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  • Founded 25 years ago in 1977 Founder & CEO, C. Jackson Grayson, Jr. President: Carla O’Dell Located in Houston, Texas A nonprofit 501 (c )( 3) organization Staff of 80; Budget of $11 million Board of Directors: 40 leaders in business, government, education Mission: Improve productivity and quality in all organizations.
  • Grayson presentation

    1. 1. American Productivity & Quality Center C. Jackson Grayson, Jr. Chairman & CEO
    2. 2. Sample of APQC Members <ul><li>Allstate Ins. Company </li></ul><ul><li>America Online </li></ul><ul><li>Anadarko Petroleum </li></ul><ul><li>Aramco Services </li></ul><ul><li>Baker Hughes </li></ul><ul><li>Bank of America </li></ul><ul><li>BP Amoco </li></ul><ul><li>British Telecom </li></ul><ul><li>Carrollton-Farmers ISD </li></ul><ul><li>Cemex </li></ul><ul><li>CenterPoint Energy </li></ul><ul><li>Clark County Schools </li></ul><ul><li>J. P. Morgan Chase </li></ul><ul><li>Citigroup Inc. </li></ul><ul><li>Cobb County Schools </li></ul><ul><li>ConocoPhillips </li></ul><ul><li>Cornell University </li></ul><ul><li>Dallas ISD </li></ul><ul><li>Dow Chemical </li></ul><ul><li>Educational Testing Service </li></ul><ul><li>Entergy </li></ul><ul><li>Exxon Chemical </li></ul><ul><li>Federal Express </li></ul><ul><li>Ford Motor </li></ul><ul><li>General Electric </li></ul><ul><li>General Motors </li></ul><ul><li>Hallmark Cards </li></ul><ul><li>Houston Comm. College </li></ul><ul><li>Halliburton Energy </li></ul><ul><li>Hewlett-Packard </li></ul><ul><li>Houston IS. </li></ul><ul><li>IBM Corporation </li></ul><ul><li>Intel Corp. </li></ul>
    3. 3. <ul><li>Johnson & Johnson </li></ul><ul><li>Kellogg </li></ul><ul><li>Lockheed Martin </li></ul><ul><li>Marathon Oil </li></ul><ul><li>Metro Technology Centers </li></ul><ul><li>Miami-Dade Co. Schools </li></ul><ul><li>Microsoft </li></ul><ul><li>Montgomery Co. Schools </li></ul><ul><li>National Security Agency </li></ul><ul><li>NASA </li></ul><ul><li>NEC </li></ul><ul><li>Nortel </li></ul><ul><li>Occidental Petroleum </li></ul><ul><li>Pfizer </li></ul><ul><li>Raytheon </li></ul><ul><li>Redstone Properties </li></ul><ul><li>SchoolCity Inc. </li></ul><ul><li>Schlumberger </li></ul><ul><li>Siemens Medical Systems </li></ul><ul><li>Singapore Productivity Ctr. </li></ul><ul><li>Spring Branch ISD </li></ul><ul><li>Sprint </li></ul><ul><li>Tata Iron & Steel Co. </li></ul><ul><li>Texaco </li></ul><ul><li>Texas Children’s Hospital </li></ul><ul><li>3 M Company </li></ul><ul><li>United Parcel Service, Inc. </li></ul><ul><li>U.S. Government Agencies </li></ul><ul><li>University of California </li></ul><ul><li>UT MDAndersonCancer Ctr . </li></ul><ul><li>Unocal </li></ul><ul><li>Washington Mutual </li></ul><ul><li>World Bank Group </li></ul><ul><li>Xerox </li></ul>Sample of APQC Members
    4. 4. Levels of evidence to link inputs and processes to educational outcomes <ul><li>Expert opinion, anecdotes, case studies </li></ul><ul><li>Correlation (but causation?) </li></ul><ul><li>Trial and error; Design of Experiments </li></ul><ul><li>Hypotheses testing; Value added </li></ul><ul><li>Multi Factorial Analysis—OFAT, Full, Fractional </li></ul><ul><li>Bayesian analysis; probabilities; utility risk preferences </li></ul><ul><li>ANOVA ; Gold standard </li></ul>
    5. 5. Measurement and Improvement <ul><li>Don’t focus only on measuring the value of education technology </li></ul><ul><li>Focus just as much on improving the value of education technology </li></ul><ul><li>For that you need to focus on the end-to-end processes of designing and delivering education technology </li></ul>
    6. 6. 4 Recommendations <ul><li>Create more of a “Process Focus” in seeking to measure value in education technology. </li></ul><ul><li>Move your organizations more toward “Total Process Management.” </li></ul><ul><li>Conduct Professional Development on “Processes” and “Statistics” at all levels. </li></ul><ul><li>What can you do on Monday morning? </li></ul>
    7. 7. 1. Move toward a total process focus in measuring value <ul><li>Involve all persons who are providers and customers of technology for educational improvement </li></ul><ul><li>Hardware and software staff, teachers, principals, students, suppliers, facilities </li></ul><ul><li>Draw a process map of the entire end-to-end process and form a process team. </li></ul><ul><li>Measure that process against outcomes </li></ul>
