STATE OF CALIFORNIA Budget Change Proposal - Cover Sheet DF-46 (REV 08/16)

Fiscal Year Business Unit Department Priority No. 2017-18 1111 Consumer Affairs 2

Budget Request Name Program Subprogram 1111-028-BCP-BR-2017-GB 1425 CONSUMER AFFAIRS 1425049 - CONSUMER AND

ADMINISTRATION CLIENT SERVICES DIVISION

Budget Request Description SOLID - Organizational Change Management (OCM) Process Improvement Expansion

Budget Request Summary

The Department of Consumer Affairs (Department) is requesting $1,327,000 in fiscal year 2017-18 and $1,207,000 in 2018-19 and ongoing to fund 10.0 permanent positions associated with conducting periodic business process reviews of the 40 boards, bureaus, committees, programs, and commission (boards) under the Department.

Requires Legislation

• Yes K No

Code Section(s) to be Added/Amended/Repealed

Does this BCP contain information technology (IT) components? • Yes ^ No

If yes, departmental Ctiief Information Officer must sign.

Department QIC Date

For IT requests, specify the project number, the most recent project approval document (FSR, SPR, S1BA, S2AA, S3SD, S4PRA), and the approval date.

Project No. Project Approval Document: Approval Date:

If proposal affects another department, does other department concur with proposal? • Yes • No Attach comments of affected depaiiment, signed and dated by the department director or designee.

Prepared By Date Reviewed By Date

Department Director Date Agency Secretary Date

Department of Finance Use Only

Additional Review: • Capital Cutlay • ITCU • FSCU • CSAE • CALSTARS • Dept. of Technology

BCP Type: • Policy • Workload Budget per Government Code 13308.05

PPBA Original Signed B y Tiffany Garcia

Date submitted to the Legislature

BCP Title: DCA - Organizational Change Management

Budget Request Summary

Personal Services Positions - Permanent

Total Positions

Salaries and Wages Earnings - Permanent

Total Salaries and Wages

Total Staff Benefits Total Personal Services

Operating Expenses and Equipment 5301 - General Expense 5302 - Printing 5304 - Communications 5306 - Postage 5320 - Travel: In-State 5322 - Training 5324 - Facilities Operation 5344 - Consolidated Data Centers 5368 - Non-Capital Asset Purchases - Equipment

Total Operating Expenses and Equipment

Total Budget Request

Fund Summary Fund Source • • State Operations

0024 - State Board of Guide Dogs tor the Blind 0069 - Barbering and Cosmetology Contingent 0108 - Acupuncture Fund 0152 - State Board of Chiropractic Examiners 0166 - Certitlcation Account, Consumer Affairs 0175 - Dispensing Opticians Fund 0239 - Private Security Services Fund 0264 - Osteopathic Medical Board of California 0280 - Physician Assistant Fund 0295 - Board of Podiatric Medicine Fund

BCP Fiscal Detail Sheet BR Name: 1111-028-BCP-2017-GB

FY17 CY BY BY+1 BY+2 BY+3 BY+4

0.0 10.0 10.0 10.0 10.0 10.0 0.0 10.0 10.0 10.0 10.0 10.0

0 693 693 693 693 693 $0 $693 $693 $693 $693 $693

0 387 387 387 387 387 $0 $1,080 $1,080 $1,080 $1,080 $1,080

0 17 17 17 17 17 0 6 6 6 6 6 0 13 13 13 13 13 0 6 6 6 6 6 0 2 2 2 2 2 0 6 6 6 6 6 0 172 72 72 72 72 0 5 5 5 5 5 0 20 0 0 0 0

$0 $247 $127 $127 $127 $127

$0 $1,327 $1,207 $1,207 $1,207 $1,207

0 1 1 1 1 1 0 42 39 39 39 39 0 7 6 6 6 6 0 9 8 8 8 8 0 4 3 3 3 3 0 1 1 1 1 1 0 25 22 22 22 22 0 5 5 5 5 5 0 2 2 2 2 2 0 2 2 2 2 2

