Denver Peak Academy

1. Denver Peak Academy Black Belt Training Day 1 – Introduction to Innovation

2. Agenda – Black Belt Day 1 – Intro to Innovation

3. Peak Academy Peak Performance & Innovation

4. Take a trip through the material • Agenda for each day • Presentations 1-5 • Reference Guides • Additional references can be found at www.BMGI.org & on City University • BMGI • Breakthrough Management Group, Inc. is a firm that specializes in Lean, Six Sigma, and other methods • They provide free learning modules online at http://www.bmgi.org/training/elearning • Throughout Black Belt training, you will see BMGI courses listed that are related to the current topic

5. Objectives for Black Belt Training • Think Differently: Start with Why • Importance of the A3 to planning and delivering Innovations • Intro to Innovation (Lean) & History of Lean • Value Streams • Tools to ID Waste • Tools to Eliminate Waste • Lean Simulation • Present your ideas for Innovation • What you might work on after completing Black Belt training

6. Group Norms • Take a couple post-it notes and write down one positive and one negative guideline for interaction during this week • Think about: • How you want the group to act; • What guidelines you want the group to follow; and • What you want, or not want, to see during this week? • Put them on the “Norms” poster – one on the smiley face part, the other on the frowny face part

7. Goals • Take a post-it note and write down your goal(s) for this week • Think about: • What you’d like to accomplish this week; • What you expect will happen; and • What you’d like to take away from this week • Put it on the “Goals” poster

8. Start with “Why” • Video • Simon Sinek – Start with Why http://www.youtube.com/watch?v=u4ZoJKF_VuA • Discussion • Have you seen this video before? • What did you like about the video? • Did you learn or were you exposed to something new? • What things did you like (or not like) about the video?

9. Denver Peak Performance: Why? Mayor’s Vision Statement We will deliver a world-class city where everyone matters. • We believe in improving outcomes by focusing City resources on: • Youth • Jobs • Safety Net • Customer Experience • Sustainability – Financial & Environmental Why

10. Denver’s Peak Performance Framework Citywide Strategic Framework Sustainability Youth Jobs Safety Net Customer Experience Innovation Strategic Planning Monitoring Strategic Plan Benefits Tracking Financial Hard $ Savings (budget impact) Soft $ Savings Performance Metrics • Dashboard Development • ID Value Streams • ID & Prioritize Innovation Opportunities • Create Innovation Plan • JDIs – Just Do Its • Workshops • RIEs – Rapid Improvement Events • Projects – Larger scope, usu. Multi-agency • New/Updated Technology • Strategic Resource Alignments (SRA’s) Service Level Improvements Human Development Innovation Fund $

11. Process Innovation Playbook for an Agency/Dept • Exec Training from Peak Academy • How to Lead Innovation • What is Innovation in your organization • ID Org’s Value Streams • Prioritize VS’s to conduct VS Analysis (VSA) • Value Stream Analysis for each High Priority VS • Facilitator-led • VS Mapping • Create Innovation Plan for each VS • Charter high priority opportunities • Innovations: • Just Do Its, Workshops, Rapid Imprv Events, and Projects • Tools • A3 Thinking • Visual Mgmt • Stand Work • Celebrations! • 30/60/90 Readouts • Feed innovation results into Peak Performance QtrlyReadouts • Citywide Impact Statements Agency/Dept. Steering Committee (Governance – Internal Agency Leaders: Visioning, Leadership, & Follow-through for Innovation) Foundational components to support Innovation Innovation Experts (Core Team: Green Belts, Black Belts, Peak Performers, & Facilitators) Peak Academy – Training & Facilitation Support

12. Peak Academy Tennis Ball Exercise (Lean Concepts)

13. Tennis Ball Exercise: RULES 1 No one can touch the ball more than once 2 Follow the same order in each round 3 There can be no drops (“defects”): Start Over 4 The ball must pass through everyone's hands Must be done in 5 seconds 5

14. Tennis Ball Exercise: Debrief • What breakthrough ideas allowed your team to improve the most? • What did you eliminate from the process? • Distance? • Throwing • Catching • Flight time? • Did you: • Work as a team to ID the steps in the process? • Create “Flow”? • Seek perfection? • Question the rules of the exercise in order to innovate?