    8. 8. <ul><li>Use measures like cost effectiveness, cycle time, staff productivity, and process efficiency </li></ul><ul><li>Measure the process not the technology alone </li></ul><ul><li>Compare process measures with outcomes </li></ul><ul><li>Create Process Owners that cross functions with staff, dollars, time, authority, and responsibility </li></ul><ul><li>Align process with district, state, and federal system goals </li></ul>
    9. 9. A problem is… <ul><li>Most education organizations have reams of data organized around functions, programs, grants or governmental data requirements. </li></ul><ul><li>But few education organizations have much data organized, managed, mapped, or measured in terms of “ processes ” (incl. educ. Technology) </li></ul>
    10. 10. The “missing link” in education improvement is a greater focus on processes. <ul><li>But most educators do not think “processes”. </li></ul><ul><li>They do not map, or measure processes . </li></ul><ul><li>They do not analyze or benchmark processes . </li></ul><ul><li>They don’t link inputs—processes—outcomes. </li></ul><ul><li>They focus functionally, not cross-functionally </li></ul><ul><li>They don’t organize for process management </li></ul>
    11. 11. PIIE Process Improvement & Implementation in Education
    12. 12. Participating School Districts <ul><li>Aldine ISD - TX 55,000 </li></ul><ul><li>Anne Arundel - MD 75,000 </li></ul><ul><li>Boston Schools 60,000 </li></ul><ul><li>Brazosport ISD- TX 14,000 </li></ul><ul><li>Broward County 268,000 </li></ul><ul><li>Carrollton FB - TX 26,000 </li></ul><ul><li>Clark County – NV 257,000 </li></ul><ul><li>Cobb County - GA 100,000 </li></ul><ul><li>Fairfax County – VA 163,000 </li></ul><ul><li>Galena Park ISD – TX 20,000 </li></ul><ul><li>Galveston ISD – TX 10,000 </li></ul><ul><li>Gwinnett County - GA 123,000 </li></ul><ul><li>Houston ISD – TX 212,000 </li></ul><ul><li>Lake Washington – WA 24,000 </li></ul><ul><li>Long Beach – CA 97,000 </li></ul><ul><li>Los Angeles – CA 747,000 </li></ul><ul><li>Miami–Dade - FL 374,000 </li></ul><ul><li>Montgomery Cty – MD 139,000 </li></ul><ul><li>Philadelphia City – PA 193,000 </li></ul><ul><li>Pinellas County – FL 115,000 </li></ul><ul><li>Pittsburgh Schools 34,000 </li></ul><ul><li>Santa Cruz Cty PS – CA 14,000 </li></ul><ul><li>Wake County - NC 105,000 </li></ul><ul><li>Total Students: 3,225,000 </li></ul>
    13. 13. How It Worked <ul><li>APQC created a year-long pilot: 2005 </li></ul><ul><li>To obtain and analyze process data from these 23 districts. </li></ul><ul><li>These districts selected three processes: </li></ul><ul><ul><li>A ssessing Student Achievement </li></ul></ul><ul><ul><li>Managing Information Technology </li></ul></ul><ul><ul><li>Finding and Hiring Teachers </li></ul></ul><ul><li>Surveys were designed to collect process data—about 80 questions per survey. </li></ul><ul><li>Districts sent completed surveys to APQC who validated and normalized the data </li></ul>
    14. 14. APQC Process Classification Framework for Education OPERATING PROCESSES 1.0 Develop a Strategic Plan for the District 2.0 Design, Deliver and Assess Instruction 3.0 Design and Deliver Support Services 4.0 Design and Manage Operations 5.0 Develop and Manage Stakeholder Relations and Services MANAGEMENT & SUPPORT SERVICES 6.0 Develop and Manage Human Resources 7.0 Manage Information Technology 12.0 Manage Knowledge, Improvement, and Change 11.0 Manage Intergovernmental and Agency Relationships 10.0 Manage Environmental Health and Safety (EHS) and Security 9.0 Acquire, Construct and Manage Facilities and Property 8.0 Manage Financial Resources
    15. 15. 7.1 Manage the business of IT 7.2 Develop and manage customer relationships 7.3 Manage business resiliency and risk 7.4 Manage enterprise information 7.5 Develop and maintain IT solutions 7.6 Deploy IT solutions 7.7 Deliver and support IT services 7.8 Manage IT knowledge IT Process Groups in PCF * APQC Process Classification Framework * 8 Process Groups; 35 Processes; 60 Activities
    16. 16. How It Worked <ul><li>Process and outcomes data were analyzed in terms of 4 key metrics : </li></ul><ul><ul><li>Cost effectiveness </li></ul></ul><ul><ul><li>Cycle time </li></ul></ul><ul><ul><li>Process Efficiency </li></ul></ul><ul><ul><li>Staff Productivity </li></ul></ul><ul><li>Individual customized Reports were sent back to each district </li></ul><ul><li>Giving them measures of their own performance , and also compared to all the other districts. </li></ul>