0305 - Private Postsecondary Education 0 46 41 41 41 41 0310 - Psychology Fund 0 10 9 9 9 9 0317 - Real Estate Fund 0 152 139 139 139 139 0319 - Respiratory Care Fund 0 8 7 7 7 7 0325 - Electronic and Appliance Repair Fund 0 8 7 7 7 7 0326 - Athletic Commission Fund 0 5 0 0 0 0 0376 - Speech-Language Pathology and 0 4 4 4 4 4 0400 - Real Estate Appraisers Regulation Fund 0 16 14 14 14 14 0421 - Vehicle Inspection and Repair Fund 0 240 222 222 222 222 0492 - State Athletic Commission Neurological 0 0 4 4 4 4 0582 - High Polluter Repair or Removal Account 0 27 25 25 25 25 0704 - Accountancy Fund, Protessions and 0 44 40 40 40 40 0706 - Galltornia Architects Board Fund 0 11 10 10 10 10 0717 - Cemetery and Funeral Fund 0 10 9 9 9 9 0735 - Contractors License Fund 0 187 170 170 170 170 0741 - State Dentistry Fund 0 31 28 28 28 28 0752 - Home Furnishings and Thermal Insulation 0 13 12 12 12 12 0757 - Calitornia Board ot Architectural Examiners - 0 3 2 2 2 2 0758 - Contingent Fund ot the Medical Board ot 0 132 120 120 120 120 0759 - Physical Therapy Fund 0 10 9 9 9 9 0761 - Board ot Registered Nursing Fund, 0 73 66 66 66 66 0763 - State Optometry Fund, Protessions and 0 5 4 4 4 4 0767 - Pharmacy Board Contingent Fund, 0 47 42 42 42 42 0769 - Private Investigator Fund 0 2 2 2 2 2 0770 - Protesslonal Engineer's, Land Surveyor's, 0 30 28 28 28 28 0771 - Court Reporters Fund 0 2 2 2 2 2 0773 - Behavioral Science Examiners Fund, 0 28 25 25 25 25 0775 - Structural Pest Control Fund 0 14 13 13 13 13 0777 - Veterinary Medical Board Contingent Fund 0 10 9 9 9 9 0779 - Vocational Nursing and Psychiatric 0 31 28 28 28 28 3017 - Occupational Therapy Fund 0 7 6 6 6 6 3069 - Naturopathic Doctors Fund 0 1 1 1 1 1 3108 - Protesslonal Fiduciary Fund 0 1 1 1 1 1 3122 - Enhanced Fleet Modernization Subaccount, 0 4 4 4 4 4 3140 - State Dental Hygiene Fund 0 5 4 4 4 4 3142 - State Dental Assistant Fund 0 5 5 5 5 5 3288 - Marijuana Control Fund 0 7 6 6 6 6

Total State Operations Expenditures $0 $1,327 $1,207 $1,207 $1,207 $1,207

Total All Funds $0 $1,327 $1,207 $1,207 $1,207 $1,207

Program Summary

Program Funding 1100 - California Board of Accountancy 1115 - Board ot Behavioral Sciences 1120 - Board ot Chiropractic Examiners 1125 - Board ot Barbering and Cosmetology 1140 - State Dental Hygiene Committee 1145 - State Board ot Cuide Dogs tor the Blind 1155 - Acupuncture Board 1160 - Physical Therapy Board ot Galltornia 1165 - Physician Assistant Board 1170 - Calitornia Board ot Podiatric Medicine 1175 - Board ot Psychology 1180 - Respiratory Care Board ot Calitornia 1185 - Speech-Language Pathology and 1190 - Calitornia Board of Occupational Therapy 1205 - Naturopathic Medicine Committee 1210 - Calitornia State Board ot Pharmacy 1220 - Board ot Registered Nursing 1235 - Veterinary Medical Board 1400 - Arbitration Certltication Program 1450 - Professional Fiduciaries Bureau

1105019 - Calitornia Architects Board 1105020 - Landscape Architects Technical Committee 1110010 - State Athletic Commission - Support 1110020 - State Athletic Commission - Neurological 1130010 - Contractors'State License Board 1135010 - Dental Board ot Calitornia 1135019 - State Dental Assistant Program 1150019 - Medical Board ot Galltornia - Support 1196010 - State Board ot Optometry - Support 1196020 - Registered Dispensing Opticians 1200010 - Osteopathic Medical Board ot Calitornia 1215014 - Board ot Professional Engineers, Land 1225010 - Court Reporters Board ot Caiitornia-1230010 - Structural Pest Control Board 1240019 - Board ot Vocational Nursing and 1405019 - Bureau ot Security and investigative 1405020 - Private investigators Program 1410013 - Bureau tor Private Postsecondary 1415014 - Electronic and Appliance Repair 1415023 - Home Furnishings and Thermal insulation 1420025 - Automotive Repair and Smog Check

0 44 40 40 40 40 0 28 25 25 25 25 0 9 8 8 8 8 0 42 39 39 39 39 0 5 4 4 4 4 0 1 1 1 1 1 0 7 6 6 6 6 0 10 9 9 9 9 0 2 2 2 2 2 0 2 2 2 2 2 0 10 9 9 9 9 0 8 7 7 7 7 0 4 4 4 4 4 0 7 6 6 6 6 0 1 1 1 1 1 0 47 42 42 42 42 0 73 66 66 66 66 0 10 9 9 9 9 0 4 3 3 3 3 0 1 1 1 1 1 0 11 10 10 10 10 0 3 2 2 2 2 0 5 0 0 0 0 0 0 4 4 4 4 0 187 170 170 170 170 0 31 28 28 28 28 0 5 5 5 5 5 0 132 120 120 120 120 0 5 4 4 4 4 0 1 1 1 1 1 0 5 5 5 5 5 0 30 28 28 28 28 0 2 2 2 2 2 0 14 13 13 13 13 0 31 28 28 28 28 0 25 22 22 22 22 0 2 2 2 2 2 0 46 41 41 41 41 0 8 7 7 7 7 0 13 12 12 12 12 0 240 222 222 222 222

