1. Working Smart Teresa Hay McMahon State of Iowa

2. The Beginning: 2003  Environmental agency approached by the Iowa Coalition for Innovation & Growth  Hot Team on Business Development Processes: Improve key business development processes that are viewed as barriers to a business’s ability to develop and/or grow in Iowa  Public-private partnership proposed

3. HOT Team / DNR Partnership  Air Quality New Source Construction Permits event – June 2003  Lead time reduced from 62 days to 12 days  600 application backlog eliminated in 6 months  Within six months, begin to see culture change  Successful, sustainable approach for DNR Asked for further commitment from DNR & private sector

4. What Did We Learn?  We could improve customer service without sacrificing the environment  We could sustain the gains and continue to improve: Lead time down to six days within six months  Change could occur in one week - unheard of speed in government

5. 2004 Partnership Grew  Pella Corp  Dept of Natural Resources  Rockwell Collins  Dept of Economic Development  Alliant Energy  Workforce Development  DNR shared resources with other state agencies Resource sharing expanded Lean efforts

6. Enterprise-wide Commitment  2005: Dept of Management takes the lead to reach across the Executive Branch  2006: Legislative support provided  1 FTE for the Dept of Management “Office of Lean Enterprise”  2007: Transition to new administration Beginning of permanent resource

7. Lean Government Collaborative  2008: Transitioned leadership from HOT Team to government  Expanded agency & company membership Dept of ManagementPella Corporation Dept of Natural ResourcesRockwell Collins Iowa Veterans Home Alliant Energy Iowa Workforce DevelopmentWells Fargo Department of Human ServicesEDS Dept of Economic Development Deere & Company Iowa Business CouncilAssociation of Business & Industry

8. Lean in the Law  2009: Senate File 98  An act establishing a Lean Enterprise Office within the Department of Management  The function of the office is to ensure implementation of lean tools and enterprises as a component of a performance management system for all executive branch agencies.  Signed by the Governor on March 19 th

9. DHS 2009 Legislation  Iowa legislature has directed DHS to work with the Office of Lean Enterprise in HF811 to create improvement in DHS services, products, and processes

10. What is Lean?  Lean  Lean is a collection of principles and tools that improve the speed of any process by eliminating waste.  Waste is most prevalent in information flows  “Common sense uncommonly applied”  Tools include Kaizen, Value Stream Mapping, Design for Lean Sigma and 5S

11. Lean Tools Value Stream Mapping  High-level process map used to identify the flow of both documents and information involved in delivering a desired service, or outcome (a “value stream”) that is valued by customers  Helps you see not only waste but the source of the waste Kaizen  Highly focused, action-oriented, 2- 5 day event  Empowered team takes immediate action to improve a specific process  New process designed that week  Focus on continuous improvement Design for Lean Six Sigma  Methodology to create a new service, product or process  Applicable to any high-value project that needs a significant amount of new design  Strong emphasis on capturing and understanding the customer and organization needs 5S  A process and method for creating and maintaining an organized, clean, high-performance workplace  Addresses wasteful practices of any sort

12. What Is The Goal?  Lean, agile & connected to customer demand An operation that is:  Responsive to the customer needs for new products &/or services  Improving continuously to enhance all stakeholder values  Transforming culture to sustain improvements & profitable growth

13. Lean/Kaizen Principles Service Principles:  Focus on adding value  Link processes to create flow  Pace work to customer demand  Reduce process variation  100% customer satisfaction  Reduce process time – Speed! Breakthrough Principles:  Clear objectives  Cross functional team process  Tight focus on time (one week)  Quick & simple  Necessary resources immediately available  Immediate results (new process designed by end of week)

14. Business Process Givens  All business processes are invisible  All business process typically start with incomplete and/or inaccurate information  All business processes are NOT synchronized  All business processes have institutionalized & formalized wasteful practices because of the above

15. Typical Waste  Defects : Data errors; missing information  Over production : Unneeded reports  Waiting : Approval cycle  Moving items : Report routing  Over processing : Unnecessary emails  Inventory : Excess material/information  Excess motion : Trips to remote printer  Underutilizing people

16. Lean Benefits:  Drives efficiency into processes with a focus on waste elimination.  Cost Avoidance  Emphasizes a Bias for Action  Drives Enhanced Productivity  Provides a Sense of Accomplishment  Supports Process Management/Thinking  Crosses Boundaries - Agency/Functional/Stakeholder Strengths:  Focuses on Everyday Activity  Can be Linked to Employees Performance Reviews  Used for Strategic and Tactical Initiatives  Promotes a “Just Do It” Culture  Supports Best Practice Sharing  Develops Leaders –People and Process Management Skills

17. What Does It Take?  Successful process improvement requires organizational commitment over the long term  You must DRIVE change from the top down  Communication  Proactive  Frequent  Consistent  External stakeholders at the table

18. Leadership  Senior management engagement and commitment are the most important factors in long-term success  Top-down drive to change the culture to one of continuous improvement

19. Lean Does Not...  Affect regulatory stringency  Force hasty, inadequate work  Cut corners  Work against the agency mission  Seek to fault staff

20.  Document that many processes are “tribal” – unwritten and undocumented  Increase awareness of the function and value of all roles  Break down “silos” within and between departments and divisions  Challenge the prevailing winds Lean Does...

21. Overcoming History  Every other “flavor-of-the-month” that didn’t meet expectations  TQM  CQI  MBWA  Nothing speaks louder than results  Don’t feed the CAVE people

22. Changing Expectations  For staff:  Overcoming the “whip-smart” mindset  Fear of lay-offs, placing blame  Negative impacts on regulatory  stringency  No time for a week away from work  For customers:  Government ≠ Bureaucracy

23. Follow-up  Critical component  30, 60 and 90-days  Completing the homework for full implementation  Sustain the Gains  6-month and 1-year audits

24. Additional Benefits  Ability to focus on mission critical activities  Identifies customers  Opens lines of communication  Enables teamwork by breaking down silos within and between agencies  Developing new relationships between government and external stakeholders  Employee engagement & empowerment

25. “However beautiful the strategy, you should occasionally look at the results.” - Sir Winston Churchill

26. WORKING FOR WORLD CLASS GOVERNMENT Office of Lean Enterprise http://lean.iowa.gov Questions?