    17. 18. Benefits to Districts <ul><li>Districts can compare their processes with other districts in terms of: </li></ul><ul><ul><li>Cost Effectiveness, Staff Productivity </li></ul></ul><ul><ul><li>Cycle Time and Process Efficiency </li></ul></ul><ul><li>For some processes, they can compare their metrics with business and other sectors </li></ul><ul><li>Funds & time are spent on improvement of key processes, and not searching for comparisons </li></ul><ul><li>Causes cross-functional process analysis </li></ul>
    18. 19. Benefits to Districts <ul><li>Offers data to drastically reduce non-value-added time and cost: “ waste ” </li></ul><ul><li>Allows apple-to-apple comparisons because of the common taxonomy </li></ul><ul><li>Savings can be re-allocated to instruction </li></ul><ul><li>Provides the basis for moving from function to process and systems management </li></ul>
    19. 20. <ul><li>2 . To improve the value of education technology to improve education outcomes, move toward--- </li></ul><ul><li>“ Total Process Management .” </li></ul>
    20. 21. Mktg. IT Functional System--Vertical Sales Product-ion. Engine-ring R&D
    21. 22. Functional System with cross-functional processes Process Process Process Process Process Process Instruction Process Process Process Process Process Process Process Process Process Process Process Process Process Information Technology Human Resources Process Process Process Process Process Process Process Food Service
    22. 23. A Matrix Organization Leadership Instructional Design Instructional Delivery Grade Reporting Instructional Support Curriculum Mgmt Staff Development Info. Technology Instructional Assessment Process Management Functional Management Food Service Transportation Financial Accounting Maintenance Human Resources Public Information Strategic Planning Curriculum & Instruction Process and Outcomes Focused
    23. 24. Total Process Management Adapted from: BPM Trends; 9/05 Knowledge Management Quality Tools Baldrige, Deming, TQM <ul><li>Lean </li></ul><ul><li>Six Sigma </li></ul>Information Technology Process Data, Measures & Metrics Benchmarking Process Owners Core BPM Team <ul><li>Process Improvement </li></ul><ul><li>Process Innovation </li></ul><ul><li>Efficiency </li></ul><ul><li>Effectiveness </li></ul>Change Management Implementation Total Process Management
    24. 25. Transformative gains <ul><li>Incremental process improvements of 2% to 10% is helpful. Do them. </li></ul><ul><li>But It will no longer be sufficient . </li></ul><ul><li>Education needs transformative process gains of 10% to 50% each year, or even higher, in key processes. </li></ul>
    25. 26. Gains with levels of process management Used with permission from Six Sigma Academy 1-2 % Cost focus 2 -10 % 10-20% 20-50% Process Innovation Process management Process Improvement
    26. 27. 3. Conduct Professional Development on “Processes” and “Statistics” at all levels <ul><li>Descriptive statistics – mean, median, mode, measures of dispersion, charting </li></ul><ul><li>Probabilities —Poisson, Normal </li></ul><ul><li>Inferential statistics —sampling, confidence intervals, correlations, causal linkages, hypotheses testing, Type I and II errors, ANOVA </li></ul>
    27. 28. Data alone does not drive improvement
    28. 29. Use business tools focusing on process improvement and value creation <ul><li>Six Sigma, Shared Services, Supply Chain </li></ul><ul><li>Non-value-added analysis (NVA), Lean </li></ul><ul><li>Process Management; Process Mapping </li></ul><ul><li>Benchmarking, Communities of Practice </li></ul><ul><li>Knowledge Management; Tacit Knowledge </li></ul><ul><li>Work-Out and Change Acceleration Process </li></ul><ul><li>Systems thinking; Baldrige; Productivity </li></ul><ul><li>Transfer of Best Practices; Customer Focus; NOAC </li></ul>
    29. 30. 4. What do I Do Monday Morning? <ul><li>Contact all persons involved in designing and delivering educational technology--identify needs, values, problems, opportunities </li></ul><ul><li>Define the process boundaries—start and stop </li></ul><ul><li>Select a specific project; Form a process team </li></ul><ul><li>Designate a process owner: resources, staff, authority, responsibilities </li></ul><ul><li>Map and measure process: “as-is” “should be”—including all cross functions </li></ul>
    30. 31. <ul><li>Collect and analyze data—flag problems, brainstorm root causes, look for non-value-added time and cost. </li></ul><ul><li>Benchmark the process—inside & outside </li></ul><ul><li>Decide on action plan and implement—with roles, timetables, measures, metrics, incentives </li></ul><ul><li>Implement and continuously improve </li></ul>4. What do I Do Monday Morning?
