Operating efficiency: the lean charity

Workshops
PM5: Operating efficiency: the
lean charity
Neil Fedden, Associate, NCVO
Peter Rimmer, Children’s Society
Laura Rawnsley, Transformation Director,
Children’s Society

Why the need to change?
The need to improve
Improve
Do nothing
Decline
Time
Improvement
Company X
Competitor
If you do nothing then you will fall behind your competition as they improve !!!

5 Principles of Lean
Value
Value Stream
Flow
Pull
Perfection
Process
Mapping
Kanban
Kaizen
7 Wastes + 1
Workplace
Organisation
© Fedden USP Ltd 2009 All Rights Reserved

Non Value Adding
Waiting & Delays
Excess Movement
Excess Production
Fruit Waste
Waiting for Forklifts
Searching & Storing
95%
Value Adding
5%
Value & Waste

LEAN – elimination of information waste
Bottleneck
Departments
Lots of
signatures/vali
dation checks
Multiple
Uncontrolled
documents
High levels of
data re-
entry/keying
Production of
reports that
nobody reads
Unofficial fast-
track routes
that cause
errors
Personal filing
systems
Unpredictable
process lead-
times
Batching of
documents

Step 1 – Current state process map
Step 2 – Identify and prioritise process waste
Step 3 – Process re-design to eliminate waste
Step 4 – Cost/benefit analysis
Step 5 – Action Plan and start implementation

Customer Demand Profiling
2B
1C 9B
AM PM AM PM AM PM AM PM AM PM AM PM AM PM
Monday Tuesday Wednesday Saturday SundayThursday Friday
Footfall

Back Office, Front Office and
Touch Points
Back Office Front Office
Process excellence Customer excellence
Identifying opportunity through
understanding the use of
Touch point’s.
Eliminate waste by traditional
application of Lean
Enter Restaurant
Leave Restaurant
The Service Concept

Legal Expert Before
– Group Case Study

Process Mapping - Receive Specification and Produce Legal Copy
Description Dist. (m) Time (mins) Staff Operation Transport Inspection Storage
1 Delay until received spec. is picked up by Secretary 0 30 0 X
2 Carry from mail area to Secretary's desk 5 1 1 X
3 Wait until convienient to 'process' it 0 60 0 X
4 Log receipt into Project Tracking system & create file 0 1 1 X
5 Store file in Out-Tray 0 15 0 X
6 Move file to Legal expert's In-Tray 5 1 1 X
7 Await Legal expert's attention (busy) 0 1440 0 X
8 Legal expert processes copy 0 20 1 X
9 Store processed copy in Out-tray 0 2880 0 X
10 Move copy to Secretary's desk when convenient 5 1 1 X
11 Delay until Secretary logs completion on Project Tracking 0 180 0 X
12 Take copy file to photocopier 10 2 1 X
13 Photocopy x 3 0 2 1 X
14 Return with copies to desk 10 2 1 X
15 Collate, staple and 'stuff' internal mail envelopes 0 15 1 X
16 Take 3 x envelopes to departmental Out-Tray 5 1 1 X
Totals 40 4651 9.7 days
Value Add 38
Non Value Add 3170
Necessary Non Value Adding 1443

Legal Expert After
– Group Case Study

ProcessMapping - Receive Specification and Produce Legal Copy
Description Dist. (m) Time (mins)Staff OperationTransport Inspection Storage
1 Red Envelope' delivered straight to legal experts desk by mail room 5 1 1 X
2 Await Legal expert's attention (busy) 0 1440 0 X
3 Legal expert processes copy and logs onto Project Tracking 0 21 1 X
4 Move copy to Secretary's desk as soon as document is processed 5 1 1 X
5 Take copy file to photocopier 10 2 1 X
6 Photocopy x 3 0 2 1 X
7 Return with copies to desk 10 2 1 X
8 Collate, staple and 'stuff' internal mail envelopes 0 15 1 X
9 Take 3 x envelopes to departmental Out-Tray 5 1 1 X
Totals 35 1485 3.1 days
Value Add 38
Non Value Add 4
Necessary Non Value Adding 1443 1481
Hines et al (2000) Value Stream Management

