WTA discusses progress being made with State and Local Governments in Colorado to improve efficiencies in operations.

1. WillowTree Advisors
Volume 1, Issue 3
Three Sixty Trends
April, 2013
Inside this issue:
Managing in a
Lean Environment
1
Innovation in
Outsourcing
1
WTA Supports
CTA
3
Denver Peak
Academy
4
WTA Signs
Master
Agreement with
C&CD
4
New Associates,
Partners and
Projects
Challenges of Managing a Lean Environment
by Scott Zimmerman
5
If we have an overarching goal as an organization, wouldn’t it be ‘habitual excellence’?
How do we adopt that habit? Since the success of every project, every initiative, every
department-wide goal depends upon executive support, it follows that excellence itself
depends on management. If we want to create an excellent Lean organization, we
have to manage that way – there must be a corollary to Lean operations. We must
manage a Lean environment using Lean principles.
The Lean Workplace is a dynamic one. The work process is more transparent, it
changes to meet customer demand, and engaged workers demand more of their
managers. The purpose of this series of discussions is to present common challenges
to managers in a Lean environment, and outline some proven methods to overcome
them.
Management is comprised of four interdependent functions: Leading, Planning,
Organizing and Controlling. Each has its own challenges. Let’s examine the Lean
Manager’s perspective for them in order.
Continued on Page 2
Is innovation in Outsourcing Possible?
by Kathryn Douglass
I continue to read articles decrying the lack of innovation in outsourcing relationships.
Companies say they want their IT Outsourcing service providers to innovate, and
service providers respond that they want to deliver innovation, but their hands are tied
by the contract. Everyone seems to be stuck on exactly how to accomplish innovation.
In fact, there doesn’t even seem to be much agreement on what is meant by
“innovation”. It is a bit like asking a dozen strangers to agree on what might constitute
a “fun weekend”.
Who or what is to blame for "Non-Innovation Mode"?
Many seem quick to name the culprits of non-innovation -- often superficial or
peripheral issues – such as the contract, service provider malaise or “second
stringers” on the team. The services contract seems to be getting a lot of attention -those locked-down and tied-up services agreements so often contentiously negotiated.
Others blame the overzealous push toward cutting out all ‘fat’ (i.e. profit margin) in a
sourcing agreement so that the service provider has no room to innovate. Once the
promises are made and the contract is signed, the less qualified, inexperienced service
provider team takes over the delivery of the contract. Their priorities are 1) deliver to
Continued on Page 3
1

2. Volume 1, Issue 3
Three Sixty Trends
Challenges of Managing in a Lean Environment, Cont.
Leading - What is the Lean Approach?
Challenge: Communicating accomplishments, priorities, and
maintaining morale
The first thing a Lean Manager understands is that the
organization needs leadership. Your department needs
someone to lead and, in the process, assume the role of the
other facets of management – the aforementioned Planning,
Organizing and Controlling functions. [And we are talking here
about Control in the sense of process control – not the
dysfunctional, pop-psychology term ‘controlling’.] There is no
substitute for good leadership, though, to maintain morale and
ensure the team is meeting the standards of behavior and
performance.
Leadership at gemba
Proper leadership is a very
public role. It requires
communication as an active
listener and as the voice of
the Planner, Organizer and
Measurer to give direction.
The Lean Leader strikes a
balance between directing
activity and seeking
information from the
workplace.
“Proper
Leadership is a
very public
role.”
Scott Zimmerman
censure. In The One-Minute Manager, Ken Blanchard urges
leaders to “catch people doing something right”. Even Dale
Carnegie, dating back to the 1930’s, recommended being
“hearty in your approbation and lavish in your praise” for best
results. Lean leaders observe and make correction, but also
view their role as truly setting a positive example.
When touring gemba, the leader must understand how work
is being performed. The Lean leader is a problem-solver and
a disseminator of process knowledge, and so he or she is out
in the workplace to go see and ask why. This is especially
true in a Lean workplace, where process changes are
occurring as part of the work effort. Some of the
performance information is used as input for planning,
organizing, and measurement roles that the Lean Manager
plays, and some should be immediately reflected back to the
workforce.
People performing the work in the operation need and want
to know how they’re doing and what needs to be done next.
While they’re busy working away in their compartment of the
ship, they need someone who’s been topside to tell them
what ocean they’re in and what waters they’re headed
toward. That’s a key role of the leader – learning and
disseminating useful information to the team.
Part of the leader’s role is to be out where work is performed
(“gemba”) in order to build morale. The psychological sciences
tell us that people hear negative feedback 2-3 times louder
than positive reinforcement. Therefore, to have an effect,
Next time: Planning and Organizing
encouragement must be communicated much more often than
2

