The TOC Transformation of Texas Workforce Commission · – Eﬀorts target constraints in each...

2016 TOCICO International Conference

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The TOC Transformation of Texas Workforce Commission

CulturalChangeandBreakthroughResults:aCaseStudy

2016TOCICOInterna/onalConference


DavidOsborne&TedGaebler

•  Reinven&ngGovernment:HowtheEntrepreneurialSpiritIsTransformingthePublicSector,1992.–  “BothtakeenormousprideinReinvenJngGovernment.Bothbelieveitchangedthewaythepublicsectorworks.

Yetbothrecognizethatitdidnotachievetheirlargergoal.”

•  Reinven&ngGovernmentnever sparked a revolution.– Gaeblerispuzzled:“Whydidn’tmoreofmycolleaguespickitupandrunwithit?”Publicmanagerstoorisk-averse?

Realinnova/onsarethosethataltercoretasks.--JamesQ.Wilson,Bureaucracy,1989



Eternal or Ephemeral?

•  Riddle:WhyhasTOCproventobesopowerfulingovernment?

•  FOCUSiskey;builtintoTOC

• WhatcanbelearnedfromTWCapplicaJonofTOC?



Transformation of TWC Agenda

•  Results!Itworks!!!•  Whyitworks!

–  Culturechange–  Tenets–  TheoryofConstraints(TOC)–thebigfour:

•  5focusingsteps•  Avoidbad-mulJtasking•  Useconceptoffullkit•  Anewbo_om-lineforgovernment.

•  People,structure,andparJcipaJon•  Thenutsandbolts--Howwepursueimprovement•  ThemagicofWIN,WIN,WINingovernment•  QuesJonsanddiscussion



Texas State Legislature in 2011: Pilot Operational Improvement in an Agency

•  KristenCox’sTesJmony:FoundaJonmethodologymustbeTOC.

•  Pilotsuccessful•  BusinessTransformaJonoffice•  34majorimprovementiniJaJveswith

breakthroughresults.–  TWChasincreasedthevalueproducedpertaxpayerdollarspent.

– ↑OperaJonalcapacitywithnoincreasedstaff.•  TWCtransformedculture,performanceand

effecJvenessviaTOC



RESULTS!! Work Opportunity Tax Credit Days to Issue Tax Credit

•  ProblemStatement:Paper-intensiveprocessnotprocessingJmely&qualitydeterminaJons.

•  OldProcess/Issues:§  194-dayaveragewait/me•  NewProcess/Results:§  36-dayaveragewait/me§  <30daybacklog(nearzero)§  Reducedcostperdetermina/on

from$3.51to$1.47



WOTC Days to Issue Tax Credit

WOTC–DollarValuetotheCustomers–(InAddiJontoTimelyandResponsive)



ROI

$3.51→$1.47



ROI $3.51→$1.47



Major IT Vendor Procurement (Capital Projects)

•  ProblemStatement:ITRFPstooktoolongtoputoutforbidandselectcontractors–

439dayaverage.

•  OldProcess/Issues:o  Took62weekstoprocureo  Noworkflowtrackingsystemo  Manycirculartouchpointso  Nomeasures

•  NewProcess/Results:FocusedonConstraint(S.O.W.)o  Takes36weekstoprocure(252days)PROVEN:most

recent240daystoprocuremajorITsystem.

o  Nowusescontractmanagement(workflow)toolo  Reducedtouchpointso  SOPDocumentaJono  Dashboardtracksmeasures



Tax Adjustments Backlog: Great RPI results w/o a consultant or RPI Director

•  Oldprocess:–  Backloginventorywas10,276

inMay2013.–  Took5monthstocompletea

taxadjustment.

•  NewProcess–  Backloginventoryfellto4940in

1year.A52%reducJon.–  Takeslessthanonemonthto

completeataxadjustment.



Commission Appeals

•  OldProcess/Issues:54-dayaveragetomake&mailadecision.•  NewProcess/Results:39-dayaveragetomake&mailadecision.

