09172016 - Using Lean Methods folder (2)/AEC16... · 2016-09-07 · “Players gonna play, play,...

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Using Lean Methods to Drive Operational Excellence in Regulatory Environments Portland, Oregon September 17, 2016 Council on Licensure, Enforcement and Regulation 2016 Annual Educational Conference 1 Using Lean Methods to Drive Operational Excellence in a Regulatory Environment Michelle Z Pedersen and Greg Bellomo Agenda • Presentation on Lean in a Regulatory Environment (45 min) • Open Q&A (45 min) – Concepts and our experience – Challenges in YOUR agency How Experienced is your Agency with Lean Methods? 1 = We have no experience with Lean/Continuous Improvement. 2 = We have dabbled with the concept; some people are trained. 3 = We have an organized program and regularly execute Lean (and/or other CI methods) to improve processes. 4 = We use the Lean philosophy & tactics to deliver measureable gains and transform our culture.
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Transcript of 09172016 - Using Lean Methods folder (2)/AEC16... · 2016-09-07 · “Players gonna play, play,...

  • Using Lean Methods to Drive OperationalExcellence in Regulatory Environments

    Portland, OregonSeptember 17, 2016

    Council on Licensure, Enforcementand Regulation 2016 Annual Educational Conference 1

    Using Lean Methods to DriveOperational Excellence in aRegulatory Environment

    Michelle Z Pedersen and Greg Bellomo

    Agenda

    • Presentation on Lean in a Regulatory Environment (45 min)

    • Open Q&A (45 min)

    – Concepts and our experience

    – Challenges in YOUR agency

    How Experienced is yourAgency with Lean Methods?

    1 = We have no experience with Lean/ContinuousImprovement.

    2 = We have dabbled with the concept; some people aretrained.

    3 = We have an organized program and regularly executeLean (and/or other CI methods) to improve processes.

    4 = We use the Lean philosophy & tactics to delivermeasureable gains and transform our culture.

  • Using Lean Methods to Drive OperationalExcellence in Regulatory Environments

    Portland, OregonSeptember 17, 2016

    Council on Licensure, Enforcementand Regulation 2016 Annual Educational Conference 2

    Objectives

    1. Connect with the Lean philosophy and demonstratehow it accelerates improvement

    2. Build familiarity with practical tools to increase thevolume and quality of your improvement efforts

    3. Leave with some tangible ideas you could apply onMonday

    Today is about both Philosophy AND Tactics

    Philosophy“Players gonna play, play,play, play, play and thehaters gonna hate, hate,hate, hate, hate.

    I’m just gonna shake, shake,shake, shake, shake.

    And improve operations.”

    Taylor Swift, 2016

    Some More Philosophy“The task is not so much tosee what no one yet hasseen, but to think whatnobody yet has thoughtabout that which everybodysees.”

    Arthur Schopenhauer, 1850

  • Using Lean Methods to Drive OperationalExcellence in Regulatory Environments

    Portland, OregonSeptember 17, 2016

    Council on Licensure, Enforcementand Regulation 2016 Annual Educational Conference 3

    Learning to See DifferentlyHere are the mainparts of the bodythat allow us tosee

    Here are the mainparts of the bodythat prevent usfrom seeingdifferently

    Butt

    Feet

    Brain

    Eye

    Why Do We Care?

    Why You Better Care!

    Agency Project* Results

    Public Safety On-boarding Efficiency # of Approvals(17 to 5)

    Local Affairs Housing ChoiceVouchers

    # of Forms(103 to 47)

    RegulatoryAgencies

    Call Center GoldStandard

    First Call Resolution(from 53% to 90%)

    Personnel andAdministration

    State ArchivesCustomer Service

    # days of wait time(from 14 days to same day)

    HumanServices

    Time to Fill Vacancies Median days to hire(from 110 to 55)

    *Projects average 6-8 weeks in duration

    70%

    50%

    -13

    50%

    65%

  • Using Lean Methods to Drive OperationalExcellence in Regulatory Environments

    Portland, OregonSeptember 17, 2016

    Council on Licensure, Enforcementand Regulation 2016 Annual Educational Conference 4

    Temperature Check

    Which of these statements best matches yourfeeling about that last slide?

