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Copyright Steve Horne and Mike Cook Copyright Steve Horne and Mike Cook 2005. This work is the intellectual 2005. This work is the intellectual property of the author. Permission is property of the author. Permission is granted for this material to be shared for granted for this material to be shared for non-commercial, educational purposes, non-commercial, educational purposes, provided that this copyright statement provided that this copyright statement appears on the reproduced materials and appears on the reproduced materials and notice is given that the copying is by notice is given that the copying is by permission of the author. To disseminate permission of the author. To disseminate otherwise or to republish requires otherwise or to republish requires written permission from the author.written permission from the author.

Performance Improvement Performance Improvement Initiatives at Michigan State Initiatives at Michigan State

UniversityUniversityReengineering Processes in Reengineering Processes in the Office of Admissions and the Office of Admissions and

ScholarshipsScholarshipsCUMREC 2005CUMREC 2005

May 16, 2005May 16, 2005

Steve HorneSteve Horne Mike Cook Mike Cook

horne@msu.eduhorne@msu.edu cookchar@msu.educookchar@msu.edu

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Setting the Stage…Setting the Stage…

Times are hard (in case you didn’t get the Times are hard (in case you didn’t get the memo)memo)

Still opportunity in the way we do our workStill opportunity in the way we do our work Takes a focused effort – not about working Takes a focused effort – not about working

harder – it is about processharder – it is about process Set of concepts and tools (lean and change Set of concepts and tools (lean and change

management)management) Presentation of a practical examplePresentation of a practical example Whet your appetiteWhet your appetite

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Why We Are HereWhy We Are Here

“ “Upon the subject of education, not Upon the subject of education, not presuming to dictate any plan or presuming to dictate any plan or system respecting it, I can only say system respecting it, I can only say that I view it as the most important that I view it as the most important subject which we as a people can be subject which we as a people can be engaged in."engaged in."

A. LincolnA. Lincoln

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High Expectations, Big High Expectations, Big Challenges Challenges

Cherry Commission – double the number Cherry Commission – double the number of Michigan residents with degrees or of Michigan residents with degrees or credentialscredentials

Movement toward increased accountabilityMovement toward increased accountability Budget constraints – reduced state fundingBudget constraints – reduced state funding Changing sources of revenueChanging sources of revenue Competition for best students, facultyCompetition for best students, faculty ……and so on – you know…and so on – you know… = do more with less (faster would be good, = do more with less (faster would be good,

too)too)

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Focus on the ProcessFocus on the Process Foundational Statements:Foundational Statements:

Processes are created to assist people Processes are created to assist people in performing important, but in performing important, but repetitive tasks (most tasks are…)repetitive tasks (most tasks are…)

Processes take on a life of their ownProcesses take on a life of their own Processes are responsible for about Processes are responsible for about

85% of the waste in our organization85% of the waste in our organization THEREFORE – there is a huge THEREFORE – there is a huge

opportunity in improving our opportunity in improving our processesprocesses

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“ “The optimists among us, those with The optimists among us, those with unfaltering faith in the power of unfaltering faith in the power of ideas and the capacity of people to ideas and the capacity of people to use them, will look upon all we have use them, will look upon all we have done up until this day as a time of done up until this day as a time of preparation for the major tasks preparation for the major tasks remaining ahead.”remaining ahead.”

John HannahJohn Hannah

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““Give me 6 hours to chop down a tree, Give me 6 hours to chop down a tree, and I will spend the first 4 hours and I will spend the first 4 hours sharpening the axe.”sharpening the axe.”

Abraham Abraham LincolnLincoln

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““In theory there is no difference between In theory there is no difference between theory and practice. In practice there is.”theory and practice. In practice there is.”

“ “You can observe a lot by just watching.”You can observe a lot by just watching.”

