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