Transforming Lean Organizations

1. Transforming Services Organizations:
“Lean” Office
An overall case study of the application of Lean principles, and
a systemic approach, to transforming services organizations.
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© 2011 Protegra Inc. All rights reserved.

2. Abstract
• Transforming the business:
- Applying “Lean” to a non-manufacturing environment
• Never “just a system” project
• Logical progression to transforming
• Set the foundation
• Design the solution; define requirements
• Build the roadmap; align all elements
- Goals, value, processes, people, tools and technology
• Plan – Do – Check – Adjust
1:00
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3. Outline
• “Lean office” examples
• A review of Lean principles
• A people-focused approach
• Overview of Lean application to MB Immigration
• Enterprise architecture evolution
- Registration, Assessment and Employment solution:
• Correlate: Software-as-a-Service (SaaS)
• Applying Lean to MB’s Provincial Nominee Program
- PNP Online and Assessment Tool
• Questions, Discussion
1:00
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4. “Lean Office” examples
• In immigration
- Provincial Nominee Program – Application processing
- Employment services: registration, assessment, referral, job
coaching, employment
- Academic Credential Assessment Services
• Other “services” examples
- Registration and renewal processing in regulated professions
- Sales process (selling/quoting to order fulfillment)
- Sludge inventory reduction; an asset disposal process
- Application processing for various programs
- Software development
2:00
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5. Lean Principles (production/provision)
from the providers’ viewpoint…
• Value
- Specify value from the customer’s viewpoint, and organize to deliver it
• Value Stream (importance of seeing the BIG PICTURE)
- Understand how activities that are linked together to deliver this value
- See the waste and opportunities
• Flow
- Link processes and ensure a smooth flow, without stops and loop-backs,
generating the shortest lead times. Minimize bottlenecks
• Pull
- Produce only what the next process needs, when it needs it
• Perfection
- Do things right, the first time! This is the magic wand, lean’s silver bullet, if ever
there was one
• People
- Leadership
- Engagement
- Problem-solvers needed
3:00
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© 2011 Protegra Inc. All rights reserved.

6. Lean Principles (consumption)
from the customer’s viewpoint…
• Solve my problem completely
• Don't waste my time
• Provide exactly what I want
• Deliver value where I want it
• Supply value when I want it
• Reduce the number of decisions I must make to solve
my problems.
Between consumption and production, Lean concepts offer
astonishing opportunities for eliminating waste and improving
customer satisfaction
Lean Solutions, Womack and Jones, FREE PRESS, 2005
4:00
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7. The meaning of “Lean” for many:
Applying tools…
• Run charts, Pareto charts
• Value stream maps
• Variability analysis, identifying waste
• Standard work
• Poke Yoke (mistake-proofing)
• Kan Ban, JIT
• One-piece flow
• Visual workplace, Andon boards…
• 5S
• Kaizen and kaizen blitz
• A3 problem solving
• Etc.
But “Lean” is
much more…
6:00
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8. What does “Lean” really mean?
• Term coined by North American business to describe what Toyota
accomplished with its Toyota Production System (and much more)…
• But Toyota never set out to be “Lean” or even to apply a specific tool or
method except that of P-D-C-A, and respect for people. They were just
being themselves…
What is a “Lean” organization?
• Lean is a way of life and requires long-term commitment to a set of values
and behaviours, and a system of management that encourages these
• Focused on value for the customer and the relentless elimination of waste:
a real purpose
• Employee as the main engine of improvements and value delivery through
problem solving and P-D-C-A
• Employees never discover a problem and side-step it, or assume that
someone else will fix it
8:00
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9. Seven Wastes
Waste: That which adds cost with no value
provided to the customer
For Manufacturing For Service
 Defects  Errors in Documents
 Transportation  Transport of Documents
 Overproduction  Doing Work Not Requested
 Waiting  Waiting for the Next Step
 Processing  Process Steps & Approvals
 Movement  Unnecessary Motion
 Inventory  Backlog of Work
Developed by Taiichi Ohno - Product & Process Innovation, Inc.
classic Toyota Seven Wastes
10:00
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© 2011 Protegra Inc. All rights reserved.
David Hogg – High Performance Solutions

10. Protegra’s fundamentals of design for
success
• “It’s about people! It’s about helping them change and
succeed…”
• Know what VALUE you’re in business to deliver to WHOM
• Clear, realistic, non-optional TARGETS
• Make process performance visible: MEASURE IT
• MANAGE performance (process, performers)
• Force short feedback loops: REFLECTION and LEARNING
• Seek perfection/excellence. Eliminate RE-WORK!
• Standardize the work; eliminate VARIABILITY
• PROBLEM SOLVING! Not a mechanism for blame; engage
people as the main engine for continuous improvement
• Identify and optimize BOTTLENECKS
• Focus on removing NON-VALUE work; replace it with VALUE
work if possible
11:00
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11. Performance Map:
approach for problem solving
Results People
Desired Results Desired Behaviours
Goals and specific, Behaviours needed to ensure
measurable outcomes Causal Link goals will be met and sustained
 Metric 1  Behaviour 1
 Metric 2  Behaviour 2
Results Gaps Behaviour Gaps
 
