Improving Management of the New Hampshire

1. Improving Management of the New Hampshire Clean Water State Revolving FUND Bob Minicucci May 28, 2014 CWSRF or SRF

2. How Education in Management Science& Lean Tools Revamped a Program

3. Certified Public Manager Program • Through NH’s State-Wide Bureau of Education & Training • Open to public sector throughout NH • CPM/CPS is national program • “Thesis” project required

4. Wave of Retirements • 2010 – 2011 NH Budget • Many Retirements • Not all positions re-filled • No knowledge transfer • 100 % turnover in SRF staff, incl. their boss

5. New Staff See A Problem • Moving + $30 million/year with no written procedures • Staff not doing things in consistent manner • Customers not getting consistency

6. A LEAN Project • CPM thesis • Process Standardization • 5 mornings in early Nov 2011 • External customers in from the start

7. Process mapped

8. Note the additional ideas This is the important point

9. This project achieved: • A common understanding • Provided the basis for SOP-writing • 25% fewer days staff-time to process loan application • The customer cares about this measure • 15% fewer days to process disbursement • 55% after two years

10. Additional ideas focused on: • Improvements to forms & instructions • Improved (organized) e-filing • Electronic doc transfer • Elimination of a major step • Explicit deadlines, even if suggested

11. They’ve gone on to… • Write SOPs • Strategic plan for CWSRF program • Fiscal analysis • Threat analysis – there is competition

12. Current Focus • Address Davis-Bacon perceptions • Calculator to balance incr. admin. costs vs. lower interest rate • Apply SRF tool to new problems • Tighter management of program

13. CWSRF Balanced Scorecard Goal Objective Initiative Measure Customer Satisfaction Minimize State Requirements Env-Wq 500 Rules Changes Increase eligible entity definition; use “equivalency” for environ. review, DBE, etc. Minimize Federal Requirements Improved Communication Applicants understand CWSRF loan eligibilities and process Regular updates, trainings, outreach materials from NHDES Enforcement, operations, etc. Intra-bureau communication Financial Incentives Interest Rates Rates low, but flexible Promote refinance option Small equipment, Sec. 319/320 Principal Forgiveness Affordability, energy audits, asset management, NPS, etc. Improve CWSRF Performance Increase Use of CWSRF Aggressively Seek Customers Competition for CWSRF Partner with other Bureaus Stormwater/NPS/air loans Partnership with CLF/MBB Partner with outside Groups Obligate repayment funds 104% Loan Commitments Decrease disbursement period Separate loans for multiple phases 3 to 4 year disbursement period; issue and close loans efficiently Internal policies and procedures should be streamlined Effective Resource Management State Match Improve Sustainability of the CWSRF State Match from General Fund Cost Benefit Analysis of CWSRF Optimal environmental benefit Investment Earnings > $88k or 0.08%

14. Thank you! Questions ?