Yogi Yogi BerraBerra

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An Enduring Image…An Enduring Image…

Picture a toll booth…Picture a toll booth…

in the middle of the vast in the middle of the vast expanse of the desert…expanse of the desert…

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“Blazing Saddles” Example

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9 Kinds of Waste9 Kinds of Waste

Over Over processingprocessing

Human motionHuman motion WaitingWaiting CorrectionCorrection ComplexityComplexity

BureaucracyBureaucracy

InventoryInventory

Over Over productionproduction

Material Material motionmotion

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WAITINGWAITING

Defined as:Defined as: well, waiting… well, waiting… ……for approvals before you start or for approvals before you start or

finishfinish ……on missing data (or no dimes)on missing data (or no dimes) ……for meetings to start, or while late for meetings to start, or while late

arrivers are arrivers are brought up to brought up to speedspeed

……for clarificationfor clarification

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What Does This Mean…What Does This Mean… From the perspective of the customer From the perspective of the customer

things take a long time – from our things take a long time – from our perspective, we are just doing what we perspective, we are just doing what we think is right. This means:think is right. This means:

It means that most of the obstacles in our It means that most of the obstacles in our way are of our own making (or way are of our own making (or agreement)– agreement)–

We buy into the “toll boothisms”We buy into the “toll boothisms” And we could choose to go around, if only And we could choose to go around, if only

we saw the need and the opportunitywe saw the need and the opportunity What stops us?What stops us?

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Indeed – What Stops Us?Indeed – What Stops Us?

Generally speaking – Generally speaking –

1.1. We don’t perceive the opportunityWe don’t perceive the opportunity

2.2. We don’t believe we have the We don’t believe we have the power to changepower to change

3.3. There is no effective pressure to There is no effective pressure to change change

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Kotter’s 8 Steps in Kotter’s 8 Steps in Change Management Change Management

Establish a sense of UrgencyEstablish a sense of Urgency Create the guiding coalitionCreate the guiding coalition Develop a vision and strategyDevelop a vision and strategy Communicate the change visionCommunicate the change vision Empower broad-based actionEmpower broad-based action Generate short term winsGenerate short term wins Consolidate gains and generate more Consolidate gains and generate more

changechange Anchor the changes in the cultureAnchor the changes in the culture

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MSU Admissions ProfileMSU Admissions Profile

Approximately 45,000 enrolled studentsApproximately 45,000 enrolled students 22,000 freshman applications, admitted 22,000 freshman applications, admitted

17,000 and enrolled 735017,000 and enrolled 7350 4600 transfer applications, admitted 4600 transfer applications, admitted

2500 and enrolled 16002500 and enrolled 1600

Staff (64): Director, 3 Associate Staff (64): Director, 3 Associate Directors, 5 supervisors, 28 clerical, 3 Directors, 5 supervisors, 28 clerical, 3 technical, 7 secretaries, and 18 technical, 7 secretaries, and 18 counselorscounselors

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Transfer Credit Transfer Credit Evaluation (TCE)Evaluation (TCE)

In the beginning…In the beginning… Workload was split between evaluators causing Workload was split between evaluators causing

delays when someone was absentdelays when someone was absent Nine evaluators worked nine different waysNine evaluators worked nine different ways Lack of valid management metrics or directionLack of valid management metrics or direction Work was deadline-driven Work was deadline-driven Work was internally focused; students were Work was internally focused; students were

secondarysecondary Work culture – that’s the way we’ve always Work culture – that’s the way we’ve always

done it! done it! Back burner assignments remained on back Back burner assignments remained on back

burnersburners

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Outcome = Inefficiency & Outcome = Inefficiency & Poor Customer ServicePoor Customer Service

““We’ll get to it when we get to it” practiceWe’ll get to it when we get to it” practice Average time to review a transcript: 30 Average time to review a transcript: 30

daysdays Average time to deliver processed Average time to deliver processed

applications to counselors: 68 daysapplications to counselors: 68 days ““Down to the wire” operationDown to the wire” operation We focused on the work – not the outcomeWe focused on the work – not the outcome We spent a lot of unnecessary time doing We spent a lot of unnecessary time doing

things, redoing things, and then doing things, redoing things, and then doing them againthem again

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““But that’s the way we’ve But that’s the way we’ve always done it!”always done it!”

