programs – Audit – Consulting  Role in Organization – Lead Executive – Executive Leadership – Dept Director/Manager – Dept Staff Choose one from each set of options that best matches how you view your organization and your role at work. © 2013 IntrapriseTechKnowlogies LLC. All Rights Reserved.
  • 4. Managing Information for Impact  Nonprofit Technology in Perspective – Developing the IT Strategy  Information’s Role in the Organization  Understanding the Value of Information – Collecting the “Right” Information – Evidence-based Decision Making  Developing Your Enterprise Architecture – Information Lifecycle & Information Architecture  Selecting Your Information Systems – Selection Criteria, Strategy, and Integration – To Customize or Not to Customize 4 © 2013 IntrapriseTechKnowlogies LLC. All Rights Reserved.
  • 5. • Alignment between the mission, business strategy and the IT strategy is critical. • Analyze the ecosystem, drivers, and business strategy—the combination of all of these drive the IT strategy. • Use the IT strategy to drive the IT plan and associated initiatives Nonprofit Technology in Perspective © 2013 IntrapriseTechKnowlogies LLC. All Rights Reserved.5
  • 6. Developing the IT Strategy Cloud Computing Mobile Big Data • Evolution of Service Offerings • Workflow & Process Efficiencies • Staff Enablement & Work-Life Fitness • Local to Global Opportunities Technology Drivers Mission Enhancement Strategies Economic Uncertainty Donor / Funding Pressures Increased Oversight Business Drivers IT Strategy © 2013 IntrapriseTechKnowlogies LLC. All Rights Reserved.
  • 7. Developing the IT Strategy Back Office Programs Fundraising Impact of the IT Strategy to your Mission Key Outcomes: • Automated & efficient processes  Improved execution/”profitability” • Improved work processes  Increased employee satisfaction • Better workflow and program management  Reduced risk • Higher quality of service  Increased constituent satisfaction / impact • Efficiencies • Effectiveness • Innovation • Efficiencies • Collaborative • Transformative • Efficiencies • Revenue Growth • Innovation © 2013 IntrapriseTechKnowlogies LLC. All Rights Reserved.
  • 8.  Once you know your IT Strategy then you can determine your IT Plan (tactical)  Identify technology initiatives that will provide the expected outcomes – Identify the initiative and expected impact first – Then determine the technology  Sometimes selection of the technology will be determined by the current infrastructure  Sometimes you purposely want to consider a new infrastructure, especially the cloud – Once you have all your initiatives, budget and prioritize them © 2013 IntrapriseTechKnowlogies LLC. All Rights Reserved.8 Developing the IT Strategy
  • 9. • Information is essential to building a sustainable organization. • Better info enables organization efficiency, effectiveness, and transformation. • To add-value, information must be delivered to achieve impact. Information’s Role in the Organization © 2013 IntrapriseTechKnowlogies LLC. All Rights Reserved.9
  • 10. Shifting the Sustainable Value Chain  A shift is required in the Sustainable Value Chain of nonprofit competencies  Historically nonprofits could be very operationally driven. As the need for transparency and impact increases, nonprofits must be more strategic to be sustainable and achieve their mission10 Adapted from: CIMA’s Sustainable Value Chain of Organizational Competencies Mission, business strategy, and constituent needs Brand, values and organization positioning Develop service offerings and value/benefit proposition Obtain funding and source resources Deliver services and measure impact Constituent satisfaction and retention Operations driven Mission/strategy driven impact
  • 11. Benefits of Better Information The potential benefits from business intelligence (better information) depends on your ambition. 11
  • 12. Information’s Role in Achieving Impact  We often stop at the Reporting or Analysis stage (which is where technology will also take you).  We need to go all the way through to IMPACT! 12 © 2013 IntrapriseTechKnowlogies LLC. All Rights Reserved.