    31. 32. Your Personal Improvement? Exercise Often Embrace Laughter Eat well Love Much Be Glad You Are Alive Wear Sunscreen Floss frequently Fill Out A Survey
    32. 33. <ul><li>. </li></ul>
    33. 34. What is it you wish to change? <ul><li>Costs—Lower or Higher? </li></ul><ul><li>Student achievement? Test scores? </li></ul><ul><li>Teacher retention? Hiring? </li></ul><ul><li>Meet AYP goals? </li></ul><ul><li>Decrease the dropout rate? </li></ul><ul><li>Close your achievement gap? </li></ul><ul><li>Improve food services? </li></ul><ul><li>Improve on-time bus delivery? </li></ul>
    34. 35. Advantages of Process Data <ul><li>Compare themselves with others </li></ul><ul><li>See performance gaps that need improvement </li></ul><ul><li>Establish performance targets </li></ul><ul><li>Improve the budget process and re-allocate resources </li></ul><ul><li>Identify key performance drivers </li></ul><ul><li>Help initiate improvement steps </li></ul>
    35. 36. How PIIE Works <ul><li>Surveys were designed to collect data </li></ul><ul><li>As surveys come in, APQC staff </li></ul><ul><li>stores the data in a repository. </li></ul><ul><li>Data are then: </li></ul><ul><ul><ul><li>Analyzed, validated, normalized </li></ul></ul></ul><ul><ul><ul><li>Blinded, so data are kept totally </li></ul></ul></ul><ul><ul><ul><li>confidential </li></ul></ul></ul>
    36. 37. Potential Savings Statistical summary of participant compared to top performer per new hire How much can we save by improving our HR recruiting processes? Top Performance $534 Average Performance $752 Bottom Performance $946 Your Performance $859
    37. 38. PIIE Methodology: A 12-Step Process
    38. 39. Improvement & Accountability Systems Data <ul><li>Payroll </li></ul><ul><li>Facilities </li></ul><ul><li>Equipment </li></ul><ul><li>Finance </li></ul>Inputs Process Indicators Efficiency Effectiveness Improvement System <ul><li>Outcomes </li></ul><ul><li>Indicators </li></ul>Accountability System Data Data
    39. 40. Process Improvement and Innovation in Education This lead to the creation of PIIE
    40. 41. Participating School Districts <ul><li>Aldine ISD - TX 55,000 </li></ul><ul><li>Anne Arundel - MD 75,000 </li></ul><ul><li>Boston Schools 60,000 </li></ul><ul><li>Brazosport ISD- TX 14,000 </li></ul><ul><li>Broward County 268,000 </li></ul><ul><li>Carrollton FB - TX 26,000 </li></ul><ul><li>Clark County – NV 257,000 </li></ul><ul><li>Cobb County - GA 100,000 </li></ul><ul><li>Fairfax County – VA 163,000 </li></ul><ul><li>Galena Park ISD – TX 20,000 </li></ul><ul><li>Galveston ISD – TX 10,000 </li></ul><ul><li>Gwinnett County - GA 123,000 </li></ul><ul><li>Houston ISD – TX 212,000 </li></ul><ul><li>Lake Washington – WA 24,000 </li></ul><ul><li>Long Beach – CA 97,000 </li></ul><ul><li>Los Angeles – CA 747,00 </li></ul><ul><li>Miami–Dade - FL 374,000 </li></ul><ul><li>Montgomery Cty – MD 139,000 </li></ul><ul><li>Philadelphia City – PA 193,000 </li></ul><ul><li>Pinellas County – FL 112,000 </li></ul><ul><li>Pittsburgh Schools 34,000 </li></ul><ul><li>Santa Cruz Cty PS – CA 14,000 </li></ul><ul><li>Wake County - NC 105,000 </li></ul><ul><li>Total Students: 3,225,000 </li></ul>
    41. 42. American Productivity & Quality Center--APQC <ul><li>Founded in 1977 with $10 million from 100 corporations </li></ul><ul><li>Non-profit, 501(c)(3) organization </li></ul><ul><li>Annual revenues $11 million and staff of 85 </li></ul><ul><ul><ul><li>Membership and Fees for Service </li></ul></ul></ul><ul><ul><ul><li>Research, publications, training </li></ul></ul></ul><ul><ul><ul><li>Conferences, technical services </li></ul></ul></ul><ul><li>Business, government, healthcare, education </li></ul><ul><li>Domestic and International </li></ul>
    42. 43. Sample of APQC Members <ul><li>Allstate Ins. Company </li></ul><ul><li>America Online </li></ul><ul><li>Anadarko Petroleum </li></ul><ul><li>Aramco Services </li></ul><ul><li>Baker Hughes </li></ul><ul><li>Bank of America </li></ul><ul><li>BP Amoco </li></ul><ul><li>British Telecom </li></ul><ul><li>Cemex </li></ul><ul><li>CenterPoint Energy </li></ul><ul><li>Clark County Schools </li></ul><ul><li>J. P. Morgan Chase </li></ul><ul><li>Citigroup Inc. </li></ul><ul><li>Cobb County Schools </li></ul><ul><li>ConocoPhillips </li></ul><ul><li>Cornell University </li></ul><ul><li>Dallas ISD </li></ul><ul><li>Dow Chemical </li></ul><ul><li>Entergy </li></ul><ul><li>Exxon Chemical </li></ul><ul><li>Federal Express </li></ul><ul><li>Ford Motor </li></ul><ul><li>General Electric </li></ul><ul><li>General Motors </li></ul><ul><li>Hallmark Cards </li></ul><ul><li>Houston Comm. College </li></ul><ul><li>Halliburton Energy </li></ul><ul><li>Hewlett-Packard </li></ul><ul><li>Houston I.S.D. </li></ul><ul><li>IBM Corporation </li></ul><ul><li>Intel Corp. </li></ul><ul><li>Johnson & Johnson </li></ul>
