Article 88. Startup Plan for US Government Reform

Startup Plan for US Government Reform
By Lawrence Rosier December 26, 2016

The Startup Plan focuses on the implementation of key elements that are required to happen for the successful implementation of Reforms starting with the first 100 days of the Trump Administration.

The objective is to insure that the supporting organization is quickly put in place for the implementation of reforms.

I recommend that the following key items be placed in a single "Government Reform Activation Bill" that provides the needed support and authority that allows the necessary reforms to be implemented. This bill should be ready for a Congressional vote asap after the inauguration of Donald Trump as President.

1. Congressional approval for the creation of a US Office of Inspector General (USOIG) organization.  It will report to the Office of Management and Budget (OMB) headed by the new position of US Inspector General appointed by the Trump Administration.  Each Departmental OIG organization (about 17) will report directly to the US Inspector General who will lead the implantation of Federal Government Reforms.  This will solve the problem that Departmental OIGs are not independent organizations and are controlled by department heads.

The new OIG organization will also have an independent unit which will bring their management expertise to those 68 or so OIGs not included, through the Council of the Inspectors General on Integrity and Efficiency (CIGIE).

2.  A Principal Consultant, with the proper experience, is to be hired as a permanent government employee to train each OIG organization (approx 17). He will provide the necessary OIG Analysts’ training in Enterprise Lean, Right-sizing and building Bottoms-up Budgets. This expertise can be supplemented by bringing in Enterprise Lean Training Consultants for training OIG Analysts as Facilitators to implement Enterprise Lean. OIG Analysts will be the boots on the ground implementing reforms. These are followed by the change from a bureaucratic organization to a Team Managed organization as the key to implementing the General Reform Model leading to permanent reforms.

Another approach is to use the VA as a pilot implementation followed by the full implementation of reforms.

3. Training of OIG Analysts should begin immediately for Enterprise Lean and right-sizing.  This will allow across the board implementation of reforms to begin in the Washington DC area other locations will follow.

4.  OIG Departmental Leaders will follow Department Simplification recommendations from the Trump Administration while making surveys of the department for duplication of activities.  The Consolidation model may be implemented to support the simplification effort.  The approach is to Implement Enterprise Lean followed with Right-sizing.  This is where you get rid unnecessary government activities and Red Tape. 

5. Congressional approval: the USOIG Shall also have reporting to it a specialized Integrated Technology Team to review government IT implementation plans and prevent the $ millions of waste in Government Computer systems.  Currently the US government has no oversight organization capable of preventing the enormous boondoggles found in the development of IT systems.  See Article 26. The Biggest Boondoggle Ever in State IT (Virginia's VITA).

6. Congressional approval: the implementation of a Change in The funding of Federal Government Activities.  The funding of Bills passed by Congress in addition to present reviews will be deemed as First Year Start-up Funding. This is to be followed by a review by the proper OIG Analysis Team which will determine the Operational Funding for year to year budgets.  This insures that all funding by the Federal Government is brought under management control.

7. The suspension of certain Government Employee Union guarantees including seniority rights and work assignment rights.  No union activity will be allowed to interfere with the implementation of the Federal Government Reforms.

8.  The suspension of certain government Departmental Vendor Codes allows the Government Reform team the right to bring in outside Consultants over Departmental objections.

9.  The Reforms will establish staffing levels required to do the work of the US Government.  The identification of over-staffing will require that redundant personnel be removed from the work environment with pay continuing for one month to allow redundant personnel time to find a new job in areas where under-staffing has been identified.  After this one month period options such as early retirement are available for those who qualify.  Those without options will be promptly removed from the government's payroll.

10. Application of the "Effectiveness Test".  All that is required is for the OIG to have evidence that the suspect agency is not meeting its effectiveness obligations for the OIG to go into a proactive mode to investigate further, not requiring a bill before congress to authorize the investigation.  The intent is to authorize the OIG to investigate and fix the thousands of ineffective activities found in the Federal government without waiting for the high profile requirement for Congress to enact into law the OIG’s activities.