    1 = You lie like a rug.

    2 = This is interesting. Please tell me more.

    LEAN FUNDAMENTALS FORREGULATORS

    True or False

    In a regulatory environment, we do not have customers:

    1 = True

    2 = False

    In a regulatory environment, the customer is always right:

    1 = True

    2 = False

  • Using Lean Methods to Drive OperationalExcellence in Regulatory Environments

    Portland, OregonSeptember 17, 2016

    Council on Licensure, Enforcementand Regulation 2016 Annual Educational Conference 5

    Truths in a RegulatoryEnvironment

    • The customer is NOT always right, but they always haverights.

    • Most products that take minutes to process, wait daysto be processed. Those that take days of work oftenwait weeks or months.

    • Perfect often gets in the way of better.

    Defining the CustomerIf everyone is a customer, then no one is –

    and focus on the real customer is lost

    Type of Customer Definition Example (State Patrol)

    Direct End user/consumer of theprocess, product or service

    Highway motorists

    Stakeholder Affects or is affected by theprocess, product or service, butdoes not directly consume

    Businesses – interstatecommerce flowLocal law enforcement

    Beneficiary Indirectly benefits from theprocess, product or service

    General publicTaxpayers

    Customers, and only customers, identify the value

    The Value Stream

    Definition• Network of steps

    • Provides result for customer

    Characteristics• Some activities add value to the

    result

    • Some activities do not add value

    • Sometimes the process stops with

    no activity

    BEGIN

    END

  • Using Lean Methods to Drive OperationalExcellence in Regulatory Environments

    Portland, OregonSeptember 17, 2016

    Council on Licensure, Enforcementand Regulation 2016 Annual Educational Conference 6

    3 Versions of the Value Stream

    What it Actually is …

    What we Think it is …

    What is Achievable …

    Waste and Value

    Value• The portion of the process the

    customer would be willing topay for

    • Transforms the product orservice

    • Done right the first time

    Waste• Everything else

    Waste: What Will I See?

    Waiting When the process stops

    Approvals Approvals or inspections that don’t improve the product or service

    Silos Handoffs between people and organizations

    Transportation Any movement of paper or people (motion)

    Errors Things not done right the first time; requires rework

    Failure to Prioritize Working in crisis mode because “everything is important”

    Underutilized Talents Not using all of an employee’s skills

    Lack of Standards The absence of standard methods and targets

  • Using Lean Methods to Drive OperationalExcellence in Regulatory Environments

    Portland, OregonSeptember 17, 2016

    Council on Licensure, Enforcementand Regulation 2016 Annual Educational Conference 7

    The Difference

    Typical Regulatory View• Strong focus on vertical

    functions and departments

    • Front line supervisors judgedon end-of-process results only

    • Decisions made by managersfar away from the point ofvalue creation

    Lean View• Strong focus on the horizontal

    flow of business processes (thevalue stream)

    • Front line supervisors judged onthe performance of theirprocess - "If the process isright, the results will be right”

    • Decisions made at the point ofvalue creation

    Leadership’s Role

    “The greatest leaders of the 20th century wereHitler, Stalin and Mao: If that is “leadership,” Iwant nothing to do with it.”

    Peter Drucker “Social Ecologist”

    Leadership’s RolePurpose Process People

    What’s the problem?(Not the solution)

    “If it ain’t broke, you mightwant to fix it anyway”

    Front line in front and get outof the way

    Where’s the value?That’s the way we’ve always

    done itTeam of change agents ortransformation agents?

    Shifts “ownership”Break out of

    “government-ese”How about some customers or

    stakeholders?