    43. 44. <ul><li>Kellogg </li></ul><ul><li>Lockheed Martin </li></ul><ul><li>Marathon Oil </li></ul><ul><li>Miami-Dade Co. Public Sch. </li></ul><ul><li>Microsoft </li></ul><ul><li>Montgomery Co. Schools </li></ul><ul><li>National Security Agency </li></ul><ul><li>NASA </li></ul><ul><li>NEC </li></ul><ul><li>Nortel </li></ul><ul><li>Occidental Petroleum </li></ul><ul><li>Pfizer </li></ul><ul><li>Raytheon </li></ul><ul><li>Redstone Properties </li></ul><ul><li>Schlumberger </li></ul><ul><li>Siemens Medical Systems </li></ul><ul><li>Singapore Productivity Ctr. </li></ul><ul><li>Spring Branch ISD </li></ul><ul><li>Sprint </li></ul><ul><li>Tata Iron & Steel Co. </li></ul><ul><li>Texaco </li></ul><ul><li>Texas Children’s Hospital </li></ul><ul><li>3 M Company </li></ul><ul><li>United Parcel Service, Inc. </li></ul><ul><li>U.S. Government Agencies </li></ul><ul><li>University of California </li></ul><ul><li>UT MDAndersonCancer Ctr. </li></ul><ul><li>Unocal </li></ul><ul><li>Washington Mutual </li></ul><ul><li>World Bank Group </li></ul><ul><li>Xerox </li></ul>Sample of APQC Members
    44. 45. <ul><li>The Quiet Crisis </li></ul>
    45. 46. International Comparisons of American Students Mathematics Reading Science Problem Solving 28. United States 22. United States 29. United States 38. Brazil 39. Brazil 38. Mexico 40. Brazil 37. Mexico 37. Mexico 37. Brazil 37. Mexico 24. Russia 32. Russia 29. Russia 28. Russia 21. Canada 16. Germany 18. Germany 19. Germany 12. Netherlands 11. Canada 14. Japan 7. Canada 9. Canada 8. Netherlands 10. Hong Kong / China 6. Japan 4. Japan 4. Korea 9. Netherlands 4. Netherlands 3. Finland 3. Hong Kong / China 3. Canada 3. Korea 2. Hong Kong / China 2. Japan 2. Korea 2. Finland 1. Korea 1. Finland 1. Finland 1. Hong Kong / China 18. United States
    46. 47. Secretary Spelling: 9/21/05 “ There is no Sputnik to galvanize the nation into action…. “… the quiet crisis will cast a very long shadow over the future if we do not summon the will to stay competitive. ” And competitiveness begins with education ”
    47. 50. “ We improve our business systems or lose our world competitiveness.” C. Jackson Grayson, Jr. An ad in New York Times and Wall Street Journal, sponsored by U. S. Steel 1975
    48. 52. “ We improve our K-12 education system or lose our world competitiveness.” 2005
    49. 53. Needed: A Process Focus in Business and Education
    50. 54. Improvement Model “ Steering by Inputs, Processes & Outcomes” <ul><li>Test Results </li></ul><ul><li>Achievement Gap </li></ul><ul><li>Graduation Rates </li></ul><ul><li>Dropouts </li></ul>Outcomes Data A Black Box Processes Data <ul><li>Assess Student Achievement </li></ul><ul><li>Recruit Teachers </li></ul><ul><li>Manage Info. Technology </li></ul><ul><li>Payroll </li></ul><ul><li>Expenses </li></ul><ul><li>Equipment </li></ul><ul><li>Facilities </li></ul>Inputs Data
    51. 55. Process Management <ul><li>Education can continue to make small gains doing what they are doing now. </li></ul><ul><li>But until more focus on process occurs… </li></ul><ul><li>Education improvement at best will be incremental, gradual, and slow </li></ul><ul><li>It will not be transformative —which is what is required. </li></ul>
    52. 56. “ We’re not there yet” <ul><li>. The major focus for improvement is still on inputs , outcomes , and functions. </li></ul><ul><li>Not processes or process mgmt. </li></ul><ul><ul><li>In all of education—schools, districts, </li></ul></ul><ul><ul><li>states, federal gov’t, or universities </li></ul></ul><ul><ul><li>In many businesses </li></ul></ul><ul><ul><li>In much of TCO and TVO </li></ul></ul>
    53. 57. Processes <ul><li>There’s no shortage of data! Most organizations—business and education-- have reams of data in their databases or warehouses. </li></ul><ul><li>But few have much data organized, mapped, or measured in terms of “ processes ” </li></ul><ul><li>Processes are typically: </li></ul><ul><ul><li>Not mapped, not measured </li></ul></ul><ul><ul><li>Not cross-functional </li></ul></ul><ul><ul><li>Not managed; full of non-value-added time </li></ul></ul><ul><ul><li>Sub-optimized because of a functional focus </li></ul></ul><ul><li>. </li></ul>
    54. 58. Admini-stration IT Most are organized and managed by functions Transpor-tation Finance-Acctg. Food Service Instruc-tion
