operating efficiency: the lean charity
DESCRIPTION
The presentation was a workshop at Evolve 2014: the annual event for the voluntary sector in London on Monday 16 June 2014. This presentation was given by Neil Fedden (Associate NCVO), Peter Rimmer (Children's Society) and Laura Rawnsley (Transformation Director - Children's Society). The need for change was discussed as well as the Lean philosophy (elimination of information waste). Find out more about the Evolve Conference from NCVO: http://www.ncvo.org.uk/training-and-events/evolve-conferenceTRANSCRIPT
Wo
rksh
op
s PM5: Operating efficiency: the lean charity
Neil Fedden, Associate, NCVO
Peter Rimmer, Children’s Society
Laura Rawnsley, Transformation Director, Children’s Society
Why the need to change?
The need to improve
Improve
Do nothing
Decline
Time
Improvement
Company XCompetitor
If you do nothing then you will fall behind your competition as they improve !!!
5 Principles of Lean
Value
Value Stream
Flow
Pull
Perfection
Process Mapping
Kanban
Kaizen
7 Wastes + 1
WorkplaceOrganisation
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Non Value Adding
Waiting & Delays
Excess Movement
Excess Production
Fruit Waste
Waiting for Forklifts
Searching & Storing
95%
Value Adding
5%
Value & Waste
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LEAN – elimination of information waste
Bottleneck Departments
Lots of signatures/validation checks
Multiple Uncontrolled documents
High levels of data
re-entry/keying
Production of reports that
nobody reads
Unofficial fast-track routes that cause
errors
Personal filing systems
Unpredictable process lead-
times
Batching of documents
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Step 1 – Current state process map
Step 2 – Identify and prioritise process waste
Step 3 – Process re-design to eliminate waste
Step 4 – Cost/benefit analysis
Step 5 – Action Plan and start implementation
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Customer Demand Profiling
2B
1C 9B
AM PM AM PM AM PM AM PM AM PM AM PM AM PM
Monday Tuesday Wednesday Saturday SundayThursday Friday
Footfall
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Back Office, Front Office and Touch Points
Back Office Front Office
Process excellence Customer excellence
Identifying opportunity through understanding the use of
Touch point’s.
Eliminate waste by traditional application of Lean
Enter Restaurant
Leave Restaurant
The Service Concept
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Legal Expert Before – Group Case Study
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Process Mapping - Receive Specification and Produce Legal Copy
Description Dist. (m) Time (mins) Staff Operation Transport Inspection Storage1 Delay until received spec. is picked up by Secretary 0 30 0 X2 Carry from mail area to Secretary's desk 5 1 1 X3 Wait until convienient to 'process' it 0 60 0 X4 Log receipt into Project Tracking system & create file 0 1 1 X5 Store file in Out-Tray 0 15 0 X6 Move file to Legal expert's In-Tray 5 1 1 X7 Await Legal expert's attention (busy) 0 1440 0 X8 Legal expert processes copy 0 20 1 X9 Store processed copy in Out-tray 0 2880 0 X
10 Move copy to Secretary's desk when convenient 5 1 1 X11 Delay until Secretary logs completion on Project Tracking 0 180 0 X12 Take copy file to photocopier 10 2 1 X13 Photocopy x 3 0 2 1 X14 Return with copies to desk 10 2 1 X15 Collate, staple and 'stuff' internal mail envelopes 0 15 1 X16 Take 3 x envelopes to departmental Out-Tray 5 1 1 X
Totals 40 4651 9.7 daysValue Add 38
Non Value Add 3170Necessary Non Value Adding 1443
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Legal Expert After – Group Case Study
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Process Mapping - Receive Specification and Produce Legal Copy
Description Dist. (m) Time (mins)Staff OperationTransport Inspection Storage1 Red Envelope' delivered straight to legal experts desk by mail room 5 1 1 X2 Await Legal expert's attention (busy) 0 1440 0 X3 Legal expert processes copy and logs onto Project Tracking 0 21 1 X4 Move copy to Secretary's desk as soon as document is processed 5 1 1 X5 Take copy file to photocopier 10 2 1 X6 Photocopy x 3 0 2 1 X7 Return with copies to desk 10 2 1 X8 Collate, staple and 'stuff' internal mail envelopes 0 15 1 X9 Take 3 x envelopes to departmental Out-Tray 5 1 1 X
