Leaning Forward Baltimore’s Journey to Lean Government

1. Leaning ForwardBaltimore’s Journey to Lean Government Andrew Kleine, Budget Director

2. What I’m Going to Tell You • Baltimore is a performance management leader, but CitiStat and Outcome Budgeting won’t fix all of our broken business processes • We have done our homework on Lean and think it will fill a critical gap in our performance management program • We have taken steps to ensure Lean’s success

3. Baltimore is at an inflection point Baltimore City Population, 2000-2011 (Census Data)

4. Costs are growing faster than revenue

5. Taxes are too high

6. Citizen satisfaction is too low

7. Ten-Year Financial Plan: Key Themes • Structural Budget Balance: Identifying strategies to “bend the curve” on the City’s expenditures to align with recurring revenues • Tax Competitiveness: Reducing Baltimore’s high tax burdens on residents and businesses to strengthen the City’s position as a location of choice • Infrastructure Investment: Addressing longstanding underinvestment in core City assets • Addressing Long-Term Liabilities: Challenges decades in the making will not be entirely resolved over the next ten years, but it is important to achieve real progress with a plan for enhanced fiscal sustainability

11. WHAT IS OUTCOME BUDGETING?

12. OLD WAY NEW WAY

13. SERVICE PERFORMANCE MEASURES Service 798 – YouthWorks Summer Jobs Program Service 683 – Street Management Service 749 – Blight Elimination

15. CitiStat

17. Innovation Fund Web-based Environmental Health Quality Management System ePlans Review System Baltimore City Fiber Optic Ring Parking Management Modernization Smart Energy Meters Vehicle Collision Avoidance System

18. Management Research

19. Good Government Book Club Extreme Government Makeover by Ken Miller If We Can Put A Man On the Moon… Getting Big Things Done In Government by William Eggers and John O’Leary Triumph of the City by Edward Glaeser Many Unhappy Returns: One Man’s Quest To Turn Around The Most Unpopular Organization in America by Charles O. Rossotti Trying Hard Is Not Good Enough: How to Produce Measurable Improvements for Customers and Communities by Mark Friedman Made to Stick: Why Some Ideas Survive and Others Die, by Chip and Dan Heath The Ten Faces of Innovation: IDEO’s Strategies For Beating the Devil’s Advocate & Driving Creativity Throughout Your Organization, byTom Kelley Citizenville: How to Take the Town Square Digital and Reinvent Government, by Gavin Newsom

20. Learning About Lean

21. Lessons from King County, WA

22. Single family permit times

23. Homeless health care referrals completed within 90 days

24. Capacity, Savings and Employees • Focused on increasing capacity • Demand has increased for our services • Service quality at issue • Not primarily focused on “savings” • Employee security agreement • County is implementing Lean and its principles in order to eliminate inefficiencies and increase capacity of employees to deliver quality customer service • Employees in the event, more empowered to make changes than ever before!

25. Employee security agreement • No employee will involuntarily lose county career service employment as the result of implementation of a Lean process • Any career service reduction resulting from the implementation of a Lean process will be achieved through attrition • The parties will discharge any statutory obligations to negotiate prior to implementation of Lean process improvement initiatives • The parties agree that working condition changes recommended/ suggested as a result of a Lean analysis will not be implemented until the parties have discharged their statutory duties to bargain • It is not the intent of the Lean process to achieve efficiencies and/or cost reduction through a lowering of the wage ranges assigned to classifications performing the work that is being reviewed and/or analyzed. However, should any lowering of pay ranges result, the County will discharge any bargaining obligations. Notwithstanding #5 above, it is acknowledged by the parties that economic conditions may force staffing reductions outside of Lean.

26. Lean Events Boost Morale

27. www.kingcounty.gov/employees/Lean

28. Lessons from Irving, TX

29. Integrating Lean and Performance • Annual Strategic Planning Process • Measures linked to Strategic Plan • Key Metrics identified • Cascaded • Visually displayed throughout the organization • Budget funds the plan • Metrics and processes monitored; Opportunities for improvement identified

30. Street Cut Repairs • Results: • Reduced repair cycle time • from 14 weeks to <6weeks • Results Sustained • Leveraged technology • Weekly monitoring • Aging report • Identify root causes for delay

31. Line Time Line wait time during peak hours at Municipal Court 2009: 2-3 hours 2010: <10 minutes Since 2011: 6 minutes

32. Water Utility Truck Redesign http://www.youtube.com/watch?v=J8qh5howZVY

33. Creating and Sustaining the Culture Keys to Successful Deployment 1. Leadership involvement 2. Use of top talent 3. Supporting structure 4. Integrate with other systems And don’t forget • Implementing improvements • Training all levels • Project/Team Selection • Reward and Recognition • Testimonials • Knowledge Sharing • Early wins • Constant communication

34. Just Go Do It!

35. Read all about it!

36. Preparing for Lean • City sent five staff members to 72+ hours of Lean training sponsored and provided by the Maryland World Class Consortium • City set up a dialogue with local tech entrepreneurs • Put Lean government on the agenda of the Mayor’s Innovative Government subcabinet

37. Preparing for Lean • Through the RFP process, a facilitator has been selected to assist with the first several pilot projects • Three Lean info sessions held for agency and department heads with over 70 people attending

38. Our first Lean Event:Retail Business District Licenses • Bad addresses cause billing problems • Collection rate only 75% • Poor follow-up on dunning notices • Merchants associations missing out on $100K • Multiple agencies are involved

39. Times: 21,488 minutes 388 man hours 49.7 work days Total process details: - 11 months - 93 steps Accounts paid on time: 58.95% Accounts referred to legal: 18.08% Abated businesses: 10.96% Inventory Accuracy: 89.04% Times: 13,597 minutes 225 man hours 31.75 work days Total process details: - 6 months - 33 steps Accounts paid on time: ↑58.95% Accounts referred to legal: ↓18.08% Abated businesses: ↓10.96% Inventory Accuracy: 95% Current StateFuture State

40. Steps to Get There Training between BRC and BDC on how to pull lists of current inventory More training on City Dynamics, the accounting system New design/formatting of the bill Elimination of 30-60-90 days of notice to delinquent accounts Smart list generation to print licenses directly from City dynamics Giving more employees privileges to certain aspects of City Dynamics so there are more backups Giving updates to the Bureau of Accounting and Payroll Services to let them know the new procedures

41. Our second Lean Event:One-Stop Career Center • Customers wait too long for services • Backlog delays job placement for ex-offenders • Multiple service delivery partners • Physical layout of center adds to inefficiency

42. Innovation Lab

43. Connectivity of City Improvement Processes Fulfillment of Ten Year Plan objectives Outcome Budgeting

44. What I Told You • There is no magic bullet for managing performance • A successful performance management program connects planning, resource allocation, implementation, accountability, and evaluation • Lean will improve Baltimore’s service delivery

45. Questions?