jane washburn-ppx-symposium-may-2014-for-posting

Pursuing Excellence at GNB

1. Context

2. Integrated “Formal Management System”

3. Public Reporting

Initiative

Management

Daily

Management

Process

Management

Strategy

Management

Performance

Management

New Brunswick

• 751,151 citizens (2011 census)

• public service ~45,000 employees

• 7.9 billion dollar budget

• 2014-15 deficit budgeted at $391 million

Economic Slowdown Brings Change

in Fiscal Reality ($ millions)

5,800

6,300

6,800

7,300

7,800

8,300

8,800

04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13R 13-14B

Revenue Expense

4

2011: Government Renewal

To ensure the Government of New Brunswick is able to provide appropriate and

affordable services to citizens on a sustainable basis.

History

2011

Office of Strategy Management

2012-2013

GNB and Pilot Departments

2013-2014

Wave 2 Departments 2014-2015

Wave 3 Departments

Government Renewal

pre 2011

NB Liquor NB Power Service New Brunswick Department of Natural Resources

Office of Strategy Management (OSM)

…responsible for developing the principles, methods and tools by which NB Government leaders can:

– enhance alignment and execution of strategy,

– drive improvement results,

– build a sustainable continuous improvement culture.

GNB Change Agenda from Economic Growth to

Declining position Competitive position

Public sector driven Private sector driven

Job focused Innovation focused

Quality of Life

Government dependency Self-reliance

Treatment Wellness

Skill/need imbalance Ready workforce

Living within Means

Deficit Balanced Budget

More services Service improvements

GNB Culture

Working in silos Working together

Budget centered Performance centered

Cut and Control Continuous improvement

The Strategic Change Journey

“In the majority of failures – we estimate 70% – the real problem isn’t bad strategy…. It’s bad execution.”

“Why CEO’s Fail”, Fortune Magazine

“Less than 10% of strategies effectively formulated are effectively executed”

Fortune Magazine

Principles of High Performance:

1. Purpose is customer driven…

…solve their problems.

2. 85% of problems are process (not people)…

…deliver faster, better, cheaper;

…leadership is a process.

3. Engage people…

…involve employees, differentiate

performance, develop leaders.

Initiative

Management

Daily

Management

Process

Management

Strategy

Management

Performance

Management

GNB Formal Management System

`

Strategy Management Priorities and speed!

GNB Formal Management System

Strategy Map

Balanced Scorecard

`

Strategy Management Priorities and speed!

GNB Formal Management System

Strategy Map

Balanced Scorecard

Vision

Objective

Objective

Objective Stra

tegi

c Th

eme

s

3 Year Vision

`

Strategy Management Priorities and speed!

GNB Formal Management System

Strategy Map

Balanced Scorecard

Vision

Objective

Objective

Objective

Measures

Measures

Measures

Stra

tegi

c Th

emes

Strategy Management Priorities and speed!

Initiative Management

Priority initiatives and projects!

S O M I A

GNB Formal Management System

Strategy Map

Balanced Scorecard

GNB Formal Management System

Vision

Measures

Measures

Measures

Stra

tegi

c Th

emes

Objective

Objective

Objective

Initiative

Initiative

Initiative

Initiative

Initiative

Initiative

Action Plans Action Plans

Action Plans Action Plans Action Plans

Action Plans Action Plans

Action Plans Action Plans Action Plans

Action Plans Action Plans

Action Plans Action Plans Action Plans

S I M O A

SOMIA 2013 - 2014

a stronger economy 7

enhanced quality of life 12

living within our means 11

“Theme Team” Priority Initiatives:

Initiatives: 180 Action Plans: 856

Deputy Minister Theme Teams

GNB Formal Management System

Vision

Measures

Measures

Measures

Stra

tegi

c Th

emes

Objective

Objective

Objective

Initiative

Initiative

Initiative

Initiative

Initiative

Initiative

Action Plans Action Plans

Action Plans Action Plans Action Plans

Action Plans Action Plans

Action Plans Action Plans Action Plans

Action Plans Action Plans

Action Plans Action Plans Action Plans

S I M O A

“Better, faster, cheaper”

Projects

Full Project

Kaizen

Waste Walks

Projects

155+ projects

2000+ involved

Top $ project $999,487

Hard Cost Savings Actual vs. Target

$218,480 $952,988

$2,521,380

$3,997,565

$6,176,282

$10,781,651

$12,050,711

$15,304,091

$11,198,333

$14,750,000

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$18,000,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Actual

Stretch Target

Target

FY 2012-13 FY 2013-14

Reduce

Complexity

Eliminate

Waste

Speed

Lean & Six Sigma – Together

Reduce

Variability

Eliminate

Defects

Customer

Focused

Team Approach

Data Driven

Decision

Making

A well designed process should flow like a river.

“Before” Process

81 steps to complete process!

“After” Process

56 steps to complete process!

Standards?

Variation?

Defects?

How good is good enough?

