Guidon Performance Solutions Blog: The Ascent http://www.guidonps.com/blog Guidon Performance Solutions Blog: The Ascent RSS 1.0 feed. daily 1 Guidon Performance Solutions Blog: The Ascent http://www.guidonps.com/blog http://www.guidonps.com/logo.png Culture Trumps Reorganization Every Time http://www.guidonps.com/blog/2010/07/14/culture-trumps-reorganization-every-time In his recent editorial column in Government Executive... “Reorganization is Easy Compared to Culture Change,” Editor Tom Shoop comments on a common reaction to crisis – moving things around.  Shoop articulates the dynamic perfectly – management tends to assume that simply moving the chairs on the Titanic will somehow prevent the sinking of a ship that’s hit an iceberg.

In the course of our work with both commercial and government organizations, we see this happen over and over.  Crisis hits and the immediate “solution” is to remove the leader.  While this may give the illusion of corrective action, far too often the true outcome is disappointing and fails to address root cause of bad performance.  In many cases, the mission and culture are not aligned with the outcomes needed from the agency.  Another implicit statement from Shoop is the mention of President Obama’s pledge that the new leader will solve the problem.  Obama falls into the same trap we see time and again among leaders – simply mandating an action does not mean the problem will be solved, the strategy will be executed or the results will be acceptable.  Well over 70% of the time, this approach does not work.

Whether an organization is headed down the road of launching a process improvement or integrating an acquisition, the failure of leadership to recognize that proclaiming an action be done will rarely – if ever – meet expectations. The antidote in hard or static times is building a deep and broad culture of continuous awareness, vigilance and actionable process improvement.

Like the tip of an iceberg, moving the deck chairs or barking orders are actions that only scratch the surface in creating and maintaining an effective enterprise in crisis or not.

]]> 2010-07-14T12:43:01-04:00 2010-07-20T13:37:57-04:00 Ron Wince Effective Management Lean in Government Economic Crisis People Strategic Planning Improvement Performance Improvement Continuous Improvement High Performance Culture Healthcare Embraces Lean Principles http://www.guidonps.com/blog/2010/07/13/healthcare-embraces-lean-principles A recent article from the NY Times Sunday business section... “Factory Efficiency Comes to the Hospital” highlighted dramatic success at several hospitals who have leveraged “lean” principles to improve clinical operations.  But even more important than the cost savings are personal testimonials from hospital officials that highlight the holistic benefits of applying tools from industry in healthcare:

1. Improvement begins with the customer – In this case, the patient is the recipient of increased value.  What is not as clearly stated is that the definition of value MUST meet three criteria (all three):
a. The activity, to be value added, must transform the patient’s medical condition
b. It must be done correctly the first time
c. If the patient had to pay for the activity – they would
2. Those who do the work know it best – To successfully improve the process, those who actually provide the services to the patient know the hidden workaround and unwritten rules that are followed to make the system or process, likely designed long ago, work.  Real improvement only comes when the unseen process is made visible by those who know it best, the process is diagnosed with data, and improvements are tested and put into place.
3. Improvement does not have to take months – Most improvement using the common sense of “lean” happens in hours or days.  In most cases improvement is generated by the creativity and zeal of those who do the work themselves very quickly.
4. When implementing lean, it is best to take away the checkbook – “No money” is the mantra for creating lean and efficient processes – anyone can spend capital to improve.  The best organizations know how to leverage the creativity of their “kaizen” teams before capital.
5. Leadership’s passion and attention span is the linchpin to success – Allowing a team of highly trained and talented professionals to work on the process and not just in the process takes  broad commitment and support.  Without these, improvements are rarely as dramatic as those shared in the story and even more rarely sustained.

In our experience working with some of the most effective hospitals in the nation, we have found opportunities for improvement not only abound in clinical operations, but in every aspect of the healthcare value chain.  From primary care providers through payment of claims, there are substantial improvements to be gained by viewing healthcare through the lens of those who receive the care.  In fact, clinical operations, while ripe for improvement, is only scratching the surface of improvement.   We have found that even greater improvements are in applying the same language and tools in other areas:

  • Claims management and revenue cycle where reducing work content not only drives efficiency but can reduce errors and prevent fraud and abuse.
  • Understanding the continuum of care for chronic illnesses such as Alzheimer ’s disease and Cancer can provide opportunities to not only reduce the cost of care but improve the quality of life for both patients and care givers.
  • Applying lean principles to information technology can not only reduce the cost associated with putting in place a new EMR, but also accelerate the implementation cycle time.
  • “Lean” tools and practices are scalable and applicable to everything from major health systems to ambulatory care centers to primary care practices. 