Effectiveness and Efficiency are not the same thing but must be considered together.  You can be very efficient at doing things but if it does not finish the job it is not effective and may be a waist of time and budget.  Before Trying to make a job efficient the Effectiveness Test should be applied.
See Article 49. The Effectiveness Test, a Tool for reforming Government

Article 87. Possible Savings to the American Tax Payer During Trump Presidency

Newt Gingrich floated a possible savings from the elimination of Federal Government waste totaling $500 Billion.  I believe that this is within the realm of possibility but there is also just as much savings from implementation of Federal Government reforms: bringing the Federal Government under management control, simplifying the Tax Code and other areas and the elimination of government obsolete and duplicated activities.  I believe that a conservative estimate of $ 1 Trillion in savings during the Trump Presidency is possible.  Here is how this can be accomplished.

Reorganizing for the implementation of Reforms
I recommend that the Office of Management and Budget (OMB) be the primary source of the Government reform effort.  Headed by the US Inspector General (a newly created office) reporting directly to the OMB.  All OIG Departmental organizations will report directly to the US Inspector General and the OMB.  The new OIG organization will establish an ongoing capability to review and maintain government efficiency. In addition to the Implementation of major Federal Government Reforms.

In addition to the above I recommend that the OIG establish a specialized Integrated Technology Team to review and prevent the $ millions of waste in Government Computer systems.  Currently the US government has no oversight organization capable of preventing the enormous boondoggles found in the development of IT systems.

Recommended Change in The funding of Federal Government Activities
The funding of Bills passed by Congress in addition to present reviews will be deemed as First Year Start-up Funding. This is to be followed by a review by the proper OIG Analysis Team which will determine the Operational Funding for year to year budgets.  This insures that all funding by the Federal Government is brought under management control.

Implementation of Reform Models
1. Simplify Government
It is usually better to simplify government before trying to reform it.  Some Governmental Activities, determined to be unnecessary, can be eliminated immediately with their budgets but usually simplifying government is not a simple matter. This is where you get rid unnecessary government activities and Red Tape.

Using The Consolidation Model by Lawrence Rosier
A Comparison of Duplicated Services is done by OIG Analysts to determine their associated cost data.   Outcomes are compared with other duplicated Functions from all the organizations and are depicted in a matrix chart. Those duplicated services rejected for low efficiency will be declared as redundant and their budgets cut followed by reassignment or layoff of employees.  Those services with the highest efficiency will have their budgets kept in place or moved to the new final single location with employees given the opportunity to move to the final service group providing the services.

2. Implement the General Reform Model
The United States Inspector General (newly appointed) will have Oversight of the implementation of all reforms including the General Reform Model.  The General Reform Model uses employee Enterprise Lean Teams to get the highest efficiency and effectiveness possible.  We will use the data developed by Departmental Lean Teams to Right-Size the selected Department.  The Lean Team data will be used by specially trained OIG Analysts to develop bottoms-up budgets which identify the actual costs of all systems and functions (draining the swamp).  This is also the data needed to manage the organization’s work load and in the determination of the level of staffing needed to meet standards. Lean teams provide the opportunity for continuous improvement of government operations including the elimination of red tape.

3. Organizational Reform
In the final step of the General Reform Model, the Reform 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 from continuous improvement without a return to the old bureaucratic growth practices and toxic Bureaucratic management practices targeting whistle Blowers.

The Bureaucratic organization is Top heavy with management which makes most the decisions for the organization.  The Team Management organization has the minimum required top level management allowing decisions to be made at the most appropriate level down in the organization.  Layers of redundant largely incompetent bureaucratic management can be removed from the organization.

Even more Savings Can be Obtained from Government Suppliers and Contractors
I recommend that government suppliers and contractors be required to implement company wide efficiency through the establishment of internal Company Corporate Audit Teams to monitor company wide staffing (similar to the Federal Government‘s OIG).  I also recommend that suppliers and contractors establish Enterprise Lean Teams for continuous improvement. 