1420037 - HPRRA - Vehicle Retirement 0 27 25 25 25 25 1420049 - EFMP - Ott-Cycle Vehicle Retirement 0 4 4 4 4 4 1425049 - Consumer and Client Services Division 0 1,327 1,207 1,207 1,207 1,207 1426049 - Distributed Consumer and Client Services 0 -1,327 -1,207 -1,207 -1,207 -1,207 1435019 - Cemetery and Funeral Bureau 0 10 9 9 9 9 1441010 - Bureau ot Real Estate Appraisers - Support 0 16 14 14 14 14 1446010 - Bureau ot Real Estate - Support 0 152 139 139 139 139 1455010 - Bureau ot Medical Marijuana Regulation - 0 7 6 6 6 6

Total All Programs $0 $1,327 $1,207 $1,207 $1,207 $1,207

BCP Title: DCA - Organizational Change Management BR Name: 1111-028-BCP-2017-GB

Personal Serv ices Details

Salary Information Positions Min Mid Max CY BY BY+1 BY+2 BY+3 BY+4

4801 - Staff Svcs Mgr II (Supvry) (Ett. 07-01-2017) 0.0 1.0 1.0 1.0 1.0 1.0 5742 - Research Program Spec 1 (Eft. 07-01- 0.0 9.0 9.0 9.0 9.0 9.0

Total Positions 0.0 10.0 10.0 10.0 10.0 10.0

Salaries and Wages CY BY BY+1 BY+2 BY+3 BY+4

4801 - Staff Svcs Mgr II (Supvry) (Ett. 07-01-2017) 0 79 79 79 79 79 5742 - Research Program Spec 1 (Ett. 07-01- 0 614 614 614 614 614

Total Salaries and Wages $0 $693 $693 $693 $693 $693

Staff Benefits 5150350 - Health Insurance 0 127 127 127 127 127 5150500 - OASDI 0 53 53 53 53 53 5150630 - Retirement - Public Employees- 0 185 185 185 185 185 5150800 - Workers'Compensation 0 22 22 22 22 22

Total Staff Benefits $0 $387 $387 $387 $387 $387 Total Personal Services $0 $1,080 $1,080 $1,080 $1,080 $1,080

Analysis of Problem

A. Budget Request Summary

The Department of Consumer Affairs (Department) is requesting $1,327,000 in fiscal year 2017-18 and $1,207,000 in 2018-19 and ongoing to fund 10.0 permanent positions associated with conducting periodic business process reviews of the 40 boards, bureaus, committees, programs, and commission (boards) under the Department.

B. Background/History

The Department is comprised of 40 boards that protect consumers from unscrupulous and unqualified individuals as well as protect professionals from unfair competition by unlicensed practitioners through oversight, enforcement, and professional licensing activities.

The Department reports to the Department of Finance annually a set of performance metrics to measure the success of a board in the areas of licensing and enforcement. This effort, as part of performance-based budgeting (PBB), reports targets and actual data in activities such as application processing, complaint intake, investigation, and formal discipline.

At a high level, these performance metrics provide a tool to evaluate the two common, primary functions of the boards - Licensing (to evaluate applicants and issue licenses) and Enforcement (to investigate complaints and take disciplinary action). However, with a greater in-depth review of the boards, it is revealed that there are differences in processes, staffing, and complexity of each board's licensing and enforcement programs. This also makes identifying best practices across all 40 boards more difficult.

In 2009, the Department initiated two strategic programs for increasing job creation and strengthening consumer protection in California. These included the Job Creation Initiative and the Consumer Protection Enforcement Initiative (CPEI). The objective of the Department's Job Creation Initiative was to support the creation of jobs in California by accelerating the Department's processes for issuing licenses and by reducing processing backlogs. The objective of the CPEI was to strengthen consumer protection by reforming the Department's enforcement programs. Among other components of these initiatives are identifying internal process improvement and best practices.

The Strategic Organization, Leadership, and Individual Development (SOLID) unit handles all training and strategic planning services for the boards, is dedicated to the continual Improvement and organizational development of the Department and its boards. Additionally, SOLID provides meeting facilitation, OCM consultative services, and teambuilding workshops to assist board members and staff in dealing with unique issues facing a board. SOLID offers its services to all boards under the Department.

C. State Level Considerations

Providing additional resources to the Department's SOLID addresses the issues set forth by the Governor's Executive Order B-13-11, which calls for a deeper review of departments and programs. This proposal furthers the goals of the Executive Order, which calls for performance metrics, strategic planning, audits, cost-benefit analyses, and program reviews.

This proposal would allow the Department to assist the boards with identifying best practices, streamlining processes, and ultimately, improving licensing and enforcement timelines.

This proposal would also allow the Department to provide in-house consultative services to any board seeking to move forward with an information technology (IT) program. The first stage in the California Department of Technology's Project Approval Lifecycle requires thorough documentation and analysis of business process. Without these positions, some boards may have to contract with outside vendors before moving forward with an IT project.