  • 13. • Information is the most important asset of an organization, after its people. • Collecting the “right” information is essential to making better decisions. • Evidenced-based decisions are usually better than “gut feel” decisions. Understanding the Value of Information 13
  • 14. Information is an Important Asset  Nonprofits use better information to – Increase reach and highly engage its donors – Understand the needs of its service recipients – Quantify the outcomes and impact it is having on its constituents  As we transition from the Information Age to the Knowledge Age – Better information = Competitive advantage – Competitive advantage in the nonprofit world can mean more funding and better outcomes 14
  • 15. Collecting the “Right” Information  It is important to ensure that you’re gathering the “right” information and tracking the “right” metrics – Tracking the wrong metrics can result in undesired outcomes – Tying performance to the wrong metrics can incent the wrong behaviors – Both of the above can lead to incorrect decisions  Consider different types of information – quantitative and qualitative data – positive and negative indicators 15
  • 16. Collecting the “Right” Information  Management Information – Financial Statements – Managerial/Budget – Key Performance Indicators – Key Predictive Indicators  Tactical Information – Service delivery (e.g. # of constituents served) – Service quality (e.g. constituent satisfaction) – Messaging/outreach (e.g. # opens/open rate) – Fundraising (e.g. total $, $ per donation) – Outcomes indicators 16
  • 17. Evidence-based Decision Making (EbDM)  EbDM is generally better than “gut feel” decisions and evidence can be gathered to validate “gut feel” decisions 17 Source: Evidence Based Decision Making: using Business Intelligence to drive value, Bernard Marr, Management Accounting Guideline CMA, AICPA, CIMA 2009
  • 18. • How you collect, store, maintain, archive, and dispose of your data is important. • Use an Information Architecture model to manage the flow of information. • Use an Enterprise Architecture model to visualize the processing of information. Developing Your Enterprise Architecture 18
  • 19. Understanding the Information Life Cycle  All information follows a lifecycle and must be managed throughout its lifecycle 19 Source: Information Integrity, AICPA, January 2013 Source: Information Integrity, AICPA, January 2013
  • 20. Understanding the Flow of Information Use an Information Architecture model to understand the flow of data in your org Staging Area Extract,Transform,Load Data Warehouse TransactionalDataStores Operational Data Store(s) Extract,Transform,Load Data Mart Data Mart Data Mart Data Access Tool Data Access Tool Meta Data (including Business Rules, Data Dictionary, Data Model, and Data Security Model) © 2009 IntrapriseTechKnowlogies LLC. All Rights Reserved.
  • 21. Understanding the Flow of Information Deliver info to users via the best reporting vehicle: © 2013 IntrapriseTechKnowlogies LLC. All Rights Reserved.
  • 22. Understanding the Processing of Info  Use an Enterprise Architecture model to understand the processing of information 22 General Ledger Sage Budgeting & Forecasting CPM Accounts Payable e-AP Cash Disbursements e-AP Sage Corporate Expense Reporting P-Card Contract Administration DWFM Case Operations SMS Board Oversight ExtNet Case Collaboration CPortal Operational Reporting ODS Budget · Budget & Forecasts Plan · Estimates & Intentions · Soft Commitments · Hard Commitments · Cash Flow Projections Actual · Expenditures Performance Management Financial Budget · Corporate Strategic Plan Goals & Targets · Program Strategic Plan Goals & Targets Plan · Program Goals & Targets · Contract Goals & Targets · Other Quantitative Targets Actual · Actual performance measures · Actual outcomes measures Non-Financial Management Oversight Intranet Case Document Management SMS CPM Commitments Management CPM Employee Expense Reporting e-Exp Timekeeping SMS SMS Quality Assurance SMS Sage Constituent Management CRM Fiscal Program Management Intranet Payroll ADP HR DMS ADP
  • 23. Understanding the Processing of Info Capture major operational processes (rectangles), supporting systems (cylinders) and flow of data (arrows) 23
  • 24. Understanding the Processing of Info Look at management needs, including the non- financial information needed to improve program management and achieving of outcomes/impact 24
  • 25. Understanding the Processing of Info Obtain an understanding of the flow of information needed to optimize the organization’s performance 25
  • 26. Using the Enterprise Architecture  An Enterprise Architecture model allows you to see the entire org on one page – Use it to analyze the current state of the org – Use it to visualize the future state of the org  Identify the functional needs of the org and the systems supporting those needs – Identify which areas may not be optimized or have additional complexity – Assess the impact of any information system changes to business processes and info flow 26
  • 27. • Your Mission, IT Strategy, Information Needs, and Information Architecture drive your Information Systems selection. • Each element of the Information Architecture has different types of systems supporting it; some systems support multiple elements. Selecting Your Information Systems 27
  • 28. Information Systems Selection Criteria 28  There is no “correct” system for every organization or every function.  Selection criteria is driven by a variety of factors.: Information System Selection Criteria IT Strategy Mission Information Needs Information Architecture © 2013 IntrapriseTechKnowlogies LLC. All Rights Reserved.
  • 29. Information Systems Selection Criteria  System selection should be driven by – Type(s) of data you need to manage – Who needs access to the data – How you want them to access the data – The business processes the data supports  Consider transaction processing needs versus decision support needs – Availability of information at the point of action – Timeliness of information for decision support 29 © 2013 IntrapriseTechKnowlogies LLC. All Rights Reserved.
