The document discusses the Government of New Brunswick's pursuit of excellence initiative. It implemented a formal management system across government departments to improve strategy, process, and performance management. This includes setting a vision and objectives, identifying priority initiatives, and tracking metrics. Continuous improvement methods like Lean Six Sigma were used to optimize processes, cut costs, and generate millions in savings. The goal is to make government more efficient, effective and sustainable for citizens.

2. Pursuing Excellence at GNB
1.Context
2.Integrated “Formal Management System”
3.Public Reporting
Initiative
Management
Daily Management
Process
Management
Strategy Management
Performance Management

3. New Brunswick
•751,151 citizens (2011 census)
•public service ~45,000 employees
•7.9 billion dollar budget
• 2014-15 deficit budgeted at $391 million

4. Economic Slowdown Brings Change in Fiscal Reality ($ millions)
5,800
6,300
6,800
7,300
7,800
8,300
8,800
04-05
05-06
06-07
07-08
08-09
09-10
10-11
11-12
12-13R
13-14B
Revenue
Expense
4

5. 2011: Government Renewal
To ensure the Government of
New Brunswick is able to
provide appropriate and
affordable services to citizens
on a sustainable basis.

7. History
2011
Office of Strategy Management
2012-2013
GNB and Pilot Departments
2013-2014
Wave 2 Departments
2014-2015
Wave 3 Departments
Government Renewal
pre 2011
NB Liquor
NB Power
Service New Brunswick
Department of Natural Resources

8. Office of Strategy Management (OSM)
…responsible for developing the principles, methods and tools by which NB Government leaders can:
–enhance alignment and execution of strategy,
–drive improvement results,
–build a sustainable continuous improvement culture.

9. GNB Change Agenda
from
Economic Growth
to
Declining position
Competitive position
Public sector driven
Private sector driven
Job focused
Innovation focused
Quality of Life
Government dependency
Self-reliance
Treatment
Wellness
Skill/need imbalance
Ready workforce
Living within Means
Deficit
Balanced Budget
More services
Service improvements
GNB Culture
Working in silos
Working together
Budget centered
Performance centered
Cut and Control
Continuous improvement

10. The Strategic Change Journey
“In the majority of failures – we estimate 70% – the real problem isn’t bad strategy…. It’s bad execution.”
“Why CEO’s Fail”, Fortune Magazine
“Less than 10% of strategies effectively formulated are effectively executed”
Fortune Magazine

12. Principles of High Performance:
1.Purpose is customer driven…
…solve their problems.
2. 85% of problems are process (not people)…
…deliver faster, better, cheaper;
…leadership is a process.
3. Engage people…
…involve employees, differentiate
performance, develop leaders.

13. Initiative
Management
Daily Management
Process
Management
Strategy Management
Performance Management
GNB Formal Management System

14. `
Strategy Management
Priorities and speed!
GNB Formal Management System
Strategy Map
Balanced Scorecard

15. `
Strategy Management Priorities and speed!
GNB Formal Management System
Strategy Map
Balanced Scorecard
Vision
Objective
Objective
Objective
Strategic Themes

16. 3 Year
Vision

17. `
Strategy Management Priorities and speed!
GNB Formal Management System
Strategy Map
Balanced Scorecard
Vision
Objective
Objective
Objective
Measures
Measures
Measures
Strategic Themes

19. Dollars saved per continuous improvement
Performance Excellence Maturity Index
Base Target
StretchTarget
Plan Target

20. Objectives
Measures
Q1
Q2
Q3
Q4
"Provide value for my tax dollars"
Cost of GNB/capita (inflation adjusted)



Achieve sustainable budget
Ratio of actual to budgeted expenditures



Ratio of actual to budgeted revenue
l
x
x
Prioritize, optimize and improve processes
Dollars saved per: continuous improvement



Positions reduced and savings achieved through attrition - Parts I, II and III



Procurement savings across Parts I and II



Balanced Scorecard
“Living within our means” Theme

22. Spending measures have kept deficit from worsening ($ millions)
6,000
6,500
7,000
7,500
8,000
8,500
9,000
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
Expense (actual)
Expense (growing at inflation)
Revenue
$300 M

23. Strategy Management
Priorities and speed!
Initiative Management
Priority initiatives and projects!
S
O
M
I
A
GNB Formal Management System
Strategy Map
Balanced Scorecard