D. Justification

As part of the PBB efforts, the Department has undertaken efforts to improve the quality of work conducted by the Department and its boards. These efforts include performance metrics and strategic planning. However, based on the existing resources, the Department is limited to the degree it can assist and provide program view of the boards.

Analysis of Problem

The Department's Executive Office also recently surveyed the Executive Officers, Assistant Executive Officers, Bureau Chiefs and Deputy Bureau Chiefs (a group of over 60 individuals) regarding what type of training assistance they would desire. One of the top requests (76 percent of respondents) was assistance with "Organizational Process Improvement."

SOLID workload Is at maximum capacity. SOLID's core function is providing classroom soft skill and technical training. Workload associated with classroom training includes time spent refining materials, assembling workbooks, developing new participatory activities, practice runs, and delivery of the class to attendees. SOLID partners with subject matter experts from various parts of the Department (e.g. Human Resources, Division of investigation. Labor Relations, and Equal Employment Opportunity Office) to provide a wide range of training. SOLID additionally provides a Leadership Academy, an Enforcement Academy, database training, and an Analyst Certification Training program. SOLID also provides Board Member Orientation Training (BMOT) to over 300 board members appointed to the Department's boards on a quarterly basis. The boards frequently make requests for new classes to be developed, which can take up to 200 hours for development.

In recent years, SOLID has expanded its activities by providing extensive strategic planning services which include time spent meeting with Executive Officers and Board Members, stakeholder interviews, environmental scan development and distribution, environmental scan analysis, planning session(s), and plan write-up and review. In addition, SOLID facilitates focus groups, action planning sessions, meeting facilitation, and BMOTs.

SOLID has used its limited staffing resources strategically to develop a number of new initiatives that focus on developing future leaders. In May of 2016, SOLID began offering Executive Brown Bag Gatherings. These gatherings have been successful in transferring knowledge and building trust, establishing networking relationships, and developing solutions to problems. SOLID will begin offering a similar series to entry-level management classifications in early 2017.

SOLID is working on the creation of the Future Leadership Development program. This initiative is designed to assist the Department and its boards in developing the next generation of executive officers and bureau chiefs. The program will have three parts to assist in the development of managers into executives - 1) training and work alongside Executive Officers and Bureau Chiefs; 2) mentorship opportunities from executives throughout the Department and its boards; and 3) completing special projects designed to benefit the participants as well as the Department and its boards. The projects will be designed to address specific problems or issues facing the Department and its boards, which are expected to be collected during the Executive Brown Bag Gatherings. This new initiative will require significant attention from SOLID's existing staff.

SOLID encourages leadership development through a variety of tools and opportunities. Ongoing leadership development supports overall Department goals to ensure the Department develops existing and future leaders with the skills, attributes, and experiences needed to fill leadership positons and ensure continuity of leadership. To contribute to the goal of developing leaders, SOLID is piloting the Department's Employee Career Empowerment and Mentorship Pilot. This pilot provides staff working in the participating boards the opportunity to meet one-on-one with managers to discuss topics related to career and personal growth. Additionally, boards who are participating the pilot are provided Lunch and Learn sessions. Recent topics have included. Change Your Perspective -Change Your Life, Honoring Diversity, Paying it Forward, Change Your Response, and Building Resiliency.

in 2015 the Department began utilizing SOLiD to provide OCM services to eight of the Department's boards. These services included change management training, business process mapping, classroom training, readiness assessments, transition labs, and on-site technical support. These OCM services greatly improved the 8 board's readiness, transition, and acceptance of a new IT system.

There are currently 3.0 Associate Governmental Program Analysts in SOLID providing organizational change management services to the boards and the Department. Due to the significant need for these services, the Department recently redirected 2.0 positions to SOLID. Should this proposal be successful, the Department would redirect these positions to other areas of need. However, even with these positions, SOLiD is unable to keep up with the needs and requests of the Department and its boards:

• SOLiD was recently tasked with providing these services to the Department's Accounting Office to assist with the move to FI$Cal. SOLiD spent over a month with staff from the Accounting Office

Analysis of Problem

diagramming workflows to help them better understand the current business processes in that office. There is an expectation that additional work will need to be completed.

• SOLiD has also been conducting one-on one-interviews with a board's complaint intake staff to determine areas for operational improvements. An analysis with identified issues and recommendations is being developed and will be presented the boards executives in the near future. Subsequently, SOLID will begin a similar review of the aforementioned board's licensing operations.

• SOLiD has been holding a number of Change Management Trainings with various boards and Department administrative units to help staff adjust to changes in management as well as policy changes.

• SOLiD completed a series of process mapping workshops with staff in the Department's Division of Legislative and Regulatory Review, the Department's Budget Office, the Division of Legal Affairs, and staff from a number of boards. This series focused on documenting the current regulatory process and Identification of potentiai improvements to ensure timely review and approval of board regulatory proposals by the Department.

SOLiD is receiving requests for additional OCM services; however, with limited staffing resources a number of these requests for assistance are unfortunately going unmet.

OCM services are important because without them staff often resist rather than embrace change. Failure to utilize these services in a robust and effective manner will likely result in a number of costs and risks at the project and organizationai level.