3. Volume 1, Issue 3
Three Sixty Trends
Is Innovation in Outsourcing Possible, Cont.
the letter of the contract, 2) avoid invoking service penalties, 3)
make a clear profit and 4) sell more services – innovation is not
a concern for them.
Although it is true that these issues are present in troubled
relationships, I don’t believe these reasons are at the core of the
innovation problem.
“We are what we repeatedly do.
Excellence then, is not an act,
but a habit”.
Aristotle
How do we establish an "Innovation Friendly" environment ?
Firstly, I believe there will be no innovation in outsourcing
contracts as long as the business environment is focused on
short term goals such as cost cutting, and views the IT function
as an administrative support function. The ground work is set
for innovation when organizations view their IT resources as a
critical conduit for business success, and as an underpinning for
facilitating growth , customer satisfaction and shareholder
return. For innovation to occur, creative ideas must be
operationalized -- new ideas and creative approaches must be
implemented into business processes within the organization,
and changes in the products and services must be provided.
When innovation is viewed from this perspective, one realizes
that it cannot be achieved solely within the confines of the
outsourcing agreement. Innovation can be achieved only where
there is impetus and cooperation from the business to affect
operational processes. IT must be an integral part of the
organization’s drive to innovation. Innovation isolated to the IT
department or to the outsourcing contract is suboptimal, and
will never result in significant innovation at the business level.
Secondly, innovation cannot be the responsibility of one party.
Innovation takes a creator and an adopter to be successful. IT
Service Providers often find that their clients want them to
“push” innovation, but the true opportunity for innovation is when
organizations “pull” innovation, taking the service provider on the
journey with them. And not every service provider is capable of
providing the kind of strategic thinking and support required to
foster and implement innovation, so both parties must be aligned
not only in mission but in capabilities as well.
A company must contemplate whether or not it requires
innovation, and if so, must make this a key requirement in the
selection of a service provider and the building of the
relationship. The relationship must be designed and structured
to include innovation, strategy and collaboration from the
beginning. Service Providers, typically focused on providing
contractual services at the least amount of cost and the highest
profit, must seed their organizations with business focused
personnel who understand the client business and how to apply
technology to achieve business results.
Will negotiating innovation clauses into the agreement make
innovation happen? Many advisors will trumpet this approach.
We believe quite the opposite; no amount of legislation will
ensure innovation. Without building the proper groundwork in
your organization, selecting a provider with the same objectives
and innovative spirit, and establishing a collaborative relationship
– no contract is going to turn a transactional, cost focused
services agreement into an innovative partnership.
WTA Supports Colorado Technology Association C-Level at Mile High
WTA served as Ambassador for Steve Shattuck, Regional VP of Hitachi Data Systems and a Mile High Celebrity. This is the forth
year that WTA has support this outstanding annual event, put on by the Colorado Technology Association, and attended by over 90
industry executives and 1500 industry leaders.
CTA’s mission is to foster innovation and growth for Colorado’s
information technology industry to compete on a global basis. As the
voice of our state's technology community, CTA connects member
companies in our fields and builds recognition of the Colorado tech
industry as a global leader through high-level business
connections,providing avenues to develop our professional network,
participating in legislative and regulatory advocacy, providing
educational influence and support, and organizing events and business
specific activities.
C-Level Auction proceeds enable CTA to work on behalf of the
technology community to keep Colorado’s business environment
healthy for technology .
3

