SLRA: A Multi-Purpose and Accessible Executive Analytics Tool

If the administrator is allowed proficiency with just one analytics tool, the Simple Linear Regression Analysis (SLRA) will be an overwhelmingly preferred choice. This statistical analysis tool gives the administrator an idea whether data from two operational variables are statistically associated to a certain degree. This analytical tool is powered by mathematical procedure that fits a straight line through the observed data with the least deviation of each data point from the line. Its utility stems from the fact that it is just a click away from everybody’s copy of Microsoft Excel.

After the initial strategic planning work-out, Geena, the County’s director of social services met with the administrator for a briefing on her analysis. “You asked the planning team what we can expect our county to be spending to provide human services in six to ten years. Chad and I have been using regression analysis to identify key service delivery factors that we can improve in our service area. I reduced his case load this week to work with me in applying this tool our strategic planning process.

With data on historical human services funding of counties from a Minnesota Department of Human Services 2010 publication (1), we arrived at the following regression equation:

While this equation explains 95% of the deviation from the regression line, the difference of the intercept (-16,291) from 0 indicates the effect of the biggest county in Minnesota, Hennepin County, on how the estimated line slopes. The scatter diagram illustrates this result:

The equation slope of 1.839 represents human services funding of $1,839 per capita. Taking Hennepin County out of this initial consideration, the funding per capita ratio of the remaining counties calculated to an average of $1,678. To project our human services funding need to support projected service levels we used the number of County residents forecasted by Charles, the director of our income maintenance services. In five years the County will have 346,000 residents and a requirement of $581 million to fund the delivery of human services.”

(1) The source of data used in this demonstration came from Minnesota Department of Human Services’ January 2010 publication: “2009 Report on Human Services Performance, Selected County Measures.” The data set is available from mgmtlaboratory.com upon request.

By Noel Jagolino, contributing management consultant