Everything from the development of new therapies and medical devices to the design and construction of new medical facilities contains waste that can be identified and removed through the adoption of “lean” and other process science methods.  And with the requirements from healthcare reform beginning to be put into place in this country, the opportunity for improvement is more critical than ever.  Every player in healthcare – provider to payer; managed care to pharma; federal and state agencies to information technology providers – can realize improvements which can more than offset the costs associated with the new regulations being put into place. 

Improvement methods such as “lean” and six sigma will become as common place in the future of healthcare as they are today in manufacturing.   No one will ever claim that the delivery of healthcare is exactly the same as manufacturing an automobile.  But everyone can agree that focusing on the value of care provided to a patient (as a car company does its car buyers) will improve the quality, cost and delivery of healthcare now and long into the future.

]]> 2010-07-13T11:54:08-04:00 2010-07-13T11:54:08-04:00 Ron Wince Lean in Healthcare Business Process Improvement Lean Six Sigma Lean Improvement Lean Principles Efficiency Process Improvement Healthcare Performance Improvement Kaizen Ron Wince on the Key to Improving Healthcare http://www.guidonps.com/blog/2010/02/25/ron-wince-on-the-key-to-improving-healthcare I was excited to be able to contribute a guest post on the Center for Health Transformation (CHT) American People’s Online Health Summit blog this past week. In my post (titled, “Ownership is the Key to Improving Health Care”) I talk about the need for new thinking and perspective as it pertains to health care reform. The key to improving healthcare lies within the more effective collaboration between practitioner and patient. We need to shift the current model of focus to one that is consumer-centric, since we all refuse to pay for waste, unnecessary care, and aid those that perpetuate fraud and abuse.

However in order to equip patients with the necessary information that will allow them to more adequately own their healthcare situations, this will require better access to information, more education, and the ability of the patient to be able participate in the process.

I look forward to your comments and thoughts on my post.  Please feel free to add them on the CHT post directly, or in the comment field below.

Read the Full Post: Ownership is the Key to Improving Health Care

]]> 2010-02-25T11:42:04-05:00 2010-04-09T13:15:47-04:00 Ron Wince Effective Management Business Process Improvement Continuous Improvement Efficiency Healthcare Reform Process Improvement Healthcare Performance Improvement “Undercover Boss” – Waste Management Uncovers Waste http://www.guidonps.com/blog/2010/02/09/201cundercover-boss201d-2013-waste-management-uncovers-waste Normally I don’t watch much reality TV, but Sunday as I was watching the Super Bowl (congratulations to the New Orleans Saints and all of their fans!) there was a commercial for Undercover Boss and I decided to give it a try. This new show is about C-Level executives who go undercover as employees in their own organizations to find out how things are really done. In the premier episode Larry O’Donnell, the President and COO of Waste Management, went undercover to work in entry level jobs in his company over the course of a week.  During that time he learned a variety of tough lessons:

  • What looks good on paper sometimes doesn’t always yield the results intended
  • Making decisions that impact how work gets done without understanding the work first can have adverse consequences
  • Real people who care deeply about their jobs and work hard every single day are truly the only real asset in any company
  • The processes that make a company work and the people who make them work need to be taken into consideration when trying to drive any kind of improvement – productivity, service, quality

Interestingly, my colleagues and I at Guidon Performance Solutions have spent our careers observing the same things that Undercover Boss Larry learned during his week long journey.  Over and over we see the same things – policies decided in a vacuum (or at least without the full picture at hand), processes which don’t support associates or the customers they are trying to serve, and managers who, with all good intent, make decisions which actually do more harm than good.

The good news is that not every CEO needs to go undercover to unearth the problems that live deep in the inner workings of their companies.  Nearly 7 of every 10 companies have some form of process improvement or Lean Six Sigma efforts underway in their organizations (including Waste Management).  The practitioners in those roles see the exact same things that Larry observed in his stealth experiences and should be bringing those issues to light of day.  This group of folks, if organized correctly and empowered appropriately, can serve as the “sonar” for the leadership of an organization.  In very short order they can identify and surface nearly every key learning that came from Larry’s week in disguise. 

