There's a good reason why the Lean Six Sigma methodology is often hailed for its ability to reduce waste and improve efficiency. According to McKinsey & Company, Lean-management programs can reduce cycle times (end-to-end completion time) by 30-50%, improve productivity, and reduce quality error rates.
Equally, if not more importantly, enhancing process improvement delivers a compelling case for promoting a healthy and happier workforce. It does this through its ability to create clearer roles for managers, freeing up more time for employees to spend on value-adding activities, helping them to innovate, utilise and develop other skillsets, and contribute to building a culture of collaboration.
In episode six of our first podcast series on organisational health, we spoke to Pia Andrews on purpose and leadership. In this episode, she shared her experience when she joined the public service in automating a chunk of reporting work within the first few weeks of her new role. She could see a repeated pattern, and by automating five reports, she freed up a huge proportion of time to focus on the important and purposeful work.
Process improvement isn't solely about automation
Of course, enhancing process improvement is not just about automation, though it is an important part. Lean practitioners identify five core ways to enhance a process. These are:
1. Reduce Non-Value-Added Steps
2. Improve the Measurement System
3. Reduce Common Cause Variation
4. Reduce Special Cause Variation
5. Move the Mean to Improve Process Capability
While these methods are valuable at a foundational level in process improvement, they primarily focus on waste and variation within existing processes. At CorbettPrice, we believe that for transformational process improvement, a more comprehensive approach is needed that involves looking at the entire operating model to ensure processes are strategically aligned with the organisation's goals and that the workforce is engaged, aligned, and ready to benefit from the outcomes of such improvements.
The BeHOLISTIC framework
Evolving citizen expectations, fiscal constraints, and technological advancements are just some of the transformation drivers that fuel the need for the public sector to deliver more accessible, responsive, personalised, and effective services. When conventional methods focus on isolated elements, leading to fragmented outcomes and unforeseen challenges, our BeHOLISTIC model champions a comprehensive approach encompassing every critical facet of an agency or department. It meticulously integrates strategic objectives and service models to ensure a harmonised transformation aligned with overarching public value goals.
The BeHOLISTIC approach to process improvement
BeHOLISTIC provides a broader perspective on process improvement by integrating strategic alignment and operational efficiency. Here are eleven ways in how BeHOLISTIC enhances process improvement beyond just reducing waste:
1. Digitise or automate steps
BeHOLISTIC encourages organisations to leverage technology to automate repetitive tasks and digitise processes. This reduces costs and improves the value delivered to customers by increasing speed and accuracy.
Example: A Department of Motor Vehicles (DMV) automates vehicle registration renewals, reducing paperwork and wait times while improving service accuracy.
2. Combine steps for economies of scale
By combining similar steps across different processes, organisations can achieve economies of scale, reduce costs, and improve efficiency.
Example: A local government combines procurement processes across various public services (e.g., schools, libraries) to obtain better rates from suppliers, saving taxpayer money.
3. Link steps for good practice sharing or standardisation
Linking similar steps across different processes facilitates sharing best practices and promotes standardisation, leading to consistent quality and performance.
Example: A hospital links its patient intake processes across various departments to ensure a uniform and efficient patient experience.
4. Separate processes for better delivery
Separating a complex process into simpler sub-processes can enhance the delivery of different value propositions, making it easier to manage and optimise.
Example: A tax office separates business tax filings from personal tax filings, allowing specialised teams to process each more effectively.
5. Outsource steps for better skills or lower costs
Outsourcing specific steps to suppliers with better skills or lower costs can improve process efficiency and effectiveness.
Example: A government IT department outsources cybersecurity monitoring to a specialised firm, ensuring enhanced protection at a lower cost.
6. Change suppliers or contracts for better performance
Reviewing and adjusting supplier contracts can lead to improved performance and cost savings.
Example: A transportation department renegotiates its road maintenance contracts to ensure quicker response times for repairs and better road quality.
7. Change locations for better access to skills or lower costs
Relocating specific process steps can provide access to more skilled staff or reduce costs related to labour, capital, or other inputs.
Example: A federal research agency relocates its data analysis hub to a city with a strong talent pool of data scientists, improving research outcomes and efficiency.
8. Change the people model for better performance
Adjusting the people model, such as team structures or roles, can enhance performance and efficiency.
Example: A local council restructures its community engagement teams to better address the needs of diverse cultural groups, improving communication and public satisfaction.
9. Change decision authorities for better decisions
Altering decision-making authorities, such as centralising or decentralising certain decisions, can lead to better and faster decisions.
Example: A city council decentralises decisions regarding local infrastructure projects, allowing regional offices to make faster, more informed decisions based on local needs.
10. Change overhead activities to reduce costs or improve value
Optimising overhead activities such as finance, HR, or IT can reduce costs and improve the value delivered to the organisation.
Example: A state government implements a shared services model for HR, finance, and IT, cutting costs and improving service quality across multiple departments.
11. Innovate steps for lower costs or greater value
Encouraging innovation in process steps can lead to the development of lower-cost solutions or greater value for customers.
Example: A public transport agency pilots autonomous buses, reducing operational costs and improving service reliability in underserved areas.
Aligning process improvement with strategy
BeHOLISTIC emphasises the importance of aligning process improvement initiatives with the organisation's strategic goals. By taking a holistic view of the operating model, organisations can ensure that processes are not only efficient but also support the overall business strategy.
Lean Six Sigma methodologies are excellent for refining processes and eliminating waste within an existing framework. However, the BeHOLISTIC approach ensures that this framework is strategically aligned from the outset, making subsequent Lean Six Sigma efforts more effective and impactful.
Incorporating BeHOLISTIC into transformational process improvement initiatives allows organisations to go beyond merely reducing waste. By considering strategic alignment, digitisation, standardisation, and innovation, organisations can achieve comprehensive improvements that enhance efficiency and value. This holistic approach ensures that processes are optimally designed to support the organisation's long-term goals, creating a robust foundation for sustainable success.
Learn more about process improvement with our Elevate course
Our Lean Six Sigma Essentials course is the perfect introduction for anyone looking to learn more about the fundamentals of process improvement, such as recognising and eliminating non-value activities in your organisation's processes that are hindering efficiency. This one-day course can also be customised for agency teams looking to gain these fundamental skills and improve processes within their organisational context. Please find out more on our course page, or contact us to discuss how we can help your organisation today.