The document outlines steps government leaders can take to implement lean principles within their agencies. It discusses establishing clear outcomes and measures, mapping core agency processes, understanding customer needs, assigning accountability, engaging employees, and focusing on continuous improvement. Leaders are encouraged to assess management waste, lead learning initiatives, and use various tools to embed a new problem-solving culture focused on value and efficiency. The overall goal is a cultural shift toward more data-driven, customer-focused operations.
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Lessons in leadership 031513 final
1. LEAN GOVERNMENT
What Leaders Need to Do
to Lead From the Front
Creating Your Agency Game Plan
LESSONS IN LEADERSHIP SERIES
March 20, 2013
2. “Today we begin a multi-year
effort to bring disruptive
change to Olympia, starting
with the very core of
how we do business.”
2
3. EFFECTIVE EFFICIENT ACCOUNTABLE
LEAN GOVERNMENT
Leaders Customer-Focused Service
Leading
WHAT
HOW
Clear Accountability &
WHY
the Way Improved
Responsibility
Results- Citizen
and Data- Employee Engagement Outcomes
Driven
Operations Continuous Improvement
CREATING AN ENDURING CULTURAL SHIFT
3
5. Marcie Frost
DIRECTOR, DEPARTMENT OF RETIREMENT SYSTEMS
• 20-years public leadership, &
planning & operations
• A career noted for a focus on
outcomes, strategy and alignment
• Three years into major customer-
focused/team engagement
transformation at DRS
5
6. John M. Bernard
CHAIRMAN & FOUNDER, MASS INGENUITY
• Participated on the first U.S. team
to implement Lean in 1981
• Translated Lean concepts into
plain English and applied them to
the service sector and government
agencies
• Architect of the Now Management
System®, a systemic solution
to create a Lean culture and
to optimize Lean
6
8. THE CHANGE IMPERATIVE
“Today we begin a multi-year effort to bring
disruptive change to Olympia, starting with
the very core of how we do business.”
8
9. Today: Leave With a Plan
1 Leading the Way
2 Focus on Outcomes
3 Results- and Data-Driven Operations
4 Customer-Focused Service
5 Clear Accountability
6 Employee Engagement
7 Continuous Improvement
9
10. THEN NOW
DRIVER Managerial Hierarchy Customer Need
ORGANIZATION Functional Process Centric
DECISIONS Centralized Decentralized
IMPROVEMENT Big Ideas Micro-Improvements
USE OF DATA Management Everyone
PROBLEM SOLVING Ad Hoc, Intuitive Standardized, Fact Based
SPEED Slow Fast
TRADITIONAL LEAN
MANAGEMENT MANAGEMENT
THINKING THINKING
10
12. LEAN MANAGEMENT
“In the weeks to come, I will be taking
action to transition to a
results- and data-driven government,
with continuous quality improvement,
engagement and clear accountability.”
12
13. The Washington Game Plan
EFFECTIVE EFFICIENT ACCOUNTABLE
LEAN GOVERNMENT
Leaders 4 Customer-Focused Service
1 Leading
WHAT
HOW
Clear Accountability &
WHY
the Way Improved
5 Responsibility
Results- 2 Citizen
3 and Data- 6 Employee Engagement Outcomes
Driven
Operations 7 Continuous Improvement
CREATING AN ENDURING CULTURAL SHIFT
13
14. Origins of the Journey
Dr. W. Edwards Deming
JUSE Lectures
General
MacArthur Deming Prize
1947 1950 1951 1965 1981 1987 1989
Toyota Wins “Lean”
Deming Prize term
TOYOTA: Taicchi coined
Ohno, Shigeo Shingo & Eiji
Toyoda
14
15. Organizing Principles
Customers define People are our People who do
Every process what value is most valuable asset the work
has a customer know it best
We work to People want to
serve Focus Respect be a part of
customers not something
satisfy bosses on for bigger than
themselves
Facts reveal
Customer People
truth about Determine Create People want to
how effectively do good work
Value Value
we are meeting People need to have
customer the skills to do their
needs work well and to
Continuous customer People will engage if
feedback drives improve it
they feel safe
continuous process making decisions
improvement
15
16. Big “L” Lean
1. Lead from the front
2. Focus on serving the customer
3. Respect the gifts of people
4. Drive out all forms of fear
5. Use measures to find improvement opportunities
6. Engage everyone in achieving outcomes
7. Break down barriers to pride and collaboration
8. Think processes; make improvement a constant
9. Eliminate waste at its root cause
10. Focus on the long-term
16
17. Small “l” lean
• Reduction of overtime • Improved on-time report
• Reduction of time/cost to issuance
process background checks • Reduction in hiring cycle
• Reduction of time-to-lease • Streamlined regulatory
compliance
office space
• Reduced cycle time to close
• Reduction in inmate assaults the monthly books
• Improved on-time permit • Reduced time to process
issuance payroll
• Permit streamlining • Reduced medication errors
• Reduction in uncollected • Reduced cost-per-vehicle mile
revenue
17
18. EXERCISE #1
1. Review slides 15, 16, & 17:
Central Themes of Lean, Big “L” Lean and Small
“l” lean
2. With 2-3 people around you, answer the
question: Take 2-3 minutes
What are the implications of these principles to
the agency leader team?