Unfortunately we observe that many organizations don’t leverage this valuable exercise correctly.  Much of the time this team is relegated to small scale improvements or they become more focused on traditional project management than highlighting the people, process, technology and systemic breakdowns that impact EVERY company, its customers, suppliers and shareholders every day.  Unfortunately this becomes the biggest example of waste in nearly every organization and one of the lessons Larry learned the hard way – the waste of human talent.

Now is the time for business leaders to get serious about understanding the processes and systems that deliver insights that can improve service and results for customers and shareholders.  In the continuing turbulent business world, there is little time to be complacent and assume that by simply stating something should be done, that it is done correctly – or even at all.  Far too often corporate leaders believe that by announcing an edict or signing their name to a memo or new policy that it will work and be executed brilliantly.  Nothing could be further from the truth.  Leaders must relentlessly follow-through and put more emphasis on capturing maximum benefit from those who work ON the business as well as listen to the front-line leaders and associates who work IN the business.  Doing so will provide clarity as never before on what needs to be done to thrive in the new business normal.

]]> 2010-02-09T14:50:37-05:00 2010-02-09T14:50:37-05:00 Ron Wince Effective Management Business Process Improvement People Process Lean Six Sigma Continuous Improvement Process Improvement Using Lean Six Sigma for Fast Track SG&A Reductions http://www.guidonps.com/blog/2009/12/14/using-lean-six-sigma-for-fast-track-sg-a-reductions In today’s challenging economy companies continue to search for opportunities to improve the efficiency and effectiveness of their overhead processes. What has changed recently is a shift from focusing on cost reductions to a focus on holding the line as the economy recovers. In nearly every discussion with senior leadership over the past few months they have mentioned the need to keep staffing levels constant while continuing to improve the service levels even as they see growth on the horizon. Recently we shared some of our thinking on SG&A improvement in a webinar.  And while the information focused on how to use Lean Six Sigma to drive out costs – the underlying theme is that the same approach can be used to prepare for the upturn.
 
We’ve embedded the link to the recorded webinar here and also made the PowerPoint presentation available. We hope you will find a few nuggets that can help you in your own quest for improvement and preparation for the looming recovery.

Using Lean Six Sigma for Fast Track SG&A Reductions
View more documents from Guidon Performance Solutions.

 

]]> 2009-12-14T15:33:06-05:00 2009-12-14T15:34:32-05:00 Ron Wince Business Process Improvement Lean Six Sigma Performance Gaps Efficiency Selling, General & Administrative (SG&A) Cost Reduction The ‘WIIFM’ Factor with Lean Six Sigma http://www.guidonps.com/blog/2009/10/14/the-2018wiifm2019-factor-with-lean-six-sigma One of the most frequent conversations that comes along from Lean Six Sigma and other Continuous Improvement practitioners is around their frustration with senior leaders and sponsors who “don’t get it” regarding Lean and Six Sigma or business process improvement. Most of the time the conversation is about a gap in sponsorship, buy in, leadership, etc. and the people I am speaking with are venting their frustrations. My immediate question to these highly capable, technical practitioners is “Have you taken care of WIIFM for the sponsor?”  WIIFM – or What’s In It For Me – is one of the biggest gaps for most Lean Six Sigma practitioners.  Despite their training in being objective and understanding the definition of value-add for customers – they rarely apply the same training and rigor to their internal sponsors.

After nearly two decades of doing business process improvement, applying everything from Total Quality Leadership (the Navy’s version of TQM) to Lean Six Sigma I have found that rarely is a business manager or project sponsor an obstacle when projects are selected which align to their goals and objectives, business needs or provide opportunities across functional silos. 

My suggestion in each of these conversations is two fold:

  1. Apply the same understanding you apply to defining value for the customer to defining value to the sponsor or business owner.
  2. Read a great book (that I discovered a few years ago) called “Let’s Get Real” by Mahan Khalsa about dysfunctional selling. The book has some great nuggets on how to better understand the WIIFM factor from the sponsor’s perspective.

The relationship with the sponsor is critical to success so make sure you take the time to get aligned with their needs and understand how they would define value relative to any Lean Six Sigma project.