15. Peak Academy Process Innovation 101 (Lean)

16. Why Lean? • Lean is not a proprietary methodology • Continuing to do business in the same way is not sustainable • Demand for Denver services is increasing • Resources are limited • The City of Denver closed a budget gap of $94M in 2013 • There’s no $ to invest in proprietary approaches • This is “Us Investing in Ourselves” • So what is Lean, anyway? • For more information, see BMGI Course: Introduction to Lean

17. History of Lean Variety of products Staff-driven improvements 5 principles of Lean Kiichiro Toyoda & TaiichiOhno Toyota Production System Frederick Taylor Time Studies & Standardized Work Eli Whitney Interchangeable Parts Henry Ford Assembly Lines 1790 1890 1910 1930 1950 1970 1990 Womack, Jones, & Roos “The Machine That Changed the World” Frank & Lillian Gilbreth Motion Studies & Process Charts Shewhart, Deming, & Juran Statistical Process Control

18. Five Principles of Innovation • Identify the value that your customers demand • Map the steps required to deliver value to your customers • Deliver value to customers on demand (called “Pull”) • Deliver value to customers without waste (called “Flow”) • Seek perfection: standardize and solve to improve • For more information, see BMGI Course: Five Principles of Lean • Transformational learning requires deep personal experience: • “Tell me and I'll forget; • show me and I may remember; • involve me and I'll understand.” • - Chinese Proverb

19. What is Lean, anyway? • Lean is a continuous improvement methodology • Lean strives to remove waste and deliver value to customers • Is driven by our colleagues, it is NOT top-down • Lean includes a set of tools to… • Identify Waste: Some examples include: • Identifying the 8 types of Wastes • Gemba Walk • Process Mapping • Spaghetti Diagrams • Eliminate Waste: Some examples Include • 6S – Sort, Straighten, Shine, Standardize, Sustain, and Safety • Standard Work • Just Do Its (JDIs) • Production Boards Is Waste a dirty word?

20. Waste is Disrespectful… • Waste is disrespectful of HUMANITY because it wastes scarce resources • Waste is disrespectful of INDIVIDUALS because it asks them to do work with no value • Waste is disrespectful of CITIZENS because it asks them to endure and pay for processes with no value

21. BREAK • Let’s take a quick BREAK

22. Peak Academy A3 Thinking

23. Why use “A3” Thinking? • An A3 is a…. • Problem Solving Tool • Consensus Building Tool • Communication Tool • Learning Tool

24. What is an A3? • Derives it’s name from… • Metric paper size: equal to 11” x 17” (an “A3”) • Structured approach for planning & problem solving • Ensures consistency when planning and executing your innovations • Allows you to track benefits from innovations

25. The spirit of the A3…. • Promoting belief for Innovations… • Allows a group to work together & ensures inclusion • Inclusion promotes teamwork • Structure, structure, structure • Follow the boxes in order • Very thoughtful approach… • Boxes 1-3: Planning the Innovation • Boxes 4-6: Innovate! • Boxes 7-9: Follow-Up/Sustaining Innovation

26. The A3 Model Planning 1 Why Change is Needed 2 Current State Future State 3 Innovation Gap Analysis / Assumptions 4 Brainstorming 5 6 Experiments Sustain the Innovation 7 Action Plan Results 8 Lessons Learned 9