P.S.TWCCommissionAppealsteam,forthefirstJmeinover10years,accomplishedtheDepartmentofLabor’s40daystandardforcaseageaverages.



Fraud Determination •  Oldprocess:

–  SimilarfuncJonsindifferentorganizaJonsdriuedoverJme•  InconsistencyininvesJgaJonsperformed

–  Someprocessesprovidednovalue•  Newprocess:

–  FraudCriteriaMandateisunifiedandconsistent.–  Commoncoretools,check-sheets,andquesJons.–  Legalbridgedocument.–  Commontrainingcourse.



Fraud Determination

WAS:84daysNOW:4days

Backlogeliminated



142 day Equal Opportunity Office Investigation Cycle Time Reduced to 92 days

NewProcess/Results:•  RouJnelyclose80/monthwith

99%passrate(44/mo.=oldrate)•  Backlogeliminated.•  Createdadashboardtogauge

success



Other Improvements •  Openrecordsrequests37to10days(2200backlogto0backlog)•  ↓Time-to-hirefrom45businessdaysto24

–  3.8customerquality(2014)raJngupto4.3(2015).–  HR↑40%gainedcapacitywithnoaddiJonalstaffin2014-2015.

•  CareerSchoolsapplicaJons:126to86days↓•  Between23and52reducJonofstaff(with↑throughput&

↑quality&↓Time)•  MajorinnovaJoncontracts:312daysto252•  LaborLaw:backlogfrom2150downto80•  SunsetLegislature’sAuditors:“Fireproofedtheiragency”



One Project (1/34) may not be a success

•  ComplianceMonitors:82dayreportsbeforeproject;now116dayreports.

But...•  Quality↑becauseteamsarewell-

trained•  Removedoverlapbetweenmonitors

andprogram’stechnicalassistance•  Riskassessment:nowcollaboraJve&

effecJveAndweareinaprocessofongoingimprovement!



Doyoubelievemeyet?Breakthroughresults&sustainedcon/nuousimprovementarenotananomaly!•  IntroatorientaJon•  8hourcourse(1/3employees)•  Weeklyexeccurriculum•  Managementseminars•  61PracJJoners(quarterlytraining)•  Themethodofchoiceforchange



Transformation of our Managers

•  Overwhelmed→Confident•  Datamaelstrom→Informeddecisions•  Fearofmeasurement→Pride•  Financialpuzzlement→Stewardship•  AtWIP’swhim→ConstraintsManagement

•  ReacJve(hair-on-fire)→Timetoreflect



ThroughputOpera/ngStrategy←

WorkModel→

Dashboard→

ValueStreamMap/Flowchart←



TOC is TWC’s foundational methodology

•  TOCmethodsensure:–  Effortstargetconstraintsineachsystem–  Effortsproducerapidandsubstan/alresults–  TOS’sinviteustousethethinkingprocessestoachievecommongoals.

•  ThroughputOperaJngStrategies(TOS)–  TOS’sare“whatgoodlookslike”–  IDbohlenecksandfocusimprovement.–  Gainorganiza/onalalignment–  Fosterasenseofmission–dis/nc/vecompetence–essenceoforganiza/on

–  TOSsarephysicalmanifesta/onsofthe5focusingsteps



Validate & Hire

HiringProcessEnterpriseMeasures:•  HiringManagersurveyofqualityoftheirapplicant

poolwitha0-5survey(5=bestw/5ormorefullyqualifiedapplicantsplusa_ributes,0=nofullyqualifiedapplicants)

•  TimefromvacancytoposJng•  TimefromposJngtohire•  CombinedJme(vacancytohire)

•  HiringProcessEnterpriseNecessaryCondi/ons:opencommunicaJonchannelswithinTWC

Determine Disposition

Control Point (WGLL):The Hiring Manager has pools of candidates that get better and better. The pools have rich and adequate number of candidates to evaluate. The Hiring Manager already knows what skills and attributes are required to perform the job duties of the positions. The Hiring Manager has “full kit” to screen, evaluate, and rank the candidates.