3. Have someone prepared to share your
conclusions (we will call on a few teams)
18
19. LEAN MANAGEMENT
“It’s about instituting a cultural shift
that will endure well beyond
my administration.”
19
20. Today: Leave With a Plan
1 Leading the Way
2 Focus on Outcomes
3 Results- and Data-Driven Operations
4 Customer-Focused Service
5 Clear Accountability
6 Employee Engagement
7 Continuous Improvement
20
21. THE PLAYBOOK
1. Leading the Way
1. Lead the learning
2. Assess your management waste
3. Get the right leaders on the bus and in the
right seats
4. Prepare the culture
21
22. Lead the Learning
• Host book study teams
• Lead study visits
– DRS, Oregon Agencies, Boeing, Virginia Mason
22
27. Your Game Plan
1 Leading the Way
2 Focus on Outcomes
3 Results- and Data-Driven Operations
4 Customer-Focused Service
5 Clear Accountability
6 Employee Engagement
7 Continuous Improvement
27
28. THE PLAYBOOK
2. Focus on Outcomes
1. Understand the Governor’s Priorities
2. Align your agency’s outcomes
– Translate goals to outcome measures
– Establish scorecards for each measure
28
30. Align Your Agency Outcomes
• Understand the Governor’s Strategic Direction
• Define Agency Core-Mission Measures
– This is the foundation of ownership
• Study Governor Inslee’s inaugural address
understand his thinking
• Clarity will continue to emerge
30
32. Your Game Plan
1 Leading the Way
2 Focus on Outcomes
3 Results- and Data-Driven Operations
4 Customer-Focused Service
5 Clear Accountability
6 Employee Engagement
7 Continuous Improvement
32
33. THE PLAYBOOK
3. Results- and Data-Driven Operations
1. Create clarity about how your agency works
2. Understand the core work you must be good
at in order to achieve your outcomes
– Map your Fundamentals
– Understand your core processes
– Establish measures to gauge effectiveness
33
34. Eliminate Fear
ORDER FREEDOM
People People know
understand and how to seize
respect the way opportunities
the organization and solve
functions problems
34
37. Benefits of a Fundamentals Map
• Shared understanding of how the agency
creates value (a common language)
• Clear ownership for results
• Visibility as to what is working and what is not
• Foundation for connecting every employee to
the part they play
37
38. EXERCISE #2
1. Review the handout:
DRS Fundamentals Map
2. Review the DRS Fundamentals Map. With
2-3 people around you, take 5 minutes to
answer the question:
If we had a map like this, how could we use
it to help us achieve our agency outcomes?
3. Have someone prepared to share your
conclusions (we will only call on a few teams)
38
39. Your Game Plan
1 Leading the Way
2 Focus on Outcomes
3 Results- and Data-Driven Operations
4 Customer-Focused Service
5 Clear Accountability
6 Employee Engagement
7 Continuous Improvement
39
41. THE PLAYBOOK
4. Customer-Focused Service
1. For each core process, identify your primary
customers
2. Ask them what they need from you
3. Establish measures that indicate success in
meeting their needs
4. Work to continuously improve results
41
43. Customer-Driven End State
We understand who are customers are
We know every process has a customer
We know what our customers value
We measure effectiveness in meeting customer needs
Customer feedback drives our improvement focus
We focus on satisfying customers not bosses
We find satisfaction in being of service
43
44. EXERCISE #3
1. Identify your agency’s primary customers
2. With 2-3 people around you, for 4-5
minutes, answer the question:
What are five things you as leaders can do to
accelerate your journey to the Customer-
Driven end state?