27. TITLE:_________________________________ Date Started:_______Current Date:_________ Team:___________________________ Executive Sponsor: Process Owner: 1 Why Change is Needed 4 Gap Analysis / Assumptions 7 Action Plan • Sample Questions • Why are we doing this? • What is the burning platform? • What is the chief complaint? • What is the impact of this issue? • Intent of the action • Scope – Start & end points • What holds us back from the Future State? • What are the root causes of these road blocks? • Use Tools to ID Waste 2 Current State 5 Brainstorming 8 Results Describe attributes of the current state – Quantitative & Qualitative Graphically present picture of Current State 3 Future State 9 Lessons Learned 6 Experiments • Describe attributes of the future/goal state – Quantitative & Qualitative • Graphically present picture of Future State • Are metrics defined and achievable? • METRICS: Hard-$ savings, Soft-$ savings, Service Level Improvement, and Human Development

28. Denver’s A3 1 Why Change is Needed- EXAMPLE 1 Why Change is Needed • Sample Questions: • Why are we doing/changing this? • What is the circumstance or emergency demanding change? • What is the chief complaint? • What is the impact of this issue? • Intent of the action • Scope – Start & end points • There are various touchpoints that create inherent delays in processing and defects in data entry from the initial application to invoicing phase. • Reduction of waste in the process will potentially reduce rework and allow for reallocation of staff time to other priority work. • The “Why Change is Needed” box guides the rest of the A3, scopes the issue, and grabs the reader into understanding and/or feeling the need for change. Why should the reader care about the situation? • State how this issue impacts the purpose of the organization/process, ideally from the customer’s point of view

29. Denver’s A3 2 Current State 2 Current State - EXAMPLE • Estimated 20 applications processed per work day - or - 5,000 applications/year • Touchtime from App to Billing Entry is 19 min 50 sec per application • Monthly Billing Time is 3 hrs 35 min • Each application costs $10.92 to process • Touch points = 4 • Frustrated staff, unclear & inconsistent processes, redundant steps • Describe direct, objective, and thorough attributes of what is currently happening – Quantitative & Qualitative (baseline metrics) • Graphically present picture of Current State A process map or other picture/drawing can also go in Box 2

30. Denver’s A3 • The metrics in the Current and Future State should match, so that progress can be tracked and measured • The Future State represents a goal, not a solution • What outcomes do we want to see? What should the customer experience? Future State - EXAMPLE 3 Future State 3 • Describe attributes of what should be happening – Quantitative & Qualitative • Graphically present picture of Future State

31. A3 Wrap-up: Exercises • Let’s build an A3 together (10 mins) • If this is your first A3, relax! We’re going to start one together • Examples: Fill out the first 3 boxes for…reducing your monthly expenses at home, how to improve scheduling a visit to the doctor, or come up with an example you can do together • Now you build one in a smaller break-out group (15 mins) • Break out into smaller teams of 3-to-5 people • Get a sheet of flip-chart paper • Pick a work-related topic or issue that you’d like to problem solve (e.g., how to help customers better, how to issue more licenses in the same amount of time w/ the same number of people, etc.) • Fill out the first 3 boxes of the A3 • Choose one person to present your team’s A3 to the rest of the class

32. Peak Academy Voice of the Customer (VOC)

33. Definition & Purpose • The Voice of the Customer (VOC) is what the customer wants & requires from your product/service • This is then translated into actionable terms to deliver an improved widget and process • The VOC speaks to why we’re here: • As public servants, we work to serve the public and make a difference in people’s lives • It is only when people use our widgets that we achieve our goals and outcomes • Providing products & services with greater value enables us to make a greater difference in our customers’ lives

34. Who is the Customer? • Anyone who receives and/or uses your products or services is a customer, whether they are internal or external • Internal Customers: • People or processes downstream from you, but still within your organization • Internal customers are important, but their requirements should be analyzed and understood as they may be creating unnecessary waste • External Customers: • People, organizations, or processes outside your organization • External customers are usually the ones who are “paying” for the products or services • Customers can fit into two roles: • End users • Most important customers- those for whom the widget was designed • Personally uses the widget to achieve the desired outcome • Brokers • Acts as agent for your product or service, transferring it to the end user • Makes the widget easier to use, more appealing, and/or more accessible; encourages the end user to accept the product

