How You Downsize Is Who You Downsize: Biased Formalization ...
9310 If We Must Downsize Let's Do It Right - Ruiz-Drotning · 2014. 8. 22. · If we must...
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If we must downsize, let’s do it right ‐ 9310 8/17/2014 APWA Congress 2014 1 If We Must Downsize... Let's Do It Right If We Must Downsize... Let's Do It Right Amie Drotning, PWLF Sr. Associate Rick Ruiz, PWLF Deputy Director First Question Sunday morning at 8:30 – Why? 2 Agenda Hear from an agency on their organizational realignments and benchmarks, and the tools they used for EMPLOYEE BUY‐IN, resource projection and process improvement. 3
Transcript of 9310 If We Must Downsize Let's Do It Right - Ruiz-Drotning · 2014. 8. 22. · If we must...
If we must downsize, let’s do it right ‐ 9310 8/17/2014
APWA Congress 2014 1
If We Must Downsize... Let's
Do It Right
If We Must Downsize... Let's
Do It Right
Amie Drotning, PWLFSr. Associate
Rick Ruiz, PWLFDeputy Director
First Question
Sunday morning at 8:30 – Why?
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Agenda
Hear from an agency on their organizational realignments and benchmarks, and the tools they used for EMPLOYEE BUY‐IN, resource projection
and process improvement.
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• 821 square miles• Population of 1.51 million• 14 incorporated cities• 480 centerline road miles• 6 drawbridges
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When vacancies occur.......
Do you fill positions because they are vacant and funding is budgeted?
Do you ask for justification?
What is the logical consequence if you don’t fill the positions?
Does anyone really care?
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Why “Why” is Important
• WHY does the position have to be filled?
• WHY is the position important?
• Why can’t you do the work with one less position?
• Why can’t you change your work process?
• Why can’t you do the work differently?
• Why do you need so many staff?
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Earning Employee Trust
Talked to Every Employee for 15 to 20 minutesHow do Employees Really Feel?
Labor/Management Monthly Meetings
EXERCISE YOUR AUTHORITY – SUSPEND/TERMINATE AS NEEDEDManagers and Line Staff
Create an Employee ForumWhat do employees want to promote?
ASK EMPLOYEES – “WHO WANTS TO TRAVEL ACROSS THE UNITED STATES”
Take Employees on Benchmarking Fact Finding
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Engage Union Members/Employees
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℠TRUST
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Second QuestionSecond Question
“Of the work that we have been doing, what doesn’t really have to be done?”
Almost every organization wastes productive time on work that doesn’t really need to be done.
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Do we have to do it?
STOP DOING IT!!!!Don’t do unnecessary work!!
STOP DOING IT!!!!Don’t do unnecessary work!!
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Do We Need To…….
• Provide Maserati service in a Prius environment?
• Respond to pot hole service requests the same day?
• Have our vehicles serviced in one day?
• Always say YES?
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More Questions…More Questions…
• Is what we’re doing actually required or mandated, or is some of what we are doing just what someone thought was a good idea at one time?
• How much of what we’re doing is being done “because that’s the way we’ve always done it” (a likely sign of inefficiency)?
• Should a performance measurement system be introduced?
• Does it have to be done immediately or can it be done incrementally?
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Understand Unintended ConsequencesUnderstand Unintended Consequences
Think through both the potential positives and negatives that may occur as a result of an action to improve your efficiency.
Think through your ideas before you rush into them.
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Unintended Consequences…Not Thinking or Being Specific
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Performance Measurement
• A system of data collection used to assess the performance or quality of services with a particular emphasis on the costs of providing those service.
• Used in both problem‐solving and strategic planning with equal effectiveness.
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What Is Performance Based Budgeting?
• Budgets work accomplishment and costs as a function of planned activities and effort level
• Focused effort for efficiency and effectiveness. “What do we get for dollars spent?”
• Part of a Management Process: Planning, Organizing, Scheduling and Controlling
• Tool for competing
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Work Plan of Needed
Work
Annual Plan and Budget
Budget LimitationBudget
Limitation
Work UnitsResources Requirements
Labor, Equipment, Materialand Contracts
Estimate Resources Required to Perform Current and Desired Work
Condition Assessment
Frequency/level of service (times cleaned ,
etc.)18
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Annual Work PlanActivity
WEED CONTROLInventory756 acres
Qty Per Unit (effort level)
0.66
Work Qty499 acres
Average Daily Production5.5 acres
Labor Days181 days
Crew Size2.0
Unit Cost$459.31
Annual Cost$229,196
•Estimated accomplishment for each activity on an annual basis.
•Balance to the available resources 19
Develop Activity Description•Describe the Work to be Performed.
•List the Required Resources; and
•List Work Criteria and Considerations.
•Indicate the Results Expected
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Create Multiple Budget Scenarios to…
• Determine effect on service levels by reducing/increasing budget $’s
• Educate State/City/County officials on how an increase/decrease in resources will effect your maintenance program
• Make better decisions for prioritizing programs during the budget process
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Lean GovernmentLean Government
Creating value for the customer/client
while using the fewest resources
possible. It’s about getting the right
service in the right amount to the right
person at the right time, while
minimizing waste and being flexible and
open to change and improvement.
