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Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
Operating efficiency: the lean charity
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Operating efficiency: the lean charity

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The presentation was a workshop at Evolve 2014: the annual event for the voluntary sector in London on Monday 16 June 2014. …

The presentation was a workshop at Evolve 2014: the annual event for the voluntary sector in London on Monday 16 June 2014.

This presentation was given by Neil Fedden (Associate NCVO), Peter Rimmer (Children's Society) and Laura Rawnsley (Transformation Director - Children's Society). The need for change was discussed as well as the Lean philosophy (elimination of information waste).

Find out more about the Evolve Conference from NCVO: http://www.ncvo.org.uk/training-and-events/evolve-conference

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  • H&S Aviation
  • SAY: “Must give it time to stabilize, cannot kaizen kaizen kaizen…

    Put metrics in place to make sure a process is improving or stabilized.”
  • We have a relatively even split of income between Voluntary and Contractual income with significant ambition to grow both over the next three years.
  • We have a relatively even split of income between Voluntary and Contractual income with significant ambition to grow both over the next three years.
  • In late 2012 the Children’s Society launched its 2013-16 strategy, with bold plans to tackle Child Poverty and Adolescent Neglect, Increase our income and Transform the organisation.

    To support this the organisation embarked on a three year change programme to fundamentally alter the way the organisation operates
  • Language – Staff really struggled with commonly used change language and methodologies, in some cases this bordered on resentment of certain words that needed time to overcome
    Data – Data management and data quality is not strong across the sector which posed significant problems both with analysing the problems and engaging staff in working with the Transformation team in the first instance.
    Transparency – There was a lack of transparency and understanding between directorates on the continuity of processes across team boundaries. Changing view points to look at problems from an organisational level took some people out of their comfort zones
    Coaching – There was a need for significant coaching in parts of the organisation on all aspects of the change we were implementing. This has slowed down the pace of the process but it has been key in embedding the understanding beyond the transformation tea,
    Insights – Strategic insight was largely based in individual skill sets and methods of combining, sharing and making key decisions based on this insight proved difficult
  • Transcript

