Purpose, Process, People, Performance - Lean … CONGRESS 2013 | Dallas Purpose, Process, People,...

LCI CONGRESS 2013 | Dallas

Purpose, Process, People, Performance; Enduring Value from Capital Programs Organization Design

Applying Lean Beyond Process Improvement to Organizational Structure

Presented by:MICHAEL BADEAssistant Vice Chancellor, Campus Architect | University of California, San FranciscoSTEPHEN MACINTYRELean Integration Leader, Senior Vice President | Haley & Aldrich


Progress Report

How we are designing a Lean system addressing Purpose, Process, People and Performance to unleash hidden strengths and generate enduring results.

LCI CONGRESS 2013 | DallasLCI CONGRESS 2013 | Dallas

AGENDA


SHOW OF HANDS Your Lean Journey

1. I’m new to Lean and just starting – I’d like to learn the fundamentals

2. I’ve experienced Lean in some process improvements and want to learn how to apply this thinking on my own.

3. I have a lot of experience and am interested in going beyond process improvement

Your Organization’s Lean Journey

1. Lean is absent in my organization

2. Lean is new to my organization

3. My organization has a Lean initiative but we aren’t getting enough results

4. My organization has a strong Lean culture, I’m here to bring back new approaches

Lean, 4Pand

Organization Design


WHAT IS LEAN?A system of thinking and acting which:

Increases ValueReduces Waste Respects People

This relies on people who “think and act” a certain way.

Lean is BY people not TO people. A supporting culture is central.


How much (Lean) is seen?

PURPOSE & LONG TERM PHILOSOPHY

RIGHT PROCESS RIGHT RESULTS

DEVELOP PEOPLE& PARTNERS

OVERARCHING LEAN PRINCIPLES – 4P

MEASUREPERFORMANCE

& SOLVE PROBLEMS

Many Lean efforts focus on process waste. This works but can be tough

to make stick.




OVERARCHING LEAN PRINCIPLES – 4PEach level is necessary to create a culture in which

people work together for results

MEASUREPERFORMANCE

& SOLVE PROBLEMS

How can we avoid this?

LEAN & ORGANIZATION DESIGN:PURPOSE, PROCESS, PEOPLE, PERFORMANCE




STRATEGY CONNECTED TO CUSTOMER NEEDS

MANAGEMENT & WORK PROCESSES (PDCA)

PEOPLE CAPABILITIES, REWARDS

STRUCTURE SUPPORTING PERFORMANCEMEASURE

PERFORMANCE& SOLVE

PROBLEMS

STRATEGY CONNECTED TO CUSTOMER NEEDS

MANAGEMENT & WORK PROCESSES

PEOPLE CAPABILITIES & REWARDS

STRUCTUREMany organization design efforts

focus on structure.

High performing organizations require

the right structure, people/culture,

processes and strategy.

ASSISTANT

VICE CHANCELLOR

DIRECTOR 1 DIRECTOR 2 DIRECTOR 3

ORGANIZATION DESIGN

TACKLING 4P (VS. 1P)

STRATEGY & CUSTOMERS

Assess customer needs &

performance feedback. Build into strategy.

WORK PROCESS

Prioritize and improve

processes for staff &

customers.

PEOPLE & PARTNERS

Understand people and

culture. Match with customer

needs and process design.

STRUCTURE SUPPORTING

PERFORMANCEIdentify how structure can

help or impede what you need

to achieve. Test, implement, check with customers.


CURRENT SITUATION

UCSF TARGETSCustomers: Improve value from 3.7 to >= 4 of 5

Staff: Healthier workplace able to get more done with less stress

Improve Cost/Time/Quality: Significantly and measurably improve results

STRATEGY/CUSTOMERS & PROCESSES


What do customers need; how do they act?

Connect Pain & Positive

Performance to Processes

------(Value Matrix,

Pain Chart)

PROCESS

Test Process vs. Value Customers

Need

Assess staff experience

------(RACI/ Pain

chart, Kaizen and VSM)

PEOPLE & PARTNERS

Assess process needs

Assess People Staff Capabilities

& Drives

------Capabilities, PI &

Mgt Drives Evaluation

STRUCTURE

Define Org Design Criteria to

fill people, process gaps

Identify & evaluate

structure options

------Star Model,

Kaizen


PAIN (H High, M Medium, L Low) (10 min.)

CP Accountability & Responsibility

PAIN (H High, M Medium, L Low) (10 min.)

Diabetes PharmacyFAS/Sr.

VC/Finance

Education/OM Med

Education

Med- Adm. Research SFGH ITS Deans

Office HDF CCC Finance SC Facilities Mngmt.

