Continuous Improvement of The NH System

Sandra Hastings Associates
Continuous Improvement in New Hampshire's Workforce Development System
Introduction
Continuous improvement as a WIA related process has two components- continuous improvement of work processes
and continuous improvement of the system. Both kinds of continuous improvement must be defined for the NH
WORKS system to meet the intent of the WIA legislation and to meet the needs of the diverse customers served.
The system can use or modify an existing process improvement model to determine NH's approach to improving
service delivery, but there is no existing model that can be used to determine NH's approach to continuous
improvement of the system.
Continuous Improvement of Work Processes

Implementation of process improvements to expand and enhance current service delivery to customers is
embedded in two of the responsibilities of the one-stop local teams:
♦ Problem-solve and respond to one-stop delivery issues
♦ Support team approach to continuous improvement
To discourage duplication of effort and to encourage replication of best practice ideas, it is critical that the one-
stop teams utilize the same process improvement model to make changes that will improve service to both business
and job seeking customers. The PAC created the eight-step continuous improvement model to address the need
for a standardized process for local improvement activities. This model borrows the elements of a standard
continuous improvement model from Total Quality Management theory and combines it with New Hampshire
specific strategies to ensure system-wide communication of process improvements.
Utilizing this eight-step continuous improvement process, the NH WORKS one-stop improvement teams can gather
information about customers' needs, identify improvement priorities, design improvements and measures of
Sandra L. Hastings 17 Hebron Road Bolton, CT 06043 1

Phone/Fax 860-643-0624 SLHastings@aol.com
success, communicate the recommended improvement activities to the appropriate committees, implement
improvement activities, measure the results and evaluate improvements, share the results and make appropriate
system changes. Upon Consortium approval of this model, the one-stop teams will be trained how to use the model
to tackle local level problems. In addition, the Consortium can ask the one-stop teams to use this model to define
the local level projects to be implemented.
Continuous Improvement of the System

The transformation of a traditional system of silo management into an innovative system of collaborative
management occurs over time. In fact, it is important to understand that true culture change takes approximately
five years to solidify. Thus, it's important to begin the transformation of a system and continuously refine the
process as you learn from previous improvement activities (e.g., your failures as well as your successes).
The proposed model for the continuous improvement of the NH WORKS system depicts the influences and
outcomes for a system engaged in quality improvement initiatives that will transform the system into a high
performance customer-driven system. This model, Continuous Improvement of the System on the next page,
depicts four sets of influences: (1) customer and market focus, (2) vision, mission, values, and goals, (3) leadership,
strategic planning, information and analysis, human resource focus, and process management, and (4) operating
culture, norms and expectations as well as two sets of outcomes: (1) individual, program, center, and system
outcomes, and (2) business results. The model also incorporates the seven Malcolm Baldrige dimensions of quality
(i.e., customer and market focus, leadership, strategic planning, information and analysis, human resource focus,
process management, and business results).

Continuous Improvement of the System
Influences Outcomes
Leadership
Strategic
Planning Individual
Vision
Mission Information and
Customer Operating
And Values Analysis Culture, Program Business
Market Norms, & Results
Focus Goals Expectations
Human
Center
Resources
Focus
Process System
Management
Customer Satisfaction

(Hastings 2001)
Phase One: Customer Market and Focus

In the first phase of the continuous improvement process, the system gathers customer and market information to
determine what the customer wants and needs. Both business and job seeking customers are assessed and their
requirements captured to inform the next step of the process.
Specifically, this Baldrige category examines how an organization determines customer and market requirements,
expectations, and preferences, how it builds customer relationships, and how it determines customer satisfaction.
World-class organizations follow systematic approaches to gathering information about customer requirements
from many sources, including focus groups, customer advisory councils, surveys, and customer visits. If an
organization is customer driven (core value) it has an unwavering commitment to customer retention, market share
gain, and growth.
What's been done in 2000-2001 program year

♦ Developed goals and strategies in unified plan based on labor market information (e.g., focus on building and
expanding high technology industries) and projected growth of business and industry in New Hampshire
♦ Administered RKM customer satisfaction surveys for WIA programs and Vocational Rehabilitation programs
♦ Administered a DRED sponsored survey to determine the needs of the business community
♦ Administered customer satisfaction surveys in local offices to ES customers
♦ Began an outreach to business pilot project
What can be done in 2001-2002 program year:

♦ Continue the business outreach pilot
♦ Continue and expand the RKM customer satisfaction surveys
♦ Use economic data to refine/change strategic goals based on changes in labor market needs