3. Have someone prepared to share your
conclusions (we will only call on a few teams)
44
45. Your Game Plan
1 Leading the Way
2 Focus on Outcomes
3 Results- and Data-Driven Operations
4 Customer-Focused Service
5 Clear Accountability
6 Employee Engagement
7 Continuous Improvement
45
46. THE PLAYBOOK
5. Clear Accountability & Responsibility
1. Assign ownership
– For outcome measures
– For process measures
2. Establish Quarterly Target Reviews
– Accountability for improvement
– Triggers for action (red/yellow/green)
– Safety = True Transparency
46
49. Your Game Plan
1 Leading the Way
2 Focus on Outcomes
3 Results- and Data-Driven Operations
4 Customer-Focused Service
5 Clear Accountability
6 Employee Engagement
7 Continuous Improvement
49
50. THE PLAYBOOK
6. Employee Engagement
1. Understand the impact on results of
engagement
2. Assess where we are today with the
engagement
3. Determine what is required by leadership to
move to the ideal state
50
53. Engagement End State
I understand where my organization is going
I see how my work fits into our goals
I understand what processes I am accountable for
I have the skills/resources to do my work effectively
I always know how well my processes are working
I am skilled at solving the problems I encounter
53
54. EXERCISE #4
1. Open Business at the Speed of Now to pages 51
& 52
Review the 9 rules of THEN and the 11 rules of NOW
2. With 2-3 people around you, answer the
question: Take 3-4 minutes
What will it take to achieve NOW vs. THEN
engagement?
3. Have someone prepared to share your
conclusions (we will only call on a few teams)
54
55. Your Game Plan
1 Leading the Way
2 Focus on Outcomes
3 Results- and Data-Driven Operations
4 Customer-Focused Service
5 Clear Accountability
6 Employee Engagement
7 Continuous Improvement
55
56. THE PLAYBOOK
7. Continuous Improvement
1. Estimate the waste costs in your organization
2. Understand the critical nature of a common
problem solving/process improvement
methodology
3. Select a problem solving/process
improvement methodology
4. Rollout the methodology to every employee
56
57. Process Waste
% of
Operating
GOVERNMENT 40-50%
Costs That
Add No Value
SERVICE SECTOR 30-40%
MANUFACTURING 25-30%
0 10 20 30 40 50
57
58. Uncovering Resources
We can spend
ON THE BUSINESS more time on
the work that
delivers NEW
VALUE to our
Customers
If we can
reduce the
time we need
IN
to spend on THE
the ROUTINE BUSINESS
work of the
business
58
60. Your Game Plan
1 Leading the Way
2 Focus on Outcomes
3 Results- and Data-Driven Operations
4 Customer-Focused Service
5 Clear Accountability
6 Employee Engagement
7 Continuous Improvement
60
61. The 10 Factors
That Transmit and Embed Culture
CREATING AN ENDURING CULTURAL SHIFT
1. Formal statements of organizational philosophy
2. Design for physical spaces
3. Deliberate role modeling, teaching, and coaching by leaders
4. Explicit reward and status system, and promotion criteria
5. Stories, legends, myths and parables about key people and
events
6. What leaders pay attention to, measure, and control
7. Leader reactions to critical incidents or organizational crisis
8. Organization design and structure
9. Organizational systems and procedures
10. Criteria used for recruitment, selection, and promotion
Dr. Edgar Schein, MIT
61
62. Hero’s Journey
Master of
Crossing Two Worlds
The Return
Threshold
Refusal
Call to To Return
Refusal of
Adventure The Call
Crossing The Boon
Everyday the First
World Threshold
Road of
Trials ABYSS
Meeting
Supreme The Mentor
Ordeal
SIMPLICITY COMPLEXITY SIMPLICITY
62
1:00 – 1:05Wendy:Welcome.Purpose of the day.Introduction of Dr. Mary Alice Heuschel
1:05 – 1:15:Dr. Mary AliceOpening remarksOverview of Governor’s expectations
1:15 – 1:20Darrell:Introduction of presenters
Darrell:Introduction of Marcie Frost(content to be provided by David Brine)
Darrell:Introduction of John BernardJohn BernardChairman & FounderMass IngenuityPortland, Oregon John’s has a deep passion for the talents and gifts of people which underlies everything he doesPrincipal author of the recommendations produced by Governor Inslee’s Government Transformation Advisory GroupMost experience practitioner of Lean in America having served on the first documented large-scale implementation ay Omark in 1981Long-ago adapted Lean for the American business culture including terminology anyone can understand – as you can see in John’s book, Business at the Speed on Now
Darrel continues introduction of John Bernard…Chief architect of the Now Management System, which has been implemented in 9 Oregon agencies and is fast becoming the standard for agency management in Oregon
1:20 – 1:22John:I invite you to join Marcie and me on a journey for a few hours…with all you have heard about Lean, good and bad, amazing and confusing…we ask that you suspend what you know and engage with usMarcie:We all have the honor to serve this great state…and a great, new and energetic governor…who expects we use Lean to disrupt the status quo…
1:22 – 1:25Marcie:Here’s what we hope you will walk away this today…. Clarity about what is Lean really …we intent to challenge your assumptions about it …we will examine a high-level set of whys…. …and look at some practical hows…
1:25 – 1:30John:We live in very fast times…. …and most organization’s are managed with an outdate framework …one based on the Industrial Age… the Age of Mass ProductionBut our world is no longer the same…that was THEN, this is NOW …(story of logo design)In our NOW world the rules have changed
1:30 – 1:35Marcie:
1:35 – 1:50John leads, Marcie does color
Marcie:Governor Inslee’s Lean Government agenda is clear…This is what he is asking us for….
