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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
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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 – [email protected]
– Follett– ISS – APQC – North Star Project
• Jack Grayson – [email protected]• Diane Kline – [email protected]• 713-685-4602