♦ Begin business involvement in local one-stop activities to gather input of local needs
♦ Expand collection of customer data (e.g., as part of the customer flow project)
Phase Two: Vision, Mission, Values, and Goals

In the second phase of the continuous improvement process, the system creates and/or refines its mission and
vision to match the customers' requirements. Additionally, the supporting strategic goals and values are
established to create the foundation for discreet continuous improvement efforts.
What's been done in 2000-2001 program year:

♦ Creation of vision and mission
♦ Creation of strategic goals for 2001-2002 program year

♦ Review of vision and mission to ensure their fit with customers' needs and requirements
♦ Adoption of system-wide values
♦ Dissemination of strategic goals and description of how local teams contribute to goal attainment
Phase Three: Five Additional Dimensions of Quality

Once the foundation has been set, the system's partners begin to work together to define five additional
dimensions of quality- leadership, strategic planning, information and analysis, human resource focus, and process
management. Specifically, partners determine how they will set goals and improve performance in each of these
dimensions to help them achieve better service for their shared customers. For example, partners would create
short-term and long-term strategic goals and then decide how to communicate the system's strategic direction to
all staff. In addition, partners would determine what training and educational opportunities staff needed to
expand their ability to deliver new and improved services to customers.

Leadership
This category examines an organization's leadership system as well as the senior leaders' personal leadership.
Leadership system refers to how leadership is exercised, including structures and mechanisms for decision making,
selecting and developing leaders and managers, and reinforcing values, practices, and behaviors.
An effective leadership system creates clear values, sets high expectations, builds loyalties and team work based
upon a shared vision, encourages and supports initiative and risk taking, subordinates organization to purpose and
function, and avoids chains of command that require long decision paths.
This category also asks how senior leaders set, communicate, and deploy organizational values, performance
expectations, and a focus on creating and balancing value for customers and other stakeholders. The criteria also
ask how senior leaders promote empowerment and innovation and support organizational and employee learning
(core value).
The second item in this category examines how the organization addresses its responsibilities to the public and how
it supports its key communities (public responsibility and citizenship and visionary leadership are core values).

♦ Established a system-wide newsletter for all staff
♦ Sponsored a system-wide Conference to explain the unified plan and the new collaboration of partners
♦ Worked together as Consortium members and on inter-agency committees to implement system-wide changes to
improve service to customers


♦ Development of leadership in all levels of staff by involvement on one-stop teams (e.g., continuous improvement
teams)
♦ Development of directory of partners
♦ Development of master email list
♦ Development of master list serve
♦ Approve and use protocol for local one-stop teams to get projects approved
♦ Provide local marketing funds
♦ Publish how focus group data will be used to change the system
♦ Approve process for defining local level grant and other funding opportunities
Strategic Planning
The third Baldrige category examines how an organization sets strategic directions, how it develops the critical
strategies and action plans that support its directions, how it deploys the plans throughout the organization and
how it tracks performance to plan.
Many organizations use the planning process as a tool for aligning the activities of divisions, departments,
functions, teams, work groups, and individuals within overall organizational strategies, goals and plans.
The planning process must also reflect a focus on the future (core value) and a willingness to make long-term
commitments to key stakeholders. The planning process must anticipate many changes and include inputs from
many including data and information on customer requirements and expectations, market changes and risks, supplier
quality and capabilities, technological developments, competitive developments, and the organization's capabilities.


♦ Development of strategic plan for improvements based on staff focus group reports
♦ Creation of strategic marketing plan for the state

♦ Hold meetings with local one-stop staff to describe goals and responsibilities of local one-stop teams
♦ Track and report performance and progress on achieving goals
♦ Creation of five year strategic plan including yearly service improvements for customers
Information and Analysis
The fourth Baldrige criterion examines an organization's performance measurement system and how the
organization analyzes performance data and information.
The category considers how the organization measures performance and how the organization analyzes and reviews
the performance. The goal is to attain management by fact (core value). The measures selected should be
selected to best represent the factors that lead to improved customer, operational, and financial performance. A
comprehensive set of measures tied to customer and/or organizational performance requirements represents a
clear basis for aligning all activities with the organization's goals and for creating and balancing value for all
stakeholders (focus on results and create value is a core value).

