“It is Lean Jim, but not as we know it” Professor Zoe Radnor Professor of Service Operations Management Co-Director for the Centre of Service Management Associate Dean Teaching LUiL Loughborough University @ZoeJRadnor

Lean not just for the Private Sector…

Plus Local Government, Fire and Rescue Services………

Main Findings: Lean in Higher Education (Radnor and Bucci, 2011) • • • • • • •

It is early days for Lean development and implementation in Higher Education. There is still a lot of opportunity for improvement and a lot to be learnt from the experience of other public service organisations. There is fragmented uptake of Lean making it difficult to identify some ‘outstanding’ examples of Lean implementation. Some of the early adopters are showing real signs of engagement and embedment. There was limited understanding of the key principles of Lean and how they should be driving the improvements. Lean appears to be driven by mainly administrative and support staff, who can see the benefits. There is a focus on project based activities around one or two processes. Radnor and Bucci (2011), Analysis of Lean Implementation in UK Business Schools and Universities, Association of Business School, London

Target = 20 days

2008 cycle - as % of total

2009 cycle - as % of total

4%

PG Admissions Process Review

2% 0% 0 10 20 30 40 50 60 70 80 90 100110120130140150160170180190200210220230240 To communicate all initial decisions on postgraduate applications within 4 weeks of receipt.

Why?

• Volume increasing but fixed resource (67% increase in applications since 2005) • Pressure from stakeholders to increase pace of decision-making

How?

• Analysis variation • 5 whys • CTS Tree • 7 wastes • SIPOC • Improve flow • Opportunity Statement • Map process (3 walls of post-it notes • Run charts / histograms and brown paper!)

Additional benefits? • ownership • team building • continuous improvement • challenging what we do • control

• greater understanding from a wider perspective • reduced paper • scope now extended • better awareness and use of data

From submission to creation of student record

Before

After

6%

99%

same day

in 2 hours

From SITS to form sent to department

2%

93%

same day (post)

same day (electronic)

Department decision

25 days

20 days

mean

mean

Quality assurance, transmission of decision

11 days

9 days

mean

mean

7000 emails 10 weeks+

200 emails 3 weeks+

Emails at peak

Impact of Lean In HE • Reducing delays in student registration processes • Automating parts of the process i.e. enable online enrolments and payment • Reducing the number of steps in the process • Centralising the admissions process and IT functions • Developing more appropriate enrolment process for postgraduate courses • Developing a standard process for the IT helpdesk service • Better monitoring of calls coming into the IT helpdesk • Introducing new services to students • Increasing opening hours and altering the working patterns of staff in libraries, admissions officers and IT helpdesks

Lean: Power of 3 • 3 Principles: • Value, Flow and Reduction of Waste

• 3 Types of tools: • Assessment, Monitoring and Improvement

• 3 Stages of the Lean journey: • Engage, establish and embed

@ZoeJRadnor

Use of Tools and Techniques within Lean in Public Services • Assessment: – To assess the processes at organisational level e.g. value stream mapping, process mapping

• Monitoring: – To measure and monitor the impact of the processes and their improvement e.g. control charts, visual management, benchmarking, work place audits – Measures in terms of quality, time, costs, satisfaction levels

• Improvement: – Tools implemented and used to support and improve processes e.g. RIEs, 5S, structured problem solving @ZoeJRadnor

Assessment: Reviewing the work From Current State to Future State

Monitoring: Visual Management Team Board

Team Communications Hub

Resource Planning

Publication Progress Board WORKING PAPER Level 1 – Abstract / written idea Level 2 – Work in progress Level 3 – Full working paper

CONFERENCE PAPER Level 4 – Abstract submitted & accepted to conference Level 5 – Paper submitted & accepted to conference Level 6 – Paper presented at conference

SUBMITTED PAPER

VISUALIZING THE STATUS OF THE PUBLICATION PROGRESS 1. Print the front page of the paper (A6 format) 2. Attach a birthday sticker and write the date when level 1 was reached (date when you started to work on the paper) 3. Attach progress stickers given the current level of the publication progress UPDATING THE STATUS OF THE PUBLICATION PROGRESS - Update the progress sticker to the new level - The birthday sticker indicates the freshness of the paper and its publication progress - The progress stickers indicate the current and reached level of the publication progress

Level 7 - Submitted Level 8 - Revise and resubmit #1 Level 9 - Revise and resubmit #2

PUBLISHED PAPER Level 10 - Published paper Birthday sticker

OTHER Presented at internal seminar (independent of level) © Niklas Modig, Stockholm School of Economics