While these projects and initiatives can take on a number of different forms, the fact remains that ignoring or mismanaging the people side of change has real consequences for project performance. Some examples of the costs at a project level when we do not manage the people side of change include project delays, missed milestones, budget overruns, and design rework. Associated risks can include active and passive resistance, projects being delayed, resources not made available, unknown obstacles materialize, project failure or abandonment. The organizationai level is a step above the project level Impacts. These costs and risks are felt not only by the project team, but by the organization as a whole. Many of these impacts extend well beyond the lifecycle of a given project. When valuable employees leave the organization, the costs are severe and in some cases we can never recover fully. The organizationai costs and risks of poorly managing change include productivity drops (deep and sustained), loss of valued employees, reduced quality of work, negative impact on board customers, morale declines, and change saturation. Applying organizationai change management effectively on board projects allows for avoidance of organizationai costs and risks.

SOLiD utilizes the Prosci ADKAR approach with regard to its services:

• Awareness of the need for change

• Desire to participate in and support the change

Knowledge on how to change

• Ability to implement required skills and behaviors

• Reinforcement to sustain the change

The OCM process includes a number of steps that may be part of a scope of work for SOLiD with a board. Those steps include:

• Discovery and Analysis: SOLiD educates staff on the OCM process, discusses roles and responsibilities, and creates a communications plan.

• Planning and Preparation: SOLiD customizes a "toolkit" of activities and documents for the board based on data It collects and schedules meetings with subject matter experts.

• Business Process Mapping: SOLiD works collaboratively with board's subject matter experts to identify current business processes ("As-is") and develops customized workflow diagrams. These diagrams allow staff to "see" the processes they use every day in great detail. As inefficiencies are

Analysis of Problem

identified, the processes can be "re-engineered" to remove the inefficiencies. The gaps between the old As-ls process and the new "To-Be" process are also identified.

• Training and Acceptance: SOLiD provides training tools, job aids, reports and other documents to assist board staff in understanding the change and how the new process works.

• implementation and Evaluation: SOLiD works with the board staff to develop new metrics for the new process and provide support to the staff once the new process has been implemented.

These steps are time-intensive and require significant effort from SOLiD and board staff. The pace of work competition is also dependent upon the preparedness of the board staff and the complexity of the board business processes. More complex processes can take significant time to map and review by the board staff to ensure all details are captured. Even with 10.0 additional staff, it is assumed that not ail business processes will be able to be mapped and SOLiD will work with board leadership and staff to identify the highest priority business processes for review that will deliver the greatest value to the board.

There are 40 boards under the Department. Conservatively, each board averages 180 business processes. Based on existing data, SOLiD estimates that approximately 30-40 business processes can be mapped by each month. SOLiD is only able to assist one or perhaps two boards each year with process improvement, given existing resources. The goal of this proposal is to increase staffing to provide these services to 5-7 boards annually, including review of Department offices and divisions, with full Departmental review in the next 6-8 years.

Additionally, the new staff in SOLID would also be utilized to assist any boards seeking to implement a new IT project or business process analysis or re-engineering. Ail new IT efforts require approval via the California Department of Technology's Project Approval Lifecycle (PAL). The PAL is a four stage process. The first stage is a Business Analysis. This requires documenting in detail the business needs, processes, and requirements. Many of the artifacts developed in this stage could be developed by SOLiD staff in conjunction with the board.

As previously mentioned, this would work in conjunction with SOLID's existing PBB efforts regarding strategic planning. SOLiD provides strategic planning services to ail boards, typically on a four-year cycle, which sets forth the mission, vision, and goais of the board. With additional resources, SOLID would be able to provide OCM services to boards on off-years to better ensure that strategic plans are being met and changes are being implemented. Currently, the Department has no resources or authority to ensure that strategic plans are completely implemented once they have been approved by the board members.

This proposal would also assist the Department in ensuring that boards have sufficient desk manuals for its staff. One of the risks identified in the Department's 2016 State Leadership Accountability Act report is succession planning. To address this risk, the Department's control item is to create or update procedure manuals for all units. SOLID's OCM team, in its work to revise and improve board processes, can assist the boards with creating and revising these manuals.

E. Outcomes and Accountability

The Department already provides performance metrics of high level activities in licensing and enforcement. With the addition of OCM staff in the SOLID unit completing in-depth program reviews of the boards' processes and eliminating inefficiencies, a reduction in the time to complete these activities should go down and performance targets should be met.

Additionally, as SOLiD works with the boards, the goal is to develop best practices in licensing and enforcement activities and begin incorporating them Into future work with the boards. This should also result in improved timelines for completing workioad or provide valuable validation that additional resources may be needed at a board.

The collaboration between SOLiD and the boards should result in detailed artifacts that are useful to the boards in confirming their compliance with California statutes and regulations and a better understanding of their business processes. For those boards without desk manuals (or inadequate or antiquated manuals), SOLiD can assist with the production or revision to ensure staff better understanding their job duties and how to carry them out.

