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Making Lean stick in the Public Sector
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Making Lean stick in the Public Sector


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This presentation is about how the successfully make Lean Transformation stick within the Public Sector. In this presentation we share some best practices and proven models that we have used to help …

This presentation is about how the successfully make Lean Transformation stick within the Public Sector. In this presentation we share some best practices and proven models that we have used to help organizations accelerate performance and productivity, reduce cost, and improve profit margins. Enjoy!!!

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  • 1. LEAN Transformation in the Public Sector Making Government Agile, Smarter, and More Efficient
  • 2. Page § 2 Contents Introductions ! Current Challenges facing the Public Sector! Lean – What is it?! Voice of the Citizens – How does it fit?! Overview of OCG Lean Approach! 1 2 3 4 5 Why OCG Lean Approach is Different! Dashboards Examples ! Questions and Answers! 6 7 8
  • 3. Introduction Lean Transformation in the Public SectorPage § 3
  • 4. Page § 4 Introduction v  OCG has expansive experience in delivering sustainable cost, value and quality improvement through using and embedding lean practices and philosophy, strategically and organizationally, moving away from the traditional process orientation v  Lean Transformation is essential in this current economic climate and particularly in the public sector where Government’s Spending review requires local government to make tough choices on how services are delivered within reduced allocations v  With grant funding being cut by 28.4% and an average 7.1% annual fall in government formula grant over the next four years. The impact will be felt differentially, with some Councils facing much tougher settlements
  • 5. Key Challenges Facing the Public Sector… Lean Transformation for the Public Sector Page § 5
  • 6. Page § 6 Key Challenges Facing the Govts. §  Fiscal challenges – the recent global economic melt down has dealt the governments a devastating economic blow experiencing the largest budget decline since the 1930s §  Increasing demand for more government assistance by its citizens – the conundrum of doing more with less §  To address these and many other challenges governments have resulted embracing the concepts of Lean Transformation
  • 7. Lean – What is it? Lean Transformation for the Public SectorPage § 7
  • 8. Precisely specify value from the customer’s perspective Value! Identify the value stream for each product or service Value Stream! Make value flow without interruptions Flow! Reducing waste – increasing speed & efficiency! Let the customer pull value from the producer Pull! Pursue perfection Perfection! Lean – What is it? Lean transformation originated with 5 core principles used to drive continuous improvement !
  • 9. Lean – What is it? Page § 9 Seven Common Faces of Waste… TIMWOOD §  Transportation §  Inventory §  Motion §  Waiting §  Overproduction §  Over-processing §  Defects and Delays
  • 10. Voice of the Citizens How does it fit? Lean Transformation for the Public SectorPage § 10
  • 11. Voice of the Citizen – VOC Page § 11 You can’t lean and transform effectively without first answering these questions... ! v Is the VOC clear? v Can you measure the VOC? v How confident are you that your efforts are fully aligned to VOC? v How do you know who’s responsible for what across the region in relation to outcome delivery? v How responsive is your organization and regional partnership? v Can it support continuous improvement?
  • 12. Overview of OCG Lean Approach Lean Transformation for the Public SectorPage § 12
  • 13. Focus Areas – Lean Transformation 
 Framework Page § 13
  • 14. Our Lean Framework – Deconstructed §  Build capability to identify waste & value §  Develop organizational competencies to drive CI §  Align teams around end-to- end value streams §  Empower team to create value §  Shift mindset to focus on customer value §  Develop intolerance for waste §  Challenge the status – quo §  Create company wide effort to drive improvements Organizational Strategy §  Define your customers §  Determine what the value §  Define if they are internal or external §  Deliver amazing customer experience §  Make process flow easily §  Deliver value to customers §  Establish standard work with predictability §  Focus on value creation & cost reduction §  Define and monitor CSF, KPIs, & KRI §  Define roles & accountability for results §  Foster open discussion about business problems §  Report and make results easy to use §  Define business strategy with clear LOS §  Set vision for Lean Transformation §  Commitment and lead by example §  Develop Lean Leadership BEHAVIOR & MINDSET LEADERSHIP CAPABILITIES CUSTOMER VALUE PROCESSES PERFORMANCE
  • 15. Page 15 CREATE VALUE FOR . . . ...while accelerating sustainable results and efficiency Focus Discover Design Operate CUSTOMER VALUE Mayor & City Council CFO & BMO CIO & IT COO& Operations Agencies Leader Employees Stakeholders & Shareholders Clients & Customers Employees Suppliers & Partners KEY ENABLERS: Leadership Citizens & City Collaboration Business Processes People & Performance Culture Governance Skills & Capabilities KEY PLAYERS: Lean Transformation Process Levers “Delivering Sustainable Value”