These changes will likely need Congressional approval and should be accomplished early in the first 100 days of the Trump presidency.  The complete reform of the federal government will take years but reduced budgets should start appearing in the first year. 

Article 83. Amateur Versis Professional Reform

Donald Rumsfeld and other short sighted notables have suggested that the best way to cut back the Federal Government is to cut departmental budgets by as much as 10% across the board to quickly reduce spending. I disagree with this approach for the following reasons.
1. This approach punishes properly managed Government Departments sending the message that they should maintain overstaffing just to have extra personnel in case of a budget reduction.
2.  This approach does nothing to determine the actual staffing required and because no one knows, Departments can chose to fight back and reduce productivity just to prove that a larger budget is required. See Article 16

Newt Gingrich has estimated that waste in the Federal Government is costing $500 billion.  My objective is to identify and get all of the savings due to the American taxpayer that is available regardless of what is estimated.

My approach is to first simplify government, solve specific problems such as consolidating random duplicated activities with my Consolidation Model or addressing the specific needs of the Veterans Hospitals. See Article 48 “Consolidation of Gov Duplicated Services”. 

This is followed by the standard installation of my General Reform Model for all governmental operations (Except Military).  The General Reform Model begins by forming employee work Teams (Enterprise Lean Teams) to solve on the job problems increasing productivity.  Each Team elects their own leader and meets about once a week.  A good example is a hospital surgeon’s team which organizes the work to be done so no one has to wait on another person.  Organizing the work is done to prevent building-in inefficiency.  Boeing balances its aircraft assembly lines to make sure that the right part is installed at the right time by the right person and no one waits on another worker.

Enterprise Lean Teams have been successfully used by the state of Minnesota to improve efficiency in government.  For example they are especially useful in reducing Document Turnaround times from months to just days.  My only disagreement with Minnesota’s Lean Teams is they do not follow up and reduce personnel as efficiency increases.

When the employee Teams have gained experience.  The entire organization is changed from the current Bureaucratic organization to a Team Managed organization, eliminating problems caused by toxic bureaucracies.  The final activity is the use of Special OIG (Office of Inspector General) audit teams to collect data from the work teams and time study repeating activities (necessary to establish standards).  From this data a new representative reduced budget is built.  See Articles 58 “Reinventing the VA” and in Article 56, Proposed Consulting Agreement with details of approach in fixing specific problems of the VA. (all of my proposals were Rejected by the Obama Gov). 

There is another higher level of government improvement using Six Sigma in Management Teams which I recommend. This involves broad studies of complicated decision making processes usually involving government contracts. See Article 47 “Technical guide to State Government Reform” 
See also: Article 42. “Health Care The Cheesecake Factory and Lean Six Sigma”
“Restaurant chains have managed to combine quality control, cost control, and innovation. Can health care?”
by Atul Gawande August 13, 2012 Excerpt from the New Yorker

Once proven this approach to Government Reform can be adapted for required implementation for all DOD suppliers and manufacturers. The approach should also be recommended for all US manufacturers to increase competitiveness and prevent going after cheap labor in third world countries.  Most US manufacturing high labor costs are caused by overstaffing not just by high wages.  Competitiveness is the key to making America Great again.  But a concentrated effort must be made to create jobs. See Article 15.  Bringing Life to a Manufacturing Company’s Dead Zone.

See also My kindle Ebooks:
“Now We Know How to Reinvent the Federal Government-Using Enterprise Lean and Reform Models”,
“Now We Know How to Reinvent Industry- To Get Maximum Competitiveness”
“Now We Know How to Reinvent America-Using Enterprise Lean to Make America Competitive Again”

In 1975 I was a Consultant for Alexander Proudfoot the top downsizing consulting firm.  In my first Two Weeks on the job I saved the Client, Clark Equipment of Battle Creek Mi, $100 Million (today’s Dollars) when I discovered that they were 50% overstaffed in their Production Control Depart.  Nearly all US company Production Control Depts. are over staffed while production lines are carefully time studied no one is looking at this particular Dept.

