Article 154. Streamlining Iowa Boards and Commissions Using Lean and More
From Governing Magazine’s article “Lean Legacy”
By Jonathan Walters August 2009
Teresa Hay McMahon heads up the performance and results division in the Iowa Department of Management
In January 2008, public- and private-sector officials joined forces to create a “Lean Government Collaborative,” to work with and in state agencies to do process improvement. While the collaborative had Governor Culver’s support, executive-branch reformers such as McMahon were well aware of how ephemeral reform can be when it comes with a label and an elected executive’s name. So she and her allies turned to the legislature once again to try to codify good government in state statute.
From Senator Danielson’s viewpoint, it didn’t take much persuading; even lawmakers who might not have a master’s degree in public administration could understand the difference between an environmental permitting process that took 62 days versus six, he says. Legislation—with no sunset provision—passed unanimously in both houses in the 2009 session, officially creating and funding an “Office of Lean” in the Department of Management. “Legislatures come and go,” says Danielson. “We wanted something with a sense of permanence so it didn’t just become another fad.”
Lean in Iowa, “is absolutely flourishing,” says McMahon. And it’s attracting some outside interest, as well. In June, her office hosted a “lean government exchange” that drew 130 people from state and local governments around the country, as well as federal officials, and officials from Mexico and Canada.
Streamlining Iowa Boards and Commissions Using Lean and More.
The following reform consists of more than just using the normal Lean study and implementation to streamline Iowa public services. I will show you how to reorganize the current bureaucratic organization into a Public Service Steering Management Team with the current work of Boards and Commissions being performed by Functional Management Teams.
Consider this reform for managing Iowa’s 178 or so boards and commissions. Currently the state On-line website and Departmental Telephone Directories aid the public in finding the particular organization they are looking for to provide a specific service such as: answering a question, making a request or filling out an application. But with this new reform all Iowa state public queries can be handled through a centralized portal using a 311 telephone number. The 24 hour State Services Call Center can provide almost instant service to the public not just information. This portal eliminates the need for the public to search for a specific government organization and opens the way for the complete reorganization of the states services system. No longer requiring public interface, boards and commissions can be consolidated into a much more responsive and efficient organizations resulting in the elimination of many management and public interface employee positions.
What is the system called?
The system is called Customer Relations Management (CRM) and uses a similar call center to that of a 911 center.
How does it work?
Each Telephone Call taker is trained in doing the current public service business found in one of several areas: State Offices, State Departments or State boards and Commissions. Calls are directed to the specifically trained call taker. That individual is assisted by a frequently asked Question (FAQ) database developed for each Office, department, Board and Commission. There must be trained personnel on duty at all times. See my Article 101. The Hampton Virginia Innovation Story, where CRM was first implemented in 2000.
How do you make this reform?
I recommend that this reform be initiated by a high level Lean team making the process flow study to determine the best organization for Iowa Services. The study will map customer interface with desired services to arrive at the most effective and efficient process flow. This is followed by the setting up of the State Services Call Center (the CRM).
While the high level Lean team is doing the high level study each agency function is organized into a functional Lean team. The functional Lean teams will do a process flow analysis on the processes done by each function to determine the best method for doing the function.
Notice the organization is budgeted by Functions and not boards and commissions. Boards and commissions can be used to describe the umbrella organization for several functions. A function is the name given to a set of processes for providing the public with specific item or service and is budgeted by the number of times that the function will be done during the year.
The Process Flow Charts done by the Lean teams provide a record of the costs associated with each process. If a process were to be eliminated all of its costs are also eliminated. A Process Flow Chart is done for each Function and if an entire Function were to be removed all of its budget will also be removed. When the new and best method has been documented in the Process Flow Chart it is presented to the top management. This is an important step which signifies top management’s support and recognition of the Team’s accomplishments. Upon approval of the new method the Process Flow Chart is given over to the budget analyst to cost out the savings of the new method and to identify the proper staffing for the function. The budget analyst then documents the new method and its costs in a spread sheet which will provide input to the next budget. See my Article 137. Role of Lean Facilitator and Budget Analyst.
Did I say budget? What you have now is the real budget for doing the boards’ and commissions’ Functions not that phony bloated budget that they present each year. True, you must add in the cost of managing but now for the first time you know what that cost is. This is a bottom-up budget with actual costs for doing the work known. All other costs are for management and fluff (which can be significant). In my experience in industry most unmeasured office areas are over staffed by 10% or more.
Once you know what the real costs are for doing the work and top management is working closely with the Teams. The government reform process can begin. First the functional Team leaders become the Functional Management of the Public Service functions. Second many of the mid management levels between the Functional management and top management become redundant. Top management now assumes the role of a Steering Management Team. The top level Lean team and possibly some but not all of mid management may become part of the Steering Management Team. Steering Management has the role of guiding and steering the organization while Functional Management deals with the day to day operation of the boards’ and Commissions’ functions. Steering Management is responsible for telling Functional Management “what to do” but not “how to do it”. This is a loose-tight organization with Steering firmly in control of the budget leaving Functional Management free to determine how best to do the job. Those in industry will recognize this as straight from the book “In Search of Excellence- Lessons from America’s Best-Run Companies” by Thomas J. Peters and Robert H. Waterman Jr., Harper and Row, New York, 1982.
So where are the savings?
In each of the 178 offices there must be at least one person available for taking public phone calls during working hours compared with as few as 24 (my example estimate) manning the phones 24/7. Note that this is more than a telephone answering service the business of the state is conducted by the CRM. When you combine these savings with the elimination of some boards and commissions, significant savings can be achieved. The number of current service call takers is reduced from 178 to 24 and more than 356 lower management positions may be eliminated for an estimated savings of $20 million.
What’s different?
The multilevel career path of the former bureaucracy is now reduced to one step from the Functional management Teams to the Steering Management Team. Gone are the hundreds of hours of endless manipulation of employee evaluations. Gone also is the endless bickering and negotiation over each of the board and commission’s budgets.
Now for the sad tale?
Lean has experienced great success in Iowa because it has been used to solve customer turnaround problems cutting months off of public environmental applications. Iowa’s Lean projects have generated little to no savings this is because the reformers are not looking for savings. When you continue to identify savings eventually someone will ask about reducing personnel and the entrenched bureaucracies are not about to let that happen. So what type of ideas do bureaucracies like? They especially like ideas that make them look good with the public because it puts pressure on law makers not to oppose an increase the budget that they want. Any innovation that enhances service to the public like Iowa’s Lean projects and makes the bureaucracy look good is a sure thing to be adopted.
Given the amount of budget stress that states are presently under you might think that states would be willing to give up their bureaucratic organizations and downsize their boards and commissions. Even with 42 states under economic stress except in only a few direr cases they still prefer to raise taxes than to downsize. Any recommendation either Lean or any other method that gets its efficiency from reduced personnel has little chance of being implemented. This is why I advocate major government reforms.
See the following articles for more information.
Article 156. Getting the most out of Lean as used in Government
Article 157. Using Lean to Balance Agency work Loads
