Lawrence Rosier & Associates
Management Consultants
Government Reform
September 29, 2014
To: Governor Rick Perry Texas
From: Lawrence Rosier Principal Consultant- Government Reform
Cover Letter: Simplified Approach to Consolidation of Texas State Public Services
The attached “Consulting Agreement” is for a simplified approach to consolidation of Texas duplicated public services. The “Consulting Agreement” demonstrates the Consolidation of a Texas Duplicated Service into a single Agency with maximum effectiveness and efficiency. The Consulting Agreement is between the State of Texas and Lawrence Rosier and Associates.
In the past the Texas Legislature has attempted to consolidate various public services with limited success.
The cause of the problem stems from the fact that most State Agencies do not implement changes that lead to reduced staff and budgets. The result is the combining of Agencies without the detailed knowledge of what the actual cost for employee labor should be or who should be doing the tasks. Many Texas State Legislators are aware of the failure of attempts to consolidation public services and the need to fix the problem. The following approach using my Consolidation Model seeks to solve these problems.
The Texas State Audit Department is the key state government organization that has the expertise and the capability for correctly solving the duplicated government services problem with the consultancy of the Principal Consultant. The Texas State Legislature does not have a solution for fixing this problem. .
This Consulting Agreement documents the consulting services to be performed using a simplified approach to obtain quick consolidation results by Lawrence Rosier Principal Consultant. The Consolidation Model provides a step by step implementation approach documenting duplicated services in each agency where it is occurring using Texas government employee Lean Teams (State Audit Analysts) under the supervision of the Principal Consultant. The Audit Analysts will document and collect detailed data for each duplicated function on location in the Agency where duplication is occurring or where an attempt of consolidation has occurred. Lean data is collected in a special spreadsheet designed for the collecting the following data: Identification of the function, its processes its operational costs, the names of the employees performing the function and the effectiveness of the function. See the attached Example Consulting Agreement Exhibit A. for details.
The Consulting Agreement is expected to be renewed for each new consolidation study and completed within three to six months but is largely dependent on the size and extent of duplicated functions. I recommend that a Texas State Consolidation 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.
Please Review the following Example Consulting Agreement for Consolidation of Redundant Agency Services. The document is intended to be used to promote understanding and to start discussion on consulting activities and not as a final document.
Kindest Regards
Lawrence Rosier Principal Consultant
Example: Consulting Agreement (without Boiler Plate) September 29, 2014
This Consulting Agreement may be modified before signatures or afterward by written agreement between signatories.
CONSULTING AGREEMENT
Between the STATE OF TEXAS and
LAWRENCE ROSIER & ASSOCIATES
Consolidation of Duplicated Government Services
This Agreement is made effective by the parties signing as of October 10, 2014, (or an agreed upon date) by and between The State of Texas 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 Texas State Audit Office and the party who will be providing the services Lawrence Rosier & Associates shall be referred to as the “Principal Consultant”.
The Texas State Audit Office Desires to have Lawrence Rosier Principal Consultant provide these services.
Therefore the Parties agree as follows:
1. DESCRIPTION OF SERVICES. Beginning on October 20, 2014 (or an agreed upon date) the Principal Consultant will provide the following services (collectively, the “Services”). Consulting for the Consolidation of Texas Duplicated Services into single Agency is between the Texas State Audit Office and Lawrence Rosier and Associates. The “Principal Consultant” hereby agrees to provide and perform for the Federal Government 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 State of Texas 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 State of Texas by Lawrence Rosier & Associates
Prepared by Lawrence Rosier Principal ConsultantLawrence Rosier & Associates provides the following Consolidation Model for the use of the State of Texas.
Consolidation Model Overview:
The Texas State Audit Department is the key state government organization that has he expertise and the capability for correctly solving the duplicated government services problem with the consultancy of the Principal Consultant. The Texas State Legislature does not have a solution for fixing this problem. The cause of the problem stems from the fact that most State Agencies do not implement changes that lead to reduced staff and budgets. The result is the combining of agencies together without the detailed knowledge of what the actual cost for employee labor should be or who should be doing the task. Many Texas State Legislators are aware of the failures of attempts to consolidation public services and the need to fix the problem. The following approach using the Consolidation Model seeks to solve these problems.
