“How Evidence caninfluence policy and therole of Business Link in     the North West”   A Presentation toBusiness Link Nor...
Definition“Data-driven decision- making is using data to better understandwhat is actually goingon rather than what is ass...
The Curse of Bad Data•Data is now far easier & cheaper to gather, store, analyze and disseminate than everbefore•Unfortuna...
Governing by Numbers: Data-drivenevidence based policymaking: what is it? •Collection and analysis of data to spotlight pr...
Data Driven Evidence-based Policy                       Formulation                                         Evidence-     ...
+100%                                                                                 Building of Data                    ...
Experian’s NBD                                                                                       536k                 ...
Data Attributes•Data is “real time” - updated monthly and in caseCommercial Risk Data the plan is fortnightly with WeeklyA...
Benefits to Key Stakeholders   Marketing         Operations          Executive          Cluster Orgs.             NWDA Bui...
Data becoming more relevant  for decision making bodiesInternal           Sector specialists           and cluster        ...
Dependency building           Business Support Community Partners look to BLNW for Data                       & Analysis a...
Allows Business Support     Community Partners to  Engage with Decision Makers  on an Evidence-Based Basis  Internal   Sec...
The Response to companies in the North Westadversely affected by the current economic downturn            The BPI (“Busine...
The BPI: Identifying High Risk BusinessesRisk Category DescriptionMaximum risk High value of unsatisfied CCJs, accounts ov...
The Action for Response HubFigure 1   Data Capture                                           >20 Redundancies             ...
The Power of the BPI: Project Rapier – Liverpool Vision’s Objective of Spending £10M to Save 40 Businesses specifically in...
And that Business was?          • Demonstrates that the            Liverpool Vision’s            approach needs           ...
Data Driven Evidence-Based: BLNW             Making an Impact  Decision Making Based on Intuition, Judgemental Opinion or ...
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Evidence Based Policymaking

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A Presentation Delivered to the Senior Management Board of the NWDA on Data Stewardship and the Impact of Data-Driven Evidence-based PolicyMaking at Business Link Northwest

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Evidence Based Policymaking

  1. 1. “How Evidence caninfluence policy and therole of Business Link in the North West” A Presentation toBusiness Link Northwest by Ged Mirfin
  2. 2. Definition“Data-driven decision- making is using data to better understandwhat is actually goingon rather than what is assumed to be going on”
  3. 3. The Curse of Bad Data•Data is now far easier & cheaper to gather, store, analyze and disseminate than everbefore•Unfortunately this means that it is much easier to collect data that is inaccurate, out-of-date or at worst simply wrong•Results in a lack of trust of data by end-users•Decision-makers are thus forced trust to their own intuition.•Tendency to rely on the infallibility of their own “judgemental opinion” because it issimple & convenient.•Results in a “Traditionally it has always been done that way mentality”.•No one is able to prove conclusively otherwise or show policymakers they are wrong.•The result – badly formulated and more poorly applied policy!•Works fine in a benign economic environment. In a harsher climate when assumptionsare being fundamentally challenged it is much more difficult to defend the indefensibleand to find a solution when you are sometimes forced to justify not only your veryexistence but the funding rationale!•Need for Hard evidence: high quality validated quantitative data•Is why Policymakers have turned to a data-driven approach
  4. 4. Governing by Numbers: Data-drivenevidence based policymaking: what is it? •Collection and analysis of data to spotlight problem areas and potential solutions – data capture & accessibility! •Development of quantifiable measures & indices to assess policy performance and draw comparisons across similar circumstances, geographical boundaries or peer groups so “best practice” can be identified & widened – segmentation & benchmarking! •Public dissemination of data and metrics/indices to assist in policy formulation, policy making and ultimately in assessing the impact of policy and policy performance – should it be done? has it been done? and has it been done well?
