www.iss.k12.nc.us 1 process management key to survival for school systems quality new mexico june 9,...

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Process ManagementKey to Survival for School Systems

Quality New MexicoJune 9, 2011

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Traditional Accreditation Model

“Managing by Inputs”

• Payroll

• Expenses

• Equipment

• Facilities

Inputs

Data

• Library Books

• Master’s Degrees

• Science Labs

• Certification

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NCLB Model

“Managing by Outcomes”

• Test Results

• Ach. Gap

• AYP Rates

• Grad. Rates

Outcomes

Data

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Improvement Model“Managing by Inputs, Processes & Outcomes”

• Payroll

• Expenses

• Equipment

• Facilities

Inputs

Data

• Test Results

• Achievement Gap

• AYP

• Graduation Rates

Outcomes

Data

• Assess Student Achievement

• Recruit Teachers

• Manage Info. Technology

Processes

Data

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ProcessManagement

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Problems of Functional Management

• Sub-optimization; Low cross-functions

• Sub-systems often don’t work together

• Silo mentality, bureaucracy, red tape, change resistance, turf wars, high costs

• Slowness, errors, and rework

• Waste, Redundancy, Non-value-added

So leading businesses are moving,

or have moved, from functional management

toward process management

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Deere’s Process Mgmt. ModelWorldwide Business Environment

Customer’s Process Needs

Supplier’s Processes

Business Controlling

Process

Business Measurement

Process

Process that creates value for the external customer

Customer Acquisition

Product Delivery

Order Fulfillment

Customer Support

Processes that supply resources to other processes

Channel Management

Supply Management

Info. Tech. Application

Business Acquisition

Leadership Process

Core Processes

Enabling Processes

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Process Management (Category 6)Baldrige for Education

• Key aspects of your organization’s process management

• Key learning-centered processes for your educational program offerings

• Services that create student, stakeholder, and organizational value

• Key support processes

• All key processes and all work units

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Business found Large Gains through a Process Focus

1–2% Cost Reduction

2-10%

10-20%

20-50%

Process Innovation

Process Management

Process Improvement

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Education Process

Management?

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APQC’s 8 benchmarking studies found that one “missing link” in education improvement

is a greater focus on processes

• Most educators do not think processes.

• They focus functionally, not cross-functionally.

• They do not map, or measure processes.

• They do not analyze or benchmark processes.

• They don’t link: inputs—processes—outcomes

• They don’t manage or organize by processes.

• The ability to improve performance is very limited without improving processes.

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Why so little process thinking in education?

• Focus is on functions, inputs, & outcomes

• Districts not accustomed to using data to compare themselves with others.

• No common taxonomy of processes

• Low urgency to change

• No infrastructure for process mgmt.

• Don’t know how to change

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So where could education start?

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Steps toward process mgmt.1. Functional Management—appoint process

owners inside functions, but add members from other functions to make a cross-functional team.

2. Matrix Management —begin organizational changes that combine process and functional management—a matrix.

3. Process Management —move toward total or almost total process management across the entire organization

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ISS Chose Option 3

Move toward a totally

--or almost totally--

Process Managed system

(Can that be done?)

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Malcolm Baldrige Education Criteria6.0–Process Management (85 pts)

6.1 Work Systems Design: How do you design your work systems? (35 points)

6.2 Work Process Management and Improvement: How do you manage and improve your key organizational work processes? (50 points)

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• Systematic – Two Components

• Processes– A approach – clearly defined steps– D deployment – to all levels– L learning – cycles of improvement– I integration – organizational knowledge

• Results– Le levels of performance– C comparisons– T trends– I integration

Malcolm Baldrige Education CriteriaDefining Systematic

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I-SS Enterprise ModelISS Mission and Vision

Guiding Processes Core Processes Supporting Processes

Implement Leadership and Governance

Determine Stakeholder Expectations

Meet or Exceed Stakeholder Expectations

Comply with Legal, Ethical, and Regulatory Requirements

Develop Strategic Plan

Manage Financial Resources

Implement Process Management

Develop Curriculum

Deliver Instruction

Assess Learning

Design and Deliver Student Services

Provide Technology Services

Provide Human Resources

Manage Physical Resources

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INPUT OUTPUT

GUIDES

ENABLERS

Process

What helps us know why, when and how wedo what we do?• Policies · Regulations · Knowledge• Standards · Laws

Where do we do it and who/what helps us do it?• Human Resources · Assets

• Tools · Facilities

• Equipment · Systems

What do we need to do this?• Information• Materials• People• Consumed or transformed by the process.