Analysis of Problem

F. Analysis of All Feasible Alternatives

Alternative 1. Approve an increased appropriation of $1,327,000 in 2017-18 and $1,207,000 in 2018-19 and ongoing to fund 10.0 permanent positions associated with conducting regular, periodic reviews of the 40 boards, bureaus, committees, commission, and programs (boards) under the Department and complete special projects as directed by the Executive Office.

Alternative 2. Approve a two-year limited term appropriation increase of $1,327,000 In 2017-18 and $1,207,000 in 2018-19 to fund 10.0 positions associated with conducting regular, periodic reviews of the 40 boards, bureaus, committees, commission, and programs (boards) under the Department.

While this will provide some level of temporary funding, this allows the Department to conduct some level of performance improvement with the boards.

Alternative 3. Absorb some level of costs and position authority.

Like most boards and bureaus, the Department's resources are very limited. Redirecting from other areas of the Department will create delays in processing of workioad, which will result in a negative impact on the services provided to boards and bureaus.

Alternative 4. Provide a General Fund Appropriation to permanently fund the positions and costs.

This is a viable alternative and would fund the necessary resources.

G. Implementation Plan

The OCM process includes a number of steps that may be part of a scope of work for SOLiD with a board. The steps are as follows:

Step 1 - Discovery and Analysis

SOLID educates staff on the OCM process, discusses roles and responsibilities, and creates a communication plan.

Step 2 - Planning and Preparation

SOLiD customizes a "toolkit" of activities and documents for the board based on data it collects and schedules meetings with subject matter experts.

Step 3 - Business Process Mapping

SOLID works coiiaborativeiy with board's subject matter experts to identify current business processes ("As-ls") and develops customized workflow diagrams. These diagrams allow staff to visualize the processes they use every day in great detail. As inefficiencies are identified, the processes can be "re-engineered" to remove the inefficiencies. The gaps between the old as-is processes and the new ("To-Be") are also identified.

Step 4; Training and Acceptance

SOLiD provides training tools, job aids, reports, and other documents to assist board staff in understanding the change and how the new process works.

Step 5: implementation and Evaluation

SOLID works with the board staff to develop new metrics for the new process and provide support to the staff once the new process has been implemented.

Milestones

• Assemble board task force

Present communication plan to board

Analysis of Problem

• Analysis of current business processes

• Conduct staff interview and job shadowing

• Present research on legislative and regulatory requirements

Present best practices analysis and recommendations

• Complete As-ls mapping, To-Be mapping, and gap analysis

• Develop training, job aids, quick reference guides, and desk manuals

• Analysis of board data and performance metrics

H. Supplemental Information

I. Recommendation

Alternative 1. This will provide funding for the implementation of full program review by SCLID, which will provide the Department and its boards with the information needed to identify inefficiencies and improve the performance of the Department and its boards.

Special Fund Detail (Dollars in thousands)

BCP No. 1111-028-BCP-BR-2017-GB

Proposal Title SOLID - OCM

Special Fund Title Item Number Fiscal Program Number

BY BV + I /

Ongoing Special Fund Title Org Ref Fund

Fiscal Program Number

2017/18 2018/19 1 Accountancy 1110 001 0704 1100 44 40 Architects 1110 001 0706 1105019 11 10 Landscape Architects 1110 001 0757 11050,20 3 2 Athletic - Neurc 1110 001 0492 1110020 - 4 Athletic - Support 1110 001 0326 1110010 5 -Behavioral Science 1110 001 0773 1115 28 25 Chirc 1110 001 0152 1120 9 8 Barbering & Ccsmetclogy 1110 001 0069 1125 42 39 Contractors 1110 001 0735 1130010 187 170 Dental Board 1110 001 0741 1135010 31 28 Dental Assistants 1110 001 3142 1135019 5 5 Dental Hygiene Committee 1110 001 3140 1140 5 4 Guide Dogs 1110 001 0024 1145 1 1 Medical Board 1110 001 0758 1150019 132 120 Acupuncture 1110 001 0108 1155 7 6 Physical Therapy 1110 001 0759 1160 10 9 Physician Assistants 1110 001 0280 1165 2 2 Pediatry 1110 001 0295 1170 2 2 Psychology 1110 001 0310 1175 10 9 Respiratory Care 1110 001 0319 1180 8 7 Speech 1110 001 0376 1185 4 4 Occupational Therapy 1110 001 3017 1190 7 6 Optometry 1110 001 0763 1196010 5 4 RDO 1110 001 0175 1196020 1 1 Osteopathic Medical Bd 1110 001 0264 1200010 5 5 Naturopathic Medicine 1110 001 3069 1205 1 1 Pharmacy 1110 001 0767 1210 47 42 Professional Engineers & Geo 1110 001 0770 1215014 30 28 Registered Nursing 1110 001 0761 1220 73 66 Court Reporters 1110 001 0771 1225010 2 2 Structural Pest Control 1110 001 0775 1230010 14 13 Veterinary Medicine 1110 001 0777 1235 10 9 Vocational Nurses/Psych Tech 1110 001 0779 1240019 31 28

