Lean Government Using Performance Measures PM to Fulfill

Lean Government: Using Performance Measures (PM) to Fulfill the Oversight Responsibility Rep. Mark Miloscia Washington State House of Representatives

Overview 1. Using PM to Fulfill the Oversight Responsibility: What does that mean? 2. History of PM: Washington State Successes and Failures, Why failed 3. What is Needed for Oversight? Key elements 4. Baldrige and Lean 5. Scorecard – Washington Agencies 6. Roadmap for the Future: A Performance Agenda that will work

Why use PM? “In God we trust, all others bring data. " W. Edwards Deming "Measurement is the first step that leads to control and eventually to improvement. If you can't measure something, you can't understand it. If you can't understand it, you can't control it. If you can't control it, you can't improve it. " H. James Harrington

Why use PM? United States Constitution We the people of the United States, in order to form a more perfect union, establish justice, insure domestic tranquility, provide for the common defense, promote the general welfare and secure the blessing of liberty to ourselves and our posterity, do ordain and establish this Constitution for the United States of America.

Why use PM? My (OUR) goal is to make Washington State a recognized world leader in: n 1. Management, Effectiveness, and Efficiency n 2. Ethics and Integrity n 3. Quality of Life

Theme: How Government Accountability and Performance Management will save the world Using PM to help everyone improve themselves, their world community and their posterity! n n n Why use PM? A more perfect Union Who uses PM? Everyone Do we use them well? Not very well now, but…

History of Performance Measures: WA State Successes and Failures n n n n n 1993 1994 1997 1999 2002 2005 2007 2009 2010 2011 HB 1372 - Accountability in State Government Act HB 1209 - Education Reform (WASL) SB 6220 - Washington State Quality Awards established Executive Order 97 -03 - Agencies to use Quality Mgt Balanced Scorecard - Gov. Locke adopted HB 1268 - Personnel System Reform Act of 2002 POG - Gov Locke adopted HB 1970 - GMAP - Governor oversight, WSQA assessments HB 1064 - Government Accountability, CAB, Agency Scorecard HB 1242 - State Budget Outcomes (POG) I-900 - State Auditor Performance Audits House Approp. Subcommittee on Gen Gov't & Audit Review House commits to WSQA Assessments House Audit Review and Oversight Committee formed State Wide Performance Review Agency LEAN pilot (DHSH, L&I) Agency Consolidation LEAN system wide?

Reasons WA State Failed to Implement Performance Systems and Transform Culture n n n No Long-term Leadership Commitment and Active Involvement No Long Term System Plan or Agency Plans Developed No Training for Senior Leadership Partial Implementation Only No Stakeholder, Legislative Support Sought No Accountability of System or Employees No Functioning Cost Accounting, Data System No Employee Empowerment Effort Adopted No Effort at Culture Change No Ethics/Integrity System No Linkage of Plans Key: No Performance Measures or Measurable Goals Adopted

Baldrige Criteria n n National Institute of Standards and Technology/ American Society for Quality—National program with state chapters Assesses and guides 6 process areas and results: n Leadership n Strategic Planning n Customer Focus n Measurement, Analysis, and Knowledge Management n Workforce Focus n Operations Focus n Results

Lean n n Toyota Production System Definition: No standard, NIST 7 or 8 Wastes Plan, training, empowerment, measures, customer focus, CI, leadership Other quality systems: BS, LSS, ISO, etc

What Key Elements are needed for Oversight? 1. 2. 3. 4. 5. 6. 7. Senior Leadership Continuous Action Plan Competent Knowledge and Skills Unquestionable Integrity and Ethics Strong Collaboration and Linkage with all Branches Public Accountability with Performance Measures Long Term Sustainability

What Key Elements are needed for Oversight? 1. Senior Leadership “…every successful quality revolution has included the participation of upper management. We know of no exceptions. ” Joseph Juran C Governor Awareness that we must improve B Governor Advocacy for real change A Governor Action for system-wide reform using BP

What Key Elements are needed for Oversight? 2. Continuous Quality Action Plan: C Baldrige Criteria (WSQA) Plan and Assessments B Lean Quality Action Plans with SWOT, timetables, Performance Measures A National Application winner