Current Results Current Behaviours
List of current List of current
performance metrics Causal Link observed behaviours
 Metric 1  Behaviour 1
 Metric 2  Behaviour 2
Factors Influencing Performance
Causes explaining the Behaviour Gaps
(Barriers and Enhancers)
13:00
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© 2011 Protegra Inc. All rights reserved.

12. Key elements for successful change
It’s a proven fact that successful change – large or small – requires
these three ingredients:
• Executive (stakeholder) commitment
- not a simple endorsement, but visible leadership for the initiative
• Employee engagement
- not simple participation, but a hand in developing the solution
• Rigour and discipline of execution
- usually the most difficult to achieve
- for most organizations, this means radically changing how they do
things… to get them done!
14:00
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© 2011 Protegra Inc. All rights reserved.

13. Towards 20,000:
Manitoba a destination of choice
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Family class Federal economic Provincial nominees Refugees
15:00 Borrowed from Ben Rempel’s, ADM Immigration,
QNET and HRMAM presentations, April 2011
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14. Projects Summary
• Coordinated Immigrant Skills and Job Matching
- Future state design and roadmap for transformation
- implementation of roadmap
• requirement and prototyping
• immigrant registration, assessment and employment services (IRAES)
• LIM Correlate SaaS agreement
• Provincial Nominee Program (Lean Redesign)
- Future state design and roadmap for transformation
- implementation of roadmap
- PNP Online
- Document imaging system design
• Academic Credentials Assessment Services Review
15:00
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© 2011 Protegra Inc. All rights reserved.

15. Current value stream view
Inquires
Application
Process Letter and
PNP Application Welcome Package
Applicant / Nominee
Process VISA Application
6 – 18 month lag Application
(Gov of Canada) Approved VISA
Immigrant arrives
In Canada
Pre-Approval/Approval Process
Clear Path
Employer
Settle Elsewhere? Arrival in Manitoba
Employee
Other Service
Providers
Employment
Immigrant Settling in Manitoba Service
Providers
WELARC
Employment
Entry
Manitoba Centre
Integration
Manitoba Government Funded Agencies
19:00
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16. PNP Immigrant Employment
Future State Value Stream
Inquiries
System-wide
Online /
Self Assessment Inquiries Handling
Mail Application
(Answers)
Skills and
Credentials Applicant / Nominee
Recognition
Immigrant Self-Directed Programs
PNP Approval Inquiries
Inquiries
Skills
(prior to arrival)
Assessment /
Upgrade
Employer Relationships
Job Matching and Follow-up
Assign Advisor
Job
Matching Inquiries
Initial Plan
Creation
Advisor Employer
100%
Liaison
Visa & approval Employment Objective
Language Employer Met!
assessment /
upgrade ntre
Employer Review
itob a Ce Job Opp
ent Ma n
ym
E mp l o
Arrive in Manitoba
Job Opp
Job Opp
Job Opp
Readiness
Registration
WELARC Job Readiness Skills Upgrading
Meet with Advisor Language Skills
Language Assessment Assessment ...
Entry
20:00
Immigrant Programs
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17. Final view of value stream
21:00
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© 2011 Protegra Inc. All rights reserved.

18. Future Architecture Solution
Entry CM
Web Site
WELARC
Advisor CM
CM Web
Web Site
Site
PNP AT ESPs CM
Web Site
PNP Integrated Case
AT Management (ICM)
Application Services
PNP Online
Application
SP General
Web Site
PNP
Online
Employer LIM
Skills Query Database Document
Liaison
(Correlate) Docs Management
Job Matching
Jobs
Database
23:00
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19. Correlate Solution
• Existing Protegra asset in use by some LIM-funded agencies
• Highly configurable web-based platform
• Used for prototyping/validating IRAES requirements
- Instead of simply completing a requirements document
- Builds on the CISJoM project momentum
- Allow for real-time feedback from users
- Provides high degree of confidence (requirements and solution)
- Facilitates user buy-in immediately
• Established the 1st SaaS agreement for Manitoba
- Subscription fee based on user volume
- Business continuity agreement mitigates risk to LIM
- Passed a rigorous privacy and security assessment by MB
• Deployed fully configured in less than six months
• Standardized customer service processes
• Provides for improved reporting
• Improved integration throughout the value stream
24:00
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© 2011 Protegra Inc. All rights reserved.