    55. 59. Functional Organizations don’t deal efficiently or effectively with cross functions Food Service Admini-stration IT Transpor-tation Finance-Acctg. Instruc-tion
    56. 60. <ul><li>Redundant checking; re-checking </li></ul><ul><li>Repeated meetings and phone calls for coordination </li></ul><ul><li>Queuing time; paper moving time </li></ul><ul><li>Slow response to customers—internal and external </li></ul><ul><li>Excessive “transition” time </li></ul>There is a lot of non-value-added time in education-- “unseen” waste
    57. 61. Unrecorded non-value-added time <ul><li>Checking and rechecking </li></ul><ul><li>Waiting time between functions </li></ul><ul><li>Culture clashes </li></ul><ul><li>Unnecessary red tape </li></ul><ul><li>Unread documents / memos </li></ul><ul><li>Long chains of approval & command </li></ul>
    58. 62. Visible Costs Costs Not Picked Up By your Accounting System
    59. 63. Three years ago, APQC started the Open Standards Benchmarking Collaborative--OSBC <ul><li>The purpose: a global initiative to develop a standard for commonly used processes, measures, and benchmarks. </li></ul><ul><li>Hundreds of U.S. & global firms participate: </li></ul><ul><ul><li>IBM Consulting Services, Booz Allen Hamilton, Shell Oil, Gartner, Bank of America, Procter & Gamble, World Bank, and more </li></ul></ul><ul><li>OSBC strives to enable rapid and innovative improvement within business organizations: </li></ul><ul><li>40% Americas, 40% EMEA, and 20% Pacific Rim. </li></ul>
    60. 64. OSBC Supply Chain <ul><li>Procurement </li></ul><ul><li>Logistics </li></ul><ul><li>Customer Order Management </li></ul><ul><li>Manufacturing </li></ul><ul><li>New Product Development </li></ul><ul><li>Supply Chain Planning </li></ul>
    61. 65. OSBC Finance & Accounting <ul><li>Account Payable / Expenses </li></ul><ul><li>Finance Organization </li></ul><ul><li>Fixed Asset </li></ul><ul><li>General Accounting & Reporting </li></ul><ul><li>Internal Controls </li></ul><ul><li>Order-to-Cash ; Payroll </li></ul><ul><li>Profit & Cost Management </li></ul>
    62. 66. OSBC Human Resources <ul><li>Create and Manage HR Planning, Policy, and Strategies </li></ul><ul><li>Develop and Counsel (includes training) </li></ul><ul><li>Manage Employee Information </li></ul><ul><li>Recruit, Source and Select </li></ul><ul><li>Redeploy and Retire </li></ul><ul><li>Reward and Retain </li></ul>
    63. 67. Participating School Districts <ul><li>Aldine ISD - TX 55,000 </li></ul><ul><li>Anne Arundel - MD 75,000 </li></ul><ul><li>Boston Schools 60,000 </li></ul><ul><li>Brazosport ISD- TX 14,000 </li></ul><ul><li>Broward County 268,000 </li></ul><ul><li>Carrollton FB - TX 26,000 </li></ul><ul><li>Clark County – NV 257,000 </li></ul><ul><li>Cobb County - GA 100,000 </li></ul><ul><li>Fairfax County – VA 163,000 </li></ul><ul><li>Galena Park ISD – TX 20,000 </li></ul><ul><li>Galveston ISD – TX 10,000 </li></ul><ul><li>Gwinnett County - GA 123,000 </li></ul><ul><li>Houston ISD – TX 212,000 </li></ul><ul><li>Lake Washington – WA 24,000 </li></ul><ul><li>Long Beach – CA 97,000 </li></ul><ul><li>Los Angeles – CA 747,000 </li></ul><ul><li>Miami–Dade - FL 374,000 </li></ul><ul><li>Montgomery Cty – MD 139,000 </li></ul><ul><li>Philadelphia City – PA 193,000 </li></ul><ul><li>Pinellas County – FL 115,000 </li></ul><ul><li>Pittsburgh Schools 34,000 </li></ul><ul><li>Santa Cruz Cty PS – CA 14,000 </li></ul><ul><li>Wake County - NC 105,000 </li></ul><ul><li>Total Students: 3,225,000 </li></ul>
    64. 68. Since outcomes can’t be changed without changes in processes that produce outcomes The “missing link” in education improvement is a greater focus on processes. <ul><li>But most educators do not think “processes”. </li></ul><ul><li>They do not map, or measure processes . </li></ul><ul><li>They do not analyze or benchmark processes . </li></ul><ul><li>They don’t link inputs—processes—outcomes. </li></ul><ul><li>They focus functionally, not cross-functionally </li></ul><ul><li>They don’t organize for process management </li></ul>
    65. 69. Instead of only an OSBC for Business Why Not Do the Same Thing In Education ?
    66. 70. Process Improvement and Innovation in Education This lead to the creation of PIIE
    67. 71. <ul><li>Improvement commonly means improvement in existing processes in a particular function. </li></ul><ul><li>Innovation means a radical re-design of work, most often cross-functional– </li></ul>Improvement and Innovation “ What is the best possible way to do it, regardless of our present work processes and organization structure?”