772 700 Aribitration Certification 1111 002 0166 1400 4 3 BSIS - Private Security Svcs 1111 002 0239 1405019 25 22 BSIS - Private Investigators 1111 002 0769 1405020 2 2 BPPE 1111 002 0305 1410013 46 41 BEAR 1111 002 0325 1415014 8 7 HFTI 1111 002 0752 1415023 13 12 Automotive Repair - VIRF 1111 002 0421 1420025 240 222 Automotive Repair - HPRRA 1111 002 0582 1420037 27 25 Automotive Repair - EFMS 1111 002 3122 1420049 4 4 TMAS 1111 002 0459 1430 - -Cemetery & Funeral 1111 002 0717 1435019 10 9 Bureau of Real Estate Appraisers 1111 002 0400 1441 16 14 Bureau of Real Estate 1111 002 0317 1446 152 139 Fiduciaries 1111 002 3108 1450 1 1 Medical Cannabis 1111 002 3288 1455 7 6

555 507

Total Special Funds - State Operations ^ 1,327 1,207

Total Required

PY's DESCRIPTION OF TASKS # of Boards Avg. Hours

per Board FY 2017-18 Total Hours

9.0 Research Program Specialist 1 (RPS 1) DISCOVERY & ANALYSIS Schedule and conduct KIck-Off meeting with board leadership and staff. Formulate unique plan for the board that outlines the methodology, tools, and techniques that will he used over the course of the process Improvement lifecycle. This Plan establishes roles and responslhlltles and sets out the means of communlcatlons.hetween SOLID and the hoard.

5 to 7 80.00 480.00

Survey hoard leadership and staff. Conduct Focus Groups with hoard staff to provide an overview of the scope and goals of SOLID and the hoard. Provide forum for staff to discuss positive and negative experiences and aspects of change. Conduct staff interviews and joh-shadowing to better understand the hoard functions and processes. 5 to 7 160.00 960.00

Identify possible areas of Improvement. Develop summary report for SOLID and hoard leaderhlp. 5 to 7 80.00 480.00 PLANNING & PREPARATION Develop customized "toolkit" of activities and artifacts to he completed over the course of the process Improvement lifecycle. Review with hoard leadership and staff.

5 to 7 100.00 600.00

BUSINESS PROCESS MAPPING (two Staff per board) Conduct "As is" Workshops with hoard staff to collect detailed, step by step workflow for each process (180 avg/hoard). 5 to 7 480.00 2880.00 Create "As Is" workflows for each process based on Information gathered at the workshop. 5 to 7 320.00 1920.00 Review draft "As Is" workflows with hoard staff, modify as needed, and obtain approval from hoard leadership. 5 to 7 80.00 480,00 Analyze "As Is" processes to Identify Inefflcencles. Conduct workshops with hoard staff to gather and document Ideas for potential process Improvements. Develop recommedatlons. 5 to 7 320.00 1920.00

Review recommendations with hoard leadership and obtain approval. 5 to 7 80.00 480.00 Develop fresh workflow diagrams for new "To Be" processes. Perform gap analysis between As Is and To Be processes.Conduct workshops with hoard staff to review new To Be processes and gap analysis. 5 to 7 320.00 1920.00

Review gap analysis and mitigation strategies with hoard leadership and obtain approval. 5 to 7 80.00 480.00 TRAINING & ACCEPTANCE Develop training materials and conduct training sessions with board staff on new processes. Create new process job aids, quick reference guides, and desk manuals to educate and onboard new and existing staff. 5 to 7 320.00 1920.00

IMPLEMENTATION AND EVALUATION Review related performance metrics to determine If there is an Impact. Revise performance targets to better represent new processes. 5 to 7 80.00 480.00 Survey hoard staff to determine readiness for change and the need for further job aids or training. Support hoard leadership with Implementing new processes.

5 to 7 40.00 240.00

WORKLOAD STAFFING ANALYSIS Meet with hoard leadership to define scope of analysis. Determine and request data sets necessary for review. 5 to 7 40.00 240.00 Review organizational charts and analyze workload data sets and business process workflows to Identify potential Inefficiencies. Provide recommendations to hoard leadership on mprovements to staffing and workflow. 160.00 960.00

BEST PRACTICES Provide expert consultative services In regard to developing best practices and performance measures that determine success of Implemented changes. Compile research and present recommendation to Increase standardization and oversight. 5 to 7 160.00 960.00

Research and present existing statutory requirements, pending legislation, pending regulations, and other entity best prartlces that could benefit client. 5 to 7 80.00 480.00

Total 2980.00 17880.00

Organizational Change Management FY2017/18 BCP - Page 1 of 2

Total Required

PY's DESCRIPTION OF TASKS FY 2017-18

Total Hours

1.0 Staff Services Manager II (SSM II) Create and direct a structured methodology and lead change management activities by providing direction to Board and Bureau clients In the design, development, communication, and Implementation of department-wide change Initiatives to help ensure successful transitions. These transitions may Include technical system transitions as well as changes due to legislative mandates, large scale organizational changes due to site relocations, and departmental oversight recommendations for change.

