Our Continuous Improvement Journey Cindy … Continuous...Our Continuous Improvement Journey Cindy...
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Our Continuous Improvement Journey Cindy Milrany, CFO, CAO
Transcript of Our Continuous Improvement Journey Cindy … Continuous...Our Continuous Improvement Journey Cindy...
Our Continuous Improvement Journey
Cindy Milrany, CFO, CAO
Freese and Nichols, Inc. • Multi-service engineering,
architecture and environmental science firm
• 117-year history means experience, strength and stability
• 12 offices, all in Texas • More than 450 experienced
professionals, technical experts and support personnel
What Changed in the 1990’s Our Competition
15
20
25
'91 '92 '93 '94 '95 '96 '97 '98 '99 '00
Mill
ions
Texas Population Growth
• Texas population grew by 23% • Competition increased • The way clients awarded work changed
Presenter
Presentation Notes
Reiterate Bob’s presentation of what changed in the 90’s Competition Increased High population growth in Texas (by 23% or 3.8 million people) National firms coming to the state Clients changing how they award work Competition for employees and clients Client’s More Demanding Increased demands from the public Aging infrastructure Limited natural resources Increased regulations
'91 '92 '93 '94 '95 '96
FNI Profit
What Changed in the 1990’s: An Awakening
• We lost money in 1995 for the first time • Lack of accountability • No defined sales process • Strategic plan was only partially deployed
Presenter
Presentation Notes
This is the first and only time we have considered selling the company. But, our young leaders did not want to sell. We knew we had to make radical changes. Radical is a word that engineers don’t take kindly to.
Our Continuous Improvement Journey Began in 1996
• Bob Herchert, the initiator
• Clayton Fitzhugh, the guide
• Baldrige Criteria, the basis
Continuous Improvement Management System Version 1.0
Strategy • Mission • Vision • Objectives • Guiding Principles
Ongoing Analysis • Customer Data • Employee Data • Environment Assessments • Economic Assessments • Industry Trends • Market Assessments • Competitor Assessments • Benchmarking • Risk Assessments • Regulatory Requirements
Confirm Purpose Establish system goals and provide direction
Deploy Firm Goals & Accountability
Identify & deploy local goals
Identify Action Plans Utilize CI tools and techniques
Review Progress &
Results
Presenter
Presentation Notes
Confirm Purpose Establish Key Focus Areas Formulate Goals and Prioritize Establish Indicators Develop Draft Targets Publish KFAs, KFIs, Targets Deploy Goals and Accountabilities Deploy Corporate KFAs Formulate Goals at each level Establish Indicators and Targets at each level Develop Action Plans Refine Organization Charts Identify Individual Accountabilities Prepare Budgets/Financial Projections Identify Action Plans Implement Action Plans CI Teams Cross-Functional Teams Individual Action Items Education and Training Process Management Review Progress & Results Board of Director Reviews Lead Team Reviews Presidents Reviews Entity Reviews Department Reviews Performance Appraisals Customer Satisfaction Surveys Employee/Entity Recognition
After Ten Years of Continuous Improvement
Enormous Successes • Bookings increased 190% • Profits increased 237% • Employee satisfaction
grew from 4.3 to 4.7 • While number of
employees grew 45% 95 97 99 01 03 05 07 09
Profit
Presenter
Presentation Notes
Might talk about prep for TAPE site visit. When asked how they participate in CI, few employees could answer the question. Even though they DID participate in EOS, PMSC, etc.
After Ten Years of Continuous Improvement
CI Management lost its excitement • CI was the way we do
business • 60% of FNI employees with
less than 5 years tenure – Hadn’t seen the
improvements we’d made – Didn’t know how to be
involved
Presenter
Presentation Notes
Might talk about prep for TAPE site visit. When asked how they participate in CI, few employees could answer the question. Even though they DID participate in EOS, PMSC, etc.