What Key Elements are needed for Oversight? 3. Quality Management Knowledge/Skills “If I win my next election, then we know our county has a good county election system. I would be voted out otherwise. We are held accountable every four years. ” Unnamed Elected WA County Auditor C Employee, Vendor, Stakeholder Quality Expertise B Senior Staff Quality Expertise and Engagement A Elected Officials Quality Expertise

What Key Elements are needed for Oversight? 4. Integrity and Ethics “Integrity without knowledge is weak and useless, And knowledge without integrity is dangerous and dreadful. ” Dr. Samuel Jackson

Lobbyist admits he gave Ney bribes F. B. I. Contends Lawmaker Hid Bribe in Freezer Cunningham corruption endangered troops Copley News Service New Jersey Officials Arrested in Corruption Scandal Public outrage is calling governments to account Global and forcing corrupt leaders out of office Corruption Report

What Key Elements are needed for Oversight? 4. Integrity and Ethics D Transparency with campaigns and government processes C Ethics Plan with PM and Results for all Senior Staff and Elected Officials B Public Funding of Campaigns A Outside Independent Assessment with PM

What Key Elements are needed for Oversight? 5. Collaboration with all Branches and Agencies

Mushroom Management (definition) A management philosophy subscribing to theory that to best motivate your employees or stakeholders, you must at all times: 1. Keep them in the dark. Restrict employee access to information and decisions 2. Feed them manure. When information is conveyed, it is incomplete, inaccurate, or full of marketing hyperbole or spin

What Key Elements are needed for Oversight? 5. Collaboration with all Branches and Agencies C B A Agency Linkage and Collaboration Legislative Linkage & Collaboration Goals and PM Alignment

What Key Elements are needed for Oversight? 6. Accountability with Performance Measures D Public Engaged C Legislature/Executive Engaged B Quality Performance Measures: Level, Trend/Deployment, Benchmark, Linkage A Clear, Public, Real-time Scorecard

What Key Elements are needed for Oversight? 7. Sustainability C Law B Measurable Bipartisan, Legislative/Executive Engagement and Support A Measurable Broad Public Engagement and Support

Scorecard Washington 1. 2. 3. 4. 5. 6. 7. Senior Leadership Governor Awareness, Advocacy, Action (system) Continuous Quality Action Plan Baldrige, Action Plan w/Goals/SWOT, National Baldrige Competent Knowledge and Skills Employees & Partners, Senior Staff, Elected Officials Unquestionable Integrity and Ethics Transparency, Ethics Plan w/PM, Public Financing, Assessment Strong Collaboration with all Branches Agency Linkage, Legislative Linkage, Alignment of Efforts and PM Public Accountability with Performance Measures Public Engaged, Leg/Exec engaged, Quality PM, Real-time Scorecard Long Term Sustainability Law, Legislative Support, Public Support

Scorecard Washington Program GMAP Office of Financial Management State Auditor Other: School District Local Gov’ts Leadership Action Plan Skills Integrity Collaborate PM Sustain Results Total

Roadmap for the Future: A Legislative Agenda 1. 2. 3. 4. 5. 6. 7. 8. Elect Leaders for real accountability & culture change Gain Key Stakeholder Support Implement Baldrige Assessments and Auditable Lean and set goal for 60% in ten years, national winner Train and educate all senior leaders/elected officials, empower and train all staff and vendors Develop a Public Scorecard and stick to it Use Outside Independent Auditors and Assessments Implement plan on Integrity and Ethics Public funding of campaigns

What can Practitioners do? n n n Join ASQ Certified Manager of Quality Manager/Performance Excellence Become Baldrige Examiner

Conclusion A Vision for Washington State: n n n Internationally recognized as the most ethical and honorable; The most efficient and effective place on the planet to live, work, and govern; Where every person and organization is held accountable for their actions; And is living at the highest, sustainable quality of life; For themselves, their neighbors, and their posterity. How will one know this? n You will find all our real-time, objective performance measures that matter to you, on the Web!

Thank You! Questions?