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Kotter’s Change Kotter’s Change Management and Transfer Management and Transfer

AdmissionsAdmissions Created a Created a sense of urgencysense of urgency in the workgroup in the workgroup Formed a Formed a coalition of supportcoalition of support – – listened a lotlistened a lot Developed clear Office of Admissions Developed clear Office of Admissions vision and vision and

mission statementsmission statements Utilized brainstorming sessions and formed Utilized brainstorming sessions and formed

Process Improvement Teams with the authority Process Improvement Teams with the authority to create and implement change; to create and implement change; empower empower broad-based actionbroad-based action

Gained Gained short-term successesshort-term successes that led to group that led to group trusttrust

Established a Established a culture of changeculture of change

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OAS VisionOAS Vision

Our vision is to be a leader among peer Our vision is to be a leader among peer universities in universities in optimizing processesoptimizing processes and and programs in order to achieve University programs in order to achieve University enrollment goals, true to the land grant enrollment goals, true to the land grant tradition. We will be a model for campus-tradition. We will be a model for campus-wide communication and collaboration. We wide communication and collaboration. We will maintain an will maintain an energetic, creative, and energetic, creative, and customer-focused environmentcustomer-focused environment where where diversity is valued, expectations for staff diversity is valued, expectations for staff contribution are understood, and contribution are understood, and achievement is recognized. achievement is recognized.

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OAS MissionOAS Mission

The Office of Admissions and The Office of Admissions and Scholarships achieves University Scholarships achieves University enrollment goals by providing enrollment goals by providing high-high-quality leadership, services, and quality leadership, services, and programsprograms in order to in order to recruit, admit recruit, admit and enrolland enroll students whose experiences students whose experiences and talents demonstrate that they and and talents demonstrate that they and Michigan State University will benefit by Michigan State University will benefit by their enrollment.their enrollment.

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OAS – Ten Core ValuesOAS – Ten Core Values1.1. ProfessionalismProfessionalism2.2. Ethics and IntegrityEthics and Integrity3.3. TeamworkTeamwork4.4. Mutual RespectMutual Respect5.5. Customer FocusCustomer Focus6.6. Clear and Effective CommunicationsClear and Effective Communications7.7. ResourcefulnessResourcefulness8.8. Continuous ImprovementContinuous Improvement9.9. Results OrientationResults Orientation10.10.Staff DevelopmentStaff Development

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Transfer ChangesTransfer Changes

Created Operations Coordinator positionCreated Operations Coordinator position Established written common proceduresEstablished written common procedures Implemented an evaluator work scheduleImplemented an evaluator work schedule Replaced 15 year old reports with excel-Replaced 15 year old reports with excel-

based dashboard reports based dashboard reports Developed on-line Status CheckDeveloped on-line Status Check Developed automated process for AP loadDeveloped automated process for AP load

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Transfer Changes (cont.)Transfer Changes (cont.) Utilized unused features of our Imaging Utilized unused features of our Imaging

SystemSystem Electronic Workflow; eliminated paper Electronic Workflow; eliminated paper

pushingpushing Created work queuesCreated work queues Electronic annotationsElectronic annotations

Created an Electronic Decision SheetCreated an Electronic Decision Sheet Standardized application processingStandardized application processing Weekly electronic Counselor group reviewsWeekly electronic Counselor group reviews Automated Student Information System Automated Student Information System

updatesupdates

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Transfer Application to Decision ProcessTransfer Application to Decision ProcessAverage Calendar Days: FS04 - 98 DaysAverage Calendar Days: FS04 - 98 Days

Student submits Student submits applicationapplication

Key data into Key data into SISSIS

Image Image docsdocs

Student Student sends sends transcripttranscript

WaitWait

WaitWait

WaitWait WaitWait

WaitWait

WaitWait

Verify Verify imageimage

Transcript Transcript delivereddelivered

Process paper Process paper packetpacket

WaitWait

WaitWait

Counselor pick-Counselor pick-upup

Decision Decision renderedrendered

Key data into Key data into SISSIS

Mail decision Mail decision letterletter

WaitWait

20 Days

12 Days

14 DaysWaitWait

30 Days 7 Days

7 Days

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Transfer Application to Decision ProcessTransfer Application to Decision ProcessAverage Calendar Days: FS05 – 53 DaysAverage Calendar Days: FS05 – 53 Days

Student submits Student submits applicationapplication

Key data into Key data into SISSIS

Image Image docsdocs

Student Student sends other sends other docsdocs

WaitWait

WaitWait

WaitWait WaitWait

WaitWait

WaitWait

Verify Verify imageimage

Coordinator Coordinator reviewreview

Workflow to Workflow to evaluatorevaluator

WaitWait

WaitWait

Workflow to counselor Workflow to counselor queuequeue

Decision Decision renderedrendered

Key data into Key data into SISSIS

Mail decision Mail decision letterletter

WaitWait

20 Days

7 Days

5 DaysWaitWait

18 Days

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Transfer – Planned Transfer – Planned ChangesChanges

