Functional Analysis Questions and Answers

What's happening?: Since 1994, MMSD has been able to meet revenue cap limits by cutting around the edges and becoming more efficient and effective. In spite of this, over the next 3-5 years, we face serious fiscal constraints and we need to be prepared to deal with them. We can't continue to do everything we are doing now with fewer resources, thus we need to move to "managed abandonment." We have hired Virchow, Krause & Company, LLP, a Wisconsin-based certified public accounting and consulting firm, to do a functional analysis.
What is a "functional analysis"?: A way of looking at an organization literally, function by function, and analyzing it in the context of fiscal planning and relative impact on the required operation using the Strategic Plan as a decision-making filter.
Why are we doing this now?: We know that over the next 3-5 years, between revenue limits and declining enrollments, we will be facing serious fiscal constraints and we want to be as prepared as possible to deal with them.
What is the timeline for this process?: Phase I consists of project planning; developing a function listing, work plan, communication plan, and potential measures; identifying budget and service impacts of functions; determining appropriate measures and criteria; and developing and approving the model. This phase is due to be completed by November 26.
Phase II will include data collection, data analysis and recommendations, a quality assurance process, and presentation of the draft report. This phase is scheduled for completion by February 8, 2002.
How does this fit all our other planning activities?: This is just the next step in our long-range planning. The first was a series of process improvement initiatives and the next was our Strategic Plan completed in the spring of 2000. This process ties the Strategic Plan to our budgeting process.
What do we hope to accomplish?: Our goal is to assist District Administrators and the School Board in ensuring that program and functional adjustments are made in a prudent manner using sound data and decision-making practices. Virchow, Krause will assist by identifying the scope of potential cost savings by 1) developing an analytical model for ranking district functions, programs, and activities; 2) creating a method of ranking their impact; and 3) recommending a five-year plan to achieve the required budgetary reductions. The Board will make the ultimate decisions with input from the administrators and this study.
Why outside consultants?: The scope of the project, time required, and detail of statistical analysis is not possible internally due to current staff workload and expertise in this model. In addition, objective analysis is most helpful in potentially difficult decision-making environments. Their role is process management, data collection, and analysis and to develop a set of recommendations for the School Board. They have no decision-making role or responsibilities.
What will be expected of individual staff and units? Will it disrupt our daily operations?: The answers are "it will vary" and "somewhat." Since this, by its very nature, has to be all-inclusive, thorough, and objective, as well as timely, all units will be interrupted for a time, and staff with particular access to needed data may have to forego some current projects. Obviously, this will only be done with the full support of administrators in areas. Our hope is the disruption will be minimal.
Will people be losing their jobs due to this process?: There are going to be serious fiscal issues to be addressed over the next 5 years primarily due to enrollment and revenue cap concerns. Unfortunately, those two items are pretty much out of the district's control. What we can control is the most responsible and prudent way to use scarce resources. That means everything has to be considered as an option for necessary reductions, including individual positions, programs and services. These decisions will be made using sound fiscal processes, open communication with the district, and objective, un-biased data analysis to ensure fairness.
How will we know what's happening?: Your best source for the project process in an on-going manner is the MMSD web site. And of course, District Administration and School Board Members always welcome your comments.

Thank you for your cooperation and understanding during this important process.

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