Iowa s Quest for Process Improvement

1. Iowa�s Quest for Process Improvement

2. 2003 Iowa�s Journey Begins Dept. of Economic Development approached by 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 Facilitator offered to run �Kaizen Event�

3. The Issue Air Quality new source construction permits Issue ~ 2,000 permits per year Average lead time: 62 days, delaying construction and impacting business. 62 days was one of the fastest permit times in the country -- so what was the problem?

4. The Results Lead time reduced to 12 days Steps cut by 70% Handoffs (permit moving from person to person) cut from 18 to 4 600 permit application backlog eliminated in six months Process became more customer friendly 800 number installed for questions

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

6. MOVING FORWARD 2004: Six DNR Kaizen events, one at another state agency 2005: 24 Kaizen events � multiple agencies, DHS creates QA&I system focused mostly on child welfare with 12 dedicated FTE�s. 2006: 29 Kaizen events � additional agencies 2007: 25 Kaizen events, DHS expands QA&I system with focus on eligibility programs with 8 additional FTE�s. 88+ events to date Kaizen, Design for Lean Sigma, 5S, Value Stream Mapping, Policy Deployment

7. LEADING THE CHARGE 2005 Governor Vilsack asks all agencies to conduct at least one kaizen event Office of Lean Enterprise established within Department of Management July 1, 2006 January 2008: ICIG Hot Team hand off to Lean Government Collaborative

8. What Haven�t We Tried? Environmental permits - Air Quality / Wastewater / Floodplains / Landfills / Manure management Corrections - Offender Re-entry / Procurement Public Safety - Criminal Intelligence / Private Investigators Board of Medical Examiners Investigatory process Veterans Home - Admissions / Medical Appointments / Medication Administration / Pharmacy Unemployment Insurance monetary determinations Health - Facility and Fire Safety Inspections Child Abuse Appeals Interstate Child Placements Museum Collection Management Professional Engineers Licensing Food Assistance Accuracy

9. 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

10. 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

11. Business Process Givens

12. A Powerful Tool KAIZEN A highly focused, action oriented event Clear objectives, Measurement focused, Data driven and fact based, Uses creativity before capital Two to five days in length Empowered team takes action to improve a specific process The new process is designed immediately

13. Typical Waste Defects: Data errors; missing information Over production: Unneeded reports Waiting: Approval cycle Moving items: Report routing Over processing: Obsolete data on shared drives Inventory: Excess material/information Excess motion: Trips to remote printer

15. Life In the Government Silo

18. Kaizen Does...

19. 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

20. Leadership Wants to Help �not always sure how to help. Define the role, provide tools and skills and develop lean thinking at each level People development processes

22. Lean Leadership Practice of Leadership vs. Exercise of Power �Lead the organization as if you have no power.� Kan Higashi to Gary Convis (NUMMI�s senior Japanese and American Leaders)

23. Leadership: Three Models Old �Dictator� Style: �Empowerment� Style: Lean Style: �Do it my way�� �Do it your way�� �Follow me�and we�ll figure this out together!

24. Manager vs. Leader What is the difference? Manager � aka Social Worker Loss of focus, direction, control Leader ?Lean Leader Owns responsibility to propose solutions to problems

25. Lean Leadership Most highly successful enterprises were created by transformative leaders � the type most business and leadership books write about� Henry Ford Alfred Sloan Thomas Watson Bill Gates Steve Jobs Michael Dell Jack Welch Sam Walton Name your favorite

26. A Key Lean Problem CAVE people You can go around them on the front line You must overcome them at the supervisory / management level Don�t hide the problems Who are you fooling? Everyone knows what they are.

27. Strategic Event Selection Beyond pain relief Framing the projects Initial Policy Deployment (SML) sessions

28. 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

29. Leadership Challenges The Eighth Deadly Waste �Not utilizing employees� Getting people to think and TAKE INITIATIVE is the key!

30. A New Reward System NOT success vs. failure Action vs. Inaction Think of the US Coast Guard

31. Overcoming History Every other �flavor-of-the-month� that didn�t meet expectations TQM CQI MBWA Don�t feed the CAVE people Nothing speaks louder than results

33. Government�s Customers �The current citizens of Iowa� �Business� �The environment� �The future citizens and business� Really?

34. A New Perspective The business who applied for the permit The researcher requesting historical documents The family needing food assistance The person standing right in front of me? The person standing in front of you!

35. Government�s Products �A clean environment� �Safe children� �Healthy children and adults� Really?

36. A New Perspective Permits / Notice of Violation Professional licenses Child abuse investigation reports Tax credits Parole decisions Medicaid reimbursements Unemployment checks Food Assistance Eligibility Processes

37. The LEAN Journey

39. Why Try Lean? Eliminate or dramatically reduce backlogs Reduce lead times by more than 50% Decrease the complexity of processes Improve the quality of applications and the consistency of reviews Allocate more staff time to �mission critical� work Employee & customer transparency Improve staff morale and customer satisfaction

45. WORKING FOR WORLD CLASS GOVERNMENT