What do we produce or deliver?• Results• Information• Deliverables• Products• People

Trigge

ring

Event End

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Manage Financial Resourcesto Activity Level

Manage Financial Resources

Provide Supplies& Equipment

• Finance• Operations

Provide Grounds & Facilities

• Construction• Operations• Maintenance

Acquire Funding

• Superintendent• Finance• Grants

Control FinancialResources

• Finance• Principals• Department Heads

8 Activities(see next slide)

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Control Financial Resources to Activity Level

Control Financial Resources

Approve SIP/DIP Strategic

Plans with Resource

Allocations

QualityDepartment

Develop SIP/DIP

Operating Budget with

Resource Allocations

Principals and

Department Heads

Control Human

Resource Positions

Human Resources

Monitor Expenditures on Monthly

Basis

Principals and

Department Heads

Revise Budget Plans

Strategic and

Operational as Needed

Principals and

Department Heads

Oversight of Budget by

Process Owner and

TeamOwner –

John KachmarikTeam – see PDSA team

list

Disburse within

budgets

Finance Department

Approve Operating

Budget

FinanceDepartment

© 2008 APQC. ALL RIGHTS RESERVED. 24

Control Financial Resources Team

John Kachmarik Assistant Finance Officer – Lead

Terry Holliday – Superintendent

Kay Fulp – Chief Finance Officer

Mathew Fail – Chief Quality Officer

Kenny Miller – Executive Director Facilities, Maintenance and Planning

Dale Ellis – Assistant Superintendent for Human Resources

Vicki Meadows – Purchasing Agent

Stakeholders – principal at each grade level (3) and department heads (2)

© 2008 APQC. ALL RIGHTS RESERVED. 25

Stakeholder Analysis for Control Financial Resources

External Stakeholder Requirement Output

Department of Public Instruction

External Audit Audit Report

TaxpayerMeet legal and ethical requirements

Provide education at low cost

Audit Report

Tax Rate

Board of CommissionersMeet legal and ethical requirements

Provide education at low cost

Audit Report

Monthly Budget Amendments

Tax Rate

Internal Stakeholder Requirement Output

Board of Education

Audit Findings

Fund Balance

Meet legal and ethical requirementsAudit Report

Principals and Department Heads

Process Expenditure Requests

Approve Budgets

Approve Position Requests

Payments

Approved Budgets

Staff Allocation Matrix

Senior LeadershipMonitor Expenditures

Meet legal and ethical requirements

Monthly Expenditure Reports

Variance Reports

Position Allocation Reports

Audit Reports

© 2008 APQC. ALL RIGHTS RESERVED. 26

INPUT OUTPUT

ControlFinancialResources

GUIDES

ENABLERS

BOE PolicyRegulatory GuidelinesReimbursement Procedure

Staffing Allocation Revenue

Month Exp. Report

Budget

Audit Report

Operating Budget

SIP/DIP Budget

Reimbursement Request

Staffing Allocation Revenue

Month Exp. Report

Budget

Audit Report

Operating Budget

SIP/DIP Budget

Reimbursement

Fund Balance Report

Feder

al, L

ocal,

State

Alloca

tion

Annual AuditImprovement Plans (SIP/DIP)

0 Audit FindingsMaintain Fund

Balance

Financial Training

Technology (ISIS Software)

Budget Owners

© 2008 APQC. ALL RIGHTS RESERVED. 27

Conducting the Health Check

• Do we have the data we need?

• Key strengths

• Key OFI’s

© 2008 APQC. ALL RIGHTS RESERVED. 28

Control Financial Resources Flow Chart Draft

Finance Department

QAD

Human Resource Department

Principals

Department Heads

Recommend Operating Budget to

BOE

Develop District

Operating Budget

Staff Allocation

Develop Local

Operating Budget

Develop Local

Operating Budget

Develop DIP

Develop SIP

Approves SIP/DIP

Monitor Expense Reports

Monitor Expense Reports

Monitor Expense Reports

Monitor Personnel Alocation Reports

Monitor Expense Reports

Revise Budget

and BOE Budget

Amendments

Revise Allocations

Revise Budget

Approve spending (POs or

reimbursements)

Request spending (POs or

reimbursements)

Request spending (POs or

reimbursements)

Oversight Committee

Revise Budget

Recommend Budget

Amendments

© 2008 APQC. ALL RIGHTS RESERVED. 29

What tool do you use to manage and improve processes?

PDCAPDSADMAICSIPOCSIPOC plus Guides and EnablersSix SigmaLean Six????

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Other areas of improvement – bus discipline, energy savings, faith based partners, highly qualified teachers, overtime costs, child nutrition costs, maintenance, custodial, workmen’s compensation ratio, fund balance, credit recovery

Expenditures per Pupil – remain in bottom 10 in NC - $700 below state average

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• Contact Information– ASQ

• Christa Kautz – ckautz@asq.org

– Follett– ISS – APQC – North Star Project

• Jack Grayson – jgrayson@apqc.org• Diane Kline – dkline@apqc.org• 713-685-4602