112 th Annual Conference May 6-9, 2018 St. Louis, Missouri

Transcription

1 10:30am 12:10pm May 7, 2018 Room th Annual Conference May 6-9, 2018 St. Louis, Missouri Moderator/Speakers: Tanya Garost, Chief Financial Officer, District of Lake Country Catherine Brubacher, General Manager of Corporate Services and City Treasurer, City of Brantford Tina Tapley, Director of Finance, Innovation and Technology/City Treasurer, City of Fredericton Stephanie Rackley-Roach, Director Corporate Performance/Chief Information Officer, City of Saint John Keli Whidden, Senior Manager, Human Capital Transformational Change, Deloitte Canadian Update Continuous Improvement and How to Drive Successful Change in Your Municipality #GFOA2018

2 Continuous Improvement (Lean Six Sigma) Why Essential for the Sustainability and Resiliency of Canadian Municipalities

3 What is Continuous Improvement? It s Continuous; There s Improvement

4 Canadian Municipal Challenges Limited sources of revenue Mainly property taxes Limited revenue raising capability Consider affordability and competitive advantage Reliance on Prov/Fed funding predictable or stable Costs rising faster than revenue raising capability household inflation (CPI)

5 Municipal Challenges Public Safety arbitrated settlements Infrastructure funding deficits

6 Are prices going up or down?

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8 Customer Expectation: More Value for Price They Pay

9 IMPROVEMENT RATE 3-5 times Jim Collins, Professor, Author Good to Gre Many Other Studies E.g. The Future of Productivity Deloitte

10 RATE OF IMPROVEMENT or PRODUCTIVITY: Improve, Innovate, and Grow Right track, right direction, still get run over if not going fast enough

11 WHAT IMPROVEMENT RATE IS YOUR MUNICIPALITY? Needs Improvement (Not improving fast enough) Good (Improving just fast enough to keep up with inflation) Great (Improving faster than the competition)

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18 "We won because we smothered the enemy in an avalanche of production, the like of which he had never seen, nor dreamed possible. William Knudson Roosevelt s Chairman, Office of Production

19 $8.3 Million Annual Recurring Savings IT IS POSSIBLE! Improvement Rate 1.2% per Year Millions $9 $8 $7 $6 $5 $4 Avoided a 9% tax rate increase $4.3 $5.9 $6.6 $7.7 $8.3 $3 $2 $2.6 $1 $0.6 $ Cumulative $562,98 $2,642, $4,331, $5,936, $6,579, $7,693, $8,309, Budget Savings $562,98 $2,079, $1,688, $1,605, $643,04 $1,113, $615,22 $0.6

20 City of Fredericton s Annual Improvement Target Rate Our performance: 1.2% Minimum required: 2.25% Our target to excel: 3%

21 TINA TAPLEY, CPA, CA Director of Finance, Innovation, & Technology/ City Treasurer

22 Continuous Improvement: Saint John s Successes and Lessons Learned GFOA Canadian Update Session May 7, 2018

23 Saint John a city with challenges

24 Challenges of Size and Population 316 km 2 Saint John Moncton 141 km 2 Fredericton 132 km 2 Change in Population 70,063 67,

25 Change in Tax Base Assessed Value 8.00% 7.00% 6.98% 6.54% 6.00% 5.36% 5.00% 4.53% 4.14% 4.00% Break Even 3.00% 3.22% 2.55% 2.00% Impact 1.45% of Growth on the Tax Rate 1.00% 0.33% 0.58% 0.72% $ % $ $2.000 Tax Rate $1.900 $1.800 $1.700 $1.600 $1.500 $1.400 Need Annual Growth Between 3% 4% to Maintain Tax Rate % Growth 2% Growth 3% Growth 4% Growth Current Rate

26 Hope is not a strategy...

27 Improve services by increasing value to customers opportunities to streamline and eliminate waste

28 Saint John s Approach Project Ideas Employees Process Metrics Customers Project Selection Steering committee and CI team reviews, prioritizes, and initiates projects Assign CI Facilitator (Secondment, Alumni or Service Area) Project Execution Use Lean Six Sigma tool box to realize efficiencies and enhance service Employee involvement to measure, analyze and develop solutions Celebrate Share results with the organization and the community Sustain 28 CI Program Overview Document and Project Results Train Measure Standard Practice

