Driving organizational improvement
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- Ada McGee
- 5 years ago
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2 Driving organizational improvement Context Top 10 Critical Success Factors Results
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4 NB Government
5 10 Critical success factors 1. Have an executive champion 2. Demonstrate what is possible
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7 Wave 3 Departments History Wave 2 Departments GNB and Pilot Departments Office of Strategy Management pre 2011 NB Liquor NB Power Service New Brunswick Department of Natural Resources
8 Office of Strategy Management (OSM) responsible for developing the principles, methods and tools by which NB Government leaders can: enhance alignment and execution of strategy, drive improvement results, build a sustainable continuous improvement culture.
9 Clerk of Executive Council and Head of the Public Service Chief of Strategy Management Office of Strategy Management (OSM)
10 10 Critical success factors 1. Have an executive champion 2. Demonstrate what is possible in government 3. Initial framework integrate best practices don t wait for perfection
11 The Strategic Change Journey Less than 10% of strategies effectively formulated are effectively executed Fortune Magazine In the majority of failures we estimate 70% the real problem isn t bad strategy. It s bad execution. Why CEO s Fail, Fortune Magazine
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13 Principles of High Performance: 1. Purpose is customer driven solve their problems % of problems are process (not people) deliver faster, better, cheaper. 3. Engage people involve employees, differentiate performance, develop leaders.
14 Focusing for Results PRIORITIZE EXECUTE ENABLE + +
15 Balanced Scorecard Lean 6σ GNB Strategy Map & Scorecard Pilot Strategy & Scorecards, SOMIA, Cal of Commitments Sept Oct Nov Dec Jan Feb Mar Apr May Lean 6σ Training and completion of 15 projects.. Master Black Belt Certification (12 months). Communication Plan... Jan 31, 2012
16 GNB Formal Management System (FMS):
17 10 Critical success factors 1. Have an executive champion 2. Demonstrate what is possible in government 3. Initial framework integrate best practices don t wait for perfection 4. Partner with carefully selected pilots with committed leaders
18 Departments (at time of launch) Wave I Wave II Wave III Environment & Local Government Natural Resources Service New Brunswick Transportation & Infrastructure Horizon Health Network Finance Justice & Attorney General Education and Early Childhood Development Agriculture, Aquaculture & Fisheries Public Safety Post-Secondary Training, Education & Labour Social Development New Brunswick Internal Services Agency Health Facilicorp NB Executive Council Office Economic Development Invest NB Healthy & Inclusive Communities Efficiency NB Human Resources Tourism, Heritage & Culture Energy & Mines
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20 10 Critical success factors 1. Have an executive champion 2. Demonstrate what is possible in government 3. Initial framework integrate best practices don t wait for perfection 4. Partner with carefully selected pilots with committed leaders 5. Select key staff for leadership potential to build sustainable capacity
21 Alignment Champion Network Clerk of Executive Council Deputy Ministers Office of Strategy Management GNB ADM/VP ADM/VP Department Alignment Champion Dept.
22 Build Capacity for Sustainability Personal Attributes Cognitive Ability Leadership Potential Future Leader? Knowledge & Experience
23 Cultural Sustainability = Building Improvement Leaders Improvement Roles Operational Roles Individual Contributors Lean Six Sigma Black Belt (2yrs) Managers Directors Change Champion lead significant organizational change Assistant Deputy Ministers Deputy Ministers
24 10 Critical success factors 6. Evolve and improve the framework (Formal Management System) 7. Align organizational accountability
25 GNB Formal Management System (FMS):
26 Formal Management System Driving Organizational Improvement Strategy Management CHOICE Strategic Improvement (ON) Initiative Management ON work Operations (IN) Performance Management Disciplined Leaders, Teams, Actions Process Management Standard leadership, operational and enabling processes Daily (or Plan) Management IN work
27 Formal Management System Driving Organizational Improvement Strategic Management (choice) Priorities and speed Strategy Map Balanced Scorecard Initiative Management (ON work) Program, project, process improvement Performance Management Disciplined leaders, teams and actions Daily/Plan Management (IN work) Hold the gains Process Management (Standard Work) Standardized leadership, operational and enabling processes January 9, 2015
28 VISION Measuring to improve or control? Strategy Map Working ON the business (prioritized improvement) MISSION Working IN the business (day-to-day operations) Improvement Plan Measure for IMPROVEMENT: Measure for process CONTROL: Operating Plan Initiatives Balanced Scorecard DASHBOARD: Key Process Indicators (KPI) Value Stream Action Plans change, add or delete processes Processes individual responsibilities (process owners) REVIEW RESULTS Calendar of Commitments
29 Formal Management System Driving Organizational Improvement CHOICE Strategy Map Balanced Scorecard ON work Disciplined Leaders, Teams, Actions IN work Standard work February 2, 2015
30 The DMAIC Cycle better, faster, cheaper
31 A well designed process should flow like a river. Lean is a systematic method for the elimination of waste ( Muda") within processes and systems, from the perspective of the client who consumes a product or service.
