introduction to lean six sigma in government

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An Introduction to Lean/Six Sigma (LSS) in Government copyright owned by Lean Agility Inc.

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Government departments and agencies face a difficult challenge: with limited resources, how can they deliver faster, better and cheaper while engaging their people? Many organizations have used the approaches of Lean Six Sigma (LSS) in government to meet this challenge.

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Page 1: Introduction to Lean Six Sigma in Government

An Introduction to Lean/Six Sigma (LSS)

in Government

copyright owned by Lean Agility Inc.

Page 2: Introduction to Lean Six Sigma in Government

The Government Challenge

With limited resources

you must still deliver as much, and possibly more

faster, better and cheaper

while engaging your people.

Here’s how.

Page 3: Introduction to Lean Six Sigma in Government

Typical Government LSS Results

• 25 – 100% increase in capacity without adding resources or working harder

• 25-50% improvement in quality and customer satisfaction

• 25-100% improvement in financial performance

• Increased employee engagement

• Improved union-management relations

• Reduced firefighting – more time and resources to devote to your

core business

A number of Canadian federal, provincial and municipal government organizations have achieved and sustained results such as these…plus over

30 federal departments and agencies in the USA

Page 4: Introduction to Lean Six Sigma in Government

Lean Enterprise

Page 5: Introduction to Lean Six Sigma in Government

What is Lean Enterprise?

• A business improvement approach that creates speed, flow and efficiency by fixing business processes.

• Work that does not add value is identified and removed to reduce complexity, creating flow and allowing resources to focus more on value added activities, increasing capacity without working harder or adding resources.

When should it be used?

• When an organization needs to deliver faster, better and cheaper

Page 6: Introduction to Lean Six Sigma in Government

From the perspective of the end user, at least 90% of your organization’s time does not add value

1 Carter, Willie L. Quality Digest. June 23, 2010.

10%: value added time

90%:

non-value added time

Typical Government

Organization

Page 7: Introduction to Lean Six Sigma in Government

“It takes us three weeks to process an application, but the time we spend actually touching or working on the file is only a few hours.”

90% Non-Value Added Time Example

Page 8: Introduction to Lean Six Sigma in Government

Where is that 90% Non-Value Added Time Hidden?

Some examples of activities that take time but don’t add value:

• Waiting

• Incomplete files

• Expediting

• Errors and rework

• Unused reports and their data collection

• Unnecessary approvals

• Managing a backlog

• Misunderstandings/poor communication

Page 9: Introduction to Lean Six Sigma in Government

Example: Process flows horizontally

Application for Approval

Processing of

Application

Decision Process

Reply Process

Applicant Applicant

But traditional thinking and accountability is in vertical silos…

Page 10: Introduction to Lean Six Sigma in Government

Lean looks at your processes horizontally from the point of view of the end user of your service or output

Page 11: Introduction to Lean Six Sigma in Government

Mapping Flow If you took a file, put an imaginary video camera on it and sent it through your process What would it see?

When would it: • Go forward? • Stop and wait? • Back up?

Mapping these interruptions to flow tells you where your end-to-end process is breaking down

bottlenecks

chronic errors

missing info

large batches

unbalanced work

last-in, first-out

unnecessary approvals

too many handoffs

too much travel

waiting

waiting

waiting

Page 12: Introduction to Lean Six Sigma in Government

The Lean Approach

1. Identify and prioritize the needs of your end users and stakeholders

2. With your team, map the current state of your business process

3. With your team, identify interruptions to flow

4. With your team, map “future state”, with these interruptions to flow minimized

5. Prioritize and implement improvement projects

6. Assess, adjust, repeat in next area

7. COMMUNICATE your early wins, and don’t stop listening and communicating

Page 13: Introduction to Lean Six Sigma in Government

Test out solutions: Plan, Do, Check, Adjust

Always test out your solutions to ensure that they work

1. Plan

2. Do 3. Check

4. Adjust Define your plan –

what is the solution

you are testing?

Implement the

solution in the daily

work

Did the solution

achieve the desired

result?

If the solution met its

desired result, adjust

your daily way of

working to

incorporate it on an

ongoing basis. What

did you learn?

Page 14: Introduction to Lean Six Sigma in Government

Six Sigma

Page 15: Introduction to Lean Six Sigma in Government

What is Six Sigma?

• The application of statistical tools to identify and fix root causes of

defects or errors.

• Minimize variability from the point of view of the end user of the

service.

When should it be used?