]]> 2009-10-14T12:19:04-04:00 2009-10-15T13:38:04-04:00 Ron Wince Business Process Improvement Lean Six Sigma TQM WIIFM Continuous Improvement Process Improvement Carpe Diem http://www.guidonps.com/blog/2009/08/19/carpe-diem This time of year, I spend a significant amount of time with clients framing their business strategies for next year. In the midst of those discussions, invariably the executives turn to a comparison of their competitors and how they might gain ground on the front-runner (assuming it is not themselves). While this may seem like the right conversation to be having, it is exactly the kind of thinking that will lead to remaining an “also-ran”. Targeting where your competition is today ensures the focus of your efforts will not lead to competitive advantage. By the time your company “arrives” at where leading competitors are today means they will likely have already been left behind. A perfect example is the automotive industry where the big three have continually tried to mimic Toyota and Honda in an effort to catch-up and gain market share. The good news is we do not need to repeat the gory details here for you to get the moral of that story.

My advice is always the same – shoot for beyond where your competition is today and focus on leapfrogging the current front-runners. This may seem intuitive, but it is not always that simple to see when you are in the heat of surviving a recession and determining how to reignite growth at the same time.

While giving advice is easy, I admit that the actual “how” is not so easy. After over two decades of working with organizations to improve, grow and thrive there are some common elements that have emerged:

  • First – Benchmark companies outside of your own industry for their approach to gaining competitive advantage. Examples – a hospital system that benchmarked Ritz-Carlton, an online retailer that benchmarked a computer manufacturer, a benefits management firm which benchmarked Nordstrom and Southwest Airlines and a cable company that benchmarked Toyota. The idea was to find concepts and ideas that could be integrated into their strategic thinking to accelerate market advantage.
  • Second – Leverage business intelligence to discover what your customers think. Connecting the voice of the market and the voice of the customer to those best of breed companies outside of your industry will provide a visionary roadmap for achieving competitive advantage.
  • Third – Once the roadmap is defined don’t minimize the amount of effort that is required to realize it. Often senior leaders believe that because they say it, the changes will automatically be done. This is never the case and active, engaged and sustained execution-focused leadership is critical to success.
  • Finally – Take an integrated approach to transforming the organization. Very often an organization will grab onto a single method or tactic, such as Lean Six Sigma or business intelligence, and attempt to apply these tools in isolation. The array of methods deployed must be integrated with the overall business management systems and culture, what we refer to as the operating system and social architecture. Take into account the implications for People, Process and Technology.

Fortunately some of the best opportunities for radically driving change and catapulting an organization to the front of the pack come about in difficult economic times. And the current business climate is no different. Winners will take dramatic approaches to overtaking competitors or distancing themselves from the competition. Now is the time to adopt a bias for action, leverage tools and methods from outside your respective industry and provide exemplary leadership to drive the transformation.

Keep climbing!


]]> 2009-08-19T14:20:00-04:00 2009-10-01T14:21:22-04:00 Ron Wince Voice of the Customer People Process Lean Six Sigma Strategic Planning Voice of the Market Technology Benchmarking “Cash for Clunkers" Doesn’t Have to Be a Lemon http://www.guidonps.com/blog/2009/08/03/cash-for-clunkers-doesnt-have-to-be-a-lemon Over the weekend my father-in-law decided to take advantage of the Cash for Clunkers program and went car shopping. Unfortunately the Dodge dealer he went to in his home town of Paris, Illinois informed him that they had put the program on hold. Apparently they had sold five cars and had yet to be paid by the government. He then contacted another dealer in Indiana and was told that they had also stopped honoring the program. They had sold 38 cars and had yet to be paid by the government and were not sure if they would be paid. Thus, despite all the assurances and actions by congress and the President, poor execution by the bureaucracy is stifling the program.

Simply passing legislation does not guarantee results. Just as in the ARRA legislation, now under fire for not delivering the intended outcomes, organizational credibility is always a casualty in these situations. It is important that the extended infrastructure in such transparent initiatives be ready to implement the legislation. It is eerily similar to the problems that have plagued effective strategy execution in troubled corporations and spawned pundit pablum about how to effectively implement strategy.

One of the key reasons for missteps of any new legislation is the lack of focus on processes. Great people with good intentions working in bad processes still yields bad results. The responsibility to ensure new legislation delivers results falls to the executive branch, Cabinet Secretaries and the agency directors who report to them. These leaders must understand the capabilities of their (1) people, (2) processes and (3) technology to meet the unique requirements of each new law and react to deliver results “out of the box."

Leadership must work together with the experts embedded in their organizations to find rapid, fact-based solutions to identifying and closing process gaps that often lead to failed execution. And while this is easy to say, it requires a lot of elbow grease, empowerment of associates and effective leadership to make it all work. Fortunately there are tools and methods from industry that can meet the needs of leadership even in these extraordinary times.