In1982 I proposed to Sandy McDonnell CEO of the McDonnell Douglas Corp. That his pilot project of Quality of Work Life Teams (similar to Enterprise Lean) be given the authority to manage their own operations.  Sandy agreed and the Bureaucratic organization was replaced with a Team Managed organization.  There was immediate success and the revision lasted for 10 years when the company was sold to Boeing.

Lawrence Rosier Philosophy and Observations of Government Management
1. Think of government expenditures as an investment which increases income and taxes and the wealth of the entity.
2. Jobs created within government consume taxes and are not the same as jobs created by private industry which generate taxable revenue.
3. The best investment in State government ultimately yields sales of products in other states and the global market and increases the wealth of the state.
4. The best investment in US Government ultimately yields sales of products in the global market and increases the wealth of the nation.
5. Efficiency in government is found only where they know you are looking.
6. Under budget spending does not exist in government.
7. No one in government ever gets fired for malfeasance, corruption, waste of funds or hiring too many people. 
8.  Government Auditor practices should include auditing efficient use of manpower because “Time is Money”.
9.  Reorganize government by eliminating Departmental Inspector General Offices that report to the Department Heads and have all Departmental Inspector General offices report directly to the US Inspector Generals office.  
This eliminates conflict of interest issues.

Article 86. $125 Billion in DOD waste How to bring The Gov under Control

The Pentagon has buried an internal study that exposed $125 billion in administrative waste in its business operations amid fears Congress would use the findings as an excuse to slash the defense budget, according to interviews and confidential memos obtained by The Washington Post. By Craig Whitlock and Bob Woodward.

The report, issued in January 2015, identified “a clear path” for the Defense Department to save $125 billion over five years. The plan would not have required layoffs of civil servants or reductions in military personnel. Instead, it would have streamlined the bureaucracy through attrition and early retirements, curtailed high-priced contractors and made better use of information technology.

Although the report provided a clear path for fixing DOD’s problem it also demonstrated that:
1. Government Bureaucracies do not Fix Themselves.
2. Government Bureaucracies do not properly manage the peoples business.
3. The Report, like so many others, did nothing to reform the DOD since it was ignored.

In my Articles 84.and 82  I have recommended an internal watchdog organization, the OIG, with investigative powers and the means to implement management tools needed to manage Federal Government Departments bringing the Federal Government under control.  My General Reform Model does one other important thing it provides for the permanent elimination of the Bureaucratic organization transforming the Federal Government into a Team Managed organization.  The details of how to deal with massive reduced personnel requirements are left to the implementers and Congress.    See Article 11. The Failure of Bureaucratic Government

Article 85. The New OMB and OIG Relationship with the CBO

I have recommended that the Office of Management and Budget (OMB) be the primary source of the Government Reform effort.  Headed by the US Inspector General (a newly created office) reporting directly to the OMB. Office of Inspector General (OIG) Analysts provide the boots on the ground for the implementation of reforms providing an on-going government efficiency organization instead of bringing in Temporary Outside Consultants saving $millions. 

The recommended creation of the US Office of the Inspector General (USOIG) will continue its branch activities which are closely associated and embedded with each of the Federal Departments.
 
How the Congressional Budget Office can work with the USOIG
The Congressional Budget Office (CBO) is divided into eight divisions one is for “Microeconomic Studies”.  OIG Analysts associated with the Department that will be implementing a Congressional Bill can support CBO Microeconomic Studies by providing simulated manpower requirements before the bill becomes law.  After the bill becomes law and is implemented OIG analysts will determine the correct staffing of the new work by building a bottoms-up manpower budget insuring efficiency in government.

A bottoms-up manpower budget simply means that as the OIG Analysts’ determine the manpower required for each process the requirements are added until all of the processes have been accounted for.  Overhead and Management costs are added to obtain a final budget. This type of budget provides for a solid efficient government when compared with a standard top-down estimated budget.