FeedingControlPoint:HR/HiringProcessteamprovidesapplicaJonstwodaysauerclosingtotheHiringManager(HM)thatmeethis/herexpectaJons(ontheiniJalHMchecklist).Forexamplenottoomanyand/ormeeJngbasicscreeningcriteria(e.g.5outof5onthesurvey).

Hiring Process TOS March 27, 2014

GoalofEnterpriseHiringProcessHirethebestpeopleintheleastamountofJme.

Facilitate HM Action Search

Levers:Commonchecklist(HR-HM:whohastheball?)

Interview and select

Vacancy

•  Analysiselement•  Whatarewegoing

todoaboutit?

•  Paperwork•  PosJngorP-30

Cull TWCEmployee



The Tenets of TWC RPI 1.   KnowourBlueLight2.   “Thinkbig”grandgoals3.   Realizehiddencapacity4.   Constraintfocus5.   TOS’sfocusandalignus6.   Usethinkingtoolsandbestprac/ces7.   Peoplewhodotheworkcanimprovethework.8.   Dashboardsmeasure:

9.   QT/OEtrackscon/nuousimprovement10.   Improvewithdetermina/on,commitmentandvigor

A.Throughput D.Cycle/me

B.Bluelightprocesses E.Cost

C.Quality F.CustomerSa/sfac/on



What improvement models and methodologies does TWC use and why? •  FoundaJonisTOC,butLeantoo.•  SixSigmaismoreusefulaswegathertrue

performancedata.–  rootcauseanalysis–  staJsJcalsampling.

•  Automatedwork-flowsystemsreprogramedtocollect–  “reasonsforlate”–  “reasonsfordefect”

•  Projectteamsarequalitycircles•  Thehurtleofmeasurement:

–  managersmeasureperformance–  Dashboardshelpthem

•  achievetheirgoals•  makesoundfinancialdecisions•  brag



↓Decisions↓OpCosts↑Cust.Sat.

Layer1:Product/Service&CustomerAnalysis

BenchmarkResearch

RPI Continuous Improvement Methodology for Government

Layer2:Stakeholder&communica/on

analysis•  Problem

Statement

Funds&fundingsource

requirements

Boards(Subrecipients),

State&customer

requirementsetc.

≈

Charter

Gov’tService

↓Cycle↓Effort↓Steps↓Hands↑Capacity

Goal/CommonObjec/ve

Layer3:Map

CurrentState

Exploit,Elevate&/orBreakConstraint

Iden/fy&Analyze

Constraint

BuildaTOS

Layer4:PerformSync/GapAnalysis

ThroughputRounds

MeasuresforThroughput&ImprovementSIPOC

Layer5:MapFutureState

Levers&Dashboards

Measure&Improve



RIDDLE: Why does TOC have tremendous transformative power in government?

•  ConstraintfocusidenJfiestheonepointwhereANYimprovementwillhaveaposiJveimpactontheenJreteam’sthroughput.

•  GovernmentimprovementteamshavelimitedJmeandefforttobringtobearbeforeinterrupJonbypressingissuesandurgentcallsforacJon.

•  TOC&TOSmaintainfocuson(constraint//heartbeat//controlpoint)and↓short-termfocusingovernment.



Our Achievement

•  GovernmentImprovementisnotenough!Adver/se!

•  BroaderuseofthinkingtoolsliketheCRTandFRT•  Dataanalysis:beherdeploylimitedresources•  Interagencysubcommihee:“Quality,ProcessImprovement,andInnova/on”(started)

•  Moreagenciesonthebandwagon•  Prac//onercurriculumvenues

NextSteps



Questions and Discussion

The TOC Transformation of Texas Workforce Commission · – Eﬀorts target constraints in each...

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