• When an organization faces significant variation in its results, e.g.:

– Chronic errors are present that create bottlenecks or affect the quality

of the service being delivered to the end user and/or key stakeholders

Page 16: Introduction to Lean Six Sigma in Government

The Six Sigma Approach

Five Steps:

1. DEFINE: the problem, objective, “customer”

2. MEASURE: the process, collect and validate the data, determine process capability

3. ANALYZE: Identify the root cause of the issue

4. IMPROVE: Determine and test solutions to solve the problem

5. CONTROL: Put in place controls to ensure that solution fixes problem on an ongoing basis

Page 17: Introduction to Lean Six Sigma in Government

Why Combine Lean and Six Sigma?

• Lean creates efficiency and flow • Six Sigma creates consistent results

• Many successful government organizations combine the

tools of Lean and Six Sigma in order to achieve both efficiency, flow and speed as well as consistent delivery of results.

• Our approach is often to use Lean first to create flow/efficiency and then identify where variation continues to be a problem. Use Six Sigma tools to solve this variation.

• This results in delivering more of your mandate, faster, better and cheaper

Page 18: Introduction to Lean Six Sigma in Government

How is LSS Different in Government?

Private Sector Government How to address the difference

Clear view of “who is the customer”

Multiple, often competing, stakeholder needs

Conduct a stakeholder assessment to determine “who and what is important”

Bottom line measure: “profit” creates focus

No “profit” motive or clear “bottom line”

Use the measures of “time” and “how we deliver on our key stakeholders’ needs” to drive improvement

Often produce physical products

Usually produce services Identify your services as your “products”

Flatter organization structures

Multi-layer hierarchical structures

Engage all relevant levels in identifying and implementing improvements

Monetary incentives to drive improvement

Few monetary incentives to drive improvement

Monetary incentives are over-rated. Leverage staff intrinsic motivation and visibility to encourage improvement

Page 19: Introduction to Lean Six Sigma in Government

Staff Engagement

• Map your process with the people who do the work

• YOU cannot rewire THEIR mental maps.

• THEY have to do it for themselves

• Involve THEM from Day 1.

• When they see what is possible, they become early adopters and ambassadors

Page 20: Introduction to Lean Six Sigma in Government

Principle:

Change that is imposed

Is change that is opposed.

Page 21: Introduction to Lean Six Sigma in Government

Job Security

“That’s all great, but are you going to use these increased efficiencies to cut jobs?”

If yes – you will lose staff engagement and participation

Preferred approach: “We are not implementing LSS to cut jobs. We have to find ways of doing

more with less, without making people work harder. The business goes on.

Our intent is to help you find ways of making your day to day work life better, and to deliver on our mandate of _____________, not to cut jobs.

None of us can know the future, but instead of having someone else do it for you, this is your opportunity to help shape our future.”

Page 22: Introduction to Lean Six Sigma in Government

How Does Process Improvement Increase Employee Engagement?

From “Flow: The Psychology of Optimal Experience”, Mihaly Csíkszentmihályi

Finding and implementing improvements puts most people here

Page 23: Introduction to Lean Six Sigma in Government

Change Management Approach • Build Change Management in at front end

• Start with a business process that has a critical, visible problem, and people who are interested in fixing it.

• Prove the concept – Walk, Run, Fly.

• Let your early adopters “spread the virus” for you.

• Create opportunities for objections, early and often

Page 24: Introduction to Lean Six Sigma in Government

Why LSS is Attractive to Public Servants

If you can eliminate non-value added activities, and increase flow: Less firefighting – work

smarter, not harder

Smaller backlog – and less need to perform frustrating extra activities that result from backlogs

Use the freed-up time, people and focus to deliver better on the core mission of your organization

Page 25: Introduction to Lean Six Sigma in Government

How Does LSS Increase Staff Engagement?

Staff fix chronic problems that have irritated them for….years

Increases self-esteem

Creates a focus on (re)building and re-creates “control” over their destinies

Increases marketable job skills – process improvement and teamwork skills

Page 26: Introduction to Lean Six Sigma in Government

Getting Started

• Find a mentor • Begin by choosing the right

business process to analyze • Assemble a team of the right

people (early adopters with influence, including union rep)

• Map the current state • Identify interruptions to flow • Map future state • Prioritize and implement

improvement projects • Assess, adjust, repeat in next

area • COMMUNICATE your early wins,

and don’t stop listening and communicating

Page 27: Introduction to Lean Six Sigma in Government

Questions?

Lean Agility Inc. coaches government and public sector organizations to deliver faster, better and cheaper while at the same time engaging and energizing their people.

Craig Szelestowski

[email protected]

613 266 4653

leanagility.com