Ted Twaalfhoven, Engage Process
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simplifying process improvement Ted Twaalfhoven How Lean programs help Dutch Local Authorities to adopt new services, improve service on existing programs and still reduce costs. What are the lessons learned Andrew Sandford
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Transcript of Ted Twaalfhoven, Engage Process
simplifying process improvement
Ted Twaalfhoven
How Lean programs help Dutch Local Authorities to adopt new services, improve service on existing programs and still reduce
costs.
What are the lessons learned
Andrew Sandford
simplifying process improvement
Smart tools
for exploring, improving and sharingbusiness processes
simplifying process improvement
simplifying process improvement
simplifying process improvement
400 Cities in The Netherlands
2010Budget down 30%
20123 Social programs
to be moved to Local Governments
by Jan-2015
2011Case Management systems defined
1. Many smaller cities merge2. Outsourcing companies set up - Regional3. Reorganisations4. Lean programs, Lean teams, smart-working programs
2014Cities must be
100K+ in minimum size
1. Rather bureaucratic traditional organisations2. Organically grown services3. Requests go from department to department4. Lead times of services magnitude of handling time
DEVELOPMENTS
simplifying process improvement
Process improvement / Lean / Agile growing rapidly again
Agile
simplifying process improvement
Customer Journey
Improvement concepts
Facts & Data
Continuous improvement
Principles of Process Management(Lean, Agile, OpEx, WCM, TOC, 6Ʃ, Kaizen, etc.)
Team Empowerment
1
2 3
4 5
Green-belt & Black-belt(consultants)
Lean Programs
simplifying process improvement
Continuously review the process with the team
Daily kick-off meetings
Which organisations actually do that?
simplifying process improvement
Practical Questions 1: Which KPI to use?(City of Leiden)
Efficiency? Costs? Compliance? Time spend? Lead time?
If: Lead Time
=> Costs => Quality
2 workshops – Low hanging fruit!
simplifying process improvement
“Hidden factory”
In human centric organisations:Manuals cover only 60-90% of cases
The sum of exceptions is (usually) greater than number of clean cases
?
Which process is in handbook?
Where are problems?
Necessary: identify all exeptions with the team
Practical question 2: What level of detail is needed?
Which process in IT systems?
Clean Case, Happy Path
simplifying process improvement
Irrelevant detail –OR- Low hanging fruit ?
simplifying process improvement
Why do hand-overs hurt?
1. Costs: Time needed to familiarize with case > Time needed to execute the task.
2. Costs: Overproduction: part of tasks is often duplicated.
3. Quality: Risk of mistakes / misunderstanding.
4. Lead time: handovers always add time to the process.
simplifying process improvement
• 2012: Merger of 4 smaller cities in North of Holland
• Complete new organization
• Process driven
New start: Hollands Kroon
No fixed……
• ….departments functional teams
• ….functions asked by team based on capacity need
• ….location: work where needed
• ….working hours: work when needed.
Early results
• Highly flexible.
• People like it.
• Top service for low costs.
simplifying process improvement
Lean team at City of Zaandstad
Review Credit Management department
Increased Efficiency!!
Reduced collection costs by 25%
20% more collections !
Higher income, lower costs.
Review City Financial Counselling Department
Results
Lowered cost of Counselling by 15% per case
Reduction in actual bankruptcies
Higher quality service, lower cost.
Voice of the Business
Lean successful in functional areas
simplifying process improvement
A new financial services team was created, merging both teams.
Empowered to “not just follow the rules”, but do what they believe is best!
Credit Management Financial Counselling
NEXT: Team decided: pay rent instead of forcing to pay debt to city.
….and start Financial counselling with “light at end of tunnel”
Empowerment on shop floor leads to better decisions!
Voice of the Customer !!!
Service to citizens is far greater; Savings to the community expected to be much higher.
simplifying process improvement
Complaint process of a city in The Netherlands
simplifying process improvement
1. All mid-sized to large cities have adopted Lean / Agile
2. For many combined with Organisational change
3. For many with Culture change
4. More and more teams formed with ownership over processes
5. Continuous improvement programs at many cities
6. Process workshops to discuss end-to-end services
7. As Is, Low hanging fruit, To Be.
8. Great impact: Delivery time down, Costs down, Quality up.
9. Doing more with same team!
10.Less stress.
Quick summary
simplifying process improvement
Welcome at our stand
Process Exploration
Improvement ideas
Impact
Process team
simplifying process improvement
simplifying process improvement
Summary
Customer Journey
Improvement concepts
Facts & Data
Continuous improvement
Find Process that Hurts Low Hanging Fruit
Implement ToBe-1 Again…..again…..
Create a Team
Empower them
simplifying process improvement
2 main pillars
Change the Culture
From: “Burocratic” top-down Departments
To: Service oriented empowered Teams
Improve Processes
Internal / external Consultants
1) Find customer focussed process that hurts
2) Get team, from A to Z around the table
3) Process workshop: ASIS
4) Identify low hanging fruit
5) TOBE1. Fix the low hanging fruit.
6) Implement, celebrate, communicate!
Create “rapid access clinic”. From request to delivery in 1 day.
Make that the play ground for the organisation.
Where to start?
Keep on going. You’re never done!
simplifying process improvement
Lead Time (Service Time) = 38 days
Processing / Handling Time = 2,5 hours
If 10 requests per day
Then WIP: 10 x 38 = 380
If 7 roles: 50 avg. on each desk
95% of the time not being handled. Who knows what status is?
Need call centre for failure demands!!
Why is reduction of Lead time powerfull?
Lead Time (Service Time) = 3 days
Processing / Handling Time = 1,3 hours
If 10 requests per day
Then WIP: 10 x 3 = 30
If 6 roles : 5 /desk (=Daily volume)
? More of less mix-ups?
? Impact on stress experienced by staff?
? What is impact on their involvement?
? Still need call centre?
simplifying process improvement
Empowerment
SharedTheoretical efficient route
The route they decide is best at this moment
Goal