Transfer Credit evaluation auto-Transfer Credit evaluation auto-articulationarticulation

Document sharing with departmentsDocument sharing with departments Electronic workflow of formsElectronic workflow of forms Overhaul of the equivalency Overhaul of the equivalency

database and web interface for database and web interface for public usepublic use

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Transfer Credit EvaluationTransfer Credit EvaluationPerformance Improvement Performance Improvement

ImpactImpact

Customer PerspectivesCustomer Perspectives StudentsStudents EmployeesEmployees Michigan State UniversityMichigan State University Office of Admissions & ScholarshipsOffice of Admissions & Scholarships

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Are you marching to the Are you marching to the status quo or jumping to status quo or jumping to achieve today’s demands?achieve today’s demands?

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Starting to Wrap it UpStarting to Wrap it Up

Mike’s group clearly picked a process Mike’s group clearly picked a process with lots of opportunity.with lots of opportunity.

They reviewed it from the perspective of They reviewed it from the perspective of those it was intended to serve – external those it was intended to serve – external focus.focus.

Note that this was not a high tech Note that this was not a high tech solution – they took out time, labor and solution – they took out time, labor and cost and added quality. They took out cost and added quality. They took out waste.waste.

They measured – before, during and after.They measured – before, during and after.

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DoDo Don’tDon’t Focus on what you Focus on what you

are there to are there to accomplishaccomplish

Be involvedBe involved Reward and support Reward and support

people – this is people – this is personal for thempersonal for them

Get comfortable Get comfortable with talking about with talking about wastewaste

Reframe the Reframe the question question

MeasureMeasure Question – Ask whyQuestion – Ask why

Assign blame or make Assign blame or make a threata threat

Accept work effort as Accept work effort as the standard for good the standard for good workwork

Throw your people out Throw your people out there by themselvesthere by themselves

Ever denigrate the Ever denigrate the past or the presentpast or the present

Get too wrapped up in Get too wrapped up in “the perfect”“the perfect”

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Keys to Reducing WasteKeys to Reducing Waste Recognize that it exists – it always existsRecognize that it exists – it always exists We all tend to create it – without We all tend to create it – without

meaning to meaning to Learn how to recognize wasteLearn how to recognize waste Create a “change is…” cultureCreate a “change is…” culture Develop a Systemic and Measurable Develop a Systemic and Measurable

approachapproach Identify, develop and use metricsIdentify, develop and use metrics View your work as a businessView your work as a business Eliminate, streamline, then automateEliminate, streamline, then automate

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ADDENDAADDENDA

TABLE OF CONTENTSTABLE OF CONTENTS Waste of Over ProcessingWaste of Over Processing Waste of WaitingWaste of Waiting Waste of CorrectionWaste of Correction Waste of ComplexityWaste of Complexity Waste of BureaucracyWaste of Bureaucracy Waste of InventoryWaste of Inventory Waste of Over ProductionWaste of Over Production Waste of Material MotionWaste of Material Motion Waste of Human MotionWaste of Human Motion

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OVERPRODUCTIONOVERPRODUCTION

Defined asDefined as: making things you don’t : making things you don’t need, including copiesneed, including copies

Reports that contain all the detail – are Reports that contain all the detail – are you trying to deliver a message, or you trying to deliver a message, or provide a information derived from the provide a information derived from the datadata

Reports that have outlived their Reports that have outlived their usefulnessusefulness

Re-keying information that exists in a Re-keying information that exists in a central filecentral file

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WAITINGWAITING

Defined as:Defined as: well, waiting… well, waiting… ……for approvals before you start or for approvals before you start or

finishfinish ……on missing dataon missing data ……for meetings to start, or while late for meetings to start, or while late

arrivers are arrivers are brought up to speedbrought up to speed ……for clarificationfor clarification ……invited to a meeting in which you invited to a meeting in which you

have no real rolehave no real role

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CORRECTIONCORRECTION

Defined as:Defined as: ensuring something is ensuring something is rightright

Auditing someone else’s workAuditing someone else’s work Correcting errors or omissions Correcting errors or omissions Permitting on-going, systemic error to Permitting on-going, systemic error to

continuecontinue Responding to questions about the Responding to questions about the

workwork Looking for missing dataLooking for missing data

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COMPLEXITYCOMPLEXITY

Defined as:Defined as: processes that are not as processes that are not as simple and straight-forward as simple and straight-forward as possiblepossible