John:Thought it would be worth 2 minutes on the prequel to Lean….If we are beginning a journey, we ought to know the roots….Deming inspired Toyota….Jack Warne…my boss….trip to Japan in 1980…Shingo’s Book and study teamsBaldrige award….tie to Egils Millbergs
John:
John:80 percent of Lean efforts fail or fall significantly short of expectations within three years of their start…LEAN IS NOT …process improvement projects …the domain of black belts …a training program …an employee involvement program …a fix-all for waste elimination …a set of toolsLEAN IS …a way of thinking (customers determine value, employees create it) …a belief system, a philosophy …a redefinition of the role of leadership
John:These are examples of projects in Oregon….The key thing to understand is that lean projects must be aligned to your organization’s primary constraints….which we will tell you how to identify….When it is, lean projects become a primary tool to organizational improvement
1:50 – 2:00(capture primary ideas on flipchart)
2:00 - JohnPeter Drucker:“The best way to predict the future is to create it.”
1:22 – 1:25Marcie:Here’s what we hope you will walk away this today…. Clarity about what is Lean really …we intent to challenge your assumptions about it …we will examine a high-level set of whys…. …and look at some practical hows…
John:The power of study team… …We started studying Shigeo Shingo’s book …allow people to find their own meaning … “case for change” is the foundation for change managementLean for Dummies….Marcie and DRSOregon’s Chief Operating Officer, Michael Jordan, asked me to extend an invitation to all of you to visit Oregon….we would be happy to facilitate a field trip to come and meet agency directors and Michael….
Models are useful to gain understanding, like the Shingo Model… …but you have to find your own understanding, at a gut level, and be cautious of relying on models
John:One of the most rarely talked about forms of waste, is confusionEngaging your people in creating customer value demands management has its processes under control!
Marcie:
Marcie:
Please take a minute to write down any thoughts you have for your game plan on Leading the Way.
2:15
The case for a COMMON LANGUAGE
Please take a minute to write down any thoughts you have for your game plan on Focus on Outcomes.
2:25
2:45
Please take a minute to write down any thoughts you have for your game plan on Results- and Data-Driven Operations.
3:00
3:15
3:20
Please take a minute to write down any thoughts you have for your game plan on Customer-Focused Service.
3:30
Please take a minute to write down any thoughts you have for your game plan on Clear Accountability.
3:40
What do you think
3:50
Please take a minute to write down any thoughts you have for your game plan on Employee Engagement.
4:00
Please take a minute to write down any thoughts you have for your game plan on Continuous improvement.
4:10
The basic model of Human Learning created by anthropologist Joseph Campbell…George Lucas’s Star Wars…. …Luke Skywalker….all you have to do is trust the force….Lean is a journey….I’ve been on it for over 30 years…a journey to understand what it takes to be both a great leader – and a great manager in this NOW world.I hope you enjoyed today, and I encourage you to embrace the challenges set out forth by your Governor.I close my part, before Marcie has the final word, with the opening sentence from the Governor’s Transition Plan:Great government is no small undertaking, and Washington State has many of the foundational pieces in place to achieve a stature as one of the best places in the United States to live, raise a family, get an education, build a business or pursue a career, enjoy the outdoors, and live out a long, healthy retirement. Lean Government is a journey. Have fun.