99% Performance Six Sigma Performance (~2.4 Sigma)

• No telephone service or TV

transmission for nearly 2 hours

per week

• Unsafe drinking water 7 ½

hours each month

• 10,000 plane crashes every

1,000,000 flights

• 5000 incorrect surgical

operations per week

• 200,000 wrong drug

prescriptions per year

• No telephone service or TV

transmission for 5 minutes

every 3 years

• Unsafe drinking water for 1

minute every 7 months

• 3.4 plane crashes every

1,000,000 flights

• 1.2 incorrect surgical

operations per week

• 60 wrong drug prescriptions

per year

Success through Lean Six Sigma projects…

Reduced travel costs

$999,487 savings year 1

Routine ECG wait times

22 weeks to < 4 weeks

Success through Lean Six Sigma projects…

Asphalt Leveling

Work completed in 2 months instead of 3. $453,259 savings

Reduced bank interest costs

$719,900 savings year 1

Waste Walk

Transportation

Inventory

Motion

Waiting

Overproduction Overprocessing

Defects

People's Knowledge/Skills

Unevenness

Overburden

• High inventories

• Wasted materials

• Absenteeism

• Late deliveries

• Rework

• Invoices

• Returns to Suppliers

• Repackaging

• Inspecting

• Expediting

• Moving

• Counting

• Sorting

• Loading / Unloading

• Receiving Report

12-person approval process for

contract documents

Excess cost of mail delivery

Computers & monitors left on

after hours

Executive Flight Service map subscription

Improper removal of light bar on

trucks

VPNs not being used

Phone lines not required

Printing of daily reports

Storage of disposable records

Excess printing of annual reports

Improper storage of tools

30% of violation reports contained

errors

Excess motion within the lab

Renting of storage units

Excess of shred boxes

Production of both digital & paper

copies of reports

Excess motion for delivering

interoffice mail

Personal files stored on shared

drive

Frequency of meetings

Redundancy in data entry

“Waste Walks” 600 walks…$2,000,000+ savings

Strategy Management Priorities and speed!

Initiative Management

Priority initiatives and projects!

S O M I A

Daily Management

Hold the gains!

GNB Formal Management System

Standard Operating Procedures (SOP)

Standard work!

Strategy Map

Balanced Scorecard

Process Management

Operational KPI Dashboard

Standard Operating Procedures

Strategy Management Priorities and speed!

Initiative Management

Priority initiatives and projects!

S O M I A

Daily Management

Hold the gains!

GNB Formal Management System

Standard Operating Procedures (SOP)

Performance Management Align and engage teams and people

Standard work!

Strategy Map

Balanced Scorecard

Process Management

Operational KPI Dashboard

Karl Moore is an Associate Professor at McGill University, Montreal, Canada. The winter 2005 issue of Business Strategy Review, published by the London Business School, identified Karl Moore among a group of world’s greatest business thinkers.

Initiative

Management

Daily

Management

Process

Management

Strategy

Management

Performance

Management

GNB Formal Management System

“IN”

“ON”

Strategy versus Operations

Working “IN” the business (day-to-day operations)

Initiatives

Action Plans

“improve, add or delete processes”

REVIEW RESULTS Calendar of Commitments

Measure for IMPROVEMENT:

Measure for process CONTROL:

Working “ON” the business (prioritized improvement)

MISSIO

N

SOMIA

VIS

ION

Value Stream

Processes

“individual responsibilities” (process owners)

Operating Plan

Balanced Scorecard DASHBOARD: Key Process Indicators (KPI)

Strategy Map

Balanced Scorecard Measures: • Percent of Calendar of Commitments on track • Employee engagement survey results • Percent performance reviews complete • Percent of SOMIA on track • Employee attendance • Percent of senior leaders developed in formal

management system/business improvement

Performance Management Align and engage teams and people

Wave I

• Environment & Local Government

• Natural Resources

• Service New Brunswick

• Transportation & Infrastructure

• Horizon Health Network

• Finance

Wave II

• Justice & Attorney General

• Education and Early Childhood Development

• Agriculture, Aquaculture & Fisheries

• Public Safety

• Post-Secondary Training, Education & Labour

• Social Development

• New Brunswick Internal Services Agency

Wave III

• Health

• Facilicorp NB

• Executive Council Office

• Economic Development

• Invest NB

• Healthy & Inclusive Communities

• Efficiency NB

• Human Resources

• Tourism, Heritage & Culture

• Energy & Mines

Departments

Balanced Scorecard Measures: • Percent of Calendar of Commitments on track • Employee engagement survey results • Percent performance reviews complete • Percent of SOMIA on track • Employee attendance • Percent of senior leaders developed in formal

management system/business improvement

Performance Management Align and engage teams and people

Building Improvement Leaders

Improvement Roles Operational Roles

Individual Contributors

Managers

Directors

Assistant Deputy

Ministers

Deputy Ministers

Lean Six Sigma Black Belt (2yrs)

Change Champion lead significant

organizational change

Build Capacity for Sustainability

Future Leader?

Personal Attributes

Cognitive Ability

Leadership Potential

Knowledge & Experience

www.gnb.ca/excellence

“Employees Making a Difference” www.gnb.ca/excellence

http://digital.progressmedia.ca/

Canadian Government Executive Leadership Award 2014

“providing improved public service at lower cost”

Thank you!

Strategy Management Priorities and speed!

Initiative Management

Priority initiatives and projects!

S O M I A

Daily Management

Hold the gains!

GNB Formal Management System

Standard Operating Procedures (SOP)

Performance Management Align and engage teams and people

Standard work!

Strategy Map

Balanced Scorecard

Process Management

Operational KPI Dashboard