Multiple ways of doing the same thingMultiple ways of doing the same thing Tasks added later on because they Tasks added later on because they

were unclear, not defined or not were unclear, not defined or not completed up frontcompleted up front

Unclear languageUnclear language Unnecessary redundancyUnnecessary redundancy

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BUREAUCRACYBUREAUCRACY

Defined as:Defined as: an organizational structure an organizational structure that inhibits the flow or accomplishment that inhibits the flow or accomplishment of workof work

Needless constraints or bottlenecksNeedless constraints or bottlenecks Unnecessary approvals Unnecessary approvals Doing unnecessary work, or doing it overDoing unnecessary work, or doing it over Poor delegation of authority (not Poor delegation of authority (not

responsibility)responsibility) Not questioning “why”Not questioning “why”

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INVENTORYINVENTORY

Defined as:Defined as: too much of something too much of something Too many copies of a presentationToo many copies of a presentation Everyone keeping a file copyEveryone keeping a file copy Just in case paper records behind Just in case paper records behind

electronic fileselectronic files Records past the destruct dateRecords past the destruct date SuppliesSupplies Maintaining physical supplies we no Maintaining physical supplies we no

longer uselonger use

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OVER PROCESSINGOVER PROCESSING

Defined as:Defined as: adding content that does not adding content that does not add valueadd value

Approvals too high in the organizationApprovals too high in the organization Delegating the analysis “ up the ladder”Delegating the analysis “ up the ladder” A data rich report without a message or A data rich report without a message or

key points (so that all the readers have to key points (so that all the readers have to do the analysis - reach differing do the analysis - reach differing conclusions?)conclusions?)

Requesting data that is not needed for the Requesting data that is not needed for the actionaction

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MATERIAL MOTIONMATERIAL MOTION

Defined as:Defined as: moving material moving material (physical things) around (physical things) around

Office supplies being shipped to a Office supplies being shipped to a central stores locationcentral stores location

Moving the same form around for Moving the same form around for sequential approvalssequential approvals

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HUMAN MOTIONHUMAN MOTION

Defined as:Defined as: putting people in motion putting people in motion Hand delivering or walking Hand delivering or walking

something “hot” through the systemsomething “hot” through the system Looking for a parking spaceLooking for a parking space Travel time to meetingsTravel time to meetings Having copiers and printers located Having copiers and printers located

out of the wayout of the way

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Process ImprovementProcess Improvement

PlanPlan

CheckCheck

ActAct

DoDo

Identify what Identify what you are trying you are trying to doto do

Figure out Figure out what you are what you are going to dogoing to do

Write it downWrite it down

Measure itMeasure itIdentify Identify waste – or waste – or opportunitieopportunities to improves to improve

Try it – Try it – implemimplement the ent the changechange

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Steve Horne - BiographySteve Horne - Biography

Steve Horne joined MSU in the summer of Steve Horne joined MSU in the summer of 2003 after 25 years at Ford Motor 2003 after 25 years at Ford Motor Company and is working on process Company and is working on process improvement and leadership development. improvement and leadership development. Steve is one of the MSU team Steve is one of the MSU team collaborating with Indiana, Cornell, collaborating with Indiana, Cornell, Hawaii, Arizona and San Joaquin Delta to Hawaii, Arizona and San Joaquin Delta to develop an open sourced financial systems develop an open sourced financial systems model. He appreciates this opportunity to model. He appreciates this opportunity to present at the 2005 CUMREC conference. present at the 2005 CUMREC conference.

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Mike Cook - BiographyMike Cook - Biography

Mike Cook joined MSU in the spring of Mike Cook joined MSU in the spring of 2003 after 21 years in the United States Air 2003 after 21 years in the United States Air Force. As an aviator, Mike’s career focused Force. As an aviator, Mike’s career focused on leadership, management, and on leadership, management, and performance improvement. He also served performance improvement. He also served as the Director of Quality and Nurse as the Director of Quality and Nurse Education at Abilene Regional Medical Education at Abilene Regional Medical Center in Abilene, Texas. At MSU, Mike Center in Abilene, Texas. At MSU, Mike serves as Associate Director of Admissions serves as Associate Director of Admissions responsible for operations and technology.responsible for operations and technology.