Article 84. A Special Approach to Reform of the Federal Government

This is a hard approach to reform (replacing Article 82 My standard reform approach) for special conditions where over-staffing is suspected of being 30% or more. This approach first uses OIG Analysts to right-size a prioritized list of operations and processes in the Department with proper staffing, then builds a bottoms-up manpower budget with staff reductions. This is followed by the implementation of Enterprise Lean facilitated by OIG Analysts.  The reform approach in Article 82. applies to departments with suspected over-staffing of up to 20%. For an example of the hard approach in private industry see Article 17. Example of My Experience with Alexander Proudfoot.

The recent discovery of the DOD’s hiding of $125 billion in waste sheds new light on the Federal Bureaucracy.  The Federal Bureaucracy rules were designed to prevent corruption but has gotten out of control favoring bureaucratic growth.     Over the years the DOD Bureaucracy has grown to waste $125 billion from lack of proper management.  

Organizing for Reform
I have recommended that the Office of Management and Budget (OMB) be the primary source of the Government reform effort.  Headed by the US Inspector General (a newly created office) reporting directly to the OMB. Office of Inspector General (OIG) Analysts provide the boots on the ground for the implementation of reforms instead of temporary Outside Consultants saving $millions.  The OIG organization will be a permanent watch dog and management tool for the Federal Government. See Article 52.  Establishment of a Government Wide United States Inspector Generals Office

I have recommended in Article 82 that the government should be simplified before implementing Reforms to prevent reforming work that is going away.  Now with the discovery of massive waste in the DOD and other Departments trying to simplify by identifying government waste before starting the reform procedure  appears to be a waste in itself since much of government is doing nothing. With this knowledge I am altering my approach to implementing reforms by having the departments identify and prioritize the work they do so that reforms can begin immediately in these processes by beginning the building a bottoms-up manpower budget.

The Phases of the Special Government Reform Process
1. Organize for Reform
Implement the New Office of US Inspector General and the OIG organization.
First duty ask all Federal Government Departments to work with OIG Analysts in providing a prioritized list of all high level absolutely necessary activities and processes performed by the Department.  The Effectiveness Test should be applied to the prioritized list those activities not meeting the test should loose funding.

2. Training of OIG Analysts
The Reform Consultant and special trainers will insure that the necessary training of the activities of OIG Analysts has been done and that they can determine the correct staffing level through Work Measurement. The collected data from the documentation will be kept on a spreadsheet by the OIG Analysts and summarized in a database where all of the Department’s functional data are stored.  The data can 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 Trainers will also provide on the job training of OIG Analysts in the collection of this data and all reform steps.

3. Implementation of the General Reform Model 
Right-sizing of each Departments prioritized activities will begin immediately by the OIG Analysts assigned to that organization.    
A. The OIG Analysts will use work measurement and time-study of these activities and processes to determine the hours spent in doing this work. This will be the start of a bottoms-up manpower budget. 
B. When this portion of the bottoms-up budget is completed all remaining activities of the Department are subject to scrutiny.  Those deemed necessary are assessed and added to the manpower budget.  All other activities are ignored and deemed as unnecessary.
C. The manpower budget is then adjusted to show the number of personnel required.  Savings are Identified when required personnel is subtracted from the Departmental manpower. (draining the swamp).
D. This is followed by the implementation of Employee Enterprise Lean Teams using OIG Analysts as facilitators to get further gains in efficiency.  The Teams after gaining some experience will permanently replace the Bureaucratic organization with a Team Management organization.

4. Staffing Adjustments 
This is the period of time for the reduction of redundant government staff.  Redundant staff must be removed from the work environment to allow a balanced work load.  Retraining employees to fill needed vacancies is pursued.  Where departmental staffing can be reduced layoffs or temporary reassignments should be completed within a month. Early retirement is suggested for eligible employees.

5. The Training and Organization of Employee Enterprise Lean Teams
I recommend that Enterprise Lean Training Consultants be brought in providing training seminars for the OIG Analysts and other Training staff (Train the Trainer) for employee training.   Lean Facilitators (OIG Analysts) will receive special training. The objective of this training is to get employees organized into work teams and excited about improving government.

