1. How Do I Fix This Mess? A Case Study for Transforming Organizational Performance Delivering Public Service for the Future Peter Hutchinson February 2015

2. 2Copyright © 2015 Accenture All rights reserved. I am the Superintendent of Schools I am to recommend a solution to the problem of Central Stores to the School Board in 45 minutes. What should I recommend?

3. Here are the facts: The Situation Copyright © 2015 Accenture All rights reserved.3 Central Stores is funded out of the District’s General Fund budget – its budget is about $5.5 million We have 100 schools, 55,000 students and 4,000 teachers Central Stores is where schools and teachers get their supplies

4. The Process Copyright © 2015 Accenture All rights reserved.4 Teachers write out a request on paper Only fully completed orders are then shipped to the schools ‘Pickers’ pick up the requests and go through the warehouse picking supplies Request is placed in internal mail Request is delivered to Central Stores The receipt clerk opens and sorts the requests

5. Process Performance Copyright © 2015 Accenture All rights reserved.5 Average time from order to delivery is 6 weeks Main reason for delay is ‘out of stock’ items Often what is shipped is ‘the best we’ve got,’ though not really what was requested Warehouse is very disorganized – inefficient layout – lots of surplus inventory 6 weeks “This isn’t what I ordered…” ?! Available Inventory Submitted Orders Delivered Orders

6. The Results Copyright © 2015 Accenture All rights reserved.6 Teachers despise Central Stores – spend their own money to get what they need rather than deal with that ‘bureaucracy’. Central Stores workers despise working there – “It’s so disorganized. When we do deliver what we can when we can, those teachers just yell at us.” Teachers complain to everyone – including the Board. Workers complain to everyone – including the Board.

7. What should I recommend? Questions? Work Together Tell me what to do 7Copyright © 2015 Accenture All rights reserved.

8. Remember This Copyright © 2015 Accenture All rights reserved.8 Every system produces exactly the result it is designed to produce – and none other. We can change the people, the technology, the resources – but if we don’t change the design, we will always get the same result.

9. The DNA of an Organization Holds Its Design Copyright © 2015 Accenture All rights reserved.9

10. Thank You! Copyright © 2015 Accenture All rights reserved.10 Contact Information: Peter.C.Hutchinson@accenture.com