1. Visualising Transformation Support Services Direct Visualising Transformation Deming Forum 12 th May 2010 1

2. Visualising Transformation Support Services Direct What is Visualising Transformation? It is an holistic change management method Addressing operations & strategy –Based on Deming Statistical Process Control System of profound knowledge 14 points of management Deming chain reaction, and…. –Toyota Production System –Seddon: Check, Plan, Do + –Checkland, Ackoff, Buzan –Embracing IT where-ever suitable 2

3. Visualising Transformation Support Services Direct Development history This shows –Statistical approaches at the top Shewhart, Deming Ohno, Womack, Seddon –Soft systems and computing designs Stafford Beer, Jenkins, Checkland, Ackoff –Management theory Ford, Taylor, Bono, Senge, Maslow, Drucker, Keynes… –Inspiration / genius Einstein, Da Vinci, Dali, Newton, Brunel, Darwin and Nightingale. 3

4. Visualising Transformation Support Services Direct It is designed to: Address the issues of the service sectors by: –Enabling a desire to add value –Creating information from data –Reducing failure demand to create capacity –Investing capacity into adding value –Developing genuine holistic win-win working –Enable natural partnership working –Addressing IT and business opportunities –Saving money, by improving services + –Without reducing jobs 4

5. Visualising Transformation Support Services Direct It addresses wide issues VT addresses these –Mass production Minimise variation SPC and 14 points –Reduce fear of crime Affinity diagrams Social engineering Boundary conditions –Operational improve Efficient, Effective –Strategic development Embrace variety –Local Area Agreements –Partnerships –Business Management –Future proofing 5

6. Visualising Transformation Support Services Direct It is extremely visual! Most organisations are: –Data rich –Information poor –Confused They have ‘information’ They make decisions Things go wrong… In the public sector –Accounts are a mix of: Fact: costs incurred Belief: activities happened Estimations: we believe… –Guesswork is never mentioned! 6

7. Visualising Transformation Support Services Direct So what’s different? Appraise –Is the process of adding even more value to: consider the business deal with future demand delight customers! –It is about reinvesting capacity created to: add further value improve the environment do even more change not simply cutting costs. 7

8. Visualising Transformation Support Services Direct How is Transformation achieved? 8

9. Visualising Transformation Support Services Direct Evolution is expected! 9

10. Prince 2 version

11. Visualising Transformation Support Services Direct Starting from Check Check is basically the joining of Study/ Act It is used to find out: –What the host needs and wants –How the host is performing –What opportunities there are –What the customers want and need –What will be wanted in the future –What the capacity is for improvement –To draw the boundaries for the E2E project –Initially: to define what success may look like! 11

12. Visualising Transformation Support Services Direct Check will include: Establishing the boundaries –The who, what, why, where, when (how) Setting up a Transformation Team –External, internal, sponsor Setting up training, facilities, awareness Forming the Intervention Team Starting data gathering and cleansing Training team members Workshops to understand ‘As Is’ 12

13. Boundaries and teams

14. Visualising Transformation Support Services Direct Building on where the host is Understand the current paradigm Build on their ways of working Develop charts, graphs, visual aids Celebrate the good stuff Improve data, clean it, combine it, map it Show duplications and cul-de-sacs Seek early ‘Quick-wins’ Be ready for training and the first workshop Check for (transferable) skills in other areas 14

15. Visualising Transformation Support Services Direct Not simply cloning good ideas! 15

16. Visualising Transformation Support Services Direct Principles of design Design against value demand Customer defines quality Only do the value work Minimise number of handoffs Put information in the hands of front line staff Decisions about the work should be made by people who do the work Do the work perfectly (leave it clean) Challenge “dirt” and “failure demand” Pull ICT to further improve flow only once the work is clean 16

17. Visualising Transformation Support Services Direct Training and first workshop All the Intervention Team will attend 4 day training courses (Some may assist the trainer) Courses will include local data Practicable example of CPAD included Workshops uses PowerPoint approach to: –Reinforce training discoveries –Work on issues in smaller groups –Reflect on data found so far –Determine current ways of working, issues, performances, opportunities, barriers. –Flow-chart core work, understand variation! 17

