1. Transforming Services Organizations:Lean OfficeAn overall case study of the application of Lean principles, anda systemic approach, to transforming services organizations. 1 2011 Protegra Inc. All rights reserved.

2. AbstractTransforming the business: - Applying Lean to a non-manufacturing environmentNever just a system projectLogical progression to transformingSet the foundationDesign the solution; define requirementsBuild the roadmap; align all elements - Goals, value, processes, people, tools and technologyPlan Do Check Adjust1:002 2011 Protegra Inc. All rights reserved. 3. OutlineLean office examplesA review of Lean principlesA people-focused approachOverview of Lean application to MB ImmigrationEnterprise architecture evolution- Registration, Assessment and Employment solution: Correlate: Software-as-a-Service (SaaS) Applying Lean to MBs Provincial Nominee Program - PNP Online and Assessment Tool Questions, Discussion1:00 3 2011 Protegra Inc. All rights reserved. 4. Lean Office examples In immigration - Provincial Nominee Program Application processing - Employment services: registration, assessment, referral, job coaching, employment - Academic Credential Assessment Services Other services examples - Registration and renewal processing in regulated professions - Sales process (selling/quoting to order fulfillment) - Sludge inventory reduction; an asset disposal process - Application processing for various programs - Software development2:004 2011 Protegra Inc. All rights reserved. 5. Lean Principles (production/provision)from the providers viewpoint Value - Specify value from the customers viewpoint, and organize to deliver it Value Stream (importance of seeing the BIG PICTURE) - Understand how activities that are linked together to deliver this value - See the waste and opportunities Flow - Link processes and ensure a smooth flow, without stops and loop-backs, generating the shortest lead times. Minimize bottlenecks Pull - Produce only what the next process needs, when it needs it Perfection - Do things right, the first time! This is the magic wand, leans silver bullet, if ever there was one People - Leadership - Engagement - Problem-solvers needed3:005 2011 Protegra Inc. All rights reserved. 6. Lean Principles (consumption)from the customers viewpointSolve my problem completelyDont waste my timeProvide exactly what I wantDeliver value where I want itSupply value when I want itReduce the number of decisions I must make to solve my problems.Between consumption and production, Lean concepts offerastonishing opportunities for eliminating waste and improvingcustomer satisfactionLean Solutions, Womack and Jones, FREE PRESS, 20054:00 6 2011 Protegra Inc. All rights reserved. 7. The meaning of Lean for many:Applying toolsRun charts, Pareto chartsValue stream mapsVariability analysis, identifying wasteStandard workPoke Yoke (mistake-proofing)Kan Ban, JITOne-piece flowVisual workplace, Andon boards5SKaizen and kaizen blitzA3 problem solvingEtc.But Lean ismuch more6:007 2011 Protegra Inc. All rights reserved. 8. What does Lean really mean?Term coined by North American business to describe what Toyota accomplished with its Toyota Production System (and much more)But Toyota never set out to be Lean or even to apply a specific tool or method except that of P-D-C-A, and respect for people. They were just being themselvesWhat is a Lean organization?Lean is a way of life and requires long-term commitment to a set of values and behaviours, and a system of management that encourages theseFocused on value for the customer and the relentless elimination of waste: a real purposeEmployee as the main engine of improvements and value delivery through problem solving and P-D-C-AEmployees never discover a problem and side-step it, or assume that someone else will fix it8:008 2011 Protegra Inc. All rights reserved. 9. Seven WastesWaste: That which adds cost with no value provided to the customerFor Manufacturing For Service Defects Errors in Documents Transportation Transport of Documents Overproduction Doing Work Not Requested Waiting Waiting for the Next Step Processing Process Steps & Approvals Movement Unnecessary Motion Inventory Backlog of WorkDeveloped by Taiichi Ohno -Product & Process Innovation, Inc.classic Toyota Seven Wastes10:00 9 2011 Protegra Inc. All rights reserved.David Hogg High Performance Solutions 10. Protegras fundamentals of design forsuccess Its about people! Its about helping them change andsucceed Know what VALUE youre in business to deliver to WHOM Clear, realistic, non-optional TARGETS Make process performance visible: MEASURE IT MANAGE performance (process, performers) Force short feedback loops: REFLECTION and LEARNING Seek perfection/excellence. Eliminate RE-WORK! Standardize the work; eliminate VARIABILITY PROBLEM SOLVING! Not a mechanism for blame; engagepeople as the main engine for continuous improvement Identify and optimize BOTTLENECKS Focus on removing NON-VALUE work; replace it with VALUEwork if possible11:00 10 2011 Protegra Inc. All rights reserved. 