6. Review of Lean Team Results and Collection of Lean Data
After a period of about two months most Functional (low level) Lean Teams, those that were organized and trained by OIG Analysts acting as Facilitators, should have their Value Stream Analyses completed.  The number of occurrences of the function over time, is obtained from a daily log kept by each Lean Team, provides the basis for an accurate budget.

7. Organizational Reform
In the final step of the General Reform Model, the Reform Consultant will begin the process of organizational reform by replacing the Bureaucratic organization with a Team Management organization with top management managing the Department’s activities through Group Teams with each managing several Functional Teams.  The Lean Teams at the Functional level will become self managed Functional 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 from continuous improvement without a return to the old bureaucratic sometimes toxic environment. Additional reductions in management staff are expected.

With reductions in staffing comes a greater need for property management a task the Federal Government does not do well.  The OIG could apply their expertise to this need. For other Activities of the OIG see Article 49. The Effectiveness Test, a Tool for Reforming Government

Article 82. Reorganizing the Federal Government and Implementation of Reforms

This is my standard Government and Industry approach for implementing Reform.
This is a soft approach for entities that need reform and are not over 20% over- staffed.  This approach first implements Enterprise Lean facilitated by OIG Analysts.  As a part of Enterprise Lean's basic function of continuous improvement, work processes are right-sized by the Lean Team.  This activity is aided by OIG Analysts who provide Work Measurement expertise including time-study followed by a bottoms-up manpower budget. The reform approach in    Article 84. applies to departments such as the DOD with suspected over-staffing of 30% or more. For examples of of results from Lean studies see Article 8. Twenty Five Case Studies Using Lean in Government.

Reorganizing for the Implementation of Reforms
The President must be in agreement with reform operations and be involved.
I recommend that the Office of Management and Budget (OMB) be the primary source of the Government reform effort. Headed by the US Inspector General (a newly created office) reporting directly to the OMB.  Because  personnel in the Departmental Offices of Inspector Generals (OIGs) will be tapped for implementing the Government Reforms it is necessary that all OIGs report directly to the US Inspector General and the OMB.   Using Government Personnel (OIG Analysts) instead of Outside Consultants will save $ millions and will leave an ongoing organization to maintain government efficiency.  This change will likely need congressional approval and should be accomplished early in the first 100 days of the Trump presidency.  The complete reform of the federal government may take 4 years but reduced budgets should start appearing in the first year.
See Article 52.  Establishment of a Government Wide United States Inspector Generals Office

Pilot implementation (If required)
The Veterans Administration Hospitals is a Likely pilot for starting the implementations of reforms but this is one of the few organizations where the outcome may be an increase in personnel even with efficient operations.  This will give a boost to help Veterans needing healthcare and delay some of the backlash that will come from massive layoffs in other organizations.  Choosing a different department to start the pilot will demonstrate the more likely result of savings from layoffs something the public has wanted for a long time leading to a reduction in taxes.

The Phases of the Reform Process
1. Simplify Government
It is better to simplify government before trying to reform it.  Governmental activities, determined to be unnecessary, can be eliminated using the Effectiveness Test.  Those activities not meeting the test will loose funding.  Simplifying government is not a simple matter but this is where you get rid of unnecessary activities and Red Tape.

Using The Consolidation Model by Lawrence Rosier
A Comparison of Duplicated Services is done by OIG Analysts to determine their associated cost data.   Outcomes are compared with other duplicated Functions from all the organizations and are depicted in a matrix chart. Those duplicated services rejected for low efficiency will be declared as redundant and their budgets cut followed by reassignment or layoff of employees.  Those services with the highest efficiency will have their budgets kept in place or moved to the new final single location with employees given the opportunity to move to the final service group providing the services.

