Article 79. Simplify and Then Reform Government
The strategy is to first simplify government before reforming it. Peter Drucker once said “
it does not make sense to make things efficient that are going away”. The rule can be generalized into all situations where a significant investment is about to be made. But Congress does not follow this rule and continues to enact legislation without reviewing and simplifying legislation that has already been enacted. The result is many duplications of government services. Congress apparently does not have a way to efficiently fix the problem or it would have been done. Below is my proposed Consulting Agreement for a demonstration to simplify and reform the Federal Government. Newt Gingrich estimates that Reforms could save the US taxpayers $500 billion annually. See also Article 2. Massive Savings Through Massive Simplification of Government.
On March 1, 2013, Janet St. Laurent of the U.S. Government Accountability Office (GAO) released a 345-page report combing the federal catalog of government programs to uncover what it said was evidence of waste and duplication that cost taxpayers billions of dollars each year.
Examples of Federal Government Duplicated Services:
The GAO found that there were 82 federal programs to improve teacher quality, 80 to help disadvantaged people with transportation, 47 for job training and employment, and 56 to help people understand finances. Another prime example is the 15 different agencies that oversee food-safety laws, with no specific agency solely dedicated to the issue of food safety.
Consolidation of Government Duplicated Services:
I have developed a "Consolidation Model" just for this purpose it generates the accurate data for making decisions on who should be providing government services. Then identifies the most likely candidate agency for providing the service and moves the service to the new Agency or revamped final Agency. The process meets all of the GAO's criteria for being: efficient, effective, ethical, equitable and representative.
See Article 48. Consolidation of Government Duplicated Services and Article 49. The Effectiveness Test, a Tool for Reforming Government.
Lawrence Rosier has developed two Models: The Consolidation Model for simplifying Government is implemented first followed by the General Reform Model.
Consolidation of Government Duplicated Services is a necessary simplification before Reforming Government. The following proposal to the Congressional Budget Office by Lawrence Rosier & Associates provides a means for first simplifying government and then reforming government.
Lawrence Rosier Consulting
Management Consultants Government Reform
12143 Cedar Grove Rd. Rolla, Missouri 65401
Phone (573) 364-8789 Cell (573) 578-4716
September 2, 2014
To: Director Douglas W. Elmendorf Congressional Budget Office
From: Lawrence Rosier Principal Consultant Government Reform
Subject:
This Cover Letter is an example “Consulting Agreement” for a demonstration of Consolidation and streamlining of US Federal Government Duplicated Services into single reformed Agency. This followed by a demonstration of the General Reform Model which is implemented in a selected government agency. The parties of this agreement are the Congressional Budget Office (CBO) and Lawrence Rosier & Associates.
This Consulting Agreement documents the consulting services to be performed using Reform Models developed by Lawrence Rosier Principal Consultant. The demonstration implements the “Consolidation Model” in a selected group of duplicated services provided by several different Agencies.
It provides a step by step approach first determining the effectiveness of each duplicated service with an Effectiveness Test. Those duplicated services not meeting the Effectiveness Test are disbanded and their budget is removed. Those passing the test have their processes documented by CBO Analyst Teams to find the best method for providing the service. The data is collected and documented in spreadsheets and put in a matrix format for selecting the best method. The “General Reform Model” is applied to a final streamlined agency achieving the highest efficiency and effectiveness possible. See the attached Example Consulting Agreement Exhibit A. for details.
The Consulting Agreement is expected to be completed within six months to one year but is largely dependent on the size and extent of duplicated functions. I recommend that a CBO Reform Committee be established to oversee the implementations with the Principal Consultant reporting to the Committee and managing the day to day implementation of the reforms by CBO Analysts.
Please Review the following Example Consulting. The document is intended to be used to promote understanding and to start discussion on consulting activities an not as a final document.
Kindest Regards Lawrence Rosier Principal Consultant
Example: Consulting Agreement Released September 2, 2014 (without boiler plate)
Consulting for the Implementation of the Consolidation Model. This Consulting Agreement may be modified before signatures or afterward by written agreement between signatories.
CONSULTING AGREEMENT
CONGRESSIONAL BUDGET OFFICE and
LAWRENCE ROSIER & ASSOCIATES
A demonstration For the
Consolidation and Reform of Government Services
This Agreement is made effective as of September 8, 2014, (or an agreed upon finalized date) by and between The Federal Government, the Congressional Budget Office and Lawrence Rosier & Associates, of 12143 Cedar Grove Rd., Rolla, Missouri 65401 (573) 364 8789 cell (573) 578 4716
In this Agreement, the party who is contracting to receive services is the Congressional Budget Office referred to as the “CBO” and the party who will be providing the services Lawrence Rosier shall be referred to as the “Principal Consultant”.