32 Six Sigma seeks to improve the quality of the output of a process by identifying and removing the causes of defects and minimizing variation.
33 Value Stream organizational Project Kaizen project 5S Waste Walk Daily Management day to day
34 Improvement = value of project x cycle time x # blackbelts
35 Lean Six Sigma History at GNB Wave 4 Black Belt classes Wave 3 Wave 6 Wave 5 April 2016 Jan 2015 April 2014 Oct 2013 Wave 2 Wave 1 Oct 2012 Jan 2012 pre 2011 Office of Strategy Management NB Liquor NB Power Service New Brunswick Department of Natural Resources
36 10 Critical success factors 6. Evolve and improve the framework (Formal Management System) 7. Align organizational accountability 8. Get early successes 9. Deliver results = permission to carry on
37 Cumulative Hard Savings Actual vs. Target $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 Actual Stretch Target Target 27,170,061 23,226,303 32,776,264 36,867,758 42,216,042 46,468,154 $20,000,000 $10,000,000 $- 6,290,803 3,998,435 2,521,380 $218, ,988 18,415,934 15,304,961 12,556,933 10,782,520 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY FY FY FY
38 $80,000,000 LSS Savings - Cumulative including carry-forward savings (after 12 months reporting) *to Dec 2015 $70,000,000 $60,000,000 $50,000,000 $40,000,000 Carry forward Actual in-year savings $30,000,000 $20,000,000 $10,000,000 $ up to Q3 Total
39 Projects 270+ projects involved Top $ project $1.58M
40 1. Charter: GNB formal management system: How to drive Initiative and Action Plan success? What is the problem? Need to see process to improve it. A problem well defined is half solved. 2. Leading Change Plan: Why we are doing it? Kotter s 8 steps + Proven method 3. Project Plan: Who does what by when? Managing commitments and risks.
41 Success through Lean Six Sigma projects Sugarloaf Provincial Park $345,000 increased revenue (34% increase from base year) Asphalt Leveling Work completed in 2 months instead of 3; $453,259 in procurement savings.
42 Success through Lean Six Sigma projects Veterinary Pharmacy inventory $270,000 in hard savings Assessment Re-inspection Process $ 330,000 hard savings; number of properties inspected increased
43 Success through Lean Six Sigma projects Routine ECG wait times $999,487 in savings; 35% increased compliance with Travel Policy Community Mental Health & Addiction Services Intake assessment wait period reduced from 14 to 3 business days
44 Success through Lean Six Sigma projects Cash Balances at Regional Health Authorities & FacilicorpNB Bank interest savings of $719,900 Operating Room Supplies & Equipment Savings of $378,939 in first year
45 5S Department of Transportation and Infrastructure Problem: When the Department of Transportation and the Infrastructure division of the former Department of Supply and Services merged, additional office space was required at the Kings Place head office. Solution: To avoid leasing new office space, a 5S was conducted on existing office space.
46 Kings Place 5S Before After
47 5S Department of Natural Resources Problem: Amalgamation of DNR district offices required movement of some staff, vehicles and equipment to other DNR office locations. In some cases, the DNR locations were not adequately equipped to receive the additional staff, vehicles and equipment. Solution: Organized warehouses and created space to avoid building new storage spaces.