    • 1. Workshops PM5: Operating efficiency: the lean charity Neil Fedden, Associate, NCVO Peter Rimmer, Children’s Society Laura Rawnsley, Transformation Director, Children’s Society
    • 2. Why the need to change? The need to improve Improve Do nothing Decline Time Improvement Company X Competitor If you do nothing then you will fall behind your competition as they improve !!!
    • 3. 5 Principles of Lean Value Value Stream Flow Pull Perfection Process Mapping Kanban Kaizen 7 Wastes + 1 Workplace Organisation © Fedden USP Ltd 2009 All Rights Reserved
    • 4. Non Value Adding Waiting & Delays Excess Movement Excess Production Fruit Waste Waiting for Forklifts Searching & Storing 95% Value Adding 5% Value & Waste © Fedden USP Ltd 2009 All Rights Reserved
    • 5. LEAN – elimination of information waste Bottleneck Departments Lots of signatures/vali dation checks Multiple Uncontrolled documents High levels of data re- entry/keying Production of reports that nobody reads Unofficial fast- track routes that cause errors Personal filing systems Unpredictable process lead- times Batching of documents © Fedden USP Ltd 2009 All Rights Reserved
    • 6. Step 1 – Current state process map Step 2 – Identify and prioritise process waste Step 3 – Process re-design to eliminate waste Step 4 – Cost/benefit analysis Step 5 – Action Plan and start implementation © Fedden USP Ltd 2009 All Rights Reserved
    • 7. Customer Demand Profiling 2B 1C 9B AM PM AM PM AM PM AM PM AM PM AM PM AM PM Monday Tuesday Wednesday Saturday SundayThursday Friday Footfall © Fedden USP Ltd 2009 All Rights Reserved
    • 8. Back Office, Front Office and Touch Points Back Office Front Office Process excellence Customer excellence Identifying opportunity through understanding the use of Touch point’s. Eliminate waste by traditional application of Lean Enter Restaurant Leave Restaurant The Service Concept © Fedden USP Ltd 2009 All Rights Reserved
    • 9. Legal Expert Before – Group Case Study © Fedden USP Ltd 2009 All Rights Reserved
    • 10. Process Mapping - Receive Specification and Produce Legal Copy Description Dist. (m) Time (mins) Staff Operation Transport Inspection Storage 1 Delay until received spec. is picked up by Secretary 0 30 0 X 2 Carry from mail area to Secretary's desk 5 1 1 X 3 Wait until convienient to 'process' it 0 60 0 X 4 Log receipt into Project Tracking system & create file 0 1 1 X 5 Store file in Out-Tray 0 15 0 X 6 Move file to Legal expert's In-Tray 5 1 1 X 7 Await Legal expert's attention (busy) 0 1440 0 X 8 Legal expert processes copy 0 20 1 X 9 Store processed copy in Out-tray 0 2880 0 X 10 Move copy to Secretary's desk when convenient 5 1 1 X 11 Delay until Secretary logs completion on Project Tracking 0 180 0 X 12 Take copy file to photocopier 10 2 1 X 13 Photocopy x 3 0 2 1 X 14 Return with copies to desk 10 2 1 X 15 Collate, staple and 'stuff' internal mail envelopes 0 15 1 X 16 Take 3 x envelopes to departmental Out-Tray 5 1 1 X Totals 40 4651 9.7 days Value Add 38 Non Value Add 3170 Necessary Non Value Adding 1443 © Fedden USP Ltd 2009 All Rights Reserved
    • 11. Legal Expert After – Group Case Study © Fedden USP Ltd 2009 All Rights Reserved
    • 12. ProcessMapping - Receive Specification and Produce Legal Copy Description Dist. (m) Time (mins)Staff OperationTransport Inspection Storage 1 Red Envelope' delivered straight to legal experts desk by mail room 5 1 1 X 2 Await Legal expert's attention (busy) 0 1440 0 X 3 Legal expert processes copy and logs onto Project Tracking 0 21 1 X 4 Move copy to Secretary's desk as soon as document is processed 5 1 1 X 5 Take copy file to photocopier 10 2 1 X 6 Photocopy x 3 0 2 1 X 7 Return with copies to desk 10 2 1 X 8 Collate, staple and 'stuff' internal mail envelopes 0 15 1 X 9 Take 3 x envelopes to departmental Out-Tray 5 1 1 X Totals 35 1485 3.1 days Value Add 38 Non Value Add 4 Necessary Non Value Adding 1443 1481 Hines et al (2000) Value Stream Management © Fedden USP Ltd 2009 All Rights Reserved
    • 13. Case Study – Lizz Clarke Marketing Objectives for 3-day Project 1.Grow the business through customer retention 2.Reduce lead-time for production of clients end of year report 3.Improve margins by improving productivity by eliminating information waste 4.Improve internal communications and staff awareness of job margins © Fedden USP Ltd 2009 All Rights Reserved
    • 14. Day 1 - Theory © Fedden USP Ltd 2009 All Rights Reserved
    • 15. Day 2 – Analysis of the Target Process © Fedden USP Ltd 2009 All Rights Reserved
    • 16. Day 3 – Future State – What could be achieved © Fedden USP Ltd 2009 All Rights Reserved
    • 17. Actions • Process, roles and responsibilities of LCM staff and clients are clearly documented at communicated at the start of the project • White boards and visual measures are used to monitor margins on jobs and collect issues • Jobs only enter graphics unit once all information has been collated – reduces down stop/start on jobs • Brought in external design resource to input in ideas © Fedden USP Ltd 2009 All Rights Reserved
    • 18. Benefits • 29% increase in productivity • Increase in capacity of £100K on top of £600K sales turnover • 80% Reduction in lead-times from 106 to 21 working days © Fedden USP Ltd 2009 All Rights Reserved
    • 19. Standard Operations and Improvements TIME IMPROVEMENT K K K K K K K K K S S S S Without standardisation, improvements can not be sustained K = Kaizen Activity S = Standardisation Activity © Fedden USP Ltd 2009 All Rights Reserved
    • 20. Day 1 – Lean Theory Day 3 – Process re-design to eliminate or reduce the identified process waste Day 2 – Process Mapping and Data Analysis in Target Area or Product Day 4 & 5 – Action Planning, Cost/Benefit and Start Implementation Projects On-going Assessment of Participants on how they are progressing with the projects Over a period of 8 – 12 months Final Presentation Back to Management on What They Have Achieved and What the Next Stages Are Presentation to Participants of Business Improvement Techniques Level 2 © Fedden USP Ltd 2009 All Rights Reserved
    • 21. Contact Details © Fedden USP Ltd 2009 All Rights Reserved • To discuss this topic in more detail, please contact NCVO Consulting: • consultancy@ncvo.org.uk • Tel: Donna James on 020 7713 6161
    • 22. Building Sustainable Change at The Children’s Society NCVO Conference 16 June 2014 Laura Rawnsley – Transformation Director Peter Rimmer – Head of Organisational Change