29 FLEET UTILIZATION PROJECT Solutions Cars Pooled: 22 Cars Auctioned: 11 Outcomes Annual Hard Savings: $155,267 One Time Revenue: $30,372 Enhancements Accessible to 159 Staff 24/7

30 Fleet Utilization Pooling of sedans Check lists Key Box WINTER SIDEWALK MAINTENANCE Solutions Balanced to 13 routes over previous 14 routes Outcome Total Hard Savings $47,000 Improvements Customer and employee satisfaction 8 City of Saint John Continuous Improvement

31 DISPOSAL OF BIOSOLIDS Contract changed to flat rate Proper garbage bins installed Check lists implemented $32,000 Total Hard Savings

32 PARKING SUMMONS PROCESS Solutions Eliminated process server Digital signatures Summons printed in proper order Change in print timing 10 City of Saint John Continuous Improvement Outcomes $7,790 Total Hard Savings 35% Productivity Savings ~ $20,000 in Soft Savings

33 PUBLIC NOTICE PROJECT Leverage new Act Web site notification $41,113 Hard Savings Annually Soft Savings of 9 hours annually ~ $390

34 FIRE DIFFERENTIAL RESPONSE Reduce the number of apparatus that respond to alarms $48,439 Total Hard Savings (parts and fuel) 12 City of Saint John Continuous Improvement

35 Program Results 2019 Target: $3 M Cumulative 13 City of Saint John Continuous Improvement

36 Projected Productivity Savings Approximately 3,032 hours diverted to other value added activities Estimated value ~ $96,835 (wages and benefits) Note: Not inclusive of all productivity savings

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38 HAVE A PLAN! lead change engage employees consistency simple process 16 City of Saint John Continuous Improvement

39 MOMENTUM IS GOOD balance readiness with urgency 20% EFFORT 80% RESULTS 17 City of Saint John Continuous Improvement

40 DON T LET GO continuous improvement is a journey not a destination 18 City of Saint John Continuous Improvement

41 KEEP FOCUSED. leadership and all employees commitment is critical! needs to be a priority 19 City of Saint John Continuous Improvement

42 FEAR REALLY SUCKS! process training to execute effectively and implement with confidence 20 City of Saint John Continuous Improvement

43 AVOID OBVIOUS SOLUTIONS challenge the status quo engage and collaborate focus on problems not solutions select good projects 21 City of Saint John Continuous Improvement

44 KNOW WHEN TO REST regroup and reflect evaluate lessons learned update the plan 22 City of Saint John Continuous Improvement

45 STRENGTH SUCCESS set reasonable objectives limited resources manage expectations 23 City of Saint John Continuous Improvement

46 KNOW WHEN TO LET GO control the outcome invest resources wisely improve implementation rate 24 City of Saint John Continuous Improvement

47 Investment to advance a culture of continuous improvement to drive operational efficiencies

48 Data Analytics Enhancement Automatic Vehicle Location (AVL)

49 Training and Other Accomplishments Lean Six Sigma Change Management Lean Summit City Investment ~ $152,890 Participants 2017 Lessons Learned Presenter 2018 Rapid Fire Presenter 27 City of Saint John Continuous Improvement

50 Daily Management Information Technology Continuous Improvement City Manager s Office One Stop Shop Community Planning Common Clerk Refinement Deployment Leader Check Ins 28 City of Saint John Continuous Improvement

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52 Shared Services Eliminate redundancy by consolidating business operations that are used by multiple parts of the same organization

53 Continuous Improvement: Saint John s Successes and Lessons Learned GFOA Canadian Update Session May 7, 2018

54 Speaker Contact Information: Catherine Brubacher Phone: Tina Tapley Phone: Stephanie Rackley Roach stephanie.rackley Phone: th Annual Conference May 6-9, 2018 St. Louis, Missouri Questions: Speakers will take questions and comments. This session is being recorded, please utilize the microphone in the aisle to ask all questions. Provide Feedback: Please take a few minutes to provide your feedback at Discuss/Comment: Join the discussion at #GFOA2018 Kelli Whidden kwhidden@deloitte.ca Phone: Contact GFOA: To contact GFOA about session topics please research@gfoa.org #GFOA2018