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Teresa Hay McMahonPerformance Results Director
State of IowaDepartment of Management
Building a Lean Culture in GovernmentBuilding a Lean Culture in Government
STATE OF IOWASTATE OF IOWA
Established 1846
56,000+ square miles
Beautiful Land Between Two Rivers
71,665 miles of streams and rivers
IOWA TODAYIOWA TODAY
3 Million people Growing but slower than US overall
Primary employers: Insurance, manufacturing, financial
management 3rd most productive agricultural state
Average commute: 18.5 minutes
Home of the World Food Prize
IOWA STATE GOVERNMENTIOWA STATE GOVERNMENT $13 Billion Budget
$1Billion payroll
Over 700 individual revenue streams 30 Executive Branch agencies 20,000 Executive Branch employees
3 union contracts cover 2/3 of all employees
Governor Chet Culver
THE BEGINNING: 2003THE BEGINNING: 2003
Environmental agency approached by the Iowa Coalition for Innovation & Growth Hot Team on Business Development
Processes
Public-private partnership proposed
Consultant offered to run kaizen
event
THE CHALLENGETHE CHALLENGE
Air Quality new source construction permits Issue ~ 2,000 permits per year Average lead time: 62 days
Lead time reduced to 6 days
Backlog eliminated within 6 months
WHAT NOW?WHAT NOW?
ICIG Hot Team asks for a commitment
DNR agrees to implement Lean
TBM returns for a “drive by” kaizen
2004: Six DNR events, one at another state agency
LEADING THE CHARGELEADING THE CHARGE
Governor asks all agencies to conduct at least one kaizen event
Office of Lean Enterprise established within Department of Management July 1, 2006
MOVING FORWARDMOVING FORWARD
2005: 24 events – multiple agencies
2006: 29 events – more agencies
75+ events total to date Kaizen, Design for Lean Sigma, Policy
Deployment…
MANURE MANAGEMENTMANURE MANAGEMENT
Beginning in 2003 new Manure Management Plans (MMPs) and Construction Design Statements required
Issues revolving around manure management and livestock production are emotionally charged
Adversarial relationship between environmental staff and producers
THE PROBLEMTHE PROBLEM Time was spent inspecting operations
that seldom if ever have a violation and not on chronic violators
Producers had incomplete/unorganized records
Agency staff primarily viewed as compliance cops not educators
Victimizes producer and agency staff Non-standard inspections between staff and field offices
THE LESSONTHE LESSON
80/20 Rule 80% of the problems caused by
20% chronic violators
How we view role/mission dictates where we focus our time
Standardization reduces variation and improves quality
IOWA VETERANS HOMEIOWA VETERANS HOME
700+ bed nursing facility
Maintenance work orders Non-emergency Required for electrical, plumbing,
painting and miscellaneous work Something smaller than a “project”
THE PROBLEMTHE PROBLEM
Large backlog of Maintenance Work Orders
No standard process
Lack of work order prioritization
Little communication
Unorganized
THE LESSONTHE LESSON
Process transparency can reveal systemic and personnel issues previously hidden from management
Leadership commitment was critical
MANAGEMENT V. UNIONMANAGEMENT V. UNION
Grievance Resolution Improvement Process (GRIP)
Started in 1999
4 agencies involved: Corrections, Human Services, Transportation, Vets Home
Two-fold purpose: reduce # of cases going to arbitration and promote settlement of disputes as early as possible.
THE PROBLEMTHE PROBLEM
Most GRIP cases proceeded to arbitration expensive
No parties satisfied with process
Relationship between labor and management was adversarial
THE LESSONTHE LESSON
It’s not just about fewer steps, it’s about the right steps
Even in a hostile environment being able to see the entire process was key to getting past the dynamics
OPPORTUNITIESOPPORTUNITIES
Disguised as إلChallenges
CULTURE CHANGECULTURE CHANGE
It doesn’t happen overnight and it doesn’t happen easily
You must DRIVE change from the top down
LEADERSHIP
Senior management engagement and commitment are the most important factors in long-term success
OVERCOMING RESISTANCEOVERCOMING RESISTANCE
“This won’t work here. We are different.”
“We have had a lot of things done to us over the years. We’ll get through this too.”
“Staff is already working as hard as they can.”
OVERCOMING HISTORYOVERCOMING HISTORY
Every other “flavor-of-the-month” that didn’t meet expectations TQM CQI MBWA
Nothing speaks louder than results
Don’t feed the CAVE people
CHANGING EXPECTATIONSCHANGING EXPECTATIONS
For staff Overcoming the “whip-smart” mindset Fear of lay-offs, placing blame Negative impacts on regulatory stringency No time for a week away from work
For customers Government ≠ equal Bureaucracy
VICTIMSVICTIMS
Do we need a 12-step program? “Victim-hood” relieves staff of responsibility Never give a victim a Get Out of Jail Free card
Job preservation is about performance, not workload
Active
Passive
EM
OT
ION
AL
RE
SP
ON
SE
TIME
Denial
Anger/Frustration
Concern/Depression
Testing
AcceptanceNew Norm
INTELLIGENT CHANGEINTELLIGENT CHANGE
Team members go through this change cycle during the week-long kaizen
Culture shift is larger and longer than a single event
Don’t assume you know where any individual is in the change cycle
COMMUNICATIONSCOMMUNICATIONS
Its more than just the morning after It doesn’t have to be lengthy or elaborate It must be frequent & consistent
What’s the message? Culture change is a non-negotiable course Lean is a non-negotiable strategy
FOLLOW-UPFOLLOW-UP
Critical component 30, 60 and 90-days
Completing the homework for full implementation Sustain the Gains
6-month and 1-year audits
REMEMBER…REMEMBER…
The principles of change management are well known. The challenge is to apply them.
Culture change comes from developing leaders, not from completing projects.
Working for World Class Working for World Class GovernmentGovernment
Office of Lean Enterprise
http://lean.iowa.gov
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