  • 16. Lean Transformation 
 Governance Mode ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! Customer Value ! Discover Review Operate Deploy Develop Design Define customers, value, requiremts, through VOC Create future state & share with customer Ensure customer Understand new changes Ensure customers Requirements Will be met Provide monthly Feedback to Customers Conduct periodic VOC reviews Process ! Define current State with VSM Conduct RCA Create vision & attainable future state Construct Standard work & New working ways Deploy future State and pilot Value Stream Update current State VSM to Show improvement Identify next Opportunity for Improvement Capabilities ! Conduct Lean skills assessment Build Lean Team Define new team & new skills requirements Build roles, Accountability, & Skills matrix Re-align Organization to Support VS Establish Performance Management Strt. Conduct periodic Review of skills & capabilities Performance ! Baseline current Performance Create ROI model Define perfmance Targets, measures & ROI Establish visual Management & RCA prob. solvng Capture & report Lean successes Revise Improvement Targets Strategy for Continued Lean Roll out Behavior & ! Mindset ! Conduct Lean cultural assessmt. Introduction Lean Design desired Lean mindset & Behavior Conduct Lean Behavior coaching Develop a culture Of Continuous Improvement Continuously ask: What is the next Level of Perfmnce Conduct post- Implementation Review Leadership ! Conduct Lean Leadership wkshp. Define Lean goals Design Lean Vision & align with Bus. Strategy Assist Leaders in Role modeling Lean Leadership Establish Lean Review & expand Roll out Establish Lean Leadership Council Support on-going Lean Reviews Project Management , Benefits Management, Communications, Training !
  • 17. Lean Transformation Key Activities 
 & Outputs By Stages Customer Value ! Process ! Capabilities ! Performance ! Behavior & Mindset ! Leadership ! Project Management , Benefits Management, Communications, Training ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! Discover Review Operate Deploy Develop Design Understand Current State Create a Case for Change Create vision of Ideal State Create Future State Build new way for working Prepare for deployment Execute deployment Continuous Improvement Sustain Lean benefits Report Results Performance Review and take actions Ask: What is the next level performance Conduct Rapid Improvement – Kaizen Events! Establish a sense of Urgency – Make Waste visible Develop and share clear Vision – Focus on value Secure short term wins Anchor the change Key Activities Key Output •  Define customer value •  Create VSM •  Create platform for change •  Identify non- value add and waste •  Design ideal state VSM •  Design attainable future state VSM •  Develop deployment roadmap •  Conduct rapid improvement •  Build new ways of working •  Pilot to prove future state •  Organizational re-alignment •  Execute implementation plan •  Post- implementation evaluation •  Operate performance management structure •  Review, Review, Review •  Strategy for Lean rollout •  Current state baseline – maps, models •  Alignment on key levers, KPI •  Catalog of wastes •  Establish basic Lean Thinking •  Ideal/Future state VSMs •  Defined Lean Vision& ROI •  Detailed implementation plan with KPIs •  Emerging use of Lean Principles •  Creation of actionable improvements •  Increasing Lean ownership & Accountability •  Quick wins to create Big MO •  Execution of improvements •  Visual management tools •  Lean Tools •  Lean Review Process •  Performance management structure •  Emerging Lean Leaders •  Expanding efforts on Lean journey •  Strategic plan for Lean rollout •  Lesson Learned •  Best & Leading Practice
  • 18. Summary and Case Studies Lean Transformation for the Public SectorPage § 18
  • 19. Summary and Close Page § 19 v Lean isn’t just about removing cost, it’s about sustainable efficiencies and continuous improvement v It’s about a new way of working that needs embedding, internally and across the region v It has to have full and clear support from leadership v It needs to be supported by a performance management system to maintain new ways of working and continuous improvement v Lean isn’t just about end to end processes, it’s about transformation v Lean can deliver outcomes through continuous regional appraisal requiring strong partnership working and clear accountabilities
  • 20. §  Inability to process customer orders §  Constant resource bottlenecks and project overloads §  Results: Delayed projects, cost overruns, and lost of revenue Client Challenge §  Use Value Stream Mapping and Control Charts to identify delays §  Deploy countermeasures to eliminate delays §  Develop control measures to ensure that the gains were sustained §  52% reduction in project backlog §  Accelerated time to market for new customer orders by 42% §  45% improvement in project productivity §  Increase Quarterly revenues by 32% = $142 million §  23% of projects delivered ahead of schedule Solution Impact on Client Lean 6 Sigma Transformation – Case Study Client: Telecommunications Solutions Provider
  • 21. Want More?
  • 22. Alvin McBorrough
 Managing Partner 
 The OMNI Consulting Group