This is an indirect approach which can used to stem the
growth of California’s big government and make California Government
efficient and effective. My indirect approach using Enterprise Lean as a
start has a better chance of being implemented because it has achieved
successful results in: Iowa, Minnesota and Michigan (with
reservations). Who would vote against making California’s government
more efficient. The implementation of Enterprise Lean is only the first
of several major reforms that follow.
I recommend the implementation
of a State Reform Commission as an independent part of the State
Auditor's Office. This is necessary to prevent the states bureaucracies
from controlling the Enterprise Lean implementation and preventing the
implementation of the reforms I recommend.
My recommended indirect reform approach; Install Enterprise Lean
throughout the State government (easier to sell because other states are
doing it). Then follow up with Right-Sizing (makes sure all employees
have a full time job), bottoms-up budgeting, changing the bureaucracy to
Team Management and followed by other Reform Models. See my attached
proposal for the implementation of Enterprise Lean.
Lawrence Rosier & Associates
Management Consultants Government Reform
12143 Cedar Grove Rd. Rolla, Missouri 65401
Phone 573-364-8789 Cell 573-578-4716
Proposal for California State Enterprise Lean Implementation By Lawrence Rosier Principal Management Consultant November 15, 2013
This proposal is for the implementation of Enterprise Lean in the California State Government following the General Reform Model developed by Lawrence Rosier Principal Management Consultant. The General Reform Model implements Enterprise Lean throughout the California State Government. The Enterprise Lean concept was developed by Toyota to improve the culture of the company’s work force increasing the efficiency and effectiveness of the organization. Enterprise Lean empowers state employees to innovate and make continuous improvement to their jobs. The benefits to the state are from efficient operations but also the change in culture the way government employees view their jobs.
This is an indirect approach which can be used to stem the growth of California’s big government and make California Government efficient and effective. My indirect approach using Enterprise Lean as a start has a better chance of being implemented because it has achieved successful results in: Iowa, Minnesota and Michigan (with reservations). Who would vote against making California’s government being more efficient? The implementation of Enterprise Lean is only the first of several major reforms that follow.
Key Recommendations by Lawrence Rosier
I recommend the implementation of a State Reform Commission as an independent part of the State Auditors Office. This is absolutely necessary to prevent the state’s bureaucracies from controlling the implementation process and preventing the reforms that follow.
I also recommend that a demonstration implementation be made of Enterprise Lean in a selected State agency to prove the success of the process before implementing Enterprise Lean through out the California State Government.
After the decision to implement Enterprise Lean throughout the California government has been made the State Reform Commission will begin to document the savings from each of the Enterprise Lean Teams. This is the key data that is needed for the reforms that follow: Right-Sizing (makes sure all employees have a full time job), bottoms-up budgeting, changing the bureaucracy to Team Management followed by other Reform Models as funded.
Main Goal
The main goal is to get the highest efficiency and effectiveness possible in state government while maintaining desired state services. The Reforms will bring major management and budgeting changes that will make the state of California operate like a private business.
The following are the Phases of Lawrence Rosier’s General Reform Model.
Phase 1. Establish a State Enterprise Lean Commission
I recommend that a “State Enterprise Lean Commission” Be established in the State Auditor’s Office to have oversight of all State Lean implementations and activities. The State auditor will have Budget Analysts reporting to the State Enterprise Lean Commission Trained by The Principal Consultant to implement Enterprise Lean, develop Lean Data bases for the storage of Lean cost data as it is developed. The Budget Analysts will support Enterprise Lean until it has been implemented in its entirety throughout the state government. When the implementation has been completed the Budget Analysts will maintain the new budget databases. Prior to this proposal the State auditor was charged with only the auditing of funds now a new responsibility will be to monitor state activities for lost man hours. This is made possible through the development of the Lean data and the new bottoms-up Budget databases.
Phase 2. The Training and Organization of Lean Teams
The first act of the State Enterprise Lean Commission is to implement Enterprise Lean throughout the state government. Planning for Lean Training should done by the Commission meeting with the counsel of the Principal Consultant. I recommend that a Lean Training specialist be brought in from a local University to Kick off the implementation with training seminars. The planning issues related to Lean training, Facilitators, Budget Analysts will need to be resolved. Lean training should begin immediately by the state’s training staff. I would suggest that the normal training curriculum be suspended and an all out effort be made for Lean Training. Training should be made for staff members first followed by management and then Lean Facilitators. Lean facilitators organize and train each employee functional Lean Team work group which meets for one hour on a weekly basis. I suggest that the best Facilitators may be borrowed from HR staff but I have had success with secretaries and even copy machine operators. I do not bring any of my own staff to the job but chose to use and train current state employees to fill key implementation jobs. This is a benefit for the state to be left after the implementation with fully trained individuals.
There are two major Lean Team groups, high level and at-the-work-place Functional Lean Teams. High level Lean Teams use Management staff and are tasked to study inter-department and agency document flows. They may also be tasked is in the Consolidating Boards and Commissions Model. A third possible task is in the Consolidation of State Government Services Model. A key element of the High level Lean Teams is their role in management when converting from the bureaucratic organization to the Team Managed organization.