  5. 5. Data Driven Evidence-based Policy Formulation Evidence- Evidence- influenced based BLNW Data WarehouseExperian Aim: Facilitate changeNorthwest from Anecdotal &Business Judgmental to Evidence-basedDatabase Policy formulation Evidence- Opinion-based influencedPolitical Inputs Policy Making Environment
  6. 6. +100% Building of Data Lack of clean +90% BLNWs Capability Levels: Warehouse to separate and up-to-date prospect report on new data marketing data delivers highly +80% How Data has affected this functional web begins to impact The on BLNW’s development of accessed granular +70% ability to meet a Web reporting capability Data Import into CRM penetration Accessed +60% - manually fills the targets Reporting system with very poor Dashboard with +50% quality & aged data the ability to from legacy systems. represent data +40% via GIS MappingBLNW Capability software and the +30% development of a Marketing Data +20% Warehouse Arrival of taking BLNW +10% Experian NBD Reporting & Poor attempt to with access to Analytical 0% address data quality Yell, Thomson, Capabilities to CRM 3 – Powerful issue via “Data Commercial, & the Next Level. -10% Engine. Huge Cleanse” carried out Origins Mosaic Development by Third Party results gives BLNW Potential. Vanilla in the overwriting of access to a rich -20% Version no current data with Customisation. even older data. This Rate data source which it can be -30% affected CRM system segmented to and hampered target specific -40% operational customer details performance in a scientific -50% manner -60% 1% -1% -70% -80% Source: Morgan Stanley as at 30 June 2006 -90% -100%
  7. 7. Experian’s NBD 536k 100k -Experian profiled Business Link data and found 536k businesses (both Ltd. And unincorporated) at location in its-Business Link had 100k company records in its National Business database for the Northwest.database. -Business Link acquired the data from Experian. Each Experian-The companies had been assisted by Business Link over record had in excess of 180 data characteristics (appends)the last 20 months -The extra data records allowed a significant level of analytics to-The data captured was used to satisfy contract outputs be done. The data had access to classification systems (YELLand as such was very specific Thompson) and allowed for detailed segmentation-We needed to increase the data set both in terms of size -One of the Primary data attributes was “Risk Scores andand data richness Financial Performance data”
  8. 8. Data Attributes•Data is “real time” - updated monthly and in caseCommercial Risk Data the plan is fortnightly with WeeklyAlerts for Businesses experiencing a serious worsening intheir performance•Is the first (b2b) business profiling system in the publicsector•Offers real time intelligence to support our efforts toaddress the current market conditions•Data is very granular and can be segmented to veryspecific levels•Key data segmentation is geographic (down to postcode)and sectoral (RES, SIC group, Yell classification code,Thompson directory classification code)
  9. 9. Benefits to Key Stakeholders Marketing Operations Executive Cluster Orgs. NWDA Build increased Improve take-up Meeting of Make definitive Provision of penetration of intensive Strategic pronouncements relevant and up- amongst assists for Priorities: To be about the to-date service users Broker Team by recognized as effectiveness of information on through increasing lead the leader on BLNW services emerging delivered to the business trends improved generation regional NW Business allowing the segmentation business Community NWDA to service and targeting intelligence and including requests from playing a vital Membership & Government, role in Cluster Orgs, Local Political Parties informing Councils, & Lobbying Orgs business Politicians & support policy Opinion Leaders making “Advanced “Vastly “Delivering “Sharing of Key “One Version of Customer Improved Lead Strategic Data across the the Truth” Segmentation” Quality” Priorities” Region”INTERNAL The Business Support Environment EXTERNAL
  10. 10. Data becoming more relevant for decision making bodiesInternal Sector specialists and cluster management teams First interaction with third party data consumers and political oganisations
  11. 11. Dependency building Business Support Community Partners look to BLNW for Data & Analysis as their first point of callInternal Sector Geographically dispersed bodies require data to confirm Business support activities or to quantify the impact of future plans and policies
  12. 12. Allows Business Support Community Partners to Engage with Decision Makers on an Evidence-Based Basis Internal Sector Geography Local hierarchy of business support functions demand input to decision making and assessment of economic impact.The User Base is Being Significantly Widened