Budget & Resources

1. Project InitiationWorkload AllocationProject Delivery StrategyProject Initiation Project Launch

Need to be included in MEP basis of design & budget

Project Forecasting Project Launch

Budget DevelopmentNeed to be included in MEP basis of design & budget

Funding RequestRisk Management Reporting2. DesignProfessional Services Department

Technology Selection Insufficient stakeholder input into V.E. decisions

Budget Worksheet DevelopmentAdditional Funding RequestDesign Review & Permitting

Need to stay in communication on design changes at each phase of design development

Capital Project ApprovalPayment Management3. ConstructionContractor SelectionInvitation to BidPrequal. 1st & 2nd StagesChange Management

Numerous delays in project prior to start of construction Need to review change orders & submittals

Construction OversightReporting4. Occupancy Mgmt..

timingexpectation

communication

Training Training Support for remaining issues Post occupancy issues slow or incompletely resolved State Fire Marshall Need smoother turnover, warranty mgmt. punch list

completion

Technology Handoffs

5. Project CloseoutRequest for Notice of Completion & Final Closeout

Punch List

PM often moves on to next project before all issues with current project are resolvedArchives Time

Financial Closeout Time

6. Capital Planning Process Support

CURRENT STATE: CUSTOMERS

Lots of Pain

Lots of Pain

Strengths


CURRENT STATE: STAFF & PROCESS

• Workload Allocation • "Project Initiation"• Professional Services

Procurement• Design Review & Permitting• Capital Project Approval• Contractor Selection• Change Management• Reporting• Occupancy Management• Archiving


CURRENT STATE: SUMMARY

Customers satisfied with staff & projects

Directors and staff go the extra distance

Customers experience inconsistency & higher cost

CP staff are stressed by complex processes & mismatch of personality drives to work


CURRENT STATE: PROCESS


PEOPLE & CULTURE






Pain Chart)

PROCESS


Need


------(RACI/ Pain


PEOPLE & PARTNERS



& Drives



STRUCTURE

Define Org Design Criteria to

fill people, process gaps

Identify & evaluate

structure options

------Star Model,

Kaizen


Communication & Consultation

Big Picture Thinking/Strategy

Achieving Cost-Effective Results

Clear Structure & Standard Procedures

Speed & Decisiveness Mutual Trust

Strengths

Gaps

CURRENT STATE: PEOPLE & CULTURESTRENGTHS & GAPS ALIGNED!


STRUCTURE






Pain Chart)

PROCESS


Need


------(RACI/ Pain


PEOPLE & PARTNERS



& Drives




PERFORMANCE

Identify & evaluate

structure with customersDefine Org

Design Criteria to fill people, process gaps

------Star Model,

Kaizen


STRUCTURE ASSESSED WITH CUSTOMERS & STAFF

• Regional silos with overbooked resources

• Not enough lessons shared

• Inconsistent service, expertise not matched with projects

• Slow decision making

• Roles, accountability not specified

• Inter-department roles not clear



Need better ways to “hear” &

quickly respond to customers

Metrics are lagging & difficult

to respond to

WORK PROCESS

Not standardized

Complexity & approvals

consume time and budget

Lack an effective business system

PEOPLE & REWARDS

Staff capabilities & management drives are not supported with

processes, measurement

and team makeup


PERFORMANCE

Lack role & responsibility

clarity

CP mgmt. structure gaps

(inconsistency & decision-making

speed)

CURRENT STATE: CAUSES





CURRENT STATE: RESPONSE

MEASUREPERFORMANCE

& SOLVE PROBLEMS

If we focus only here, we’ll have incremental process

improvement but miss long term results.


ACTIONS IN EACH “P” FOR BETTER RESULTS• Understanding customer needs provides design basis

for processes & strategic change

• Better work processes will enable staff to be more effective, projects more cost-effective

• People with the right skills will develop/implement better processes

• Management & leadership will provide clarity, expose problems, and support continual improvement

Lessons


Lessons From Our JourneyPurpose: Engage staff & customersand communicate a clear vision

People: Assess, respect, strengthen & develop people and culture; encourage learning

Performance & Problems: Measure results, make success & problems visible

Process: Use dissatisfaction – give people access to tools and approaches to tackle; check & adjust

Lean Strengths

Tools Are Visible

Culture & People Abilities are More Difficult to See

Reflection


REFLECTION• Questions• Plus/Delta


STEPHEN MACINTYRESenior Vice PresidentLean Integration Leader585.321.4233 [email protected]

MICHAEL BADEAssistant Vice Chancellor, Campus Architect415.502.6460 [email protected]

mailto:[email protected]

Purpose, Process, People, Performance - Lean … CONGRESS 2013 | Dallas Purpose, Process, People,...

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