18. Visualising Transformation Support Services Direct Host tools and practices From fact finding and workshops develop: –Risk register, for the intervention and work –Project plan, including critical issues –PiD?… hopefully high level, to wean off –Benefits Analysis, update constantly –Issues log, recorded at every session Effectively … anything that the host finds comforting to begin with, but: –Make them aware of value losses, the cost of governance and lost opportunities* –*The more restrictions and control, the less will be achieved. 18

19. Visualising Transformation Support Services Direct Plan Starts with a workshop –Blue sky thinking –Unrestrained core designs –Building on analysis of previous findings –Understanding core and secondary designs –Pareto, C&E, GIS, spaghetti, mind-maps, run- charts, control charts, affinity diagrams…. –Core flow chart + major secondary works –Consider constraints, must do items. –Evaluate value, value adding & non-value –Report to board, coloured flow, and pie chart. 19

20. Visualising Transformation Support Services Direct Appraise Is carried out at the end of Plan –Plan creates capacity for primary / secondary areas –Increases in capacity come from: Creating less errors, high quality services are cheaper Having less duplication or redundant work Having better information enabling immediate work Having less hand-offs and no work queues. –This is re-invested to: Introduce additional services Add value to existing services or materials Enable greater outputs or improved partnering 20

21. Visualising Transformation Support Services Direct Visually stimulating 21

22. Visualising Transformation Support Services Direct Discussions with Board Why so much non-value? –Constraints: Call Centre Current IT system Legislation Could we save 20% costs? –Not due to activity reduction, but perhaps more is possible How soon could this start? –Some things have started –After communication What more could be done? 22

23. Visualising Transformation Support Services Direct Defined by the customer Find ways to understand & delight customers Design systems & processes against purpose & demand Learn to manage the organisation as a system Understand variation Decisions based on data Measure what matters to customers Model for improvement Design the business properly CPAD Common understanding Cooperation not competition Experiment and learn Visibility of the whole Appreciation of impact Belief in people; treat with dignity, trust & respect Reinvest in the future Use initial capacity to add value Scientific Approach All One Team Quality Joiner Triangle Voice of the Process Voice of the People Voice of the Customer 23

24. Visualising Transformation Support Services Direct Do Is very easy to carry out: –The Check, Plan Appraise processes addressed: Core and secondary designs Training, communications, inter-dependencies Roles and responsibilities, interim needs Testing, probing and improving Creating temporary resources during transition Union, HR, IT, Finance, Management approvals So you have an eager workforce, hungry to start their new ways of working. –Starting is easier than waiting! 24

25. Visualising Transformation Support Services Direct Practicable example Many examples: Car park management Highways maintenance Insurance claims ASB Housing maintenance School transport x 2 Integrated street-scene Waste & Recycling –Task: Improve operations Halt increases in costs 20% more recycling for £300,000 a year more. –Background: Conservative council Entirely DSO provided Reasonable performances New call centre (bees knees) Town Hall/ depot friction Questionable VfM Getting worse? 25

26. Visualising Transformation Support Services Direct (Pre) Check Fragmented management Moderate customer care Call c. / back off. / ops splits Unusable computer system Fair amount of data Virtually no information Development lost in process Pressures to change Costs escalating Accounts very wrong Controls not working Masses of fire-fighting Impossible failure demands Information ferretable IT development difficult! IT system, new! Incomplete No IT affinity in depot Loads of unconnected IT IT opportunities unrealised Integrating data = info? Graphs amassed on walls C&E seen in info Hope from quick wins Improve and reduce 26