    68. 72. <ul><li>23 Districts were invited to participate in the OSBC-E for a year-long pilot </li></ul><ul><li>A subset of those districts came to APQC on Dec. 13-14 to begin the “design” process </li></ul><ul><li>A Kickoff Meeting was held on Jan. 6-7 at APQC with all districts—80 attended </li></ul><ul><li>3 Process areas were selected for the pilot and “Working Groups” were formed: </li></ul><ul><ul><ul><li>Instruction </li></ul></ul></ul><ul><ul><ul><li>Human Resources </li></ul></ul></ul><ul><ul><ul><li>Information Technology </li></ul></ul></ul>The Pilot
    69. 73. PIIE Methodology: A 12-Step Process
    70. 74. APQC Process Classification Framework for Education OPERATING PROCESSES 1.0 Develop a Strategic Plan for the District 2.0 Design, Deliver and Assess Instruction 3.0 Design and Deliver Support Services 4.0 Design and Manage Operations 5.0 Develop and Manage Stakeholder Relations and Services MANAGEMENT & SUPPORT SERVICES 6.0 Develop and Manage Human Resources 7.0 Manage Information Technology 12.0 Manage Knowledge, Improvement, and Change 11.0 Manage Intergovernmental and Agency Relationships 10.0 Manage Environmental Health and Safety (EHS) and Security 9.0 Acquire, Construct and Manage Facilities and Property 8.0 Manage Financial Resources
    71. 75. <ul><ul><ul><li>Efficiency </li></ul></ul></ul><ul><ul><ul><li>Effectiveness </li></ul></ul></ul>
    72. 78. Education Process Management Adapted from: BPM Trends; 9/05 Knowledge Management Quality Tools Baldrige, Deming, TQM <ul><li>Lean </li></ul><ul><li>Six Sigma </li></ul>Information Technology Process Data, Measures & Metrics Benchmarking Process Owners Core BPM Team <ul><li>Process Improvement </li></ul><ul><li>Process Innovation </li></ul><ul><li>Efficiency </li></ul><ul><li>Effectiveness </li></ul>Change Management Implementation Education Process Management
    73. 80. K-12 As a System <ul><ul><li>All subsystems should work together as a system </li></ul></ul><ul><ul><li>None should exist on their own </li></ul></ul><ul><ul><ul><li>They should be linked, aligned, intertwined </li></ul></ul></ul><ul><ul><ul><li>Have a common vision and work together </li></ul></ul></ul><ul><ul><li>The problem is that they often aren’t a “system” </li></ul></ul>
    74. 82. <ul><li>Decisions are not doing </li></ul><ul><li>Blaming is not doing </li></ul><ul><li>Meetings are not doing </li></ul><ul><li>Talking about doing is not doing </li></ul>Doing is taking action….. Doing something
    75. 83. “ My Plate Is Full” “ But, full of what?” Non-Value Added Activities?
    76. 84. <ul><li>Reduce “Waste” </li></ul><ul><li>“ Non-Value-Added” time and costs </li></ul><ul><li>Also, known as “Lean” </li></ul>
    77. 85. Visible Costs Costs Not Picked Up By your Accounting System
    78. 86. <ul><li>“ The largest and easiest gains in </li></ul><ul><li>knowledge work come from re- </li></ul><ul><li>defining the task and eliminating </li></ul><ul><li>what need not be done.” ( Waste ) </li></ul><ul><li> Drucker, 1992 </li></ul><ul><li>Managing the Future: The 1990s and Beyond </li></ul>
    79. 87. Communities of Practice
    80. 89. Outcomes cannot be changed without changes in processes!! Processes Outcomes
    81. 90. <ul><li>Located in Houston; Non-profit 501(c)(3) </li></ul><ul><li>30 years old </li></ul><ul><li>Staff: 85; Budget $12 million </li></ul><ul><li>Revenues: Membership: 30%, Fees 70% </li></ul><ul><li>Worked in 54 nations; 6 continents </li></ul><ul><li>Board of Directors: 40 National Leaders </li></ul><ul><li>Mission : Improve productivity and quality in all organizations </li></ul>www.apqc.org APQC : American Productivity & Quality Center
    82. 91. Sample of APQC Members <ul><li>Allstate Ins. Company </li></ul><ul><li>America Online </li></ul><ul><li>Anadarko Petroleum </li></ul><ul><li>Aramco Services </li></ul><ul><li>Baker Hughes </li></ul><ul><li>Bank of America </li></ul><ul><li>BP Amoco </li></ul><ul><li>British Telecom </li></ul><ul><li>Carrollton-Farmers Branch </li></ul><ul><li>Cemex </li></ul><ul><li>CenterPoint Energy </li></ul><ul><li>Clark County Schools </li></ul><ul><li>J. P. Morgan Chase </li></ul><ul><li>Citigroup Inc. </li></ul><ul><li>Cobb County Schools </li></ul><ul><li>ConocoPhillips </li></ul><ul><li>Cornell University </li></ul><ul><li>Dallas ISD </li></ul><ul><li>Dow Chemical </li></ul><ul><li>Educational Testing Service </li></ul><ul><li>Entergy </li></ul><ul><li>Exxon Chemical </li></ul><ul><li>Federal Express </li></ul><ul><li>Ford Motor </li></ul><ul><li>General Electric </li></ul><ul><li>General Motors </li></ul><ul><li>Hallmark Cards </li></ul><ul><li>Houston Comm. College </li></ul><ul><li>Halliburton Energy </li></ul><ul><li>Hewlett-Packard </li></ul><ul><li>Houston I.S.D. </li></ul><ul><li>IBM Corporation </li></ul><ul><li>Intel Corp. </li></ul>