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Organizational Realignment
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Strategic staffing decisions
1990203 FTE
2012139 FTE
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Hiring a Laborer – 1933$4 a Day
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Lean GovernmentLean GovernmentKey principles:
Know your customers – who they are and what they want and when.
The customer defines value.
Keep the process simple (and eliminate waste).
Do “it” right the first time.
Involve and empower employees.
Continuous improvement. 26
Performance MeasurementPerformance Measurement• Is based on program goals and objectives that tie to a statement of program mission or purpose
• Measures program outcomes
• Provides for resource allocation comparisons over time
• Measure efficiency and effectiveness for continuous improvement
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Learning to Operate
Use Technology
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Performance BudgetingPerformance Budgeting
Based on the assumption that presenting performance information alongside budget amounts will improve budget decision‐making by focusing funding choices on results.
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Annual Work PlanFISCAL YEAR BUDGET
OPERATIONS MAINTENANCE
ROUTINE WORK PROGRAMS
PLANNED CAPITAL PROJECTS
ESTIMATE OF RESPONSE WORK BASED ON WORK
HISTORY
ESTIMATES OF UNPLANNED
PROJECTS BASED ON WORK HISTORY
RESOURCES (QTY/$)Labor
EquipmentMaterialsOverhead
AVAILABLE
REQUIRED
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Efficiency vs. EffectivenessEfficiency vs. Effectiveness
Efficiency is related to cost effectiveness, i.e. lowest costs for a given output level
Effectiveness is related to, if the service level meets the demands of the citizens
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“The Budget” links work & dollars!
Activity InventoryLevel of Service
Expected Work Qty ADP
Crew Info.
Budgeted Amount by Resource Type
Labor Days
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Improve customer service
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Accountability Leads to Improvement!
• Once the plans have been established in the systems
–Use the system to track workk
–Compare planned vs. actual
–Compare internally and externally
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To insure it works you need the ability to know if you are meeting the plans
Planned vs. Actual Labor Days
Unit Cost Productivity Information
Assigned Unit of Measure
Planned vs. Actual Cost
Planned Vs. Actual Work Accomplishment
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Maintenance Management benefits
• Maintenance quality rating systems help define asset conditions, maintenance service levels, and program outcomes in customer‐oriented terms.
• With limited budgets managers can decide between competing needs.
• Using customer data, mms can link customer expectations with desired outcomes to resource and budget needs.
• Applying performance based budgeting techniques, mms can link desired outcomes to resource budgeting needs.
• Using “what if” analysis managers can access the consequences of shifting funds between competing program objectives.
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BenchmarkingBenchmarking“Benchmarking is the practice of being humble enough to admit that someone else is better at something and wise enough to try and learn how to adapt and even surpass them at it.”
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Lessons Learned •Focus on those major activities that improvement are likely.
•Confirm internal and external data – insure apples to apples comparisons.
•Educate staff not involved in the process.
•Realize the time frame to complete.
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History
• 1989 Grand Jury Audit• 1990 MY HIRE DATE• 1998 ‐ Audit findings (KMPG)• Jan 1999 ‐ Started Benchmark effort• Nov 1999 ‐ Process Completed• June 2000 ‐ Report & 66 recommendations• Sept 2001 – Implementation of many with plan for all
• July 2013 – Update Benchmark data39
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What % of benchmarking studies have been reported to produce any tangible results?
ExpectationsExpectations• Remember process is part of
guide to improve work.
• Make a commitment to improving not benchmarking
• Improvements will be result
FactFact
Only 25 !
The National Partnership for Reinventing Government
(formerly The National Performance Review)
The National Performance Review began on March 3, 1993 when President Clinton announced a six‐month review of the federal government
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Federal Consulting Groupfcg.gov
• Best Practices in Customer‐Driven Strategic Planning
• Best Practices in One‐Stop Customer Service
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Benefits
Determine factors driving performance
Identify problem areas
Base‐lining operationsImprove services by adapting practices
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Follow‐up and Update
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Then and Now21 Years in the Making
“Observe and Deserve”
Why “Why” is Important
• WHY does the position have to be filled?
• WHY is the position important?
• Why can’t you do the work with one less position?
• Why can’t you change your work process?
• Why can’t you do the work differently?
• Why do you need so many staff?
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Now When Vacancies Occur.....
Fill positions because of service delivery
Demand justification based on service delivery
What is the logical consequence if you don’t fill the positions?
Customers do care!
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Last QuestionLast Question
“What really has to be done?”
Almost every organization wastes productive time on work that doesn’t really need to be done.
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STOP DOING IT!!!!Don’t do unnecessary work!!
STOP DOING IT!!!!Don’t do unnecessary work!!
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If You Can…….
• Prius Quality
• Respond to pot hole as determined by need
• Service Vehicles in a Timely Fashion
• It’s OK to Say NO
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Biggest opportunity is ….
Not the work methods but doing the right
thing at the right time.
Benchmarking helped Identify this.
Questions
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@LA_CONSULTING
Linked
Rick RuizDeputy Director of Maintenance
Operations954 Turner CourtHayward, California 94545(510) 670‐[email protected]