    People and culturedevelopment

    It is 2016 Ask the difficult questions

    Continuous Improvement But that’s my JOB!Emotions – Emotions -

    Emotions

  • Using Lean Methods to Drive OperationalExcellence in Regulatory Environments

    Portland, OregonSeptember 17, 2016

    Council on Licensure, Enforcementand Regulation 2016 Annual Educational Conference 8

    Maslow and Public Sector Lean

    Higher-order Needs• Teamwork• Connection to a mission• Accomplishment• Personal growth

    Lower-order Needs• Job security• Reasonable pay• Safe working conditions

    Biological and Physiological Needs

    Safety Needs

    Belongingness and Love Needs

    Esteem Needs

    Self-actualization

    LEAN IN ACTION: CASES

    Case 1: P & E InspectionsSituation: The State of Colorado assumed responsibility for anadditional ~20% of the state (from local jurisdictions) but weregranted only an additional ~10% more inspectors.

    Additional details:• 39 inspectors cover all plumbing and electrical inspections in the

    non-metro portions of the state• This group conducts ~50k inspections across 104,185 mi2

    • Statute requires the group to conduct all inspections within 3 days

    The inspections team needed to identify and eliminate waste tomake the most of their available capacity.

  • Using Lean Methods to Drive OperationalExcellence in Regulatory Environments

    Portland, OregonSeptember 17, 2016

    Council on Licensure, Enforcementand Regulation 2016 Annual Educational Conference 9

    Alternate Means of InspectionScenario: A plumbing inspectorarrives at a new gas serviceinspection 110 miles from thecenter of his territory. A gas pipeis inadequately supported.

    Gas Pipe

    Wastes: Waiting,Transportation

    Impact: Allowing alternatemeans of inspection saved 220miles (5 hours) and allowed thecustomer to occupy their house 3days earlier.

    Sticker

    Alternate Means of InspectionConditions:

    • Previously been tothe site

    • Familiar with theinstallation (obvious)

    • Non-life-safety issue• Alternate means has

    sufficientresolution/clarity

    • Corrections only

    Potential Application of:

    Electrical Plumbing

    Exemptions NO-GO ZoneChange Code Via

    Rules Process

    Alternatemeans

    Electronic means available forselect conditions:• Skype• Facetime• Photos• Video

    Case 2: Enforcement Fact FindingSituation: Citizens claiming discrimination (housing, employment orpublic accommodation) were not introduced to an investigator untilseveral weeks after their first contact with the Colorado Civil RightsDivision.

    • Nearly 1,000 formal charges are received from claimants annually (anaverage of 70% of employment cases are dual filed with the EEOC)

    • Investigations take 12-18 months• Approximately 95% find no probable cause

    A customer service nightmare for vulnerable populations

  • Using Lean Methods to Drive OperationalExcellence in Regulatory Environments

    Portland, OregonSeptember 17, 2016

    Council on Licensure, Enforcementand Regulation 2016 Annual Educational Conference 10

    Process Mapping

    Cla

    imant

    CallDivision

    Adm

    in

    Inta

    ke

    Specia

    list

    Invest

    i-gato

    r

    Direct toWeb

    CompleteWeb Form

    Package forInvesti-gator

    Print andMail

    CallClaimantfor Info

    ReviewPacket

    Batch forIntake

    ReviewPacket

    ProvideRequested

    Info

    Redesigned Process

    Cla

    imant

    CallDivision

    Adm

    in

    Inta

    ke

    Specia

    list

    Invest

    i-gato

    r

    OfferAppoint-

    ment

    ProvideVerbalRecap

    Consultwith

    Claimant

    CompletePacket

    Impact:• Lead time to file

    from 3 weeks to

  • Using Lean Methods to Drive OperationalExcellence in Regulatory Environments

    Portland, OregonSeptember 17, 2016

    Council on Licensure, Enforcementand Regulation 2016 Annual Educational Conference 11

    0

    20

    40

    60

    80

    100

    120

    140

    160

    180

    200

    0 10 20 30 40 50 60 70 80 90 100

    Ave

    rage

    Cal

    lDu

    rati

    on

    (se

    c)