27. Visualising Transformation Support Services Direct Information: failure demand 27

28. Visualising Transformation Support Services Direct Information: recycling diversion 28

29. Visualising Transformation Support Services Direct Information: Learning Recycling - Missed R34THU21/06/200733 Tilers Close Refuse - Missed Bin W34THU21/06/200733 Tilers Close Refuse - Missed Bin W34THU03/08/200733 Tilers Close Recycling - Missed R34THU07/08/200733 Tilers Close Recycling - Missed R34THU09/08/200733 Tilers Close Refuse - Missed Bin W34THU12/10/200733 Tilers Close Green - Missed Bag 18/01/200833 Tilers Close Side Waste Missed Collection W12TUE30/10/200733 Tilers Way Recycling - Missed R52TUE10/01/200734 St Leonards Road Green - Missed Bag G12TUE12/01/200734 St Leonards Road Recycling - Missed R21MON12/12/200635 Harrison Close Refuse - Missed Bin W21MON12/12/200635 Harrison Close Refuse - Missed Bin W21MON14/12/200635 Harrison Close Recycling - MissedAssistedR65FRI20/10/200636 Manor Way Recycling - MissedAssistedR65FRI20/10/200636 Manor Way Green - Missed Bag G15FRI13/04/200736 Manor Way Refuse - Missed Bin W65FRI29/10/200736 Manor Way 29

30. Visualising Transformation Support Services Direct Evolving ideas via A3 30

31. Visualising Transformation Support Services Direct Evolving strategy 31

32. Visualising Transformation Support Services Direct A3 Planning 32

33. Visualising Transformation Support Services Direct A3 workplans 33

34. Visualising Transformation Support Services Direct Intervention start End to end waste collection (for the customer and for the business) The intervention started in November –Transformation team started –It was due to start with ‘Christmas blip’ –Followed by start Check (data gather and improve) –Then training and form ‘Intervention Team’ However…. –The new Garden waste service was in melt-down –It was dragging all capacity into fire-fighting –Something had to be done! 34

35. Visualising Transformation Support Services Direct Garden waste problem 35

36. Visualising Transformation Support Services Direct Quick win one New Garden Waste service –Prince 2 led project –Finance and IT dominated –8 people a day failure demand –Melt-down getting worse First day of intervention –Three people used: –SPC, C&E, Pareto, mapping issues by round, week ++ –Found one round, one week –Initial database set up flawed –Hand corrected day sheets –Showed where to correct –Issues halved in two days Designed new day sheets Altered database Worked with operations: –Back office –Supervision & management –Operatives –Gave them info ‘they’ needed Issues halved again in a week Size of service doubled 5 months Amount of issues halved All learned that THIS works Created capacity + support Enabled pull for demand 36

37. Visualising Transformation Support Services Direct 37

38. Visualising Transformation Support Services Direct Garden waste outcomes 38

39. Visualising Transformation Support Services Direct Quick win two Christmas blip –This was the planned starting point Christmas was a special cause 600 defects every Christmas (> 4 times normal) Used all SPC tools and dealt with –Advertising and communications –Work schedules and resources –Timings of collections –Secondary training and process reinforcement Outcomes –Less than 250 defects –Prime cause, free paper distributor, dumping papers! –Future plans established to further improve 39

40. Visualising Transformation Support Services Direct Overall system performance 40

41. Visualising Transformation Support Services Direct Check Plan Appraise Do Strategy and Operations E2E Call centre to be retained Good lead director & sponsor Great lead member Very open waste board Supportive VfM board Project ‘red tape ridiculous’ Gross misconduct analogy Lack of empowerment Latter pressures to save £s Leader support: –“I don’t how you are managing this, but we want more of it!” Broad no loss of jobs Evolution of benefits Growing awareness of IT issues Early wins, then far more wins Services improved, costs reduced All outcomes improving Meeting customer needs & wants Reduced issues enabled: –More capacity –Improving IT –Improving information –More income –Less stress and conflict 41