♦ Establishment of MIS system
♦ Establishment of customer satisfaction system to define performance from customers' perspectives


♦ Communication of how system is meeting its performance goals
♦ Communication of continuous improvement activities that need to be implemented to meet customers' needs
♦ Establishment of universal performance measurement system
Human Resource Focus
The fifth Baldrige category examines how an organization enables employees to develop and utilize their full
potential and how it builds and maintains a work environment and climate conducive to performance excellence, full
participation, and personal and organizational growth.
This category focuses on empowerment and the many elements that support it;- work design that encourages
involvement, initiative, and responsibility; recognition and rewards that reinforce the organization's objectives;
education, training, and development; a safe and healthful work environment; and processes for measuring and
improving customer satisfaction (valuing employees and partners is the related core value).

♦ Sponsored a Conference for all staff
♦ Involved managers and directors in design and development of system
♦ Conducted focus groups to gather customer satisfaction data from staff

♦ Create and implement training plan for all staff
♦ Hold two Conferences
♦ Gather customer satisfaction data from staff

Process Management
The sixth Baldrige category examines how an organization manages its processes, including product and service
processes (design, production, and delivery), support processes (such as finance, Human Resources, maintenance,
and security), and supplier and partnering processes. The improvement question to ask is "how" something is being
done. The more sound, systematic, prevention-based, and continuously improved the process is, the better it will
be assessed.
This process focus also demands a well-executed approach to organizational and personal learning and managing
for innovation (two core values). Improvement and learning needs to be embedded in the way an organization
operates on a daily basis. The organization needs to eliminate problems at their source and be driven by the desire
to do better (as opposed to spending every day "fighting fires"). Learning and innovation serve another core value
(agility) by helping create a capacity for rapid change and flexibility.
What's been done in the 2000-2001 program year:

♦ Recommend a continuous improvement process for the system
♦ Recommend a model for process improvements

♦ Develop customer flow process
♦ Implement continuous improvement process for the system
♦ Adopt a model for process improvements
♦ Promote continuous improvement as the way to do business
♦ Publish continuous improvement progress
♦ Replicate successes in one-stop centers

Phase Four: Operating Culture, Norms, and Expectations

As the system defines its quality-related initiatives and begins to use customer data to make business decisions,
the new operating culture, norms, and expectations begin to emerge. It is critical in this phase that the system's
partners engage in deliberate actions to promote the culture that best supports the system's vision and strategic
goals and objectives. For example, the system's partners might want to create reward and recognition programs to
support their goals and objectives (e.g., an award for teamwork or partnerships).

♦ Creation of a MOU that promotes the unified plan and culture of collaboration
♦ Creation and implementation of organizational development plan
♦ Publication of a monthly, system-wide newsletter

♦ Creation of reward and recognition system
♦ Implementation of organizational development plan
♦ Establish and publish system-wide performance expectations
Phase Five: Individual, Program, Center, and System Outcomes

In this phase, improvements based on continuous improvement activities are beginning to become recognizable.
Staff may have worked on teams to improve services or processes to enhance customer satisfaction. Data are
being gathered and used to make decisions and there are tangible examples of improvements for individual
customers, the partners' organizations, and the system.

♦ Track improvement activities

♦ Publish results of continuous improvement activites
Phase Six: Business Results

Finally, in a high performance system, performance improvements in key business areas are evident (e.g., customer
satisfaction, financial and market performance, human resources, supplier and partner performance, and
organizational effectiveness). In this phase there is a marked improvement in one or all of the business indicators.
The final Baldrige category examines the organization's performance and improvement in key business areas:
customer satisfaction, financial and market performance, human resources, supplier and partner performance, and
organizational effectiveness. This category also considers performance levels relative to competitors or other
benchmarks.
This category concerns itself with the systems perspective (core value) or the results of all processes described
in the first six categories. This focus on results and creating value is a core value of the Baldrige model. The
purpose of learning and applying the Baldrige model is to improve those results that are most important to your
organization's success.

♦ Creation of performance goals for WIA programs, Vocational Rehabilitation programs, Adult Education
programs, and Youth programs

♦ Publish system's WIA performance outcomes
♦ Establish ES performance goals and publish outcomes

♦ Establish older worker goals and publish outcomes
Phase Seven: Begin Again

Because the continuous improvement process is ongoing, it is critical that the system routinely (e.g., once a year)
gathers customer and market data to ensure the system's focus on customers' needs.
The Malcolm Baldrige dimensions of quality are built upon a set of core values that are the foundation for
integrating key business requirements within a results-oriented framework. The seven dimensions of quality and
the eleven corresponding core values are listed below:
Dimensions of Quality Core Values