Totals 35 1485 3.1 daysValue Add 38
Non Value Add 4Necessary Non Value Adding 1443 1481
Hines et al (2000) Value Stream Management
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Case Study – Lizz Clarke Marketing
Objectives for 3-day Project
1.Grow the business through customer retention
2.Reduce lead-time for production of clients end of year report
3.Improve margins by improving productivity by eliminating information waste
4.Improve internal communications and staff awareness of job margins
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Day 1 - Theory
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Day 2 – Analysis of the Target Process
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Day 3 – Future State – What could be achieved
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Actions
• Process, roles and responsibilities of LCM staff and clients are clearly documented at communicated at the start of the project
• White boards and visual measures are used to monitor margins on jobs and collect issues
• Jobs only enter graphics unit once all information has been collated – reduces down stop/start on jobs
• Brought in external design resource to input in ideas
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Benefits
• 29% increase in productivity
• Increase in capacity of £100K on top of £600K sales turnover
• 80% Reduction in lead-times from 106 to 21 working days
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Standard Operations and Improvements
TIME
IMP
RO
VE
ME
NT
KK
K
K
K
K
K
K
K
S
S
S
S
Without standardisation, improvements can not be sustained
K = Kaizen Activity
S = Standardisation Activity
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Day 1 – Lean TheoryDay 1 – Lean Theory
Day 3 – Process re-design to eliminate or reduce the identified process waste
Day 3 – Process re-design to eliminate or reduce the identified process waste
Day 2 – Process Mapping and Data Analysis in Target Area
or Product
Day 2 – Process Mapping and Data Analysis in Target Area
or Product
Day 4 & 5 – Action Planning, Cost/Benefit and Start
Implementation Projects
Day 4 & 5 – Action Planning, Cost/Benefit and Start
Implementation Projects
On-going Assessment of Participants on how they are progressing with the projects
Over a period of 8 – 12 months
Final Presentation Back to Management on What They Have Achieved and What the Next Stages Are
Presentation to Participants of Business Improvement Techniques Level 2
On-going Assessment of Participants on how they are progressing with the projects
Over a period of 8 – 12 months
Final Presentation Back to Management on What They Have Achieved and What the Next Stages Are
Presentation to Participants of Business Improvement Techniques Level 2
© Fedden USP Ltd 2009 All Rights Reserved
Contact Details
© Fedden USP Ltd 2009 All Rights Reserved
• To discuss this topic in more detail, please contact NCVO Consulting:• [email protected]• Tel: Donna James on 020 7713 6161
Building Sustainable Change
at The Children’s Society
NCVO Conference 16 June 2014
Laura Rawnsley – Transformation DirectorPeter Rimmer – Head of Organisational Change
Our visionA country where children are free from disadvantage
Our MissionWe fight for change, supporting disadvantaged
children to have better lives
Our ValuesBrave, Ambitious, Supportive, Trusted
Who we are…
...and some key facts.
• TCS was founded in 1881 and has a long association with the Church of England.
• We are one of the traditional ‘big 5’ children’s charities in the UK which includes NSPCC, Barnardos, Action for Children and Save the Children.
• Our new CEO, Matthew Read, joined The Children’s Society in June 2012.
• We deliver approximately 100 services across England, working with 23,159 children in the last year, 14,775 of those at a sustained level.
• We also have a significant policy and increasingly prominent campaigning aspect to our work. The outcomes of which have impacting on over 350,000 more children.
• We employ approximately 1200 staff, manage 10,800 volunteers and have an annual turnover is approximately £46m.
• In 2012 we embarked on a three year change programme to enable to organisation to achieve its ambitions.