2. Implement the General Reform Model
The United States Inspector General (newly appointed) will have Oversight of the implementation of all reforms including the General Reform Model.
The General Reform Model uses employee Enterprise Lean Teams to get the highest efficiency and effectiveness possible.  We will use the data developed by Departmental Lean Teams to Right-Size the selected Department.  The Lean Team data will be used by specially trained OIG Analysts to develop bottoms-up budgets which identify the actual costs of all systems and functions (draining the swamp).  This is also the data needed to manage the organization’s work load and in the determination of the level of staffing needed to meet standards. See Article 10. Private Versus Public Budgeting

3. The Training and Organization of Employee Enterprise Lean Teams
I recommend that Enterprise Lean Training Consultants be brought in providing training seminars for the OIG Analysts and other Training staff (Train the Trainer).  Employee Lean training should begin immediately by the Department’s training staff.  I suggest that the normal training curriculum for the Department 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 (OIG Analysts) and lastly departmental employees. The objective of this training is to get Employees organized into work teams and excited about improving government.  See Article 27. The Difficult Details of Reform

4. Review of Lean Team Results and Collection of Lean Data
After a period of about two months most Functional (low level) Lean Teams, those that were organized and trained by OIG Analysts acting as 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 and has the benefit of the team member involvement.  I suggest that some Functional Lean Teams with significant savings present their improved method to management.   The OIG Analyst will time study the new method to document savings.  After the presentation to management the rolled document is given to a OIG Analyst to document the Changes from the team proposal in a spreadsheet. 

5. Activities of the Reform Consultant
The Consultant will play a key role in being sure that the employee Lean teams are properly trained.  The Consultant will insure that the activities of OIG Analysts can determine the correct staffing level through Work Measurement.  Some OIG Analysts may find the proper staffing for variable processes difficult to determine, the 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 documentation will be kept on a spreadsheet by the OIG Analysts and summarized in a database where all of the Department’s functional data are stored.  The data can 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 Consultant will provide on the job training of OIG Analysts in the collection of this data and all subsequent reform steps.

6. Organizational Reform
In the final step of the General Reform Model, the Reform 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 from continuous improvement without a return to the old bureaucratic methods.

7. Time of Staffing Adjustments
This is the period of time for the reduction of redundant government staff.  To attain a balanced work load is a primary objective where retraining employees to fill needed vacancies is pursued.  Where departmental staffing can be reduced layoffs or temporary reassignments should be completed within a month.

Role of the Government Accountability Office (GAO)
Because the GAO is and arm of Congress and headed by the US Comptroller General, appointed for a 15 year term and I do not recommend that the GAO be responsible for implementing reforms.  However the GAO can support the OMB by identifying waste in government.


 

Article 81. Consulting Agreement with Texas Consolidation of State Services

                      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 Consultant

Lawrence 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. 

Article 80. Technical Guide to Company Reform

By Lawrence Rosier  Principal Management Consultant  September 3, 2014
This Technical Guide to Company Reform was written in support of ABC’s "Made In America" segment on ABC TV.

Why manufacturers need to Reform themselves to be more effective and efficient?
Toyota developed Enterprise Lean to bring all office and production line employees into the process of making the company efficient.  Thousands of Toyota employees in Lean Teams make continuous improvements to their jobs every day while competitors like General Motors only use a few hundred engineers to make nearly all improvement decisions. The result is that Toyota has improved its quality grabbing market share from the Big Three.  See also Article 15.  Bringing Life to a Manufacturing Company’s Dead Zone

Objective:
To provide a simple method for implementing changes in a company that will make it competitive in the business world and less vulnerable to pressures to close its doors.  This Guide is for obtaining the most effective and efficient internal company operations. But this is only part of the answer management must make sound external business decisions to remain competitive.

Understanding Efficiency and Effectiveness
There is a common misunderstanding of “effectiveness” the design and development of a manufactured part or a process which is done largely by Engineers and “efficiency” in the assembly of the part or operation of the process.  The effectiveness of a part or process design nearly always comes before the efficiency of use and assembly is considered.  The Lean approach empowers employees to implement changes in the design of the part or process to facilitate efficiency.