1. Leadership 1. Customer driven services
2. Strategic Planning 2. Visionary leadership
3. Customer and Market Focus 3. Organizational & personal learning
4. Information and Analysis 4. Valuing employees & partners
5. Human Resource Focus 5. Agility
6. Process Management 6. Focus on the future
7. Business Results 7. Managing for the future
8. Management by fact
9. Public responsibility & citizenship
10. Focus on results & creating value
11. Systems perspective

Description of Core Values
1. Customer driven services

Organizations that are customer driven understand today's customer desires and anticipate future
customer desires and marketplace offerings. The organization's customers judge quality and performance.
Positive outcomes include customer satisfaction, preference, referral, and loyalty.
Being customer driven demands an awareness of developments in technology and competitor's offerings, as
well as rapid and flexible responses to customer and market requirements.
2. Visionary leadership
The senior leaders in the organization need to set direction, create a customer orientation, set clear and
visible values and high expectations for all staff. In the process, senior leaders ensure the creation of
strategies, systems, and methods for achieving excellence, stimulating innovation, and building knowledge
and capabilities. The values and strategies should help guide all activities and decisions of the organization.
Senior leaders inspire and motivate the workforce by involving staff, developing staff capacity, and
promoting creativity and risk-taking.
Senior leaders are role models reinforcing values and expectations while building leadership, commitment,
and initiative throughout the organization. Senior leaders plan, communicate, coach, develop future leaders,
review organizational performance and recognize employees.
3. Organizational and personal learning

Organizational learning is the continuous improvement of existing processes and the creation of new goals
and approaches to service delivery. Learning needs to be: (1) embedded in daily work, (2) practiced at
personal, work, and organizational levels, (3) result in solving problems at the source, (4) focus on sharing
knowledge throughout the organization, and (5) be driven by opportunities to affect significant change.
Organizational learning results in: (1) enhanced value to customers with new and improved services; (2) new
business opportunities; (3) reduced errors, defects, waste, and related costs; (4) improved responsiveness
and cycle time performance, increased productivity and effectiveness in use of organizational resources;
and, (6) enhanced performance as public citizen.
Employee education and learning are also critical to organizational success. Organizations invest in
employees with education, training, and work opportunities for future growth (e.g., job rotations, on-the-job
training). Building the capacity of staff to meet the needs of customers results in (1) more satisfied and
versatile employees; (2) greater opportunity for organizational cross-functional learning; and, (3) an
improved environment for innovation.
4. Valuing employees and partners

Valuing employees means being committing to their satisfaction, development, and well-being. Major
challenges in this area include (1) demonstrating your leaders' commitment to employees; (2) providing
recognition opportunities that go beyond the normal compensation system; (3) providing opportunities for
development and growth within the organization; (4) sharing your organization's knowledge so employees can
better serve customers and contribute to achieving strategic objectives; and, (5) creating an environment
that encourages risk taking.

Organizations need to build internal and external partnerships to better accomplish overall goals.
Successful internal and external partnerships develop longer-term objectives to create a basis for mutual
investments and respect.
5. Agility
Agility is the capacity for rapid change and flexibility to meet changing, competitive markets. A major
success factor in agility is the cycle time of product and service development. All aspects of time
performance are increasingly important and should be among the key process measures.
6. Focus on the future

To be successful organizations need to make long-term commitments to customers, employees, suppliers,
stockholders, the public and the community. Short-and long-term strategic plans need to reflect the
influences of customers' expectations, new business and partnering opportunities, the global marketplace,
technological developments, new customer and market segments, evolving regulatory requirements,
community/societal expectations, and strategic changes by competitors.
7. Managing for innovation

Innovation is making meaningful change to improve an organization's products, services, and processes to
create new value for the organization's stakeholders. Innovation should lead your organization to new
dimensions of performance. Innovation should be part of the culture and daily work.
8. Management by fact
Organizations depend upon the measurement and analysis of performance. Such measurements must derive
from the organization's strategy and provide critical data and information about key processes, outputs,

and results. Performance measurement areas include customer, product, and service; operations, market,
and competitive comparisons; and supplier, employee, and cost and financial.
Analysis of the data involves using data to determine trends, projections, and cause and effect - that might
not be available without analysis.
The measures or indicators you select should best represent the factors that lead to improved customer,
operational, and financial performance. A comprehensive set of measures or indicators tied to customer
and/or organizational performance requirements represents a clear basis for aligning all activities with your
organization's goals.
9. Public responsibility and Citizenship