Case Study –
Lizz Clarke Marketing
Objectives for 3-day Project
1.Grow the business through customer retention
2.Reduce lead-time for production of clients end of year
report
3.Improve margins by improving productivity by
eliminating information waste
4.Improve internal communications and staff awareness
of job margins

Day 1 - Theory

Day 2 – Analysis of the Target Process

Day 3 – Future State – What could be achieved

Actions
• Process, roles and responsibilities of LCM staff and clients are clearly
documented at communicated at the start of the project
• White boards and visual measures are used to monitor margins on jobs and
collect issues
• Jobs only enter graphics unit once all information has been collated –
reduces down stop/start on jobs
• Brought in external design resource to input in ideas

Benefits
• 29% increase in productivity
• Increase in capacity of £100K on top of £600K sales
turnover
• 80% Reduction in lead-times from 106 to 21 working
days

Standard Operations and Improvements
TIME
IMPROVEMENT
K
K
K
K
K
K
K
K
K
S
S
S
S
Without standardisation, improvements can not be sustained
K = Kaizen Activity
S = Standardisation Activity

Day 1 – Lean Theory
Day 3 – Process re-design to
eliminate or reduce the
identified process waste
Day 2 – Process Mapping and
Data Analysis in Target Area
or Product
Day 4 & 5 – Action Planning,
Cost/Benefit and Start
Implementation Projects
On-going Assessment of Participants on how they are progressing with the projects
Over a period of 8 – 12 months
Final Presentation Back to Management on What They Have Achieved and What the Next
Stages Are
Presentation to Participants of Business Improvement Techniques Level 2

Contact Details
• To discuss this topic in more detail, please contact
NCVO Consulting:
• consultancy@ncvo.org.uk
• Tel: Donna James on 020 7713 6161

Building Sustainable Change
at
The Children’s Society
NCVO Conference 16 June 2014
Laura Rawnsley – Transformation Director
Peter Rimmer – Head of Organisational Change

Our vision
A country where children are free from disadvantage
Our Mission
We fight for change, supporting disadvantaged
children to have better lives
Our Values
Brave, Ambitious, Supportive, Trusted
Who we are…

...and some key facts.
• TCS was founded in 1881 and has a long association with the Church of
England.
• We are one of the traditional ‘big 5’ children’s charities in the UK which
includes NSPCC, Barnardos, Action for Children and Save the Children.
• Our new CEO, Matthew Read, joined The Children’s Society in June 2012.
• We deliver approximately 100 services across England, working with 23,159
children in the last year, 14,775 of those at a sustained level.
• We also have a significant policy and increasingly prominent campaigning
aspect to our work. The outcomes of which have impacting on over 350,000
more children.
• We employ approximately 1200 staff, manage 10,800 volunteers and have an
annual turnover is approximately £46m.
• In 2012 we embarked on a three year change programme to enable to
organisation to achieve its ambitions.

Prior to the change programme we faced a
number of challenges…
External Challenges
• A cluttered children’s
charity market
• The need for a clear
message about what we do
and what we stand for
• A reduction in
commissioning activity
across the sector
• A need to differentiate
ourselves from our
competitors
• A need to engage our
supporters with any specific
issues and beneficiaries
Internal Challenges
• Need for more joined up working
• Need for better IT systems
• Need to provide better value for
money for supporters
• Need to increase the scale of our
work through campaigning – sharing
information with a wider audience

To address this we set about achieving the
following objectives.
Integrated
structures and ways
of working
Performance
measurement and
reporting
Improved IS
infrastructure and
systems
Better talent
management and
development
A refreshed brand
More efficient
processes
Continuous
improvement and
innovation
Integrated income
generation
The
Transformation
Programme
1
2
3
4
5
6
7
8