24. GNB Formal Management System
Vision
Measures
Measures
Measures
Strategic Themes
Objective
Objective
Objective
Initiative
Initiative
Initiative
Initiative
Initiative
Initiative
Action Plans
Action Plans
Action Plans
Action Plans
Action Plans
Action Plans
Action Plans
Action Plans
Action Plans
Action Plans
Action Plans
Action Plans
Action Plans
Action Plans
Action Plans
S
I
M
O
A

25. SOMIA 2013 - 2014
a stronger economy
7
enhanced quality of life 12
living within our means
11
“Theme Team” Priority Initiatives:
Initiatives: 180 Action Plans: 856

26. Deputy Minister Theme Teams

27. Priority Initiatives
Q1
Q2
Q3
Q4
1.Health Reduction Targets



2.Social Development Reduction Targets



3.Education and Early Childhood Development Reduction Targets



4.DTI Reduction Targets



5.Pension



6.Procurement



7.Attendance Management



8.Attrition



9.Back Office /PMO



10.Collections



11.Continuous Improvement through Lean Six Sigma



Summary of Priority Initiatives:
“Living within our means” Theme

28. GNB Formal Management System
Vision
Measures
Measures
Measures
Strategic Themes
Objective
Objective
Objective
Initiative
Initiative
Initiative
Initiative
Initiative
Initiative
Action Plans
Action Plans
Action Plans
Action Plans
Action Plans
Action Plans
Action Plans
Action Plans
Action Plans
Action Plans
Action Plans
Action Plans
Action Plans
Action Plans
Action Plans
S
I
M
O
A

29. “Better, faster, cheaper”

30. Projects
Full Project
Kaizen
Waste Walks

31. Projects
155+ projects
2000+ involved
Top $ project $999,487

32. Hard Cost Savings Actual vs. Target
$218,480
$952,988
$2,521,380
$3,997,565
$6,176,282
$10,781,651
$12,050,711
$15,304,091
$11,198,333
$14,750,000
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Actual
Stretch Target
Target
FY 2012-13
FY 2013-14

33. Reduce Complexity
Eliminate Waste
Speed
Lean & Six Sigma – Together
Reduce Variability
Eliminate Defects
Customer Focused
Team Approach
Data Driven Decision Making

34. A well designed process should flow like a river.

35. “Before” Process
81 steps to complete process!

36. “After” Process
56 steps to complete process!

37. Standards?
Variation?
Defects?

38. How good is good enough?
99% Performance
Six Sigma Performance
(~2.4 Sigma)
•No telephone service or TV transmission for nearly 2 hours per week
•Unsafe drinking water 7 ½ hours each month
•10,000 plane crashes every 1,000,000 flights
•5000 incorrect surgical operations per week
•200,000 wrong drug prescriptions per year
•No telephone service or TV transmission for 5 minutes every 3 years
•Unsafe drinking water for 1 minute every 7 months
•3.4 plane crashes every 1,000,000 flights
•1.2 incorrect surgical operations per week
•60 wrong drug prescriptions per year

39. Vehicle Management Agency Inventory Management Process
Problem statement:
Cost of Inventory: Stockrooms are working in silos, considerable effort is spent on managing inventory, and inventory levels are inadequately maintained
Goal:
Purchase and implement bar code scanning technology
Reduce inventory management effort by 20%, to right-size inventory levels, and to reduce purchasing costs by 5.5%

40. Vehicle Management Agency: Inventory Management Process
Potential Cause:
It was taking too long to key part numbers on a PO (when ordering and receiving parts) and on a requisition (when issuing parts and returning them to stock).
Potential Solution:
Purchase and implement bar
code scanning technology

41. X2: Time keying POs, receipts, and requisitions is a factor
Ho It is not a factor
Ha It is a factor
Test : Regression
Test Results: Only 5.4% of Stockroom Lead Time is explained by keying effort
Regression Statistics
Multiple R 0.25
R Square 0.0623
Adjusted R Square 0.0535 Not a significant factor
Standard Error 143.16
Observations 108.00
ANOVA
df SS MS F Significance F
Regression 1.00 144,419.50 144,419.50 7.05 0.01
Residual 106.00 2,172,339.41 20,493.77 Strong model
Total 107.00 2,316,758.92
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 51.45 17.84 2.88 0.00 16.09 86.81 16.09 86.81
Time procuring/issuing 1.91 0.72 2.65 0.01 0.48 3.33 0.48 3.33
Time procuring/issuing parts is a factor
y = 1.9087x + 51.45
R² = 0.0623
-
100
200
300
400
500
600
700
800
900
- 20 40 60 80 100 120 140 160
Stockroom Lead Time (minutes)
Time procuring/issuing parts
Stockroom Lead Time Time Procuring/Issuing
Stockroom Lead Time 1.00
Time procuring/issuing 0.25 1.00
Moderate Correlation

