Lean But Not So Mean
Public agencies may be doing a good job at slashing waste using Six Sigma and lean techniques but they could be doing a lot better by focusing on the “soft” side: implementing a robust management structure and changing employees’ mindsets.
In the publication McKinsey on Government, consultants Maia Hansen and John Stoner offer a step-by-step approach to establishing the right infrastructure for a lean transformation (lean has been defined as strategy that focuses on eliminating waste, which includes all processes that do not add value to the final product or service).
Create a value-stream map that identifies where value lies in each step of the process. “Our strong recommendation . . . is to form a cross-functional team with representatives who interact with the process in a variety of ways and therefore see it from different perspectives.”
Get data to the right people at the right time. That means focusing on Key Performance Indicators that matter most and ensuring that the right people are viewing them.
Establish new roles to smooth processes. The lean initiative may be best served, for example, by creating a new coordinating position to boost efficiency.
Align interests to drive momentum. The McKinsey consultants like gainsharing arrangements to embed the concept of continuous improvement, build morale, and sustain enthusiasm.
Hansen and Stoner also offer suggestions on how to change employee mindsets.
Get staff to focus on the consumer. This may be a challenge for a public agency with no competitors, but a good technique is to have employees follow a customer through the entire process of interacting with the agency/employer and to experience bureaucratic frustrations.
Break down silos. Make sure units know what other units are up to or create shared metrics to help units better understand shared goals.
Inspire employees to overcome risk aversion. The public sector may be allergic to performance measurement and risk but managers can change that perception. “Managers should thank employees for trying new approaches,” the authors write, “and focus on solving problems rather than assigning blame for mistakes.”
A Leaner Pubic Sector, by Maia Hansen and John Stoner; McKinsey on Government (Number 4, Summer 2009)
photo credit: Toban Black