The Congressional Budget Office “CBO” Desires to have Lawrence Rosier “Principal Consultant” provide these services.
Therefore the Parties agree as follows:
1. DESCRIPTION OF SERVICES. Beginning on September 15, 2014 (or an agreed upon date) Principal Consultant will provide the following services (collectively, the “Services”). Consulting for the Consolidation of US Federal Government Duplicated Services into single Reformed Streamlined Agency. The Principal Consultant hereby agrees to provide and perform for the CBO these Services Set forth in Exhibit A.
2. PERFORMANCE OF SERVICES. The manner in which the Services are to be performed and the specific weeks to be worked by the Principal Consultant Shall be Determined by the Principal Consultant. The CBO will rely on the Principal Consultant to work as many weeks as may be reasonably necessary to fulfill the Principal Consultant’s obligations under this agreement.
Exhibit A. Description of Services Supplied to the CBO by Lawrence Rosier & Associates
Prepared by Lawrence Rosier Principal Consultant
Tasks to be Followed Upon the Signing of this Consulting Agreement
The Proposed CBO Reform Committee:
The CBO will appoint a proposed CBO Reform Committee to manage and have oversight of the implementation of this Agreement. The Principal Consultant Lawrence Rosier will Consult with the Client Reform Committee. The Implementation Team of CBO Analysts will be lead by the Principal Consultant. The Reform Committee will also confirm the reduction in Agency staffing and the resulting benefits to the Legislative Budget Committee.
Selection of CBO Analysts
The Principal Consultant will participate with the Reform Committee in the selection of CBO Analysts to receive training in two groups of teams: Effective Evaluation Teams and Lean Teams. Policies and procedures for the Effectiveness Evaluation Teams and the Lean Teams will be developed jointly by the CBO and the Principal Consultant. Specialized training in Lean for all CBO Analysts by a certified Lean instructor is recommended at CBO expense.
Training in Specific Technologies Provided by the Principal Consultant:
The development of a Pedagogy for class room instruction of CBO Analysts in special technologies by the Principal Consultant. CBO Analysts selected for this Agreement will receive an overview of the reform models with classroom training in the following supporting skills and on the job training during the implementation of the reform models
1. Effectiveness Test- by the Principal consultant
2. Enterprise Lean- by the Principal Consultant
3. Variable Function Analysis- by the Principal consultant
4. Time studies (a necessary basic skill)- by the Principal consultant
5. Statistical Sampling- by the Principal consultant
6. Right-Sizing (makes sure all employees have a full time job)- by the Principal consultant
7. Bottoms-up budgeting- by the Principal consultant
8. Staffing- by the Principal consultant
9. Workload Balancing (management of the work flow)- by the Principal consultant
10. Short Interval Scheduling- by the Principal consultant
11. Operation Sequence Charts- by the Principal consultant
12. Productivity Reporting Techniques- by the Principal consultant
13. Team Management- by the Principal consultant
Overview of Consolidation Model and the General Reform Model:
This Consulting Agreement documents the consulting services to be performed using reform models developed by Lawrence Rosier Principal Consultant. The pilot demonstration implements the “Consolidation Model” in a selected group of duplicated services provided by several different Agencies.
It provides a step by step approach first with CBO Effectiveness Teams determining the effectiveness of each duplicated service with an Effectiveness Test. Those duplicated services not meeting the Effectiveness Test are disbanded and their budget is removed. Those passing the test have their processes documented by CBO Analyst Lean Teams to find the most efficient method for providing the service.
The CBO Lean Teams will collect and document duplicated services lean data in spreadsheets. The duplicated final processes are put in a matrix format for selecting the best method to be used in streamlined single Agency.
The Consolidation Model documents the duplicated services in various Agencies and selects the best process for each duplicated service to be done in a single Agency which may be one of the current Agencies which is revamped or an entirely new Agency built from the ground up. The final Agency will be reformed or rebuilt using the Principal Consultant’s “General Reform Model” applied to the final streamlined agency achieving the highest efficiency and effectiveness possible.
The General Reform Model uses employee Enterprise Lean Teams to get the highest efficiency and effectiveness possible. We will use the data developed by the Lean Teams to Right-Size the supporting Agency making sure all personnel have a full time job. The Lean Team data will also be used to develop bottoms-up budgets which identify the actual costs of a systems functions. This is also the data needed to manage an Agency’s work by balancing its work load.