Leaders must challenge old thinking and get cross-functional teams into a room in a Kaizen fashion to dissect the new laws and policies, identify implementation requirements and chart how they might impact current people and processes. They must then compare this to current capabilities and complete a “gap analysis.” From this point it is possible to create a roadmap to close any gaps that exist before the new law/policy becomes a reality.

Next they must adopt tools such as Lean and Six Sigma in combination with cross-functional process reengineering teams to rapidly close these gaps. This has been done in government as well as industry – particularly at the state level – within days or a few weeks.

Finally they must put in place performance management tools to measure the processes and the outcomes. Front line tools such as Hour-by-Hour charts and visual management similar to what is in place at Toyota and other “Lean” companies can quickly highlight how effectively processes are working. In addition such tools as scorecards tightly coupled with appropriate metrics and KPIs can be used to measure the effectiveness of the legislation. And, of course, technology is a key enabler in eliminating process waste and robust performance measurement. It is often said that adversity creates crisis to drive change in an organization. At no other time in recent history have we had more adversity and yet we continue to see the types of results that have tarnished the reputation of government. Now is the time for change – not just in policy and legislation but in the internal machine that is the federal government.

Keep climbing!

]]> 2009-08-03T14:15:00-04:00 2009-10-01T14:15:24-04:00 Ron Wince Lean in Government ARRA Lean Six Sigma Strategic Planning Process Improvement Gap Analysis Performance Improvement Kaizen Cash for Clunkers Balanced Scorecard Government Efficiency: CPR for Our New CPO http://www.guidonps.com/blog/2009/07/29/government-efficiency-cpr-for-our-new-cpo With the recent confirmation of the first federal Chief Performance Officer (CPO), Jeffrey Zients, a sprig of hope has emerged among the performance management and improvement crowd. The appointment marks the first time that a seasoned performance improvement leader has been selected to provide structure, vision and real, accountable results. Every administration has had a “what” when it came to improving government performance – for the first time it appears we may now have a “how” as well. The big question then remains – what is Mr. Zients going to do?  

While little has been heard from the new CPO since his confirmation, he is in an ideal position to have a direct and immediate impact on government efficiency and waste. Take the stimulus package for example – Mr. Zients can be pivotal in closing the gaps in the execution and delivery of measurable results. However, this will require a shift in thinking from the original intent of the CPO role.

Since its inception, the stimulus program has been crying out for more leadership. Mr. Zients has the opportunity to cross sacred boundaries simply by providing more clarity and communication regarding standardization, validation and recipient eligibility. Beyond that task there are plenty of opportunities for the CPO to achieve measurable outcomes from ARRA by:

  • Developing rapid actions to address process gaps and accelerate the flow of funds to the point of impact – in unemployment checks, accelerating projects and creating jobs.
  • Adopting best of breed solutions from lean management and simple performance management tools.
  • Standardizing reporting criteria to bring clarity about effectiveness and course corrections.
  • Rapidly engaging technical resources to aid with transparency.  
  • Coordinating efforts between federal and state leaders to synchronize end-to-end deployment of funds.
  • Bringing resources to bear quickly to help share knowledge and facilitate spread of solutions.

In uncommon times, we need uncommon solutions. Indeed our ability to get things done right as a country has become our hallmark and positioned us as a leader in the world. Now is the time for bold leadership to take bold and courageous action. While the CPO role may have been intended for a more long-term vision and approach, there is no better time and no better circumstances to prove that change has indeed come to Washington.

Keep climbing! ]]> 2009-07-29T14:10:00-04:00 2009-10-01T14:09:31-04:00 Ron Wince Effective Management Lean in Government Stimulus Funds Performance Management ARRA Lean Chief Performance Officer (CPO) Performance Improvement Stimulus Spending Needs Jidoka – The Proof Is In the Pork http://www.guidonps.com/blog/2009/07/22/stimulus-spending-needs-jidoka-the-proof-is-in-the-pork Information on recovery.gov recently reported that the Department of Agriculture was paying $1.2 million for 2 pounds of frozen ham. In fact the contract in question actually purchased 760,000 pounds of ham for $1.191 million for food banks and homeless shelters. In response to misstated information the board overseeing recovery.gov refused to correct the information stating it was not their job – it was the Department of Agriculture’s responsibility to correct the information. "We get this information from the agency and we're not going to correct their information," board spokesman Ed Pound said. "We're not going to go in and clarify these summaries. We're not going to fix it. I suppose if they send us a note to change it, we might. "Unfortunately this highlights the challenge of managing a program as far reaching and complex as the stimulus funding. It also highlights one of the most difficult aspects of implementing Lean – particularly within large, complicated and functionally siloed organizations such as government. It would be surprising to not have seen dozens of government employees to read about or hear Mr. Pound’s comments, hang their heads and walk away grumbling about how things never change.

