operating efficiency: the lean charity

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s PM5: Operating efficiency: the lean charity

Neil Fedden, Associate, NCVO

Peter Rimmer, Children’s Society

Laura Rawnsley, Transformation Director, Children’s Society

http://www.ford.co.uk/ie/home/-/-/-/-/-/-

Why the need to change?

The need to improve

Improve

Do nothing

Decline

Time

Improvement

Company XCompetitor

If you do nothing then you will fall behind your competition as they improve !!!

5 Principles of Lean

Value

Value Stream

Flow

Pull

Perfection

Process Mapping

Kanban

Kaizen

7 Wastes + 1

WorkplaceOrganisation

© Fedden USP Ltd 2009 All Rights Reserved

Non Value Adding

Waiting & Delays

Excess Movement

Excess Production

Fruit Waste

Waiting for Forklifts

Searching & Storing

95%

Value Adding

5%

Value & Waste


LEAN – elimination of information waste

Bottleneck Departments

Lots of signatures/validation checks

Multiple Uncontrolled documents

High levels of data

re-entry/keying

Production of reports that

nobody reads

Unofficial fast-track routes that cause

errors

Personal filing systems

Unpredictable process lead-

times

Batching of documents


Step 1 – Current state process map

Step 2 – Identify and prioritise process waste

Step 3 – Process re-design to eliminate waste

Step 4 – Cost/benefit analysis

Step 5 – Action Plan and start implementation


Customer Demand Profiling

2B

1C 9B

AM PM AM PM AM PM AM PM AM PM AM PM AM PM

Monday Tuesday Wednesday Saturday SundayThursday Friday

Footfall


Back Office, Front Office and Touch Points

Back Office Front Office

Process excellence Customer excellence

Identifying opportunity through understanding the use of

Touch point’s.

Eliminate waste by traditional application of Lean

Enter Restaurant

Leave Restaurant

The Service Concept


Legal Expert Before – Group Case Study


Process Mapping - Receive Specification and Produce Legal Copy

Description Dist. (m) Time (mins) Staff Operation Transport Inspection Storage1 Delay until received spec. is picked up by Secretary 0 30 0 X2 Carry from mail area to Secretary's desk 5 1 1 X3 Wait until convienient to 'process' it 0 60 0 X4 Log receipt into Project Tracking system & create file 0 1 1 X5 Store file in Out-Tray 0 15 0 X6 Move file to Legal expert's In-Tray 5 1 1 X7 Await Legal expert's attention (busy) 0 1440 0 X8 Legal expert processes copy 0 20 1 X9 Store processed copy in Out-tray 0 2880 0 X

10 Move copy to Secretary's desk when convenient 5 1 1 X11 Delay until Secretary logs completion on Project Tracking 0 180 0 X12 Take copy file to photocopier 10 2 1 X13 Photocopy x 3 0 2 1 X14 Return with copies to desk 10 2 1 X15 Collate, staple and 'stuff' internal mail envelopes 0 15 1 X16 Take 3 x envelopes to departmental Out-Tray 5 1 1 X

Totals 40 4651 9.7 daysValue Add 38

Non Value Add 3170Necessary Non Value Adding 1443


Legal Expert After – Group Case Study


Process Mapping - Receive Specification and Produce Legal Copy

Description Dist. (m) Time (mins)Staff OperationTransport Inspection Storage1 Red Envelope' delivered straight to legal experts desk by mail room 5 1 1 X2 Await Legal expert's attention (busy) 0 1440 0 X3 Legal expert processes copy and logs onto Project Tracking 0 21 1 X4 Move copy to Secretary's desk as soon as document is processed 5 1 1 X5 Take copy file to photocopier 10 2 1 X6 Photocopy x 3 0 2 1 X7 Return with copies to desk 10 2 1 X8 Collate, staple and 'stuff' internal mail envelopes 0 15 1 X9 Take 3 x envelopes to departmental Out-Tray 5 1 1 X

Totals 35 1485 3.1 daysValue Add 38

Non Value Add 4Necessary Non Value Adding 1443 1481

Hines et al (2000) Value Stream Management


Case Study – Lizz Clarke Marketing

Objectives for 3-day Project

1.Grow the business through customer retention

2.Reduce lead-time for production of clients end of year report

3.Improve margins by improving productivity by eliminating information waste

4.Improve internal communications and staff awareness of job margins


Day 1 - Theory


Day 2 – Analysis of the Target Process


Day 3 – Future State – What could be achieved


Actions

• Process, roles and responsibilities of LCM staff and clients are clearly documented at communicated at the start of the project

• White boards and visual measures are used to monitor margins on jobs and collect issues

• Jobs only enter graphics unit once all information has been collated – reduces down stop/start on jobs

• Brought in external design resource to input in ideas


Benefits

• 29% increase in productivity

• Increase in capacity of £100K on top of £600K sales turnover

• 80% Reduction in lead-times from 106 to 21 working days


Standard Operations and Improvements

TIME

IMP

RO

VE

ME

NT

KK

K

K

K

K

K

K

K

S

S

S

S

Without standardisation, improvements can not be sustained

K = Kaizen Activity

S = Standardisation Activity


Day 1 – Lean TheoryDay 1 – Lean Theory

Day 3 – Process re-design to eliminate or reduce the identified process waste

Day 3 – Process re-design to eliminate or reduce the identified process waste

Day 2 – Process Mapping and Data Analysis in Target Area

or Product

Day 2 – Process Mapping and Data Analysis in Target Area

or Product

Day 4 & 5 – Action Planning, Cost/Benefit and Start

Implementation Projects

Day 4 & 5 – Action Planning, Cost/Benefit and Start

Implementation Projects

On-going Assessment of Participants on how they are progressing with the projects