4. Volume 1, Issue 3
Three Sixty Trends
WillowTree Signs
Master Agreement
with City and County
of Denver
“One Denver colleague went
back to her wastewater
division office and created
over $46,000 of annual
savings. She determined
that the 11,000 annual lien
letters from her department
did not require certified
mail.”
By Toby Threadgill
In January, WillowTree Advisors (WTA),
began offering business transformation
and Lean consulting services to the City
and County of Denver under a Master
Services Agreement. WTA will be
working in conjunction with the Mayor’s
Peak Performance Initiative, under the
leadership of Dave Edinger and Scotty
Martin.
Today’s economic and political pressures
have pushed governments to do more
with less. Lean Government methodology
enables agencies and public entities to
do more with the resources they have
and provide better services to their
stakeholders and constituents. “the
application of Lean techniques to
business processes can save time,
reduce waste and eliminate costs –
while improving customer and employee
satisfaction,” said Kathryn Douglass.
“This opportunity is an excellent way for
the City and County of Denver to optimize
its operations and focus on the
customers and public it is serving.”
Lean Government initiatives center on
the agencies’ work and operations,
helping them think differently about the
way they work, while increasing capacity
and adding value for those they serve.
of cases indexed within 24
hours from 29 percent to 100
percent. The bulk of the work
took one week, and the financial
payback occurred within seven
months.
The following are real results from City
and County of Denver that resulted in
costs savings and improved services to
customers:
u
At Denver Public Works-Parking
Collection team members
changed the policy for employee
parking payments to be entirely
paid by Electronic Funds
Transfer, which eliminated
invoicing and reconciling cash
payment for customers. This
changed resulted in $20,833 in
projected annual savings.
.
u
At the Denver Department of
Human Services, the team
reduced the number of internal
mail transfers from 23 to 12,
and increased the percentage
WillowTree Supports Mayor Hancock’s Peak
Performance Initiative
By Kathryn Douglass
WillowTree Advisors worked with Mayor Hancock’s Performance Improvement
Office, to develop and deliver a Lean Simulation for the Denver Peak Academy
pilot, which illustrated many Lean Principles, and provided an opportunity for
the pilot participants to experience and practice Lean process improvements,
principles, tools and methods.
Investing in Ourselves
“In
our
model,
training
leads
to
ac2on.”
Dave Edinger
Special thanks to Scott Zimmerman and Triche Guenin who facilitated the
workshop, and to Norm Thiele and Toby Threadgill, who assisted in the review
and dry run of the simulation.
The Mayor’s Office & City leaders have created the Peak Academy to train
colleagues in the principles of Lean. Through Peak Academy, city employees will
learn techniques and strategies for implementing Peak Performance
throughout their department, taking personal investment in the City's
continuous improvement initiatives.
4

5. Volume 1, Issue 3
Three Sixty Trends
‘Never doubt that a small group of
thoughtful, committed people can
change the world. Indeed, it is the
only thing that ever has.’
Margaret Mead
WillowTree Welcomes
New Associates and Partners
By Toni Martin
Our extended team has grown over the last quarter
and we are pleased to welcome several new
associates, consultants, teaming partners and
support staff members. Welcome all!
u
David Callen, Lean Health Care
u
Walt Tarpley, Lean Six Sigma
u
Rika Mead, Performance Excellence
u
Merrilee Phillips, Lean HealthCare /Change
u
Carl Schoberle, Outsourcing and Governance
u
iModus3, Teaming Partner
u
Lewis and Fowler, Teaming Partner
u
Boyd Group Internationall
u
Beca International
5

6. Three Sixty Trends
WillowTree Advisors, LLC
3773 Cherry Creek North Drive, #575
Denver, CO 80209
Phone 888.998.0008
Fax: 888.233.1472
email: mail@willowtreeadvisors.com
website: http://www.willowtreeadvisors.com
FAST. FLEXIBLE. FOCUSED
6