Progress stickers = level 7

© Niklas Modig, Stockholm School of Economics

Improvement: The Five-Step Kaizen Movement

SEIRI Sort

SEITON Set in order

SEISO Sweep and Shine

SHITSUKE Standardise

SEIKETSU Sustain

The Loughborough Model: Change Projects Team

The Loughborough Approach

Current process review projects

• ‘Make me a student’ • ‘Employ me as a member of University staff’ • ‘Fix my facility problem’ • ‘Buy me a ticket for my business trip and insure me’

University Teachers: Following the process

University Teachers: Before process improvement

University Teachers: After process improvement

University Teachers: Measuring project outcomes Number of touch-points

2013

2014

Between staff within the University

Minimum of 33 plus variable failure demand

5

Between UT and University

Minimum of 9 plus variable failure demand

6

Duration in days

2013

2014

Days from submitting personal details to contract generation

12-47

Average: 1 Median: 1 Sample size: 623

Days from contract acceptance to IT registration (including overnight system update)

3-10

Average: 2.7 Median: 2 Sample size: 576

Days to claim showing in payroll run after claim submitted

6-12

Average: 2.5 Median: 1 Sample size: 2605

Challenges of Lean in Public Services 1. 2. 3. 4.

A focus and over reliance on lean workshops A tool based approach to lean implementation Impact of public sector culture and structures Lack of focus on the customer (service user) and understanding of service process

Lean has to date simply been a catalyst to address the prior poor design of the public service. Once waste has been removed the larger issue still remains of designing public services to meet the needs of end-users and to add value to their lives. Radnor, Z.J and Osborne, S.P. (2013),’Is Lean a failed theory for Public Service?’, Public Management Review

Lean Is An Expedition 14

Problem Solving established to support CI

Communicate Lean ways of working

60-Months 13 48-Months

Promote CoProduction and Lean the Value Chain

12

Create Organisational Wide Lean Metrics

Reward Lean Leadership

11

Clearly link Lean into the Strategy

10

36-Months

9 Evaluate Value creation

8

24 Months

7

5S, process maps, Visual Management, daily meetings developed across the organisation

6

18-Months Rapid Improvement Projects

5

12-Months

Let’s do Lean!

1

Lean Pilot Projects identified

4

Lean Project team Established

8-Months

Developing an understanding of demand

3 2

Organisation Lean/CI Training for staff and facilitators

21

Committed Leadership Create Value Link to Strategy Understand Demand

Training and Development Steering Group and Project Team

Regular Structured Problem Solving

Leadership Challenging: Go, See and Do

Workplace Audits

Identifying and managing variation and demand

Monitoring of end to end Services/Processes: Quality, Cost and Delivery

Developing Local/ Internal Champions and Facilitators

Visual Management: Managed by the front line staff

Rapid Improvement Events: Process Mapping and 5 ‘s

Whole system view

Embedded continuous improvement behaviours Stable robust efficient and effective processes

Process CoView Production Communication

Public Services are… Services • Much of the public management and public services built on product and manufacturing logic. • The majority of ‘public goods’ are in fact not ‘public products’ but rather ‘public services’. • Need to draw from service management logic to ‘unpack’, understand, manage and operationalise public services. • Move from a public sector to public service ethos • Public services need to embrace a (public) service dominant logic • Service dominant logic argues placing the user at the heart of the service Osborne, S., Z. J. Radnor and G. Nasi (2013). "A new theory for public service management? Towards a service-dominant approach." American Review of Public Administration

What is makes a Service a Service? Three core characteristics of services which differentiate them from manufacturing goods : 1. Whilst a product is invariably concrete a service is intangible • Services can not be stored. • Process is key arbiter of performance and public service delivery is relational.

2.

There is a different production logic for manufactured products and for services. • For manufacturing production and consumption occur separately. With services production and consumption occur simultaneously. • Experience created at the ‘moment of truth’ – centrality of the service user.

3.

The role of the end-user is qualitatively different for manufactured products and services • In manufacturing they are ‘simply’ purchasers and consumers. For services, the user is also a co-producer of the service. • Services offer a promise not an actuality

Osborne, S., Z. J. Radnor and G. Nasi (2013). "A new theory for public service management? Towards a service-dominant approach." American Review of Public Administration

The Service Model

@ZoeJRadnor

You Can’t Beat the System

Let’s Get Engaged…

You’ve Got to Work at Relationships (aka “We’re all in this together…”)

‘Value’ is Out There…

Innovation: the word that would be king…

Co-production: Not just consumerism.…

Co-production.. set the controls for the heart of the sun…

A Perfect Unity – Knowledge and Experience

University of Edinburgh Business School

• • • • • • •

S - public service system as the unit of analysis E – embed in genuine sustainability R – work at relationships as a key resources V – focus on creating external value I – Innovation is essential for effectiveness C – co-production is the core of public services E – use knowledge to drive service experience

@ZoeJRadnor

‘It’s Higher Education, Jim, but not as we know it’