Innovating to do more with less – the story of Lean Six Sigma in CSO Our improvement journey Presentation at IAOS Conference 2014 Keith McSweeney & Ken Moore Central Statistics Office

Format of presentation 1.How we got started 2.Capacity building 3.Some really successful LSS improvement projects 4.Areas of ‘waste’ - non value adding activities in our processes 5.Warning signs 6.Challenge of implementing quality management approaches in the public sector 7.What we did to address the challenges we faced

1. How we got started External driver of reduced resources - can we systematically explore how we can redesign our operations to do ‘more with less’ or ‘the same with less’? Other external drivers from key users like Eurostat – improve the timeliness / quality of some key outputs Researched BPI methodologies - felt Lean Six Sigma a very good fit for CSO due to its emphasis on metrics, process analysis etc

2. Capacity building Proof of concept - process mapping of 3 different survey operations - showing what is possible when you understand the ‘as is’ Careful selection of 1 st wave of LSS projects – you want the process to succeed ! Don’t go for the ‘worst’ problem you have initially ! 5 greenbelts More LSS projects Very careful re the message – “it’s about the process, not the person”

Application of LSS in CSO – how we did it and what we found Project selection - working with the Quality Manager, managers and senior management team suggested areas for review Very important = problem identification and definition + clear project scope Training – 5 days introductory training in LSS / business process improvement (external trainer) with in-built review days to monitor progress against project schedule (around weeks) Hands on Coaching and mentoring from Quality Manager – acted as independent presence in the project. A ‘fresh pair of eyes’ looking at current process operations Each project went through the DMAIC structure in a systematic manner with no rushing to judgement and a strong emphasis on data underpinning analysis of the problem and solution identification and prioritisation

3. Some benefits achieved Retail Sales Index published earlier – now within 4 weeks of end of ref month (instead of t+8 weeks) Cost reduction – running costs halved (saving €170k) Quarterly Earnings Timeliness improvement – saving 3 weeks on prov release and more on final release Staffing of Survey reduced by 42%

4. Areas of ‘waste’ we found – non value adding activities Areas of waste that we found: TRANSPORT - unnecessary movement of data: data moving on a regular basis between different IT systems and different layers of staff INVENTORY – maintaining excess quantities of data: large number of datasets and programmes leading to process complexity and process risk MOTION – unnecessary movement: hunting for data on the system WAITING – not working while waiting: data capture being batched into large groups before data cleaning ; waiting for business register updates ; decisions from managers

What we found etc OVER-PROCESSING – doing more work than is really necessary: over-editing (data checking). A lot of editing happening with no real impact on final aggregates OVER-PRODUCTION – producing more than is needed: collecting variables which are not used; maintaining datasets which will not be used. This is the worst type of waste since it tends to drive all other wastes DEFECTS – producing products/services that do not meet customer expectations: incorrect addresses for post-outs, quality of frame (birthing/death process on business register) PEOPLE SKILLS – waste of staff intellect & skills: clerical staff & managers not being properly utilised. Work drifting up to management levels (sometimes a function of other wastes above, eg inventory levels)

5. Warning signs - All going great isn’t it ! Why do we feel uncomfortable so? 14 LSS projects completed - 80 staff trained. Seems to be going well, yet.... Follow through on project recommendations uneven Project selection - are we getting the right ones? Are the projects all coming from the same areas of the Office? Role of greenbelts – uneven as time has moved on Are we happy with the role senior management are playing in the process – can we make it stronger? Are we happy that our current model can sustain over time – that it won’t wither on the vine: “do you remember when we tried LSS for a few years?....”

6. Change & the public sector - Critical success factors for any type of change programme? Textbooks all say - Change101: need visual, engaged senior management support. They need to ‘walk the talk’ Look at the constraints we have to manage when bringing change to public sector organisations: –Our organisations are not profit focused? –Weaker customer focus because of monopolistic tendencies? –Limited sense of urgency for change? (we’ll keep our head down and these dark times will pass…) –Presence/turnover of process improvement experts? –If you think about it, the above constraints place an even higher premium on strong senior management support for change initiatives in the public sector

7. What we did re senior leadership in CSO Top management, including the Director General, received 1 days LSS training covering: –Lean six sigma introduction –Variation –Concepts of waste & value –Process thinking –Deployment journey –The essential point is: senior management need to invest in the outcome. They need to make space available for the projects (because they will take time)

Concept of Strategic Improvement We’ve paused our LSS programme for the moment. Further workshops for top management on metrics & “customer” Will work with senior managers to “Define” a list of improvement areas so that top management can then decide and prioritise where the LSS effort should be targeted Recasting our statement of strategy where is our organisation now - what level are we at re our customers (importance of metrics) Where do we want to be in 7 years time - how will we know when we have got there (metrics) LSS a vehicle, but not the only one, to bridge the gap between current and future states

View of Top Management “why didn’t we do this years ago? We can clearly see the value of it” “..not just a focus on business process improvement (though this is important). It’s a different way of thinking” “how do we know we’re having a good day? -highlights the importance of metrics and the ‘customer’ / user” - Padraig Dalton, Director General, Central Statistics Office

Some final questions to consider Do we accept the critical role that senior management play when deploying change initiatives like BPI / LSS etc ? Have your senior management received training on what deployment of BPI will look like and the roles that they must play to have a sustainable, successful BPI programme? How important is it to clearly link LSS etc to your Organisation strategy? Metrics - where is your organisation on metrics? How do you know when your staff / organisation are having a good day ? Thank you for your time