11. Performance Map:approach for problem solving ResultsPeople Desired Results Desired BehavioursGoals and specific, Behaviours needed to ensure measurable outcomesCausal Linkgoals will be met and sustained Metric 1 Behaviour 1 Metric 2 Behaviour 2 Results GapsBehaviour Gaps Current Results Current Behaviours List of currentList of currentperformance metrics Causal Linkobserved behaviours Metric 1 Behaviour 1 Metric 2 Behaviour 2 Factors Influencing PerformanceCauses explaining the Behaviour Gaps(Barriers and Enhancers)13:00 11 2011 Protegra Inc. All rights reserved. 12. Key elements for successful changeIts a proven fact that successful change large or small requiresthese three ingredients: Executive (stakeholder) commitment - not a simple endorsement, but visible leadership for the initiative Employee engagement - not simple participation, but a hand in developing the solution Rigour and discipline of execution - usually the most difficult to achieve - for most organizations, this means radically changing how they do things to get them done! 14:00 12 2011 Protegra Inc. All rights reserved. 13. Towards 20,000:Manitoba a destination of choice18,00016,00014,00012,00010,0008,0006,0004,0002,0000 2000 2001 2002200320042005 200620072008 2009 2010Family classFederal economicProvincial nomineesRefugees15:00Borrowed from Ben Rempels, ADM Immigration,QNET and HRMAM presentations, April 201113 2011 Protegra Inc. All rights reserved. 14. Projects Summary Coordinated Immigrant Skills and Job Matching- Future state design and roadmap for transformation- implementation of roadmap requirement and prototyping immigrant registration, assessment and employment services (IRAES) LIM Correlate SaaS agreement Provincial Nominee Program (Lean Redesign)- Future state design and roadmap for transformation- implementation of roadmap- PNP Online- Document imaging system design Academic Credentials Assessment Services Review15:0014 2011 Protegra Inc. All rights reserved. 15. Current value stream viewInquiresApplication ProcessLetter andPNP ApplicationWelcome Package Applicant / Nominee Process VISAApplication6 18 month lagApplication(Gov of Canada) Approved VISA Immigrant arrivesIn CanadaPre-Approval/Approval ProcessClear Path EmployerSettle Elsewhere? Arrival in Manitoba EmployeeOther ServiceProvidersEmploymentImmigrant Settling in ManitobaService Providers WELARC EmploymentEntryManitoba CentreIntegration Manitoba Government Funded Agencies19:00 2011 Protegra Inc. All rights reserved. 15 16. PNP Immigrant EmploymentFuture State Value Stream InquiriesSystem-wideOnline / Self Assessment Inquiries HandlingMail Application (Answers)Skills and CredentialsApplicant / Nominee RecognitionImmigrant Self-Directed Programs PNP Approval InquiriesInquiriesSkills(prior to arrival) Assessment / UpgradeEmployer RelationshipsJob Matching and Follow-upAssign AdvisorJobMatching InquiriesInitial Plan CreationAdvisor Employer100% LiaisonVisa & approvalEmployment ObjectiveLanguageEmployerMet! assessment / upgradentre Employer Reviewitob a CeJob Opp ent Ma nym E mp l o Arrive in ManitobaJob Opp Job OppJob Opp Readiness RegistrationWELARCJob Readiness Skills Upgrading Meet with Advisor Language Skills Language Assessment Assessment ...Entry 20:00 Immigrant Programs 16 2011 Protegra Inc. All rights reserved. 17. Final view of value stream21:00 17 2011 Protegra Inc. All rights reserved. 18. Future Architecture SolutionEntry CMWeb SiteWELARC Advisor CMCM WebWeb SiteSitePNP AT ESPs CM Web SitePNP Integrated Case ATManagement (ICM) Application ServicesPNP OnlineApplication SP GeneralWeb Site PNPOnlineEmployerLIMSkills QueryDatabase Document Liaison (Correlate)DocsManagementJob MatchingJobsDatabase23:00 2011 Protegra Inc. All rights reserved. 18 19. Correlate Solution Existing Protegra asset in use by some LIM-funded agencies Highly configurable web-based platform Used for prototyping/validating IRAES requirements - Instead of simply completing a requirements document - Builds on the CISJoM project momentum - Allow for real-time feedback from users - Provides high degree of confidence (requirements and solution) - Facilitates user buy-in immediately Established the 1st SaaS agreement for Manitoba - Subscription fee based on user volume - Business continuity agreement mitigates risk to LIM - Passed a rigorous privacy and security assessment by MB Deployed fully configured in less than six months Standardized customer service processes Provides for improved reporting Improved integration throughout the value stream24:0019 2011 Protegra Inc. All rights reserved. 