An organization's leadership needs to stress its responsibilities to the public and needs to practice good
citizenship. These responsibilities refer to basic health, safety, and the environment.
Practicing good citizenship refers to leadership and support- within the limits of your organization's
resources- of publicly important purposes. Leadership as a corporate citizen also entails influencing other
organizations to partner for these purposes.
10. Focus on results and creating value

An organization's performance measures need to focus on key results. Results should be focused on
creating and balancing value for all your stakeholders - customers, employees, suppliers, partners, the
public, and the community.
11. Systems perspective

To achieve a systems perspective, organizations must use the core values and the seven Baldrige categories
as the building blocks of the system. The organization must also focus on synthesis and alignment.
Synthesis means looking at your organization as a whole and focusing on what is important to the whole
enterprise. Alignment means concentrating on key organizational linkages among requirements given in the
Baldrige categories. With alignment, your senior leaders are focused on strategic directions and on your
customers. It means that senior leaders monitor, respond to, and build on business results. Alignment
means linking key strategies with key processes and aligning your resources to improve overall performance
and satisfy customers.
NH WORKS System Values are:

♦ An integrated system
♦ A comprehensive system
♦ A customer-focused system
♦ A system responsive to local and regional needs
♦ A performance-based system
♦ An innovative system
♦ A system that promotes continuous skill development
What can be done in the 2001-2002 program year:

♦ Review of NH WORKS values and Baldrige values to determine values that best describe the NH WORKS
system's goals
♦ Publication of system's values
♦ Promotion of system's values (reward and recognition system)


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Sandra Hastings Associates

Continuous Improvement in New Hampshire's Workforce Development System

Continuous Improvement of Work Processes

Sandra L. Hastings 17 Hebron Road Bolton, CT 06043 1

Continuous Improvement of the System

Sandra L. Hastings 17 Hebron Road Bolton, CT 06043 2

Continuous Improvement of the System

Sandra L. Hastings 17 Hebron Road Bolton, CT 06043 3

Phase One: Customer Market and Focus

What's been done in 2000-2001 program year

What can be done in 2001-2002 program year:

Sandra L. Hastings 17 Hebron Road Bolton, CT 06043 4

Phase Two: Vision, Mission, Values, and Goals

What's been done in 2000-2001 program year:

What can be done in 2001-2002 program year:

Phase Three: Five Additional Dimensions of Quality

Sandra L. Hastings 17 Hebron Road Bolton, CT 06043 5

What's been done in 2000-2001 program year:

Sandra L. Hastings 17 Hebron Road Bolton, CT 06043 6

What can be done in 2001-2002 program year:

Sandra L. Hastings 17 Hebron Road Bolton, CT 06043 7

What's been done in 2000-2001 program year:

What can be done in 2001-2002 program year:

Information and Analysis

What's been done in 2000-2001 program year:

Sandra L. Hastings 17 Hebron Road Bolton, CT 06043 8

What can be done in 2001-2002 program year:

Human Resource Focus

What's been done in 2000-2001 program year:

What can be done in 2001-2002 program year:

Sandra L. Hastings 17 Hebron Road Bolton, CT 06043 9

What's been done in the 2000-2001 program year:

What can be done in 2001-2002 program year:

Sandra L. Hastings 17 Hebron Road Bolton, CT 06043 10

Phase Four: Operating Culture, Norms, and Expectations

What's been done in 2000-2001 program year:

What can be done in 2001-2002 program year:

Phase Five: Individual, Program, Center, and System Outcomes

What can be done in 2001-2002 program year:

Sandra L. Hastings 17 Hebron Road Bolton, CT 06043 11

♦ Track improvement activities

Phase Six: Business Results

What's been done in 2002-2001 program year:

What can be done in 2001-2002 program year:

Sandra L. Hastings 17 Hebron Road Bolton, CT 06043 12

♦ Establish older worker goals and publish outcomes

Phase Seven: Begin Again

Dimensions of Quality Core Values

Sandra L. Hastings 17 Hebron Road Bolton, CT 06043 13

Description of Core Values

1. Customer driven services

3. Organizational and personal learning

Sandra L. Hastings 17 Hebron Road Bolton, CT 06043 14

4. Valuing employees and partners

Sandra L. Hastings 17 Hebron Road Bolton, CT 06043 15

6. Focus on the future

7. Managing for innovation

Sandra L. Hastings 17 Hebron Road Bolton, CT 06043 16

9. Public responsibility and Citizenship

10. Focus on results and creating value

11. Systems perspective

Sandra L. Hastings 17 Hebron Road Bolton, CT 06043 17