Lead Team Refocused on Continuous Improvement
2008 Strategic action to re-energize CI • Created new CI model • Initiated CI Steering Committee • Revamped Bright Ideas
Program into CIdeas • Road show to all offices • Constant communication
about CI
Continuous Improvement Management System Version 2.0
VI. CELEBRATE SUCCESSES
I. ESTABLISH STRATEGIC
DIRECTIONS
II. DEVELOP
STRATEGIES AND PLANS
III. DEPLOY
STRATEGIES AND PLANS
IV. IMPROVE CONTINU-
OUSLY
V. MONITOR
PERFORMANCE
Presenter
Presentation Notes
Based on “Six Disciplines for Excellence - Building Small Businesses that Learn, Lead, and Last” by Gary Harpst Represents our leadership system – which for FNI is our continuous improvement system
Continuous Improvement Participation Model
1. Learn About CI
Orientation CI Training
Group Meetings CI Luncheons
3. Contribute Ideas
Strategic Actions CIdeas In Action
Challenge Process Innovate Solutions
2. Do Quality Work
Follow the Process Communicate
Check Your Work PDCA Projects
4. Improve TEP Teams
Steering Com Teams Ad Hoc CI Teams Strategic Actions
5. Share Results Report CI Results
Report Innovations Share Knowledge
Continuous Improvement Steering Committee
• Members represent all areas and locations of company
• Manages CIdeas Program • Plans CI Luncheons • Initiates, plans and oversees CI projects
– CI Team on project communication – Data audit – Baldrige feedback improvements
Continuous Improvement CIdeas Program
• Open to all employees • Focuses on four strategic areas each year • CI Steering Committee manages process
01020304050
Accepted CI Team OtherTeams
Lead Team Declined Pending
2009 2010
Presenter
Presentation Notes
Might talk about some of the more important ideas: Employee appreciation R&D
95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10
Net Profit
FNI Industry Average
Our CI Journey
Continuous Improvement
President’s Reviews
Processes Documented
Innovation Committee
TEP Teams
Innovation Award
Business Technology
Business Technology
• New Chief Information Officer Position • Developed 3-yr strategic plan for technology
– Created Help Desk for user support – Improved productivity through technical software – Utilized BPM to automate processes – Changed BT from reactive to proactive
Innovation Committee
• Team created for a systems approach to innovation • Pilot program for project
innovation • New Research &
Development fund
Our CI Journey
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
97 98 99 00 01 02 03 04 05 06 07 08 09 10
Mill
ions
Net Bookings
Client Sat Surveys
Client-Centered Marketing
Hedgehog Concept Integrated
Sales System
New Internet Site
New Sales Structure
Client Seminars
Revised Sales Structure
Chief Marketing Officer - MLN
Account Director AV
Account Director TH
Account Director SWL
Account Director MLN
Education JWP
Military RWC
Energy KK (ADG)
Municipal – Fort Worth
& South - TH
Municipal – Denton County
RGK
Municipal – NE Tarrant
SWL
Municipal – Dallas THH
Municipal –
Collin County SWL
Austin MLN
San Antonio RK
Corpus Christi RG
Sales Development and Maintenance
WSM
Account Director RRL
Division Managers
Sales Development Reuse, WWTP – RRL
Planning, Facilities. - AV
Houston/Pearland JT
Water Districts/RA RML/JLR
Municipal – SE Dallas
RRL
Account Managers
(ADG) – Key Support
Municipal – East Texas
THH
Municipal – West Texas
(ADG)
New Internet Site
Our CI Journey
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
5.0
0
50
100
150
200
250
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450
98 99 00 01 02 03 04 05 06 07 08 09 10
Number of Employees Employee Satisfaction
Emp Opinion Survey
FNI University
Individual Dev Plans
Career Ladders
Mentoring Program
Technical Coaching
Wellness Program
Leadership Training
Cultural Assessment
Mentoring Program
Focus is to help employees thrive and develop their careers within the FNI culture • Mentors volunteer • Employees request
mentors • Training for mentors
and mentees
Wellness Program
• Started in response to staff health risks • Includes health assessments • Promotes life-style changes in diet
and exercise
37% 21%
16% 14%
0% 10% 20% 30% 40%
Body WeightStress
Physical ActivityBlood Pressure
2010 Health Risks
How We Continue the Journey 1. Create a passion for continuous improvement
from the top
2. Provide steadfast determination to pursue continuous improvement (Champion)
3. Energize the entire organization and empower each employee
4. Bring long-term stability to the leadership of the organization through succession planning
What We’ve Accomplished on Our Journey
• Top quartile industry profit • Sustainable, managed growth • Lower than industry turnover • Satisfied clients and employees • Texas Award for Performance Excellence • Malcolm Baldrige Quality Award
What’s Next
• Baldrige Feedback Report – 5 Year plan to keep us on our Journey
• Our CI Projects for 2011 – Knowledge Database – Subconsultant/Vendor Management – New Intranet with Systems Focus – Technical Excellence Teams – Phase 2
Thank You Questions