42. Slow Moving Inventory – Turnover Ratio
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
1 2 3 4 5 6 7 8 9 10 11 12
INVENTORY $ ON HAND
TURNS PER YEAR
Turns
per Year
Average
Inventory On
Hand
Annual
Interest Costs
(0.95%)
Total Annual
Inventory
Costs
Total
Savings
2 $ 5,020,828 $ 47,698 $ 5,068,526 0%
3 $ 3,347,219 $ 31,799 $ 3,379,017 33%
4 $ 2,510,414 $ 23,849 $ 2,534,263 50%
5 $ 2,008,331 $ 19,079 $ 2,027,410 60%
6 $ 1,673,609 $ 15,899 $ 1,689,509 67%
7 $ 1,434,522 $ 13,628 $ 1,448,150 71%
8 $ 1,255,207 $ 11,924 $ 1,267,131 75%
9 $ 1,115,740 $ 10,600 $ 1,126,339 78%
10 $ 1,004,166 $ 9,540 $ 1,013,705 80%
11 $ 912,878 $ 8,672 $ 921,550 82%
12 $ 836,805 $ 7,950 $ 844,754 83%
Currently 2X
Target 6X
Reduction: 67%
One-time: $2.6m
Annually: $30,000
Average Inventory On Hand
Annual Interest Costs (0.95%)
High ROI
Lower risk
Lower ROI
Higher risk

43. Vehicle Management Agency Inventory Management Process
Problem statement:
Stockrooms are working in silos, considerable effort is spent on managing inventory, and inventory levels are inadequately maintained
Goal:
Purchase and implement bar code scanning technology
Reduce inventory management effort by 20%, to right-size inventory levels, and to reduce purchasing costs by 5.5%
Results:
•Purchasing cost savings $641,849 (5%)
•Inventory levels reduced by $455,164 (10%)

44. Success through Lean Six Sigma projects…
Reduced travel costs
$999,487 savings year 1
Routine ECG wait times
22 weeks to < 4 weeks

45. Success through Lean Six Sigma projects…
Asphalt Leveling
Work completed in 2 months instead of 3. $453,259 savings
Reduced bank interest costs
$719,900 savings year 1

46. Waste Walk
Transportation
Inventory
Motion
Waiting
Overproduction
Overprocessing
Defects
People's Knowledge/Skills
Unevenness
Overburden
•High inventories
•Wasted materials
•Absenteeism
•Late deliveries
•Rework
•Invoices
•Returns to Suppliers
•Repackaging
•Inspecting
•Expediting
•Moving
•Counting
•Sorting
•Loading / Unloading
•Receiving Report

47. 12-person approval process for contract documents
Excess cost of mail delivery
Computers & monitors left on after hours
Executive Flight Service map subscription
Improper removal of light bar on trucks
VPNs not being used
Phone lines not required
Printing of daily reports
Storage of disposable records
Excess printing of annual reports
Improper storage of tools
30% of violation reports contained errors
Excess motion within the lab
Renting of storage units
Excess of shred boxes
Production of both digital & paper copies of reports
Excess motion for delivering interoffice mail
Personal files stored on shared drive
Frequency of meetings
Redundancy in data entry
“Waste Walks” 600 walks…$2,000,000+ savings

48. Strategy Management
Priorities and speed!
Initiative Management
Priority initiatives and projects!
S
O
M
I
A
Daily Management
Hold the gains!
GNB Formal Management System
Standard Operating Procedures (SOP)
Standard work!
Strategy Map
Balanced Scorecard
Process Management
Operational KPI Dashboard

49. Standard Operating Procedures

51. Strategy Management Priorities and speed!
Initiative Management
Priority initiatives and projects!
S
O
M
I
A
Daily Management
Hold the gains!
GNB Formal Management System
Standard Operating Procedures (SOP)
Performance
Management
Align and engage teams and people
Standard work!
Strategy Map
Balanced Scorecard
Process Management
Operational KPI Dashboard

52. Karl Moore is an Associate Professor at McGill University, Montreal, Canada. The winter 2005 issue of Business Strategy Review, published by the London Business School, identified Karl Moore among a group of world’s greatest business thinkers.