Goals:
The main goal is to provide a pilot demonstration of the Consolidation Model and the General Reform Model eliminating duplicated Federal Agency services and providing a streamlined single Agency getting the highest efficiency and effectiveness possible. The method empowers government employees in the new organization through Lean Teams involving them in work process decisions and continuous improvement to their jobs.
A second goal of the implementation is to strengthen the Legislative Budgeting process by providing transparency of the Functional activities of the new organization to the legislative budget leaders enabling them to control budgets through the knowledge of the correct Functional staffing and its budget.
The Consolidation Model by Lawrence Rosier Principal Consultant
Activities of the CBO Reform Committee:
Step 1. Proposed Formation of a CBO Reform Committee
The proposed Reform Committee will have broad powers to lead and implement the Consolidation Model and the General Reform Model eliminating duplicated government services and streamlining the final single agency. This is necessary for legitimacy and to make sure that the consolidation of duplicated services are evaluated for effectiveness and efficiency. The Principal Consultant will consult with the Reform Committee and will train and lead CBO Analyst Teams in the documentation of duplicated services and the efficiency of the final Agency.
Step 2. The Reform Committee will request the name of a management representative for duplicated services in each Agency where duplication occurs. The representative will provide: the amount of the budget for the duplicated service, the customer names of those receiving the service and a flow chart of the activities for doing the service and other documentation as deemed necessary. Agencies are responsible for providing proof of effectiveness.
Step 3. A CBO Effectiveness Evaluation Team will review the data submitted by the duplicating service Agency for the Effectiveness of the service to the Agency's customers. If its customers are not satisfied with the services provided by the duplicating Agency it fails to pass the Effectiveness Test. If the Effectiveness Test is inconclusive a CBO Effectiveness Evaluation Team may visit the Agency providing the duplicated services for further evaluation. Agencies who fail the Effectiveness Test will have their budgets cut for this service and employees reassigned or laid off.
Step 4. CBO Lean Team documentation of Efficiency
When a duplicating service Agency passes the Effectiveness Test a CBO Lean Team lead by the Principal Consultant is dispatched to the Agency to Document the current process of the duplicated service and the efficient Lean process. The object is to verify actual cost data to enable the process of deciding what to do with the function. The most efficient duplicated necessary functions shall be moved to a new agency or a revamped agency.
Step 5. Comparison of Duplicated Services
The CBO Lean Team is used to evaluate the efficiency of the duplicated Function and its associated cost data. Outcomes are to be compared with all the other duplicated Functions from all the organizations depicted in a matrix chart where duplicated Functions are to be compared. Those duplicated services rejected for low efficiency will be declared as redundant and their budgets cut followed by reassignment or layoff of employees. Those agencies with the highest efficiency will have their budgets moved to the new final single Agency and the employees will be given the opportunity to move to the final Agency providing the services.
Step 6. Resolution of Agency Failures in meeting the Effectiveness Test.
If an entire Agency with duplicated services fails to pass the Effectiveness Test regardless of how efficient they are they will be declared to be redundant. With its budget removed and employees laid off the Agency will be shut down.
Evaluation of Duplicated Services for Efficiency:
Beginning the above Step 3.The Principal Consultant will Manage the activities of the CBO Effectiveness teams with the help of the Reform Committee.
In step 4. Those duplicated activities which pass the Effectiveness Test will be visited by a CBO Lean Team to evaluate the efficiency of the processes of the duplicated activity. The processes will be documented in a spreadsheet on tablets supplied by the CBO for each Analyst on the lean team using a special program supplied by the Principal consultant.
The General Reform Model:
The General Reform Model Normally begins with the implementation Enterprise Lean throughout the Agency involving all employees tasked to make all functional systems efficient and effective. To get the highest efficiency possible we will use the data developed by the employee Functional Lean Teams. The lean data will be collected and documented by CBO Analysts in a spreadsheet program. When all of the data for the entire Agency has been collected it will be used to Right-Size the organization making sure all personnel have a full time job. The employee Lean Team data will also be used for staffing and to develop bottoms-up budgets which identify the actual costs of a systems functions. This is also the data needed to manage an organization’s work by balancing its work load.
Implementation of the General Reform Model
For Pilot demonstration purposes of this Agreement the General Reform Model will be applied to the final organization in the above Consolidation Model. Much of the data developed in the Consolidation Model demonstration can be used directly in the General Reform Model leading to a more efficient demonstration of the two models.
Phase 1. The CBO Reform Committee will have Oversight
The CBO Reform Committee will have oversight of the implementation of the Consolidation Model and the General Reform Model including Enterprise Lean and other reforms.