Prior to the change programme we faced a number of challenges…
External Challenges
• A cluttered children’s charity market
• The need for a clear message about what we do and what we stand for
• A reduction in commissioning activity across the sector
• A need to differentiate ourselves from our competitors
• A need to engage our supporters with any specific issues and beneficiaries
Internal Challenges
• Need for more joined up working
• Need for better IT systems
• Need to provide better value for money for supporters
• Need to increase the scale of our work through campaigning – sharing information with a wider audience
To address this we set about achieving the following objectives.
Integrated structures and ways
of working
Performance measurement and
reporting
Improved IS infrastructure and
systems
Better talent management and
development
A refreshed brand
More efficient processes
Continuous improvement and
innovation
Integrated income generation
The Transformation
Programme
1
2
3
4
5
6
7
8
Which has delivered the following changes to date...
• A refreshed Mission, Vision and Values
• A revised Brand
• A new operating model with locally integrated working set up in three areas of the highest need in England
• An outcomes framework and suite of evaluation tools
• A suite of leadership development interventions for all senior managers
• A IS suite of systems that supports responsiveness and mobility
• A dedicated PMO and a suite of tools and techniques used throughout the organisation to deliver ongoing key initiatives
• A piloted approach and methodology for radical innovation and CI
...and achieved some significant outcomes.
• 20% (70-90%) increase in alignment of our work to our outcomes
• 5% (75-80%) increase in overall staff satisfaction
• 18% (73-91%) increase in volunteer satisfaction
• 15% increase in the staff’s confidence in leadership
• 23% increase in effective communications from line managers
• 2% recurring annual savings delivered through more efficient structures
• 3% increase in practitioner productivity /effectiveness
What did we face on
the way?
We faced a number of organisational issues we could not ignore…
• Language – Staff really struggled with commonly used change language and methodologies
• Data – Data management and data quality is not strong across the sector which posed significant problems
• Skills – There was a need for significant coaching in parts of the organisation on how to deliver the aspects of the change.
• Insights – Strategic insight was largely based in individual or team skill sets with a lack of organisational processes to systematically harness ‘insights’ for the whole organisation
• Silo’s – There was a lack of and understanding between teams on how their work and processes crossed team boundaries.
1
Your turn.
Through our approach we have acquired a number of insights and solutions along the way.
Top Down Approach
• Form a dedicated team to manage change outside of BAU
• Build senior level governance around a cross organisational programme structure
• Identify key talent and second to lead on the initiatives & build skills
• Agree a set of design principles before commencing on delivering the change
• Tie the change initiatives into the strategic direction and corporate outcomes
SustainableChange
Bottom Up Approach
• Focus on a discrete area to build a detailed analysis and business case
• Involve local staff in the setting of plans and strategies for local working
• Build a network of change agents across the organisation to help drive engagement with the change
• Engage service users with designing what needs to change at a local level
We adopted a framework of how to analyse how we would approach our change journey
Our
pro
gram
mat
ic
appr
oach
Local needs and
priorities
Market realities and external environment
Our framework
Based on our organisational theory of change
Driven through our outcomes framework
Primary data available on local needs
Local intelligence and knowledge
Competitor and market analysis Local policy priorities Partnership opportunities
1
…and used a nuanced approach on how to approach each issue.
Sustainable ChangeEnterprise Wide Change
• Refreshed brand• Talent
management & development
• Performance measurement and reporting
Local Operational Change
• Integrated structures and ways of working• More efficient processes• Integrated Income Generation
2
And took time to enable sustainable innovation and growth to be developed.
Year 1
• Establish the organisations strategy and set the framework for change
Year 2
• The change is tested through pathfinder sites improving and embedding operational practices
Year 3
• Organisations ability to innovate and grow is scaled up
Our Route to sustained Innovation and growth
3
What next for The Children’s Society…
• Continue to change manage the programme outputs through BAU to maximise the benefits
• Scale up localised change and learning accross the whole organisation
• Deliver against our growth agenda by further developing our strategic and operational learning to date
• Look to other areas where we can now adopt an enterprise wide approach such as process improvement and efficiency improvement initiatives
1
Evolve 2014