20. LIM Correlate platform (SaaS)
• Open Source technology: JAVA and PostgreSQL
• Modular design
- Modules may be granted (and revoked) to
allow individual agencies to access exactly
the feature set that they require.
- Pages may be configured according to
specific agency needs
• Field visibility
• Field labels
• Field position
• Field marked as required
• Lookup lists maintained
• Many extra custom fields available
• Multilingual
- Available in English, French and Spanish
- Additional languages may be added
• Multi-platform, multi-browser
- e.g. Internet Explorer, Firefox, Safari
- No special software
- PC or Mac capable
26:00
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21. Main LIM Correlate screens (samples)
28:00
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© 2011 Protegra Inc. All rights reserved.

22. Decision: Approved / Refused?
(Reality)
• The “decision” is the ultimate Applicant Should Be…
objective of the process: quality Approved Refused
and speed
Type II Error
• Must establish the parameters for
the decision – what is most Probability = b
Approve Correct
important? What error must be MISSED DETECTION
Application Probability = 1 - a
minimized? impact system downstream…
• After a point, more effort doesn’t Test-Based Costs later…
improve the quality of the decision Decision
Type I Error
(diminishing marginal returns) Probability = a
Refuse Correct
• Must make full use of historical FALSE ALARM
data and feedback loops / facts Application Probability = 1 - b
Missed opportunity, Waste,
from real experience to determine Re-work…
performance of decision process
• Assist assessors with Decision
Assistant to improve speed and
quality of decision
• Identify activities that don’t move
us closer to the decision
(efficiency opportunities)
32:00
Law of diminishing returns
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23. Executive Summary – Re-design
• Focus on decision (Approve/Refuse) performance
- Set objectives and parameters
- Manage process performance: quality and speed
- Recognize the point of diminishing returns; stop there!
• Key changes (People, process, technology): Application of Lean Principles
• People
- Team structure, semi-specialized by applicant’s residence country
- Move Pre-Assessors to Assessment
- Increase manager count by 1. Implement Lean leadership, coaching, performance management
- Training: Teamwork, Problem Solving, Decision Making, Communication, Leadership
- Positive reinforcement performance management
• Process
- Streamlined processing and decision-making
- Work on ONE file at a time; minimize interruptions, maximize level of effort
- Contact applicant (more info) only at 1st assessment step
- 1st Assessor is decision maker; 2nd Assessment is quality assurance review
- Visual performance monitoring (Andon boards, performance reports)
- Implement quality assurance and continuous improvement system
• Technology
- Automated work assignment routine
- Simplified application kit: “Fillable” PDF on-line
- Knowledge repository to reduce time-wasters (solve problem only once)
- Document management system: scanning, imaging (authenticity), storage, retrieval, eliminate paper
movement
- Decision Assistant routine
33:00
- PNP application re-write (e-submission capability)
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© 2011 Protegra Inc. All rights reserved.

24. PNP Online and Assessment Tool
• Designed to provide several productivity gains identified by
Lean PNP project, and improved customer service
• .Net application
• First application to use Manitoba’s software architecture
standards
• Leveraged Protegra’s JRS system (ETT)
• Seven months to develop, test and deploy both applications
- Working to a non-moveable deadline (Elections Act)
- Go-live on June 30, 2011
• Application maintenance services agreement in place
• Uptake is exceeding expectations already (~2,500
applications submitted or in progress in 3 months)
35:00
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© 2011 Protegra Inc. All rights reserved.

25. PNP Online and Assessment Tool
features
• Uses the same feature set and architecture
for both
• 2 separate databases
• Mistake-proofing logic incorporated in key
areas
• Intuitive user interface facilitates the
completion of the PNP application
• Bilingual
• Electronic document upload
• Data exchange to LIM Correlate reduces
data entry duplication downstream
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26. Daily stand-up meeting agenda
• FACILITATOR, RECORDER, TIME KEEPER
• Around the block (every team member)
- What I worked on yesterday
- What I’ll work on next (today)
- Issues that prevented me from getting work done
- Capture these on the Team Chart
• Review planned actions / adjustments
- Did we do what we planned on doing?
- What were the expected results/outcomes from the actions?
• Review actual results – Daily Report
- Review daily targets: 1st, 2nd, Total for team and individual
- Identify strengths, opportunities, gaps
• Action Plan, Adjustments for next period
- Who will do what…
- By when…
- What we expect to see… (results)
43:00
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© 2011 Protegra Inc. All rights reserved.

27. Questions?
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© 2011 Protegra Inc. All rights reserved.

28. Thank you!
For further information, contact:
________________________________
Daniel Perron
Practice Leader
Protegra | Business Performance Consulting
Business. Technology. Solutions.
Office: 204-487-5678
Fax: 204-477-9421
www.protegra.com
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© 2011 Protegra Inc. All rights reserved.