35. Who is the Customer? Internal External • Examples: • Peak Academy trainees • Law enforcement (license plates) • New Employees (IT requests, orientation) • Examples: • License plates & titles applicants • TANF applicants • Plant manager (environmental permit) End User • Examples: • Human Resources (training & recruitment) • Technology Services • Budget Analysts • Examples: • CPAs (tax forms) • Mobile app developers • EPA & attorneys (environmental permits) Broker

36. Listening to the Customer Focus on listening to what is important to the customer, including their: • Wants • Needs • Perceptions • Expectations • Requirements • Strategies for getting the customer’s thoughts include: • Comment Cards • Customer Complaints • Focus Groups • Requests for Rework • Secret Shoppers • Online Reviews (e.g. Yelp) • 311 Data What strategies can you think of or have you used? How did they affect your operations?

37. Defining Value Value is driven by customer outcomes, not agency processes.

38. VOC: Exercise • Form into groups of 2-3 individuals • Choose one process and determine: • Who is your customer? Are they internal or external, an end user or a broker? • What does your customer require, want, and expect? How do they perceive the process and/or product/service? • How does this affect your product/service, process, and/or organization? • Present your analysis to the rest of the group

39. LUNCH BREAK • Let’s take a BREAK FOR LUNCH and start back up with: • Tools to ID waste • Current & Future State Metrics

40. Peak Academy Tools to ID Waste (A3 Box #4 – Gap Analysis)

41. Identify Waste: The 8 Wastes For more information, see BMGI Course: The Eight Types of Waste

42. Identify Waste: The 8 Wastes DHS standardized Interview OED Contracts DIA Expenditures

43. ID Waste: Process MapsFor more information, see BMGI Course: Process Analysis Tools • General rules of thumb… • Left to right is notionally when steps take place • Mark milestones and/or time to deliver value to your customer • Document volumes of “widgets” that go through the process • Boxes – Steps in a process (label “who” and use verbs) • Diamonds – Decisions (Yes/No, If/Then…) • Use pink stickies to represent waste/issues; other colors can be used for different work groups or individuals • Process can occur at the same time, with one process shown above or below the other (known as ‘swim lanes’) • Remember… You’re not going to break anything! • Strive to ensure it’s accurate and reflects the work that’s actually done!

44. Process mapping • A good process map not only outlines the steps, but also notes wastes in the process (in pink), value-added and non-value-added steps, and how long each step takes Note the different colors used for different individuals/groups in the process We use pink post-its to signify waste – notice how they stand out! Metrics Two processes occurring simultaneously

45. Types of steps in a process Map Value Added • Any step in the process that improves the product for the customer. • Business Necessary Non Value Added • Activities ensuring that the value-added steps have been properly completed. These are steps that are required by regulatory agencies and/or policies. • Non Value Added • Activities that do not contribute to the product or the process and should therefore be eliminated. Non-value added steps are waste.

46. ID Waste: Spaghetti DiagramsFor more information, see BMGI Course: Spaghetti Diagrams • Diagram (or layout) of the work area • Show the motion of how a customer and team members work • Identifies unnecessary movement • Can help ID better layouts

47. ID Waste: Fishbone DiagramsFor more information, see BMGI Course: Fishbone Diagrams • Tool to help identify causes and conditions for an issue you are trying to solve or improve

48. ID Waste: Example Fishbone Standardized Interviews at DHS OED Contract Development process from award letter to Peoplesoft • Exercise- let’s do a Fishbone Diagram in groups of 3-5

49. ID Waste: The Five “Whys” • Question asking technique to explore cause-and-effect • Ask “Why?” 5 or more times to get to the root cause of an issue • Use this tool in a respectful manner • EXAMPLE of how to use the 5-Whys… • Issue: My car won’t start. • Why (#1): The battery in my car is dead. • Why (#2): The alternator isn’t working. • Why (#3): The alternator belt is broken. • Why (#4): I didn’t replace the alternator belt when I should have. • Why (#5): I’m not servicing my car on time.

50. 5 Why Tree