  • 30. Information Systems Strategy  Single Vendor / Product Suite – Pros: tightly integrated (data flow and security), single support contact – Cons: usually generic functionality usable by many, harder to leave vendor  Best of Breed – Pros: best functionality for each need, deeper functional understanding by vendor – Cons: data and security not integrated (must be done by you or pay consultant), multiple vendor contracts to manage, multiple support contacts 30 © 2013 IntrapriseTechKnowlogies LLC. All Rights Reserved.
  • 31. Information Systems Strategy 31 Source: Idealware via NTEN Technology Leadership Academy Deep functionality vs. broad functionality
  • 32. Integrating Information Systems  Integration Options – Manual – usually via batch export and import using Excel or CSV file – Automated Point-to-Point – direct system to system usually using APIs, web services, or back end database triggers – Automated Synchronization Tool – intermediary tool connects to various systems usually for pre-defined data exchanges – Automated Hub & Spoke – data warehouse or master data serves as “hub” and “spoke” systems report change to and query changes from “hub” 32
  • 33. Integrating Information Systems 33 Source: Idealware via NTEN Technology Leadership Academy Sample Manual Integration using Excel
  • 34. To Customize or Not to Customize…  Customization is often a bad word – In general it results in higher total cost of ownership over the long run  Differentiate between: – Custom Configurations – works within the built-in functionality of the vendors system (e.g. custom fields and macros) – Platform Customizations – works within the vendor’s application platform to add tables or functionality to the purchased system – Custom Development – adding functionality developed “from scratch” and integrated into or along side the purchased system 34
  • 35. To Customize or Not to Customize… 35 Source: Idealware via NTEN Technology Leadership Academy Use of broad CRM system with customizations to meet specific needs
  • 36. To Customize or Not to Customize… 36 Source: Idealware via NTEN Technology Leadership Academy Use of best of breed in two areas and custom app and API for integration
  • 37. Tie Back to Enterprise Architecture Map your info sys strategy and customization decisions back to your Enterprise Architecture to validate the “big picture” 37 General Ledger Sage Budgeting & Forecasting CPM Accounts Payable e-AP Cash Disbursements e-AP Sage Corporate Expense Reporting P-Card Contract Administration DWFM Case Operations SMS Board Oversight ExtNet Case Collaboration CPortal Operational Reporting ODS Budget · Budget & Forecasts Plan · Estimates & Intentions · Soft Commitments · Hard Commitments · Cash Flow Projections Actual · Expenditures Performance Management Financial Budget · Corporate Strategic Plan Goals & Targets · Program Strategic Plan Goals & Targets Plan · Program Goals & Targets · Contract Goals & Targets · Other Quantitative Targets Actual · Actual performance measures · Actual outcomes measures Non-Financial Management Oversight Intranet Case Document Management SMS CPM Commitments Management CPM Employee Expense Reporting e-Exp Timekeeping SMS SMS Quality Assurance SMS Sage Constituent Management CRM Fiscal Program Management Intranet Payroll ADP HR DMS ADP
  • 38. • Follow the methodology for a structured approach to system selection. • Go past reporting and analysis for impact. • Better information increases the sustainability of the organization and its ability to achieve its mission. Managing Information for Impact 38
  • 39. Managing Information for Impact  Recap of methodology – Identify your information needs (IN) – Understand your information architecture (IA) – Understand your enterprise architecture (EA) – Visualize your future state IA & EA – Strategically select your information systems (IS) – Implement the (new) information systems  Remember that things change over time – Reassess your IN, IA, and EA periodically – Reassess IS capabilities periodically 39
  • 40. Provide Information with Impact Go past the Reporting and Analysis stages and ensure you are providing information that has IMPACT! 40 © 2013 IntrapriseTechKnowlogies LLC. All Rights Reserved.
  • 41. Impact Must Be Mission/Strategy-Driven  Don’t let only Operations drive information needs  Drive information needs from the org’s mission and strategy to increase org sustainability and overall IMPACT. 41 Adapted from: CIMA’s Sustainable Value Chain of Organizational Competencies Mission, business strategy, and constituent needs Brand, values and organization positioning Develop service offerings and value/benefit proposition Obtain funding and source resources Deliver services and measure impact Constituent satisfaction and retention Operations driven Mission/strategy driven impact
  • 42. Thank you for your attention and participation! Any Questions? Donny C. Shimamoto, CPA, CITP, CGMA Email = donny808@cpa.com Voice = (808) 735-8324 Twitter = @donnyitk

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