Company office Systems
In reference to office systems I seldom refer to efficiency without adding effectiveness, a system can be efficient and still not be effective in doing a job right.   A common failure by Company Management is to only implement Lean Six Sigma studies for high level systems and fail to understand that employee Enterprise Lean Teams provide the effectiveness and efficiency of supporting systems. I recommend that manufacturing Companies wishing to be competitive put together a Lean Six Sigma team of trained managers to study and fix their high level systems.   This is to be followed by the implementation of my General Reform Model which builds on the data developed by the implementation of Enterprise Lean in the first part of the Model.  

The approach of using Lean Six Sigma on high level business systems and Enterprise Lean on office subsystems will make both high level systems and subsystems effective.  But to actually get the highest efficiency possible you must use the data developed by the Enterprise Lean Teams to Right-Size the supporting functions making sure all personnel have a full time job.  The Lean Team data should also be used to develop bottoms-up budgets which identify the actual cost of a systems functions.  This is also the data needed to manage a company’s work by balancing its work load making sure no employee has to wait on another employee to do his job.  I recommend that all office systems be developed manually before being automated using the latest technologies.

Implementation of the General Reform Model

Phase 1. Establish a Company Lean Committee

I recommend that a “Company Lean Committee”  Be established in the Corporate Auditor’s Office to have oversight of the implementation of Enterprise Lean and other reforms.  The Company Auditor will need to provide Analysts on loan to the Company Enterprise Lean Committee reporting to and trained by the Principal Consultant to implement Enterprise Lean and other reforms. The Analysts will support Enterprise Lean until it has been implemented in its entirety throughout the Company.  When the implementation has been completed the Analysts will maintain the new Bottoms-up Budget databases.  Prior to this proposal the Auditor was charged with only the auditing of funds now a new responsibility will be to monitor company office activities for lost man hours.   The addition of auditing financial loss due to lost man hours is made possible through the development of the Lean data and the new Bottoms-up Budget databases.

Phase 2. The Training and Organization of Enterprise Lean Teams

The first act of the Company Lean Committee is to implement several high level Management Lean Six Sigma Teams and employee Enterprise Lean Teams throughout the company. Planning for Lean Training should done by the Committee meeting with the counsel of the Principal Consultant.  I recommend that a Enterprise Lean Training specialist be brought in from a local University to Kick off the implementation with training seminars. Planning issues related to Lean training, Facilitators, Analysts will need to be resolved.  Lean training should begin immediately by the Company’s training staff.  I suggest that the normal training curriculum 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 and general employees.

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 besides Analysts may be borrowed from HR staff but I have also had success with secretaries and even copy machine operators.

Management Lean Six Sigma Teams
There are two major Lean Team groups, high level Management Lean Teams and at-the-work-place Functional Lean Teams.   Management Lean Teams are organized and lead by members of management who have attended Lean Six Sigma Classes at a local University.   They are tasked to study individual high level systems within the Company and those that interact with other Departments mostly document flows.  A third possible task is in the Consolidation of company 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 Company using an Enterprise 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 Company’s existing personnel using the Company’s own resources.  This has significant advantages with trained personnel remaining in key jobs with the Company 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 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 an Analyst to document the savings from the proposal in a spreadsheet.  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 Analysts can determine the correct staffing level through Work Measurement.  Some 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 spreadsheet by the Analysts and summarized in a database where all of the Company’s functional data is stored.  The activities of Analysts are important and will be followed closely by the Principal Consultant.

The Technical 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 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 by the Analysts using electronic tablets or 2 way laptops 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 Management consultant will provide on the job training of 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.

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 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 Company’s 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 Company Budget.  To do this we remove all management and overhead expenditures from the Company’s current Budget to obtain an equal expenditure.  Then we compare the Bottoms-up Budget with the remains of the current Budget.  The Bottoms-up Budget should be 20% or more less than the Top-Down Budget.  If this is not the case then we may 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 Company’s spreadsheet for anomalies.

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 Company Auditor.  This allows availability of the data for all who want to review the actual labor and expense cost of an  function including the Company’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 Company organization with a Team Management organization with top management managing the Company’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 Six Sigma 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.  This is also the period of time for the reduction of redundant Company staff.  Once it is known where staffing can be reduced layoffs or temporary reassignments should be completed within a month.

 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