Agenda 12/12/2023 Item #11C (Presentation by ResourceX)12/12/2023
EXECUTIVE SUMMARY
To have the Board hear a presentation by ResourceX relative to Board direction to recommend an approach
to achieve improved budget priority alignment, efficiency, cost containment, accountability, and
transparency.
OBJECTIVE: To have the Board hear a presentation by ResourceX relative to Zero Base and Priority Budgeting
CONSIDERATIONS: As a follow-up to the FY 24 budget process the Board requested Commissioner Hall and
the County Manager work towards identifying qualified consultants to review the Collier County budget and
priority setting approach as a means to achieve greater efficiency, cost containment, accountability and
transparency.
A total of twelve firms were contacted with the following three firms providing appropriately responsive written
follow-up to allow for initial evaluation.
• Accenture
• Boston Consulting Group
• ResourceX
Of the three, ResourceX stood out because of flexibility of implementation, other Government projects and overall
responsiveness through the screening process.
ResourceX focuses on a Priority Based Budgeting (PBB) approach. This approach aligns resources and funding
with community priorities and outcomes shifting the focus to accountability for program results, creating
transparency and a better understanding of the true cost of each program.
FISCAL IMPACT: None at this time.
GROWTH MANAGEMENT IMPACT: There is no impact to Growth Management.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, raises no legal issues at this
time and requires majority vote for action. -JAK
RECOMMENDATION: To have the Board consider the consulting services presentation, direct staff as
appropriate to finalize the scope of services, proposal and fees and bring a proposal back to the Boa rd for formal
approval relative to the management study exemption from the competitive process in accordance with the
Procurement Ordinance.
Prepared by: Ed Finn, Deputy County Manager
ATTACHMENT(S)
1. Quick Reference Table for ZBB Quotes - FINAL 2023_1204 (PDF)
11.C
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12/12/2023
COLLIER COUNTY
Board of County Commissioners
Item Number: 11.C
Doc ID: 27442
Item Summary: *** This item to be heard at 11am*** To have the Board hear a presentation by ResourceX
relative to Board direction to recommend an approach to achieve i mproved budget priority alignment, efficiency,
cost containment, accountability, and transparency. (Ed Finn, Deputy County Manager)
Meeting Date: 12/12/2023
Prepared by:
Title: – Facilities Management
Name: Paula Brethauer
12/06/2023 3:48 PM
Submitted by:
Title: Deputy County Manager – County Manager's Office
Name: Amy Patterson
12/06/2023 3:48 PM
Approved By:
Review:
Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 12/06/2023 3:53 PM
Office of Management and Budget Christopher Johnson Additional Reviewer Completed 12/06/2023 4:01 PM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 12/06/2023 4:21 PM
County Manager's Office Amy Patterson Level 4 County Manager Review Completed 12/06/2023 5:14 PM
Board of County Commissioners Geoffrey Willig Meeting Pending 12/12/2023 9:00 AM
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Quick-Reference for Zero Based Budgeting (ZBB) Company Comparison
Accenture - www.Accenture.com Boston Consulting Group - www.BCG.com ResourceX – www.ResourceX.net
Strategy Cost Optimization - a business-focused,
continuous discipline to drive spending and
cost reduction, while maximizing business
value. It’s about deeply understanding costs
across the business and aligning to the
priorities that will create value
(encompassing people, culture, and
processes).
Zero Based Budgeting (ZBB) - rigorously
identifying inefficient spend and
deciding how to use funds in a better way.
ZBB introduces a new way of working based
on a methodological bottom–up budgeting
process with clear cost accountability,
embedded through a set of new roles,
responsibilities, and processes.
Priority Based Budgeting (PBB) - align
resources and funding with community
priorities and outcomes. This shifts the focus
to accountability for a program’s results,
creating transparency and a better
understanding of the true cost of each
program.
Expectations Cost savings of 10-20%. Typically, our clients see between 10-15% of
overall cost reduction when implementing
ZBB. Based on Collier County’s 2024 budget,
we estimate that FY2024 costs cost be
reduced by $100-150M ($54-80M operating |
$40-60M personnel | $6-12M capital),
exceeding Collier County’s $63 Million budget
reduction target.
Reduce the budget by 10-20%.
Consulting
Team /
Services
Accenture has over 730,000 employees, with
a dedicated Public Sector practice. We have
the scale and experience to effectively
support the County for this effort.
