The TOC Transformation of Texas Workforce Commission · – Efforts target constraints in each...
Transcript of 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
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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
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Eternal or Ephemeral?
• Riddle:WhyhasTOCproventobesopowerfulingovernment?
• FOCUSiskey;builtintoTOC
• WhatcanbelearnedfromTWCapplicaJonofTOC?
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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
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Texas State Legislature in 2011: Pilot Operational Improvement in an Agency
• KristenCox’sTesJmony:FoundaJonmethodologymustbeTOC.
• Pilotsuccessful• BusinessTransformaJonoffice• 34majorimprovementiniJaJveswith
breakthroughresults.– TWChasincreasedthevalueproducedpertaxpayerdollarspent.
– ↑OperaJonalcapacitywithnoincreasedstaff.• TWCtransformedculture,performanceand
effecJvenessviaTOC
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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
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WOTC Days to Issue Tax Credit
WOTC–DollarValuetotheCustomers–(InAddiJontoTimelyandResponsive)
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2016 TOCICO International Conference
ROI
$3.51→$1.47
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ROI $3.51→$1.47
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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
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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.
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Commission Appeals
• OldProcess/Issues:54-dayaveragetomake&mailadecision.• NewProcess/Results:39-dayaveragetomake&mailadecision.
P.S.TWCCommissionAppealsteam,forthefirstJmeinover10years,accomplishedtheDepartmentofLabor’s40daystandardforcaseageaverages.
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Fraud Determination • Oldprocess:
– SimilarfuncJonsindifferentorganizaJonsdriuedoverJme• InconsistencyininvesJgaJonsperformed
– Someprocessesprovidednovalue• Newprocess:
– FraudCriteriaMandateisunifiedandconsistent.– Commoncoretools,check-sheets,andquesJons.– Legalbridgedocument.– Commontrainingcourse.
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Fraud Determination
WAS:84daysNOW:4days
Backlogeliminated
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142 day Equal Opportunity Office Investigation Cycle Time Reduced to 92 days
NewProcess/Results:• RouJnelyclose80/monthwith
99%passrate(44/mo.=oldrate)• Backlogeliminated.• Createdadashboardtogauge
success
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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”
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One Project (1/34) may not be a success
• ComplianceMonitors:82dayreportsbeforeproject;now116dayreports.
But...• Quality↑becauseteamsarewell-
trained• Removedoverlapbetweenmonitors
andprogram’stechnicalassistance• Riskassessment:nowcollaboraJve&
effecJveAndweareinaprocessofongoingimprovement!
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Doyoubelievemeyet?Breakthroughresults&sustainedcon/nuousimprovementarenotananomaly!• IntroatorientaJon• 8hourcourse(1/3employees)• Weeklyexeccurriculum• Managementseminars• 61PracJJoners(quarterlytraining)• Themethodofchoiceforchange
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Transformation of our Managers
• Overwhelmed→Confident• Datamaelstrom→Informeddecisions• Fearofmeasurement→Pride• Financialpuzzlement→Stewardship• AtWIP’swhim→ConstraintsManagement
• ReacJve(hair-on-fire)→Timetoreflect
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ThroughputOpera/ngStrategy←
WorkModel→
Dashboard→
ValueStreamMap/Flowchart←
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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
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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
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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
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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
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↓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
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RIDDLE: Why does TOC have tremendous transformative power in government?
• ConstraintfocusidenJfiestheonepointwhereANYimprovementwillhaveaposiJveimpactontheenJreteam’sthroughput.
• GovernmentimprovementteamshavelimitedJmeandefforttobringtobearbeforeinterrupJonbypressingissuesandurgentcallsforacJon.
• TOC&TOSmaintainfocuson(constraint//heartbeat//controlpoint)and↓short-termfocusingovernment.
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Our Achievement
• GovernmentImprovementisnotenough!Adver/se!
• BroaderuseofthinkingtoolsliketheCRTandFRT• Dataanalysis:beherdeploylimitedresources• Interagencysubcommihee:“Quality,ProcessImprovement,andInnova/on”(started)
• Moreagenciesonthebandwagon• Prac//onercurriculumvenues
NextSteps
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Questions and Discussion