The CBO will provide CBO Analysts (specifically those that have received classroom training above) after supporting the Consolidated Model they will assist in the implementation of the General Reform Model. The CBO Analysts will become Facilitators for the implementation of Enterprise Lean until it has been implemented in its entirety throughout the final Agency. When the implementation of enterprise Lean has been completed the CBO Analysts will collect the Lean Data in spreadsheets from all of the Agencies Functions. The Lean data will then be used to Right-Size the Agency (making sure that all employees have a full time Job) followed by staffing and Bottoms-up Budgeting. The CBO will maintain the new Bottoms-up Budget databases. The Agency’s budget databases may be stored in Google’s cloud storage “Google Drive” at little or no cost.
Phase 2. The Training and Organization of Employee Enterprise Lean Teams
The Principal Consultant recommends that an Enterprise Lean Training specialist be brought in from a local University to Kick off the implementation with training seminars for the Agency‘s employees. Lean training should begin immediately by the Agency’s training staff. I suggest that the normal training curriculum for the Agency be suspended and an all out effort be made for Enterprise Lean Training. Training should be made first for staff members followed by management, Lean Facilitators (CBO Analysts) and general employees.
Agency Management Lean Teams
There are two major Lean Team groups, high level Management Lean Teams (which will become Steering Teams) and at-the-work-place employee Functional Lean Teams. Management Lean Teams are organized and lead by members of management. They are tasked to study individual high level systems within the Agency and those that interact with other Agencies mostly document flows. 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.
Phase 3. Review of Lean Team Results and Collection of Lean Data
After a period of about two months most Functional Lean Teams, those that were organized and trained by CBO Analyst 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 tapped 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 two 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 CBO Analyst to document the savings from the proposal in a spreadsheet.
Phase 4. Activities of the Principal Consultant
The Principal Consultant will play a key role in being sure that the employee 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 CBO Analysts can determine the correct staffing level through Work Measurement and any expenses needed during the process. Some CBO 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 Lean data from the rolled document will be kept on a spreadsheet by the CBO Analysts and summarized in a database where all of the Agency’s functional data is stored. The activities of CBO Analysts are important and will be followed closely by the Principal Consultant.
Details of the Data Collection and Reform Process
The technical reform process begins after the decision to implement Enterprise Lean and after the functional Lean teams have completed their Value Stream Mapping (VSM) studies. The important data that is necessary for reform is the functional cost data developed by the Functional Lean Teams from their individual functions. The data will be collected in electronic tablets using a spreadsheet program specifically designed for this process. All tablet spread sheets will be continuously updated using a special Google App (application). The Principal Consultant will provide on the job training of CBO Analysts in the collection of this data and all subsequent reform steps.
Lean Team Data that is collected and allowed to accumulate
The following steps show how the Lean Team Data is collected and allowed to accumulate in the spreadsheet program and how the summarized data is used. This approach to reform meets all of the CBO’s criteria for an Agency: efficient, effective, ethical, equitable and responsive .
1. The VSM for each function will be documented in the spreadsheet.
2. All labor and expense cost data will be documented and allowed to accumulate as functions are added to the spreadsheet until all of the Agency’s functions have been accounted for.
3. The names of the employees working on the function will be documented with any special expertise they are using in performing the function. Each employee’s labor hours expended in doing the function will be documented and allowed to accumulate. This data will be used during the Right-Sizing process.
4. Where there is interaction between several employees during the performance of the function as a part of the VSM a work load balancing chart will be a part of the documentation. This work load chart can be used later to balance the function’s work load.
5. When all of an Agencies Functions have been logged into the spread sheet the final labor hours and expense numbers will have been automatically tallied in the spread sheet along with the total hours worked by each employee in the particular function.
6. A key question asked of employees is the estimate for the number of times that the function is done per week and recorded in the spread sheet. This number is authenticated by history and other knowledgeable personnel including the enumeration of purchased goods consumed by the function.
7. The total annual accumulated functional hours is at 100% productivity and must be converted to provide a realistic number at 75% productivity. To make this conversion you will add 25% more time to the total or multiply the total time by 125%. This becomes the labor hours for staffing and budgeting and is what is referred to as a Gross Load among consultants. When all of the Agency’s functional labor hours have been accumulated at 125% and we add in the total annual expenses we have what I call a Bottoms-up Functional Budget.
8. Next we want to compare the Bottoms-up Budget with the current Top-Down Agency Budget. To do this we remove all management and overhead expenditures from the Agency’s Top-Down Budget to obtain an equal expenditure. Then we compare the Bottoms-up Budget with the Top-Down Budget. The Bottoms-up Budget should be 20% or more less than the Top-Down Budget. If this is not the case then we have introduced an error more than likely in the number of times that a Function is being performed annually. This should be resolved by reviewing the Lean data in the Agency’s spreadsheet.