Implementation of the Consolidation Model
The implementation of the Consolidation Model provides an approach that is general enough to be applied to most situations in state government requiring consolidation and downsizing. The Model is to be implemented by a Texas Consolidation Committee with council from the model’s developer Lawrence Rosier Principal Consultant.
The Consolidation Model:
Appointment of a Consolidation Committee
The State of Texas will appoint a Consolidation Committee to have oversight of this Consulting Agreement. The proposed Texas Consolidation Committee will have oversight of the implementation of the Consolidation Endeavor. The Principal Consultant will report to the Consolidation Committee. The Audit Analysts Lean Teams will be lead by the Principal Consultant Lawrence Rosier. The Consolidation Committee will confirm the reduction in Agency staffing and the resulting benefits to the State Legislative Budget Committee. The following implementation is to be done by the proposed Texas Consolidation Committee.
Goals:
The main goal is to consolidate and eliminate duplicated State agency services by streamlining the desired government services.
A secondary goal of the implementation is to strengthen the Legislative Budgeting process by providing transparency of the cost of 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 Consolidation Committee:
Step 1. Proposed Formation of a Texas Consolidation Committee
The proposed Consolidation Committee will have broad powers to lead and implement consolidation of duplicated government services. 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 provide consultancy to the Consolidation Committee and will train and lead Texas Lean Teams (Audit Analysts) in the documentation of duplicated services and the efficiency of the final Agency.
Step 2. The Consolidation Committee will request the name of a management representative for duplicated services in each Agency where duplication occurs. The representative will provide: 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.
Step 3. A Effectiveness Evaluation Team(Audit Analysts) 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 the Texas Effectiveness Evaluation Teams may visit the Agency providing the duplicated services for further evaluation. Agencies with duplicated services who fail the Effectiveness Test will have their budgets cut for this service and employees reassigned or laid off.
Step 4. Lean Team documentation of Efficiency
When a duplicating service Agency passes the Effectiveness Test a Lean Team (Audit Analysts) 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 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 organization 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. Some management will remain until the Agency can be shut down.
Specific Services Supplied to the State of Texas by Lawrence Rosier the Principal Consultant
Beginning in step 4. The Principal Consultant will build, train and supervise Lean Teams of Audit Analysts supplied by the Texas State Auditors office for the implementation of the Consolidation Reform Model. The Principal Consultant will confer closely with the proposed Texas Consolidation Committee in the selection of the Lean Team members. It is expected that the Lean Teams will be able to make an Agency evaluation in a single visit. They will document the Lean data using tablet computers or laptops (provided by the State of Texas) in a spreadsheet (provided by the Principal Consultant). The tablet computers or laptops will have a Google APP installed that will allow spreadsheets to be instantly be available for evaluation by the Principal Consultant. I recommend that the spreadsheet data be stored Google’s Drive Cloud storage. The activities of the Audit Analysts are important and will be monitored closely by the Principal Consultant.
Training Provided by the Principal Consultant:
Texas Lean Teams will receive training in Lean by the Principal Consultant. The Principal Consultant will also provide the following training: time studies, right-sizing (makes sure all employees have a full time job), budgeting, staffing, and workload balancing (management of the work flow). These activities are necessary to the making of the most efficient final State Agency.
Exhibit B. The State of Texas Support for this Agreement
This Agreement requires the Texas Consolidation Committee to follow the Principal Consultant’s Consolidation Model and the requirements therein as outlined below:Enterprise Lean Support Requirements
1. The State of Texas will provide an independent Texas Consolidation Committee to oversee the implementation of this Consolidation Agreement.
2. The Texas State Audit Deptment will provide Six or more Audit Analyst employees to be trained in the Lean process by the Principal Consultant. They will also be trained by the Principal Consultant in the collection and use of Lean data developed by the Functional Lean Teams. Training supplied by the Principal Consultant will be in the documentation of lean data and its use in Right-sizing, staffing, budgeting and balancing work loads.
4. Audit Analyst Lean Teams 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. Consolidation Model (The primary Model of this Agreement).
2. General Reform Model (may be implemented with approval of all parties to this agreement).
The Consolidation Model
The implementation of Lawrence Rosier’s Consolidation 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 Texas Consolidation Committee with council from the model’s developer Lawrence Rosier Principal Consultant.
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