Implementation of the reforms can be done at minimum cost to the state using a Lean professional trainer from a local University in a train-the-trainer project and a Principal Consultant familiar with the General Reform Model. All other implementation staff are borrowed and trained from the states existing personnel using the state’s own resources. This has significant advantages with trained personnel remaining in key jobs with the state when compared with implementations involving a high number of expensive Consultants who leave when the implementation is completed taking critical knowledge with them.
Phase 3. Review of Lean Team Results and Collection of Lean Data
After a period of about three months most Functional Lean Teams, those that were organized and trained by Facilitators, should have their Value Stream Analyses completed. I have had success with doing the flow of the current method on long white butcher or brown wrapping paper taped around a conference room on the walls. The steps of the current method is completed first followed by the proposed improved method done directly under it. This is done to highlight the differences between the methods. I suggest that some Functional Lean Teams with significant savings present their improved method to management. After the presentation the rolled document is given to a Budget Analyst to determine the savings from the proposal. Budget Analysts are trained by the Principal Consultant and are part of the implementation staff.
Phase 4. Activities of the Principal Consultant
The Principal Consultant will play a key role in being sure that the Lean teams are properly trained and in the selection and approach of the high level Lean Teams. The Principal Consultant will insure that the activities of Budget Analysts employed by the state Auditor can determine the correct staffing level through Work Measurement and any expenses needed during the process. Some Budget Analysts may find the proper staffing for variable processes difficult to determine the Principal Consultant will make this determination when necessary. This data combined with the number of occurrences of the function over time, obtained from a daily log kept by each Lean Team, provides the basis for an accurate functional budget. The data from the rolled document will be kept on a spread sheet by the Budget Analysts and summarized in a database where all of the states functional data is stored. The activities of Budget Analysts are important and will be followed closely by the Principal Consultant.
The Principal Consultant will make a final review for the actual staffing required. Note that in most cases this is not a simple calculation due to variations in the times required to do even the same processes. Consolidation is required meaning most employees who currently do not have an activity that takes up their full time will have to be trained to also do a second activity while other employees will become redundant. The main skill required is in balancing the work load to give the remaining employees a full time job. This may be further complicated by activities which continually change and will require the training of a Work Planner to balance the work load assignments for those employees on a weekly basis.
Phase 5. Organization Reform
In the final step the Principal Consultant will begin the process of organizational reform by replacing the Bureaucratic organization with a Team Management organization with top management managing the state’s activities through Group Teams with each managing several Functional Teams. The Lean Teams at the Functional level will become self managed Functional teams with each of their elected leaders reporting directly to a Group Managed team. Group Managed Teams will assume their management role from the pre-organized high level Lean Teams. There is some flexibility in how this process actually occurs but it is necessary in order to eliminate the problems caused by the bureaucratic organization. The important advantage in changing from a Bureaucratic organization to a Team Managed organization is that the savings continues annually for years. But if the bureaucracy is allowed to stay in place after only a few years the level of staffing could grow to where it originally was. This is also the period of time for the reduction of redundant state government staff. Once it is known where staffing can be reduced layoffs or temporary reassignments should be completed within a month.
A reduction in State Staffing in not a goal of Enterprise Lean but rather a result of the implementation.
I have provided the following options to ease the trauma of layoffs.
1. Review State obligations to the public for new programs creating new jobs for personnel.
2. Explore the option of using Lean trained personnel in assisting City and County governments in the implementation of the General Reform Model at the local level.
3. Explore the option of the Four Day Workweek. A 36 hour workweek instantly increases productivity by 10%. The state of Utah has done this successfully.
4. Keep most redundant personnel in temporary jobs allowing attrition through continuous improvement.
Current knowledge about staffing has shown that nearly all bureaucracies are overstaffed by as much as 20%. But I have also found overstaffing up to 30% and higher. The annual savings for the state of California from staff reductions (from census data) and other improvements, I estimate to be between $1.9 and $2 billion. For this estimate I have assumed up to 20% overstaffing from regular employees and management. The actual savings to the state of California may vary from this estimate.
Lawrence Rosier Consulting fees
A single fee covers all Consulting Fees, expenses including travel and overhead and is to be paid weekly.
The State of California may shorten or lengthen the number of weeks that the consultant is required to be on the job site as the State Enterprise Lean Commission finds necessary. The actual length of the implementation of reforms largely depends upon the availability of implementation personnel. Consultant Fees may not be altered from those finally agreed upon.
The following Client signatures of the representatives for the State of California represents a general agreement that the State will follow the proposal’s outline of Lawrence Rosier’s General Reform Model as presented. The proposal may also be modified by mutual agreement. With the following signatures the Client also agrees to the weekly fee required by Lawrence Rosier and Associates.
_______________________________ _________________________________
Signatures of California State Representatives
___________________________________________________
Signature of Lawrence Rosier Principal Management Consultant
Lawrence Rosier & Associates 12143 Cedar Grove Rd. Rolla, Missouri 65401
573 364 8789 Cell 573 578 4716
Email: lawrencerosier@gmail.com
I am always available to answer confidential questions.
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