    Number of Calls

    Plotting Duration v. Frequency

    Dup. License

    Other

    Application Status

    New App Renewals

    Tech Support

    Ver Request

    New Complaint

    Get it to an expert quickly

    Allow self-service todecrease volume

    Transfer to Licensing

    Customer Experience Mapping

    90 Seconds ofGreeting 75 Seconds of

    Phone Menus 4 Minutes ofWaiting Live Agent

    Learns Issues

    Transfer to NewAgent

    Deliver the Infothe CustomerWanted

    Live AgentLearns Issues

    Phone Tree Diagram

  • Using Lean Methods to Drive OperationalExcellence in Regulatory Environments

    Portland, OregonSeptember 17, 2016

    Council on Licensure, Enforcementand Regulation 2016 Annual Educational Conference 12

    Call Center ImpactOver the course of 7 months:• Increased first call resolution from 53% to 91%• ~10% decrease in call volume due to fewer repeat calls• Overall customer satisfaction was 68% to 82%• Set the stage for automation of some self-service

    functions

    Myth Busting—Episode 2

    Which of these statements is true?

    1 = It takes only months to make significant gainsin process performance.

    2 = It takes 3-5 years to transform a traditionalculture to a continuous improvement culture.

    3 = Both are true

    HOW TO

  • Using Lean Methods to Drive OperationalExcellence in Regulatory Environments

    Portland, OregonSeptember 17, 2016

    Council on Licensure, Enforcementand Regulation 2016 Annual Educational Conference 13

    SOLVE: Lean in 5 Steps

    S

    O

    L

    V

    E

    Scope the Opportunity: Define the problem to be solved

    Organize the Resources: Make a plan and engage the right people

    Lean it!: Apply Lean tools to define potential solutions

    Verify the Impact: Test to make sure our fixes work

    Ensure Sustainment: Make it stick!

    SOLVE: Template and Checklist

    TemplateChecklist with

    Tool References

    SOLVE: Tool Overviews

    Page 1:• Which SOLVE step• Overview & “how to”• Wisdom & links

    Page 2:• Replicable example(s)• Key points and/or tips

  • Using Lean Methods to Drive OperationalExcellence in Regulatory Environments

    Portland, OregonSeptember 17, 2016

    Council on Licensure, Enforcementand Regulation 2016 Annual Educational Conference 14

    Making it Work

    Champion

    • Confirmed after completing required training and demonstratingapplication of tools and techniques on meaningful projects

    • Directs Lean within their agency; mentors sponsors andfacilitators

    Sponsor

    • Responsible business leader who owns the value stream and whocan approve the project scope and objectives

    • Chairs the steering committee and selects the “can-care-knows”project team

    Facilitator

    • Trained expert who guides the project team through theproblem-solving process

    • Identifies barriers to success and helps coach the team

    Where Do I Start?1. Select one of your “products” and identify the customer

    (end user).

    2. Talk to your customers about what frustrates anddelights them.

    3. Walk the process that delivers the product/service.Discuss with employees what gets in their way.

    4. Summarize the suggestions you receive and rate each.

    5. Engage with employee to make change.

    6. Celebrate.

    Continuously Solve Problems

    Time

    Performance

    What people THINKimprovement looks like:

    “You better pack a lunch if you’re gonna play Wisconsin, brother,because you’re gonna be there ALL DAY!

    - Keith Jackson

    Time

    Performance

    What improvementACTUALLY looks like:

  • Using Lean Methods to Drive OperationalExcellence in Regulatory Environments

    Portland, OregonSeptember 17, 2016

    Council on Licensure, Enforcementand Regulation 2016 Annual Educational Conference 15

    Some More Philosophy“People who work togetherwill win, whether it beagainst complex footballdefenses, or the problemsof modern society.”

    - Vince Lombardi

    Speaker Contact Information

    Government PerformanceSolutions, Inc. (GPS)

    Greg BellomoManaging Partner,Government Performance [email protected]

    Michelle Z. PedersenFormer Deputy Executive Director,Colorado Department of Regulatory [email protected]