We have assembled a world-class team that
will be able to apply private sector best-
practices within a public sector context. Our
team will be on the ground working side-by-
side with county employees, sharing
learnings and building new ways of working.
Collier County will get access to our industry
leading tools, playbooks, benchmarks, and
industry leaders, including the former COO of
Oklahoma.
See Director Services Detail
Director directs client staff and oversees:
• Departmental Support for PBB
Implementation
• Budget Development Projects
• Budget Book
• Budget Savings for Reallocation
• Presentations
• Project Management
• Interface with other ResourceX (now
Tyler Technologies) staff
Software N/A N/A ResourceX software - Support and Service
Agreement
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Packet Pg. 660 Attachment: Quick Reference Table for ZBB Quotes - FINAL 2023_1204 (27442 : ResourceX Presentation)
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Accenture - www.Accenture.com Boston Consulting Group - www.BCG.com ResourceX – www.ResourceX.net
Approach
and Timeline
2 PHASES:
Basic data gathering (week 0)
1a.Technology Transparency (weeks 1-2)
• Interview key stakeholders
• Map labor and non-labor costs to
technology portfolio
• Conduct top-down, industry-specific
benchmarks
1b.Rapid Value Assessment (weeks 3-6)
• Conduct opportunity identification
workshop
• Opportunity Readout Workshop
2a.Value Targeting (weeks 7-10)
• Confirm baseline and re-estimate
opportunities for cost optimization
• Identify cost reduction levers and
collect and analyze secondary data
• Perform cost reduction levers
analysis and develop initial
recommendations
• Conduct service level levers and
recommendations workshops
• Develop and confirm overall business
case and timeline including
implementation considerations
2b.Implementation Roadmap (weeks 10-12)
• Socialize value implementation effort
• Co-prioritize initiatives
• Develop business-aligned roadmap
• Identify and publish key metrics to
track
• implementation progress
• Establish business-led assessment
cadence
• to measure progress
Design and Execution (weeks 13+)
4 PHASES:
1.Rapid Diagnostic (4 weeks)
• Link program to strategic priorities
• Conduct stakeholder / maturity
interviews
• Create spend baseline
• Benchmark & prioritize
• Refine ambition
(12-16 weeks for Task 2 & 3)
2.Value Identification
• Setup Cost Category Ownership
(CCO)
• Define value levers and opportunities
• Conduct Challenger workshops
• Signoff savings & execution roadmap
• Execute on quick wins
3.Enable Execution
• Set up governance incl. CCOs review
cycle
• Design policies/guidelines
• Support initiative execution
• Establish Track and Trace
• Overlay budget
4.Budget from Zero (timing is at client’s
discretion)
• Prepare (date, templates, tool)
• Define process and train organization
• CCO Budget Challenge Workshops
• Analyze, reconcile, and finalize
budget
3 PHASES (3-5 months) Set-up and
Onboarding Agreement:
1.Set-up
• Discuss the project scope and overall
plan
• Assist with the creation of the project
charter
• Upload annual budget and personnel
data to the online tools
• Provision users in the online tools
2.Training and Software
• Creating program inventories
• Allocating costs to programs
• Scoring programs against results and
definitions
• Peer reviewing program scores
• PBB training and support
• Super User and Departmental
training
3.Budgeting Tasks
• Project planning and data collection
• PBB Data Creation
• Operating Program/PBB
• Capital Budgeting
• Budget Book
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Packet Pg. 661 Attachment: Quick Reference Table for ZBB Quotes - FINAL 2023_1204 (27442 : ResourceX Presentation)
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Accenture - www.Accenture.com Boston Consulting Group - www.BCG.com ResourceX – www.ResourceX.net
Costs We propose a rough-order-of-magnitude
(ROM) estimate for each Phase to be in a
range of $1.3M - $1.7M (2 Phases, each
about 12 weeks in duration). We absolutely
can adjust the ROM with additional data or
insights, but here are some high-level
assumptions we used to derive the ROM:
• Scope covers the departments and
functions that were provided
• Our process analysis would span the
primary 3-4 processes per dept or
function
• Detailed, relevant processes,
organization data, and spend data
will be provided