20. LIM Correlate platform (SaaS)Open Source technology: JAVA and PostgreSQLModular design - Modules may be granted (and revoked) to allow individual agencies to access exactly the feature set that they require. - Pages may be configured according to specific agency needs Field visibility Field labels Field position Field marked as required Lookup lists maintained Many extra custom fields availableMultilingual - Available in English, French and Spanish - Additional languages may be addedMulti-platform, multi-browser - e.g. Internet Explorer, Firefox, Safari - No special software - PC or Mac capable26:0020 2011 Protegra Inc. All rights reserved. 21. Main LIM Correlate screens (samples)28:0021 2011 Protegra Inc. All rights reserved. 22. Decision: Approved / Refused?(Reality) The decision is the ultimateApplicant Should Beobjective of the process: quality ApprovedRefusedand speedType II Error Must establish the parameters forthe decision what is most Probability = b ApproveCorrectimportant? What error must be MISSED DETECTIONApplication Probability = 1 - aminimized?impact system downstream After a point, more effort doesnt Test-Based Costs laterimprove the quality of the decision DecisionType I Error(diminishing marginal returns)Probability = aRefuseCorrect Must make full use of historicalFALSE ALARMdata and feedback loops / facts Application Probability = 1 - bMissed opportunity, Waste,from real experience to determine Re-workperformance of decision process Assist assessors with DecisionAssistant to improve speed andquality of decision Identify activities that dont moveus closer to the decision(efficiency opportunities) 32:00Law of diminishing returns22 2011 Protegra Inc. All rights reserved. 23. Executive Summary Re-design Focus on decision (Approve/Refuse) performance - Set objectives and parameters - Manage process performance: quality and speed - Recognize the point of diminishing returns; stop there! Key changes (People, process, technology): Application of Lean Principles People - Team structure, semi-specialized by applicants residence country - Move Pre-Assessors to Assessment - Increase manager count by 1. Implement Lean leadership, coaching, performance management - Training: Teamwork, Problem Solving, Decision Making, Communication, Leadership - Positive reinforcement performance management Process - Streamlined processing and decision-making - Work on ONE file at a time; minimize interruptions, maximize level of effort - Contact applicant (more info) only at 1st assessment step - 1st Assessor is decision maker; 2nd Assessment is quality assurance review - Visual performance monitoring (Andon boards, performance reports) - Implement quality assurance and continuous improvement system Technology - Automated work assignment routine - Simplified application kit: Fillable PDF on-line - Knowledge repository to reduce time-wasters (solve problem only once) - Document management system: scanning, imaging (authenticity), storage, retrieval, eliminate paper movement - Decision Assistant routine33:00 - PNP application re-write (e-submission capability)23 2011 Protegra Inc. All rights reserved. 24. PNP Online and Assessment Tool Designed to provide several productivity gains identified byLean PNP project, and improved customer service .Net application First application to use Manitobas software architecturestandards Leveraged Protegras JRS system (ETT) Seven months to develop, test and deploy both applications- Working to a non-moveable deadline (Elections Act)- Go-live on June 30, 2011 Application maintenance services agreement in place Uptake is exceeding expectations already (~2,500applications submitted or in progress in 3 months)35:00 24 2011 Protegra Inc. All rights reserved. 25. PNP Online and Assessment Toolfeatures Uses the same feature set and architecturefor both 2 separate databases Mistake-proofing logic incorporated in keyareas Intuitive user interface facilitates thecompletion of the PNP application Bilingual Electronic document upload Data exchange to LIM Correlate reducesdata entry duplication downstream37:00 25 2011 Protegra Inc. All rights reserved. 26. Daily stand-up meeting agenda FACILITATOR, RECORDER, TIME KEEPER Around the block (every team member)- What I worked on yesterday- What Ill work on next (today)- Issues that prevented me from getting work done- Capture these on the Team Chart Review planned actions / adjustments- Did we do what we planned on doing?- What were the expected results/outcomes from the actions? Review actual results Daily Report- Review daily targets: 1st, 2nd, Total for team and individual- Identify strengths, opportunities, gaps Action Plan, Adjustments for next period- Who will do what- By when- What we expect to see (results)43:0026 2011 Protegra Inc. All rights reserved. 27. Questions? 27 2011 Protegra Inc. All rights reserved. 28. Thank you! For further information, contact: ________________________________ Daniel Perron Practice Leader Protegra| Business Performance Consulting Business. Technology. Solutions. Office: 204-487-5678 Fax: 204-477-9421 www.protegra.com 28 2011 Protegra Inc. All rights reserved.