9. We can now do Right-Sizing using the employee accumulated Lean data from the spreadsheet. As a rule of thumb the employee accumulated hours is separated between those who have accumulated more than 20 hours per week average and those who have accumulated less than 20 hours per week. Those who have accumulated less than 20 hours per week are considered to be redundant and slated for layoff. Their accumulated hours are spread among those with more than 20 hours per week increasing their hours to at least 37 hours per week. This involves reviewing each function and reassigning tasks to employees according to their capability and availability.
10. We now need to review the spreadsheet for those jobs noted as occurring on a random basis. These special jobs need to be separated form those jobs that occur on a continuing basis. An individual employee is specially trained to do the job of Work Planning, forecasting scheduling these jobs on a weekly basis.
11. The spreadsheets are stored on thumb drives for each Agency and protected. The labor data for each function is stored in a Database at 100% to be used for calculating productivity where required. The Database also includes the staffing and bottoms-up budgeting data. I recommend that the data be protected by an independent organization such as the CBO. This allows availability of the data for all who want to review the actual labor and expense cost of an Agency function including the Agency’s Bottoms-up Budget.
Phase 5. Organization Reform
In the final step of the General Reform Model 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 Agency’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 of mismanagement the level of staffing could grow to where it originally was. This is also the period of time for the reduction of redundant government staff. Once it is known where staffing can be reduced layoffs or temporary reassignments should be completed within a month.
Exhibit B. The CBO Employee Support for this Agreement
This Agreement requires the CBO to follow the Principal Consultant’s Consolidation Model and General Reform Model and the requirements therein as outlined below:
Enterprise Lean Support Requirements
1. The CBO will provide a Reform Committee to oversee the implementation of this Agreement.
2. The CBO will bring in a qualified Enterprise Lean Seminar presenter to make several presentations of the process of Enterprise Lean to Management and government employees of the consolidated organization.
3. The CBO will provide Enterprise Lean trained Facilitators (this function is to be done by CBO Analysts in this Agreement) to work with Functional Lean Teams. Each Functional Lean Team will meet once a week to do their Value Steam Mapping of their function or functions. The Principal Consultant suggests that a hold on hiring new personnel be put in place and HR personnel be tasked with this job as Facilitators. Each Facilitator can meet with about 30 Functional Lean Teams each week for about 4 weeks. The Total number of Facilitators required depends upon how fast the CBO wishes to complete the implementation of Enterprise Lean.
4. About ten CBO Analysts will be provided by the CBO and will be trained by the Principal Consultant in the collection and use of Lean data developed by the Functional Lean Teams. They will work under the direction of the Principal Consultant for the duration of this Agreement.
Exhibit C. Intellectual Property Owned by Lawrence Rosier & Associates
The primary Intellectual property which Lawrence Rosier & Associates own exclusively is their Approach using the following:
1. General Reform Model (The primary Model of this Agreement).
The Consolidation Model
The implementation of Consolidation Reform Model is a method of approach that is general enough to be applied to most situations in government requiring consolidation and downsizing. The Model is to be implemented by a CBO Reform Commission with council from the model’s developer Lawrence Rosier Principal Consultant. The Model is composed of three major phases. Phase I. Implements Lean Teams in each Agency where duplication occurs to develop accurate functional data for making decisions. Phase II. Provides a method to expediently and efficiently evaluate the Functions performed in all of the organizations to be consolidated. Phase III. Selects those Functions worthy of performing and builds an efficient Team Managed consolidated organization. The final Agency uses the General Reform Model to get the highest efficiency and effectiveness possible in providing the required services.
The General Reform Model
The General Reform Model uses Enterprise Lean to Right-Size the organization getting the highest efficiency possible while improving the effectiveness of the organization. It uses the Lean study data for Work Measurement to determine the proper staffing and budgeting. The method trains the organization’s managers in Enterprise Lean forming teams to do high level studies. All Functional employees are trained in Lean forming Self-Managed Lean Teams to study each of their functions. After the Teams have gained in sufficient skill level the bureaucratic organization is replaced by a Team Management organization. The Method empowers employees to make continuous improvements to the company’s operations. The method reforms the company while improving employee morale.
Although Enterprise Lean is a part of the General Reform Model it is not the intellectual property of Lawrence Rosier & Associates but the use of the data developed through the implementation of Enterprise Lean is the exclusive intellectual Property of Lawrence Rosier & Associates.
Contact Information:
Lawrence Rosier & Associates 12143 Cedar Grove Rd. Rolla Missouri 65401
(573) 364 8789 cell (573) 578 4716