Over a period of 8 – 12 months

Final Presentation Back to Management on What They Have Achieved and What the Next Stages Are

Presentation to Participants of Business Improvement Techniques Level 2

On-going Assessment of Participants on how they are progressing with the projects

Over a period of 8 – 12 months

Final Presentation Back to Management on What They Have Achieved and What the Next Stages Are

Presentation to Participants of Business Improvement Techniques Level 2


Contact Details


• To discuss this topic in more detail, please contact NCVO Consulting:• [email protected]• Tel: Donna James on 020 7713 6161

mailto:[email protected]

Building Sustainable Change

at The Children’s Society

NCVO Conference 16 June 2014

Laura Rawnsley – Transformation DirectorPeter Rimmer – Head of Organisational Change

Our visionA country where children are free from disadvantage

Our MissionWe fight for change, supporting disadvantaged

children to have better lives

Our ValuesBrave, Ambitious, Supportive, Trusted

Who we are…

...and some key facts.

• TCS was founded in 1881 and has a long association with the Church of England.

• We are one of the traditional ‘big 5’ children’s charities in the UK which includes NSPCC, Barnardos, Action for Children and Save the Children.

• Our new CEO, Matthew Read, joined The Children’s Society in June 2012.

• We deliver approximately 100 services across England, working with 23,159 children in the last year, 14,775 of those at a sustained level.

• We also have a significant policy and increasingly prominent campaigning aspect to our work. The outcomes of which have impacting on over 350,000 more children.

• We employ approximately 1200 staff, manage 10,800 volunteers and have an annual turnover is approximately £46m.

• In 2012 we embarked on a three year change programme to enable to organisation to achieve its ambitions.

Prior to the change programme we faced a number of challenges…

External Challenges

• A cluttered children’s charity market

• The need for a clear message about what we do and what we stand for

• A reduction in commissioning activity across the sector

• A need to differentiate ourselves from our competitors

• A need to engage our supporters with any specific issues and beneficiaries

Internal Challenges

• Need for more joined up working

• Need for better IT systems

• Need to provide better value for money for supporters

• Need to increase the scale of our work through campaigning – sharing information with a wider audience

To address this we set about achieving the following objectives.

Integrated structures and ways

of working

Performance measurement and

reporting

Improved IS infrastructure and

systems

Better talent management and

development

A refreshed brand

More efficient processes

Continuous improvement and

innovation

Integrated income generation

The Transformation

Programme

1

2

3

4

5

6

7

8

Which has delivered the following changes to date...

• A refreshed Mission, Vision and Values

• A revised Brand

• A new operating model with locally integrated working set up in three areas of the highest need in England

• An outcomes framework and suite of evaluation tools

• A suite of leadership development interventions for all senior managers

• A IS suite of systems that supports responsiveness and mobility

• A dedicated PMO and a suite of tools and techniques used throughout the organisation to deliver ongoing key initiatives

• A piloted approach and methodology for radical innovation and CI

...and achieved some significant outcomes.

• 20% (70-90%) increase in alignment of our work to our outcomes

• 5% (75-80%) increase in overall staff satisfaction

• 18% (73-91%) increase in volunteer satisfaction

• 15% increase in the staff’s confidence in leadership

• 23% increase in effective communications from line managers

• 2% recurring annual savings delivered through more efficient structures

• 3% increase in practitioner productivity /effectiveness

What did we face on

the way?

We faced a number of organisational issues we could not ignore…

• Language – Staff really struggled with commonly used change language and methodologies

• Data – Data management and data quality is not strong across the sector which posed significant problems

• Skills – There was a need for significant coaching in parts of the organisation on how to deliver the aspects of the change.

• Insights – Strategic insight was largely based in individual or team skill sets with a lack of organisational processes to systematically harness ‘insights’ for the whole organisation

• Silo’s – There was a lack of and understanding between teams on how their work and processes crossed team boundaries.

1

Your turn.

Through our approach we have acquired a number of insights and solutions along the way.

Top Down Approach

• Form a dedicated team to manage change outside of BAU

• Build senior level governance around a cross organisational programme structure

• Identify key talent and second to lead on the initiatives & build skills

• Agree a set of design principles before commencing on delivering the change

• Tie the change initiatives into the strategic direction and corporate outcomes

SustainableChange

Bottom Up Approach

• Focus on a discrete area to build a detailed analysis and business case

• Involve local staff in the setting of plans and strategies for local working

• Build a network of change agents across the organisation to help drive engagement with the change

• Engage service users with designing what needs to change at a local level

We adopted a framework of how to analyse how we would approach our change journey

Our

pro

gram

mat

ic

appr

oach

Local needs and

priorities

Market realities and external environment

Our framework

Based on our organisational theory of change

Driven through our outcomes framework

Primary data available on local needs

Local intelligence and knowledge

Competitor and market analysis Local policy priorities Partnership opportunities

1

…and used a nuanced approach on how to approach each issue.

Sustainable ChangeEnterprise Wide Change

• Refreshed brand• Talent

management & development

• Performance measurement and reporting

Local Operational Change

• Integrated structures and ways of working• More efficient processes• Integrated Income Generation

2

And took time to enable sustainable innovation and growth to be developed.

Year 1

• Establish the organisations strategy and set the framework for change

Year 2

• The change is tested through pathfinder sites improving and embedding operational practices

Year 3

• Organisations ability to innovate and grow is scaled up

Our Route to sustained Innovation and growth

3

What next for The Children’s Society…

• Continue to change manage the programme outputs through BAU to maximise the benefits

• Scale up localised change and learning accross the whole organisation

• Deliver against our growth agenda by further developing our strategic and operational learning to date

• Look to other areas where we can now adopt an enterprise wide approach such as process improvement and efficiency improvement initiatives

1

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