What should have happened in this scenario is that the recovery.gov team should have recognized that something was amiss in the information provided versus just mindlessly inputting data. They would have contacted the team at the Department of Agriculture to notify them that their report was incorrect and to please investigate the information before the deadline to post it. The source of the information would then investigate, correct the information and forward it to the recovery.gov team. The Department of Agriculture would then have investigated the root cause of the wrong information and put in place permanent corrective action to mitigate the wrong information being posted again. Ideally the final step would have been for them to share lessons learned with other agencies.

In the Toyota Production System or Lean Management this is known as Jidoka. More often we refer to it as abnormality management and mistake proofing. It is one of the basic tenants of Lean management and a key differentiator between the success Toyota has enjoyed with Lean principles and the applications normally found in other companies and industries.

The type of thinking demonstrated by the recovery.gov team in this case is exactly what was in place (and likely still is) within financial services, automotive manufacturing, healthcare, airlines and other industry verticals that have gotten themselves in significant stress. And, as demonstrated above, it exists within government.  

To ensure this type of dysfunctional culture will not be one of the most difficult challenges the new administration will face in driving change, it will require commitment, follow-through and consistency to create a high-performance government.

]]> 2009-07-22T13:50:00-04:00 2009-10-01T13:49:19-04:00 Ron Wince Lean in Government recovery.org Stimulus Funds Toyota Jidoka Lean High Performance Culture Stimulus Is No Place For Pork! http://www.guidonps.com/blog/2009/07/20/stimulus-is-no-place-for-pork While government is clearly not a business, many of the tools and methods that work in business can also work in government.
  • $2.5 million for sliced ham in California
  • $800,000 for a new, clean-air garbage truck in Phoenix
  • $1.4 million to repair the door of a building in San Antonio
  • $350,000 to replace and upgrade a dumbwaiter in Brooklyn
These are examples of projects that have been reported on recovery.org as stimulus projects. It remains to be seen if they will be stimulative. 

The underlying question is how to choose projects that will achieve the greatest impact – creating jobs and stimulating the economy. And more urgent, this type of transaction generally needs to be managed locally. In commercial enterprises, significant efforts are undertaken to capture the Voice of the Market and Voice of the Customer in order to determine the best strategies to achieve the mission. And, despite the sense of urgency around writing the checks and spending the money, it is fair to say that similar efforts must take place at the state level to make the best and most effective decisions possible in managing the funds.

While government is clearly not a business, many of the tools and methods that work in business can also work in government. Only state governments truly understand their local Voice of the Market and Voice of the Customer with regards to what efforts will have the most significant impact. Stimulus funding in Michigan would clearly not have the same impact as the exact dollar for dollar usefulness in the same programs in Arizona. Michigan is an economy built on manufacturing and unemployment is high in those industries. Likewise Arizona is an economy built on retail and housing and unemployment remains high in those industries. It is important that stimulus funds address the root cause of the local issues and jump start industries with the greatest benefit to the people in those states.

While this may seem like a pie-in-the sky concept, it is actually readily doable. To choose local projects that have the greatest impact, state agencies should follow a simple roadmap:
  • Determine where the highest unemployment is and prioritize projects which will impact those industries.
  • Ensure that internal state processes and leadership of the agencies can process the funds and applications seeking funds for projects in those targeted areas.
  • Look for projects that while not completely linked to the industry but might offer the opportunity for the unemployed to leverage their existing skills.
  • For projects that require local or special district participation, make sure there is an infrastructure which supports the required collaboration.
  • Finally, prioritize projects that can be delivered by local companies and resources. Sending the funds to a contractor that resides in another state or country will only minimize the impact the spending will ultimately have.
It is important for agencies at all levels to realize there is a difference between strategy development and strategy deployment. Strategy development was created at the federal level, but strategy deployment now should be executed at the local level. Just as John F. Kennedy once challenged the U.S. to adopt the strategy of traveling to the moon and returning... the actual deployment of that strategy was delivered by those closest to the opportunity and with the greatest expertise. 

Keep climbing!