    • 23. Our vision A country where children are free from disadvantage Our Mission We fight for change, supporting disadvantaged children to have better lives Our Values Brave, Ambitious, Supportive, Trusted Who we are…
    • 24. ...and some key facts. • TCS was founded in 1881 and has a long association with the Church of England. • We are one of the traditional ‘big 5’ children’s charities in the UK which includes NSPCC, Barnardos, Action for Children and Save the Children. • Our new CEO, Matthew Read, joined The Children’s Society in June 2012. • We deliver approximately 100 services across England, working with 23,159 children in the last year, 14,775 of those at a sustained level. • We also have a significant policy and increasingly prominent campaigning aspect to our work. The outcomes of which have impacting on over 350,000 more children. • We employ approximately 1200 staff, manage 10,800 volunteers and have an annual turnover is approximately £46m. • In 2012 we embarked on a three year change programme to enable to organisation to achieve its ambitions.
    • 25. Prior to the change programme we faced a number of challenges… External Challenges • A cluttered children’s charity market • The need for a clear message about what we do and what we stand for • A reduction in commissioning activity across the sector • A need to differentiate ourselves from our competitors • A need to engage our supporters with any specific issues and beneficiaries Internal Challenges • Need for more joined up working • Need for better IT systems • Need to provide better value for money for supporters • Need to increase the scale of our work through campaigning – sharing information with a wider audience
    • 26. To address this we set about achieving the following objectives. Integrated structures and ways of working Performance measurement and reporting Improved IS infrastructure and systems Better talent management and development A refreshed brand More efficient processes Continuous improvement and innovation Integrated income generation The Transformation Programme 1 2 3 4 5 6 7 8
    • 27. Which has delivered the following changes to date... • A refreshed Mission, Vision and Values • A revised Brand • A new operating model with locally integrated working set up in three areas of the highest need in England • An outcomes framework and suite of evaluation tools • A suite of leadership development interventions for all senior managers • A IS suite of systems that supports responsiveness and mobility • A dedicated PMO and a suite of tools and techniques used throughout the organisation to deliver ongoing key initiatives • A piloted approach and methodology for radical innovation and CI
    • 28. ...and achieved some significant outcomes. • 20% (70-90%) increase in alignment of our work to our outcomes • 5% (75-80%) increase in overall staff satisfaction • 18% (73-91%) increase in volunteer satisfaction • 15% increase in the staff’s confidence in leadership • 23% increase in effective communications from line managers • 2% recurring annual savings delivered through more efficient structures • 3% increase in practitioner productivity /effectiveness
    • 29. What did we face on the way?
    • 30. We faced a number of organisational issues we could not ignore… • Language – Staff really struggled with commonly used change language and methodologies • Data – Data management and data quality is not strong across the sector which posed significant problems • Skills – There was a need for significant coaching in parts of the organisation on how to deliver the aspects of the change. • Insights – Strategic insight was largely based in individual or team skill sets with a lack of organisational processes to systematically harness ‘insights’ for the whole organisation • Silo’s – There was a lack of and understanding between teams on how their work and processes crossed team boundaries. 1
    • 31. Your turn.
    • 32. Through our approach we have acquired a number of insights and solutions along the way. Top Down Approach • Form a dedicated team to manage change outside of BAU • Build senior level governance around a cross organisational programme structure • Identify key talent and second to lead on the initiatives & build skills • Agree a set of design principles before commencing on delivering the change • Tie the change initiatives into the strategic direction and corporate outcomes Sustainable Change Bottom Up Approach • Focus on a discrete area to build a detailed analysis and business case • Involve local staff in the setting of plans and strategies for local working • Build a network of change agents across the organisation to help drive engagement with the change • Engage service users with designing what needs to change at a local level
    • 33. We adopted a framework of how to analyse how we would approach our change journey Market realities and external environment Our framework  Based on our organisational theory of change  Driven through our outcomes framework  Primary data available on local needs  Local intelligence and knowledge  Competitor and market analysis  Local policy priorities  Partnership opportunities 1
    • 34. …and used a nuanced approach on how to approach each issue. Sustainable ChangeEnterprise Wide Change • Refreshed brand • Talent management & development • Performance measurement and reporting Local Operational Change • Integrated structures and ways of working • More efficient processes • Integrated Income Generation 2
    • 35. And took time to enable sustainable innovation and growth to be developed. Year 1 • Establish the organisations strategy and set the framework for change Year 2 • The change is tested through pathfinder sites improving and embedding operational practices Year 3 • Organisations ability to innovate and grow is scaled up Our Route to sustained Innovation and growth 3
    • 36. What next for The Children’s Society… • Continue to change manage the programme outputs through BAU to maximise the benefits • Scale up localised change and learning accross the whole organisation • Deliver against our growth agenda by further developing our strategic and operational learning to date • Look to other areas where we can now adopt an enterprise wide approach such as process improvement and efficiency improvement initiatives 1
    • 37. Evolve 2014

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