• Key subject matter experts, process
owners, managers for each dept or
function will be made available for
interviews and targeted workshops
• Collier leadership will collaborate
with Accenture for communications
planning, to ensure proper
awareness and prioritizations
Rapid Assessment:
$100K firm fixed-price, net BCG’s initial
investment to prove value
ZBB Implementation:
10￠per $1 budgeted savings with fees
with ceiling of $100 Million of budgeted
savings over 6-month term
Software:
37 Departments @ $10k each = $370k for a
12-month subscription that can be renewed
each year; early withdrawal fee of $250k
Support:
Includes up to 50 hours of onboarding,
training, and support; additional hours at
$200/hr (number of hours could vary)
Director Consulting Services:
$0 ($25k Director Services are waived for first
100 hours); additional hours at $250/hr
(number of hours could vary)
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Packet Pg. 662 Attachment: Quick Reference Table for ZBB Quotes - FINAL 2023_1204 (27442 : ResourceX Presentation)
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Accenture - www.Accenture.com Boston Consulting Group - www.BCG.com ResourceX – www.ResourceX.net
References Large Public Sector State Client (NY):
Accenture delivered a Zero-Based Budget
project for the client to assess cost
optimization options for the organization. If
the County chooses to further conversations
with Accenture as the provider for these
services, direct contact information will be
provided. Due to client confidentiality, we
confirm with the client that we are permitted
to put County leadership in contact with
State Client Leadership and/or State Client
Project Leadership.
20+ state and local clients served over the
last 12 months.
Leah Barton, Senior Director of Budget
Management for Harris County, TX ($2.8
Billion annual budget) |
Leah.Barton@bmd.hctx.net | (713) 569-0697
| Relevance: County government, similar size
and fund optimization
Michael O’Malley, Chief Procurement
Officer, Commonwealth of Virginia | Andrew
to introduce on request | Relevance: Realized
procurement cost savings
Michael Walsh, Mayor of East Hartford, CT,
former Undersecretary of Policy in CT |
mwalsh@easthartfordct.gov | (860) 418-
6235 | Relevance: Whole of government
budget and planning (Public report available
here)
County Government:
• Washington County WI - County
Executive Josh Schoemann,
Joshua.Schoemann@co.washington.wi.us
• Strathcona County AB (Canada) - Mayor
Rod Frank, Rod.frank@strathcona.ca
Large budget organizations:
• Pittsburgh, PA - CFO Patrick Cornell (412-
255-2640),
Patrick.cornell@pittsburghpa.gov
• Fort Worth, TX - Chief Transformation
Officer Clay Pearson (817-392-6222),
Clay.Pearson@fortworthtexas.gov
Case Study Links:
• Washington County WI
• Strathcona County AB
• Fort Worth TX Contracting
Option
1. NASPO ValuePoint:
https://www.naspovaluepoint.org/portfolio/
cloud-solutions-2016-2026/accenture-llp/.
2. Several options with current Florida clients
where a “piggy-back” clauses are included in
the contract.
3. Insight NASPO, a pass-through with fees
incurred by Insight for contract usage.
4. State of Florida, Department of
Management Services, State Term Contract
for Management Consulting, state fees apply:
(https://www.dms.myflorida.com/business_o
perations/state_purchasing/state_contracts_
and_agreements/state_term_contract/mana
gement_consulting_services
Omnia Partners Cooperative Agreement
(fastest) – we hold a Strategic Management
Consulting Services as well as a Business and
IT Consulting and Advisory Services contract
with Omnia. Based on our records, it appears
that Collier County has adopted 42 of
Omnia’s contracts over the last 12 months.
Given your timeline, this is likely the fastest
option.
GSA Schedule – Collier County is a GSA-
eligible buyer and we are on the GSA
schedule. Depending on your specific
procurement requirements, this is another
option.
Tyler with the County Clerk of Court and
County Sheriff via Sourcewell (NJPA).
Contact Danielle Alvarez, Managing Director
Mobile: +1 850.755.2610
Email: Danielle.M.Alvarez@accenture.com
Andrew Shane, Partner
Mobile: +1 301 466 9448
Email: Shane.Andrew@bcg.com
Chris Fabian, CEO
Mobile: +1 303-520-1356
Email: cfabian@resourcex.net
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Packet Pg. 663 Attachment: Quick Reference Table for ZBB Quotes - FINAL 2023_1204 (27442 : ResourceX Presentation)