]]> 2009-07-20T13:50:00-04:00 2009-10-01T13:46:49-04:00 Ron Wince Voice of the Customer Stimulus Funds Strategy Deployment Voice of the Market Preparing to Manage the Stimulus http://www.guidonps.com/blog/2009/07/17/preparing-to-manage-the-stimulus In a recent survey completed by Government Executive Magazine’s research arm, the Government Business Council, data revealed that only 66% of government managers who were aware of the American Recovery and Reinvestment Act (ARRA) anticipated meeting or exceeding the expectations of the funding program. At the same time, only 11% of respondents of the survey felt the current infrastructure was sufficient for managing the stimulus funds and over 54% claimed they were overwhelmed or anxious about the additional responsibilities associated with the management of the funds. And 55% of respondents felt that ARRA will not meet the public’s expectations.

It is clear from the results of the survey that new thinking is required to help federal and state government employees successfully meet the new requirements from the ARRA. Existing technology, processes and management practices will not be enough and agency leadership must rapidly adapt to meet these needs. In particular it will be critical for leadership to:

  • Invest additional time in communicating expectations and requirements to staff. The step of Transitioning for Execution the strategy behind ARRA is currently a missing link in the process of delivering results.
  • Revisit decision making processes which lead to bottlenecks and subsequent processing delays.  Empower routine decisions to lower level managers or eliminate decisions where possible.
  • Adopt simple tools and practices from outside of government to rapidly redesign processes. Simplifying processes to their core value can rapidly streamline to allow existing staffing levels to meet the additional requirements required by ARRA.
  • Recognize that existing technology is not adequate and also recognize that new technology cannot be put in place in time to support ARRA. As such, leadership needs to work with staff to put in place short-term processes which can facilitate integration of disparate technologies and systems to make them workable.

It is critical for the leadership of federal, state and local government to quickly recognize that what works under normal conditions will not suffice under the additional stress of ARRA. And while there are no silver bullets, there are quick solutions which can support the needs of stimulus spending. Now is the time for swift and simple actions.

Keep climbing!

 

]]> 2009-07-17T14:05:00-04:00 2009-10-01T13:43:35-04:00 Ron Wince Lean in Government Stimulus Funds Streamline Processes ARRA Process Improvement One Size Does Not Fit All With Lean Six Sigma http://www.guidonps.com/blog/2009/07/15/one-size-does-not-fit-all-with-lean-six-sigma Over the last few weeks, there have been multiple blog posts regarding the success of Lean Six Sigma in government agencies. More often than not, discussion focuses on the frustration with not achieving the potential of Lean and Six Sigma within public sector and military organizations. As a result, the people in these agencies, branches, etc. become complacent and begin to lose passion and a sense of urgency. One of the interesting elements of these discussions is when asked about the approach being used it almost always smells of textbook solutions introduced by consultants or newly trained black belts. While it is important to stay true to the principles and tools associated with Lean and Six Sigma, it is just as critical to realize that one size will not fit all with regard to the roadmap for deployment. This was the original idea behind the formation of Guidon Performance Solutions.

It is very common for practitioners to try to duplicate the success of companies such as Toyota, GE and others. Unfortunately this does not take into account the unique DNA of government and service companies. It is often problematic to simply take the tools and principles that made Toyota great and drop them into a new culture and expect the same results. (Not to mention that Toyota has a 40 year head start). To truly be successful, practitioners must take into account the uniqueness of the people, processes and technologies with service organizations and develop a customized approach for applying the proven tools and principles of Lean and Six Sigma. It is critical to consider the following:

  • People – service leadership practices and organizational culture can quickly derail a new initiative such as Lean and Six Sigma. Take the time to understand how to align the Lean Six Sigma roadmap to the unique behaviors and organizational rituals. Simply layering new activities and requirements on top of what currently is in place is sure to lead to failure and a struggle to integrate the new with the old.
  • Processes – a process is a process is a process. But most non-industrial organizations feel their processes are unique – and in some ways they are correct. Take the time to understand why they feel this way and adapt the approach to gain buy-in.
  • Technology – this represents a truly unique element of applying Lean and Six Sigma in services versus manufacturing companies. Industrial companies leverage technology to augment value delivery processes. In services and the public sector, technology is heavily embedded within operational processes or may in fact be the entire process. Leveraging LeanSigma Software Development, LeanSigma Project Management and Lean IT Operations to accelerate transformation of heavily IT dependent processes is critical to pace and success when implementing improvements.

The real message is to not entirely dismiss the arguments and skepticism of the organization but to instead find a way over, around and, if needed, through the cultural roadblocks to success. Indeed the future of the organization may depend it.