Which has delivered the following changes to
date...
• A refreshed Mission, Vision and Values
• A revised Brand
• A new operating model with locally integrated working set up in three
areas of the highest need in England
• An outcomes framework and suite of evaluation tools
• A suite of leadership development interventions for all senior managers
• A IS suite of systems that supports responsiveness and mobility
• A dedicated PMO and a suite of tools and techniques used throughout
the organisation to deliver ongoing key initiatives
• A piloted approach and methodology for radical innovation and CI

...and achieved some significant outcomes.
• 20% (70-90%) increase in alignment of our work to our outcomes
• 5% (75-80%) increase in overall staff satisfaction
• 18% (73-91%) increase in volunteer satisfaction
• 15% increase in the staff’s confidence in leadership
• 23% increase in effective communications from line managers
• 2% recurring annual savings delivered through more efficient structures
• 3% increase in practitioner productivity /effectiveness

We faced a number of organisational issues we
could not ignore…
• Language – Staff really struggled with commonly used change
language and methodologies
• Data – Data management and data quality is not strong across the
sector which posed significant problems
• Skills – There was a need for significant coaching in parts of the
organisation on how to deliver the aspects of the change.
• Insights – Strategic insight was largely based in individual or team
skill sets with a lack of organisational processes to systematically
harness ‘insights’ for the whole organisation
• Silo’s – There was a lack of and understanding between teams on
how their work and processes crossed team boundaries.
1

Through our approach we have acquired a
number of insights and solutions along the way.
Top Down Approach
• Form a dedicated team
to manage change
outside of BAU
• Build senior level
governance around a
cross organisational
programme structure
• Identify key talent and
second to lead on the
initiatives & build skills
• Agree a set of design
principles before
commencing on
delivering the change
• Tie the change initiatives
into the strategic
direction and corporate
outcomes
Sustainable
Change
Bottom Up Approach
• Focus on a discrete area
to build a detailed
analysis and business
case
• Involve local staff in the
setting of plans and
strategies for local
working
• Build a network of change
agents across the
organisation to help drive
engagement with the
change
• Engage service users with
designing what needs to
change at a local level

We adopted a framework of how to analyse
how we would approach our change journey
Market realities and
external environment
Our framework
 Based on our
organisational
theory of change
 Driven through
our outcomes
framework
 Primary data
available on local
needs
 Local intelligence
and knowledge
 Competitor and market analysis
 Local policy priorities
 Partnership opportunities
1

…and used a nuanced approach on how to
approach each issue.
Sustainable ChangeEnterprise
Wide Change
• Refreshed brand
• Talent
management &
development
• Performance
measurement
and reporting
Local Operational Change
• Integrated structures and ways of working
• More efficient processes
• Integrated Income Generation
2

And took time to enable sustainable innovation
and growth to be developed.
Year 1
• Establish the organisations strategy
and set the framework for change
Year 2
• The change is tested through
pathfinder sites improving and
embedding operational practices
Year 3
• Organisations ability to innovate and
grow is scaled up
Our Route to
sustained Innovation
and growth
3

What next for The Children’s Society…
• Continue to change manage the programme outputs through BAU to
maximise the benefits
• Scale up localised change and learning accross the whole
organisation
• Deliver against our growth agenda by further developing our
strategic and operational learning to date
• Look to other areas where we can now adopt an enterprise wide
approach such as process improvement and efficiency improvement
initiatives
1

Operating efficiency: the lean charity

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

Similaire à Operating efficiency: the lean charity

Similaire à Operating efficiency: the lean charity (20)

Plus de NCVO - National Council for Voluntary Organisations

Plus de NCVO - National Council for Voluntary Organisations (20)

Dernier

Dernier (20)

Operating efficiency: the lean charity

Notes de l'éditeur