42. Visualising Transformation Support Services Direct Benefits evolution Activity based savings Details of incremental savings showing what can be saved in terms of people and resources as per a traditional project with suggested operational areas to focus on utilising that time. This does not include none growth items shown as 'Value Added'. TraditionalThird year DescriptionCurrent resourcesCostsProposed resourcesCostSaving £ Value added Saving £ Trace / Agresso linkElaine D 1 hour per day£5,747None£2805£2,942Grow commercial waste-£200,000 Reduced volume of refuse errorsBSO's 36 hours a week£27,744BSO's 18 hours a week£13,872 Grow commercial waste Reduced volume of refuse errorsRec. Mgt. 25 hours / wk£44,886Rec. Mgt. 10 hours / wk£17,954£26,932Increase recyclates value-£15,155 Reduced volume of refuse errorsRef. Mgt. 18 hours / wk£32,318Ref. Mgt. 10 hours / wk£17,954£14,363 Helps enable round less Reduced volume of refuse errors10% of Cust Serv.£35,0005% of Cust. Serv.£17,500 Capacity to expand-£17,500 Domestic Refuse rounds8 rounds, Dr. + 2£1,169,4227 rounds, Dr. + 2£1,023,245£146,1787 rounds, Dr. + 2-£137,000 Collect recyclates from flats7 rounds, Dr. + 2 £0Sell recyclates-£28,291 Stop over-servicing refuseCollecting wrong side wasteIncrease rec / less wst.Sell recyclates-£33,802 Reduce double handling comm wst7 people involved3 people involvedComm waste system-£9,908 Align all weighbridge dataFrom 7 people 50% more data, less peopleBack Office system-£16,362 Use vehicle tracking to reduce vehiclesParts of manyBetter use, reduces OH'sVehicle tracking-£92,378 Increase Garden Waste servicesDiversify and grow servicesMore work same resources-£109,155 Improved information / dashboardNearly all NS officers£46,899BSO's, then by design£15,633£31,266Not 6 people on same job Total SavingsTraditional£253,053Value added - £659,551 42

43. Visualising Transformation Support Services Direct Benefit Details Original 'Budget plan' Budget Flow2008/092009 / 102010 / 112011 / 122012 / 132013 / 14 Base Budget Expenditure£3,339,200£3,449,330£3,535,563£3,623,952£3,714,551£3,807,415 Income-1,626,500-1,667,163-1,708,842-1,751,563-1,795,352-1,840,235 Original Net Budget£1,712,700£1,782,168£1,826,722£1,872,390£1,919,199£1,967,179 Changes from base budget: Removal of growth refuse round-£135,000 -£272,000 Removal of growth recycling round-£52,000 Increase in commercial waste surplus-£75,000-£118,689-£187,133-£275,000 Increase in recyclates income-£372,781-£465,778 Improvement in garden waste position-£149,945-£230,000-£287,000-£317,500-£331,000-£349,000 Improved vehicle utilisation-£7,667-£16,100-£23,000 Increase plastics and values-£8,851-£17,702-£46,502 Improve values of recyclates-£15,686-£31,529-£47,058 Increases in recycling to flats + marketing-£10,104-£28,291-£40,416 Tracking, back office and comm waste system£160,000-£201,972 Recycling Blueprint via phasing (3 a high)-£229,526-£459,052 Systems Thinking intervention and training£150,000 Increase in haulage and collection costs£72,000£73,436£77,842£82,512£87,463£92,711 Unknown and contingency costs£75,726£55,000£56,375£57,784£59,229£60,710 Additional costs£153,832£100,000 Revised Forecasts Forecast net budget£1,277,700£1,020,661£763,406£141,934-£47,886-£111,178 43

44. Visualising Transformation Support Services Direct Financial benefits 44

45. Visualising Transformation Support Services Direct 14 Points applied Constancy of purpose To involve all parties to improve Adopt the new philosophy Not improve and cut jobs. Add value Cease need to inspect Start to trust front line staff Form partnerships Long term relationships started Improve constantly Phased improvement by design Institute training on the job Systems Thinking / upgrades Institute leadership Better use existing, not blame Drive out fear No job cuts as a result of changes Integrate departments All working together 1st time! Eliminate slogans Pushed back on arbitrary, used capacity Eliminate arbitrary targets Demonstrated benefits 1 by 1 Enable pride in work Understanding created belief Education & self improvement Internal train, promote, develop Everyone work to transform Whole teams involved & spreading 45

46. Visualising Transformation Support Services Direct Achievements to date Missed collections from 115 per 100,000 properties to 17 (test) Reduced recycling and residual waste rounds by one each Reduced cultural barriers between services Reduced non-value work in back office Improved service designs for Bank Holidays Improved weights spreadsheet Improved management information and use of Improved ‘assisted lists and round sheets’ Introduced commercial recycling Reduced recycling and residual rounds by a crew each Introduced specific designs for flats Saved £1m in years one and two Highest levels of recycling ever +++ 46

47. Visualising Transformation Support Services Direct Questions? 47