]]> 2009-07-15T13:40:00-04:00 2009-10-01T13:44:10-04:00 Ron Wince Lean in Government Organizational Agility People Process Toyota Lean Six Sigma Lean Lean IT Six Sigma Process Improvement Technology Stop Second Guessing About the Stimulus Package http://www.guidonps.com/blog/2009/07/13/stop-second-guessing-about-the-stimulus-package As pundits debate the effectiveness of the stimulus package, a new study released by the Government Business Council (GBC) says that agencies feel “overwhelmed” and “anxious” about the ability to successfully implement designed programs. These concerns reflect the current reality of an economy that continues to falter, with a rising unemployment rate, expected to exceed 10%, a weak lending market and risk averse consumers that continue to keep their wallets closed. Despite the gloomy news the question of whether congress did the right thing is irrelevant – it's done and stakeholders must shift focus to making the $787 billion American Recovery and Reinvestment Act (ARRA) deliver the maximum amount of benefit possible. The alternative is that taxpayers spend a lot of money and have nothing to show for it.

The question is how can we get the maximum impact for the funds already allocated.

  • First step: Slow down spending to speed up the processes. The processes for managing the applications, etc. can only move as quickly as it is designed. Simply putting more volume into the process will lead to bottlenecks, distractions and complexity.  
  • Second step: Quickly redesign the processes by removing wasted effort. This will allow for more volume to flow and provide an added boost in speed. Tools such as Lean and Six Sigma can be quickly applied to identify the opportunities for removing waste and within weeks a new streamlined process can be in place.
  • Third step: Don’t reinvent the wheel. Leverage best practices – like Lean Six Sigma – to make the back office operations more efficient, accountable and transparent. Simply combining the tools from previous performance efforts such as the Government Performance and Results Act of 1993 with improvement tools and strong committed senior leadership will go a long way toward improving results.

At the end of the day debating whether Congress did the right thing isn’t important and won’t  close the gaps in the current results. Take advantage of common sense tools and practices and it is possible to rapidly right the ship.

Keep climbing!

]]> 2009-07-13T15:20:00-04:00 2009-10-01T13:38:25-04:00 Ron Wince Effective Management Lean in Government Economic Crisis Six Sigma Lean Process Improvement Top 5 Leadership Characteristics for Process Improvement Success http://www.guidonps.com/blog/2009/07/10/top-5-leadership-characteristics-for-process-improvement-success Recently during a visit to the GSA conference held in San Antonio, I had the opportunity to speak with several people in the federal government about Lean Six Sigma. In most cases they shared with me that they had “tried” Lean Six Sigma and it did not work or “we did that and are now moving on to the next thing.”  When probed during the event about the reason for limited success or for moving on to a different approach, in most cases they blamed leadership for not committing time and resources.

In fact, this is a very common issue with organizations launching Lean Six Sigma or any process improvement method.  More often than not, leadership feels they can delegate Lean Six Sigma to someone else and in the end the results are less than expected and the effort runs its course.

Leaders who embark on a significant change or improvement program need to realize that in most cultures good change is only change that happens to someone else.  People are comfortable with the status quo and the limited risk associated with leaving things alone.  To overcome this, senior leadership needs to not only commit to Lean Six Sigma but become committed to Lean Six Sigma – that is, become a zealot and expect success.

The characteristics for leaders who have successfully introduced any process improvement effort are well documented, but they bear repeating now:

  • Be passionate and visible
  • Empower and inspire others to act
  • Break down barriers to success
  • Ask “why not”
  • Set the vision and walk the talk

In a recent article from the Washington Post by Steven Pearlstein he highlights a recent success where Secretary of Energy Steven Chu showed leadership in breaking through paradigms and reducing the amount of time to process a grant application from years to less than 3 months.  In the article, Pearlstein correctly highlights that “the only way it works is with strong, consistent leadership and involvement from the top of the organization.”

In almost 20 years of working with leaders with lean, TQM, Theory of Constraints, six sigma and other improvement programs, what has consistently determined success or failure was the actions of the organizations leaders.  So, if you are a senior leaders and asking yourself why your process improvement or major change initiative is not delivering the results in the brochure – look in the mirror.

Keep climbing! ]]> 2009-07-10T12:20:00-04:00 2009-10-01T13:35:18-04:00 Ron Wince Lean in Government Lean Six Sigma Six Sigma TQM Lean Theory of Constraints Process Improvement