48 Waste Walks $4,700,000+ hard savings $3,800,000+ soft savings
49 Waste Walks Process improvement accessible to all staff: Introductory training on Lean Six Sigma and wastes Coaching from Black Belt Formal report-outs at 30, 60, and 90 days
50 Waste Walk High inventories Wasted materials Absenteeism Late deliveries Rework Invoices Returns to Suppliers Repackaging Inspecting Expediting Moving Counting Sorting Loading / Unloading Receiving Report Unevenness People's Knowledge/Skills Defects Overburden Overprocessing Transportation Overproduction Inventory Waiting Motion
51 Waste Walk: IV Lines Horizon Regional Health Authority Improvement: Switched suppliers for purchase of 24,000 primary gravity IV lines per year.
52 Waste Walk: Phone Contract Environment and Local Government - Local Service District fire stations were added to the GNB contract and the rates decreased substantially.
53 Service New Brunswick Waste Walk: Postage Tape 2 boxes of licence plates together and ship at same cost as shipping 1 box!
54 Waste Walk: Equipment Department of Transportation and Infrastructure Sold spare sweeps, wings and v-plows to Vehicle Management Agency (VMA) auction or for scrap. $40,050 from 1 yard; cancelled contract for new products for that year for cost avoidance savings of $200k.
55 Waste Walk: Interest Costs Department of Finance Changed the payment schedule to nursing homes from 3 days prior to due date to 1 day prior to the due date, saving interest costs.
56 Formal Management System Driving Organizational Improvement Strategic Management (choice) Priorities and speed Strategy Map Balanced Scorecard Initiative Management (ON work) Program, project, process improvement Performance Management Disciplined leaders, teams and actions Daily/Plan Management (IN work) Hold the gains Process Management (Standard Work) Standardized leadership, operational and enabling processes
57 Processes Standard Operating Procedures
58 Achieved 82% improvement. MEC Processing Time
59 Formal Management System Driving Organizational Improvement Strategic Management (choice) Priorities and speed Strategy Map Balanced Scorecard Initiative Management (ON work) Program, project, process improvement Performance Management Disciplined leaders, teams and actions Daily/Plan Management (IN work) Hold the gains Process Management (Standard Work) Standardized leadership, operational and enabling processes
60 Daily Management A focused team approach to regularly monitor and improve work.
61 Daily Management How to do it! Standard structure for management to monitor, coach and report on progress of the team. A regular, short meeting with process team to discuss metrics. All 3 pieces fit together like a wheel if one piece is missing it will not turn A Display Board including visual measurements against targets.
62 Daily Management Career Development Opportunities (CDO) Team Implemented in the summer of 2015 The CDO team is focused on two key metrics Key metrics are connected to 4 Balanced Scorecard Measures Metrics are improving The team is implementing improvement ideas to improve their work processes
63 CDO Board (picture to be included)
64 Alignment Missed appointments Daily Management metric (Fredericton) % of referrals to PETL SD Regional & Departmental BSC measure (contributory to Labour force size) Labour force size PETL measure Support/ Develop the workforce GNB objective More Jobs
65 Quarterly results, Q # of referrals to PETL # of referrals to PETL Region (18.1%) 467 (16.3%) -11% Region (7.8%) 310 (7.8%) -6% Region (13.8%) 521 (19.7%) Region 3-Fredericton +43%
66 Formal Management System Driving Organizational Improvement Strategic Management (choice) Priorities and speed Strategy Map Balanced Scorecard Initiative Management (ON work) Program, project, process improvement Performance Management Disciplined leaders, teams and actions Daily/Plan Management (IN work) Hold the gains Process Management (Standard Work) Standardized leadership, operational and enabling processes
67 Quarterly Performance Review Meetings 1. Overview of GNB BSC Measure Performance 2. Strategy Execution Barriers Review on track and off track measures and initiatives Discussion and decisions 3. Successes to recognize What happened, who did it, how should we recognize? 4. Review of Readiness Heat Sheet 5. Feedback on the meeting
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69 Sample Department Results
70 External Recognition Atlantic 2013 Canadian 2014 International 2014 Leadership Award: providing improved public service at lower cost
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72 Merci! Thank you! Questions?
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