53. Initiative
Management
Daily Management
Process Management
Strategy Management
Performance Management
GNB Formal Management System
“IN”
“ON”

54. Strategy versus Operations
Working “IN” the business
(day-to-day operations)
Initiatives
Action Plans
“improve, add or
delete processes”
REVIEW RESULTS Calendar of Commitments
Measure for
IMPROVEMENT:
Measure for process CONTROL:
Working “ON” the business
(prioritized improvement)
MISSION
SOMIA
VISION
Value Stream
Processes
“individual responsibilities” (process owners)
Operating Plan
Balanced Scorecard
DASHBOARD: Key Process Indicators (KPI)
Strategy Map

55. Balanced Scorecard Measures:
•Percent of Calendar of Commitments on track
•Employee engagement survey results
•Percent performance reviews complete
•Percent of SOMIA on track
•Employee attendance
•Percent of senior leaders developed in formal management system/business improvement
Performance
Management
Align and engage teams and people

57. GNB Quarterly Performance Review
Theme Teams

58. Wave I
•Environment & Local Government
•Natural Resources
•Service New Brunswick
•Transportation & Infrastructure
•Horizon Health Network
•Finance
Wave II
•Justice & Attorney General
•Education and Early Childhood Development
•Agriculture, Aquaculture & Fisheries
•Public Safety
•Post-Secondary Training, Education & Labour
•Social Development
•New Brunswick Internal Services Agency
Wave III
•Health
•Facilicorp NB
•Executive Council Office
•Economic Development
•Invest NB
•Healthy & Inclusive Communities
•Efficiency NB
•Human Resources
•Tourism, Heritage & Culture
•Energy & Mines
Departments

61. Balanced Scorecard Measures:
•Percent of Calendar of Commitments on track
•Employee engagement survey results
•Percent performance reviews complete
•Percent of SOMIA on track
•Employee attendance
•Percent of senior leaders developed in formal management system/business improvement
Performance Management Align and engage teams and people

62. Information Readiness
Internal Processes
Grow leadership capacity
Customers: GNB/Dept Leadership Teams and Employees
DHR Mission: Human resource leadership to enable a high performing GNB workforce.
NB Public Service Values: competence – impartiality – integrity – respect – service
2014-2015
DHR Strategy Map
A stronger economy and an enhanced quality of life, while living within our means.
People Readiness Align leadership talent to drive Execution of GNB Strategy
Enable GNB HR Community
People Readiness
Performance Excellence Culture
Provide relevant, timely and quality HR information
VISION 2015
Align employee performance to the GNB formal management system
Align HR leadership to drive execution of GNB strategy
Information Readiness Access relevant, timely and quality information
Culture Readiness Align department performance to GNB Strategy
Build mutually beneficial employee- employer solutions
Achieve sustainable budget.
Build HR continuous improvement competencies
Financial
Prioritize, standardize, and improve HR processes
Information Readiness
Improve attendance

63. Building Improvement Leaders
Improvement Roles
Operational Roles
Individual Contributors
Managers
Directors
Assistant Deputy Ministers
Deputy Ministers
Lean Six Sigma Black Belt (2yrs)
Change Champion lead significant organizational change

64. Build Capacity for Sustainability
Future Leader?
Personal Attributes
Cognitive Ability
Leadership Potential
Knowledge & Experience

65. www.gnb.ca/excellence

66. “Employees Making a Difference”
www.gnb.ca/excellence

67. http://digital.progressmedia.ca/

68. Canadian Government Executive Leadership Award 2014
“providing improved public service at lower cost”

69. Thank you!

70. Strategy Management
Priorities and speed!
Initiative Management
Priority initiatives and projects!
S
O
M
I
A
Daily Management Hold the gains!
GNB Formal Management System
Standard Operating Procedures (SOP)
Performance
Management
Align and engage teams and people
Standard work!
Strategy Map
Balanced Scorecard
Process Management
Operational KPI Dashboard