  13. 13. The Response to companies in the North Westadversely affected by the current economic downturn The BPI (“Business Performance Index”: A Consolidation of Business Intelligence Internal Sector Geography Local Govt. Demand for joined up information sources and “one version of the truth” among all business support organisations. Tie together regional strategy and delivery with a system of quantifiable evidence based results
  14. 14. The BPI: Identifying High Risk BusinessesRisk Category DescriptionMaximum risk High value of unsatisfied CCJs, accounts overdue, start-up business with adverse data, proprietor with adverse data or maiden accounts show lossHigh risk Large company with weak balance sheet, medium sized firm with very weak balance sheet, combination of above average risk features, start-up with adverse tradingAbove Large company with very weak balance sheet, medium to smallaverage firms with (high levels of credit search, payment difficulty, weak balance sheets), start-up firm without adverse information The BPI Portal: The Hub of the Action for Response Framework• Experian/BLNW – Business Performance Index Structured Intelligence that can be immediately disseminated to partners• Business Link to provide region-wide data-pool and reporting at Regional, Sub-regional and Local levels
  15. 15. The Action for Response HubFigure 1 Data Capture >20 Redundancies within 90 days CLUSTERS & TRADE ASSOCIATIONS NWDA TUC / UNIONS HR1 to BERR LOCAL JOB CENTRE AUTHORITIES PLUS BUSINESS LINK DATA WAREHOUSE SUB- GOVERNMENTREGIONAL OFFICE NWPARTNERS RECORD BY COMPANY BUSINESS CHAMBERS OF Company Name LINK NW COMMERCE Registered Number Company Address Local Authority & Ward Sector Turnover & GVA Estimate No. of Perm employees No. of Jobs at Risk ESTABLISH RAPID RESPONSE TEAM DEVELOP STRATEGY /POLICY FOR SUPPORTING COMPANIES IN CRISIS COMMUNICATE STRATEGY /POLICY TO PARTNERS (JCP, LSC, BLNW, TRADE ASSOCIATIONS ) & INTERNAL PARTNERS
  16. 16. The Power of the BPI: Project Rapier – Liverpool Vision’s Objective of Spending £10M to Save 40 Businesses specifically in the Retail Sector by End Q1 2009• How do you Identify a…………………….. •…Company that is at least of Above Average Risk •Which is based in Liverpool •Which Employs 50 or more Liverpool (13,704) Employees at Site •Specifically in the Central Ward •Which is in the Retail Sector •Whose payment profile is Employs 50 or more (207) deteriorating Central Ward (66) £729.71 £48,309.18 £151,515.15 In Retail Sector (4) Deteriorating Payment Profile (1) £2.5M £10M This information is based on data provided by Experian. The data has been subject to further analysis by Business Link North West.
  17. 17. And that Business was? • Demonstrates that the Liverpool Vision’s approach needs revising • Also demonstrates that coordinated action by Local Authorities has the ability to provide financial assistance to some of the big High Street Retail Chains if they so wished
  18. 18. Data Driven Evidence-Based: BLNW Making an Impact Decision Making Based on Intuition, Judgemental Opinion or Data Driven Evidence-based Decision Making Tradition Joined-Up programmes based on highly focussed Disjointed programmes and policy initiatives targeted strategies to address identified need based on documented evidence Budget allocations to programmes based on data-Budgetary decisions based on prior practice and historic priorities informed needs Spending allocations based on volume of voices of special Spending allocations based on market failure gaps as interests and eligibility criteria of existing regimes indicated by the data Detailed reporting on a range of indices to relevant Generic reports to all stakeholders based on historic aggregate stakeholders on a regularised basis - weekly, fortnightly, data inappropriate for policymaking at a a micro-economic level monthly, quarterly, half yearly based on agreed service level agreements Goal setting based on accurate estimates of theGoal-setting by board members, administrators, project managers financial consequences of proposed policy options with special treatment given to pet projects and initiatives or the allowing for prioritisation thus helping to predict the current fads of the day. impact of policy options to stakeholders in a “winners and losers” format Highly focussed report-back and monitoring forumsDeath by committee: Undue focus on ensuring that money is spent which ensure that not only is money spent well but also and that it is seen to be spent that the impact of spending can be tracked and measured

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