360.00

Supervise change readiness activities, services provided to clients, and employee collaborations with vendors. Provide oversight and recommendations on the unit's organizational change management processes and documents developed for clients. Evaluate complex situations and provide reports to top departmental management.

270.00

Facilitate effective meetings to assist employees and clients In creating and reaching consensus on standardized change Implementation strategies. Provide direction on appropriate group processes and methodologies and monitor performance to ensure a participatory environment In order to create positive outcomes.

360.00

Create and Implement change management strategies and plans that maximize employee adoption and usage and minimize resistance. Identify and manage anticipated resistance to change and assist clients In overcoming change resistance by providing management coaching and staff training.

180.00

Use project management methodologies to establish project charters, work plans, and project plans for change Implementation. Identify, analyze, and prepare risk mitigation tactics. 90.00

Supervise, plan, organize, and direct the research and work activities of employees. Ensure employees provide and achieve operational efficiency by utilizing effective management skills and tools (e.g. communication, project management workload tracking/monitoring and staff development) on a dally basis. Provide guidance consistent with state and departmental policies.

270.00

Monitor, evaluate, and complete employee performance appraisals on a timely basis. Develop and Inform employee of ob expectations for work evaluation. Evaluate work performed and Identify training needs for Improved Job jerformance. Provides timely feedback and recognition to staff. Promptly identifies and addresses any employee performance Issues.

180.00

Recruit, select, hire, develop, and onboard employees. Ensure program operations and hiring practices conform to bargaining unit contracts, state policies and equal employment opportunity objectives and guidelines. 36.00

Total 1746.00

August 1, 2016 Department of Consumer Affairs

SOLID Training and Planning FY 2016-2017 Author ized Positions: 16.6

Awet Kidane Director

Jeff Mason Chief Deputy Director

Brian Clifford SSM III

610-100-4802-001

Sonya Ross Training Officer II 610-730-5194-002

Damon Nelson Staff Services Manager II

610-730-4801-001

Dennis Zanchi Planning SSM I

610-730-4800-002

Training Officer I Vera Clark

610-730-5197-003

Deanna Marino Robinson 610-730-5197-005

Bgn Mpntie 610-730-5197-006

Associate Governmental Program Analyst Desiree Garcia

610-730-5393-007

Carol Wong 610-730-5393-800

Office Technician (Tvolnai Richard Mass!

610-730-1139-001

Associate Governmental Proqrgm Analyst

Brianna Miller 610-730-5393-002

Elisa Chohan 610-730-5393-003

Vacant 610-730-5393-004

Donise Weyeneth 610-730-5393-008

Elizabeth Coronel 610-730-5393-804

Associate Governmental Program Analyst

Fernando Cabangon (1.0) 610-730-5393-005 ( 6)

Kelly Boynton 610-730-5393-006

Nancy Cabangon 610-730-5393-805

Awet Kidane Director, Department of Consumer Affairs

Damon Nelson Staff Services Manager I

Personnel Analyst Office of Human Resources

BCP-SOLID ORGANIZATIONAL CHANGE M A N A G E M E N T (OCM)

Sonya Ross Training Officer II 610-730-5194-002

Training Officer I Vera Clark

610-730-5197-003

Deanna Marino Robinson 610-730-5197-005

Ben Montie 610-730-5197-006

Associate Governmental Program Analyst Desiree Garcia

610-730-5393-007

Carol Wong 610-730-5393-800

Office Technician (Typing) Richard Massi

610-730-1139-001

Department of Consumer Affairs SOLID Training and Planning

Awet Kidane Director

Jeffrey Mason Chief Deputy Director

FY 2017-2018 Author ized Positions: 16.6

Proposed: 10,0

Brian Clifford SSM III

610-100-4802-001

Damon Nelson Staff Services Manager I

610-730-4801-001

Dennis Zanchi Planning SSM I

610-730-4800-002

Associate Governmental

Program Analyst Brianna Miller

610-730-5393-002

Elisa Chohan 610-730-5393-003

Vacant 610-730-5393-004

Donise Weyeneth 610-730-5393-008

Elizabeth Coronel 610-730-5393-804

Awet Kidane Director, Department of Consumer Affairs

Manauement SSM ii 610-730-4801-XXX (1 0)

PROPOSED

Damon Nelson Staff Senrlces Manager I

Personnel Analyst Cffice of Human Resources

Associate Governmental

Program Analyst Fernando Cabangon

(1.0)

610-730-5393-005 (.6)

Kelly Boynton 610-730-5393-006

Nancy Cabangon 610-730-5393-805

610-730--5742--XXX (1 Oi PROPOSED

5!0-730--5?42 XKX (1 Oi PROPOSED

610-730-5742-XXK (1,0)

4 / / ' )

610-730•5742-XXX (1 Oi PROPOSED

610-730-5742-XXX (1 Oi PROPOSED

4 / / / ^ i)

P R C - O S E D 3CP-S0L iD OCM POSiTiONS