    83. 92. <ul><li>Johnson & Johnson </li></ul><ul><li>Kellogg </li></ul><ul><li>Lockheed Martin </li></ul><ul><li>Marathon Oil </li></ul><ul><li>Metro Technology Centers </li></ul><ul><li>Miami-Dade Co. Schools </li></ul><ul><li>Microsoft </li></ul><ul><li>Montgomery Co. Schools </li></ul><ul><li>National Security Agency </li></ul><ul><li>NASA </li></ul><ul><li>NEC </li></ul><ul><li>Nortel </li></ul><ul><li>Occidental Petroleum </li></ul><ul><li>Pfizer </li></ul><ul><li>Raytheon </li></ul><ul><li>Redstone Properties </li></ul><ul><li>SchoolCity Inc. </li></ul><ul><li>Schlumberger </li></ul><ul><li>Siemens Medical Systems </li></ul><ul><li>Singapore Productivity Ctr. </li></ul><ul><li>Spring Branch ISD </li></ul><ul><li>Sprint </li></ul><ul><li>Tata Iron & Steel Co. </li></ul><ul><li>Texaco </li></ul><ul><li>Texas Children’s Hospital </li></ul><ul><li>3 M Company </li></ul><ul><li>United Parcel Service, Inc. </li></ul><ul><li>U.S. Government Agencies </li></ul><ul><li>University of California </li></ul><ul><li>UT MDAndersonCancer Ctr. </li></ul><ul><li>Unocal </li></ul><ul><li>Washington Mutual </li></ul><ul><li>World Bank Group </li></ul><ul><li>Xerox </li></ul>Sample of APQC Members
    84. 93. Process Evolution at APQC 1977 Productivity: Competitiveness 1983 Quality (Baldrige Award) 1991 Benchmarking 1994 Transfer of Best Practices 1995 Knowledge Management 1996 Knowledge Sharing- CoP 1999 Education 2004 OSBC—Bus. 2005 PIIE
    85. 94. <ul><li>Benchmarking to find best practices </li></ul><ul><li>Knowledge Management; Knowledge Sharing, Knowledge Retention </li></ul><ul><li>Communities of Practice </li></ul><ul><li>Quality/Baldrige, Productivity, Six Sigma </li></ul><ul><li>Research; Publications; Conferences </li></ul><ul><li>Training — public and on-site </li></ul><ul><li>Technical assistance </li></ul>APQC Products & Services
    86. 95. Business & Education Process Management
    87. 96. Reminders about Measures <ul><li>What is done with measures is as important as what your measures are </li></ul><ul><li>Get the customers in your measures </li></ul><ul><li>Measure trends , not just snapshots </li></ul><ul><li>Any process, job, group, department, organization can be measured </li></ul><ul><li>You change what you measure </li></ul>
    88. 97. What makes a good measure? <ul><li>Are you sure about what you want to measure? </li></ul><ul><li>Must a single measure be used or could a combination of measures be developed? </li></ul><ul><li>Is the purpose to measure level, trend or percent of some standard? </li></ul><ul><li>Should inputs other than labor and time be considered? </li></ul>
    89. 98. Reminders about Measures <ul><li>Focus on the vital few – measure only what matters and what you can do something as a result of having the measure in place </li></ul><ul><li>Use measures as a tool, not just for analysis, but for effective management </li></ul><ul><li>Link measurements to performance evaluation of teams, individuals, entities </li></ul>
    90. 99. Reminders about Measures <ul><li>What is done with measures is as important as what your measures are </li></ul><ul><li>Get the customers in your measures </li></ul><ul><li>Measure trends , not just snapshots </li></ul><ul><li>Any process, job, group, department, organization can be measured </li></ul><ul><li>You change what you measure </li></ul>
    91. 100. What makes a good measure? <ul><li>Are you sure about what you want to measure? </li></ul><ul><li>Must a single measure be used or could a combination of measures be developed? </li></ul><ul><li>Is the purpose to measure level, trend or percent of some standard? </li></ul><ul><li>Should inputs other than labor and time be considered? </li></ul>
    92. 101. Reminders about Measures <ul><li>Focus on the vital few – measure only what matters and what you can do something as a result of having the measure in place </li></ul><ul><li>Use measures as a tool, not just for analysis, but for effective management </li></ul><ul><li>Link measurements to performance evaluation of teams, individuals, entities </li></ul>

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