Transcript Unlocking Innovation

Welcome
Greg Haglin
Introduction
Tom Johnson
If We Can Put a Man on the Moon
– Delivering “Better, Faster,
Cheaper” Results
John O’Leary
Ash Center for Democratic Governance and Innovation
Harvard Kennedy School of Government
John_O’[email protected]
Fleet Webinar June 17, 2010
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The Challenge
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Challenge: To create real public value with
diminishing resources:
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Revenue is down at all levels
Demand for public services already exceeds capacity
Incremental improvements will be insufficient to meet the
public’s needs
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The Response
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A “Better, Faster, Cheaper” approach that
focuses relentlessly on results.
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The “BFC” approach is a two-step method of
analyzing government that can be applied to a
variety of functional areas
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Steps of BFC Approach
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Step 1: Reexamine and rearticulate the
public purpose of every program.
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Step 2: Explore new ways of creating that
public value using a variety of “BFC”
techniques
BFC Approach: Step 1
Reexamine the public purpose of every program.
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Articulate the goal of every activity in terms of the value being
created for citizens. For example:
 Improved public health, not better Medicaid;
 Education for children, not just better public schools.
 Maybe – safe, reliable mobility at the lowest cost – not more
efficient fleet management
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“BFC” Approach: Step 2
Explore new ways of creating that public value
using a variety of techniques:
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Competition/Outsourcing/Public-Private Partnerships
Leverage Technology
Change incentives for producers: Reward results, not effort
Change incentives for consumers: Drive efficient behaviors
Changing the rules of the game; revitalize the productive capacity by altering
the framework in which public action occurs
EXAMPLE 1– Instead of fleet maintenance, extend to use of “Zipcars” or
other at will vehicles…
EXAMPLE 2 – Usage reports to identify “unneeded” vehicles.
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Effective Service Involves Both
Government and Private Sector
The “Privatization” or “Outsourcing” Debate
Reflects a False Choice
The Left
• Government employees
should perform all public
services
• Private contractors are
often corrupt
• Citizens should receive
similar services configured
by government, not by
choice
The Right
• Privatize everything
• Public sector always
inefficient
• Private sector always better
than public
• Privatizing makes
government smaller
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Competitive Government Principles
Provide the structural foundation for competition
• Activity Based Counting—If you don’t know how
much it costs to accomplish the outcome then you have
no idea whether you are effective.
• Capital Budget with depreciation.
• Measure, Measure, Measure-and reward results
• Watch and recognize the Small Items that Help Make
up the Culture
• Contract procurement and program management are
new skills require sophistication and technical
knowledge
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Contracting = New Challenges
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Designing a contract that attracts bidders, aligns
incentives.
Treat existing employees fairly
Choosing the right vendor / partner
Measure, Measure, Measure-and reward results
Deal with the unexpected
Document the results, both cost and quality
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“If We Can Put a
Man on the Moon…”
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Good Idea
Well designed plan
Get the “Go Ahead”
Implement effectively
Monitor Results
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Gale A. Blackburn
Vice President, Marketing
Driver’s Alert, Inc.
5340 N. Federal Highway, Lighthouse Point, FL 33064
800-741-5454 (extension: 416)
[email protected]
Improving safety, lowering costs... One driver at a time.
Ed Finnegan
State Auto Insurance
Program Officer
Risk Management Services
Department of Administrative Services
State of Georgia
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We self-insure for Workers’ Comp, Property,
General Liability and Auto losses.
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$160,000,000. per year in operating costs.
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$26 Billion in Property Coverage.
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Were we in the private sector, we would be
the 25th largest insurance company in the
world.
Our Fleet/Our Exposure
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Over 20,000 vehicles
Steve Saltzgiver is the Director.
We also cover 125,000 state employees
while performing their official duties in
ANY vehicle.
Comprehensive Loss
Control Program
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We passed a law allowing us to bill premium to
the 160 agencies based on their loss experience,
rather than their head count.
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The CLCP addresses Loss Control measures in
9 areas, one of which is Auto.
The Auto Component
Driver Qualification Program
 Accident Review Panel
 Report My Driving Program
 We provided deductible and premium
incentives and training to cut losses.
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Three Year Claims Count
800
700
600
500
400
300
200
100
0
FY-08
FY-09
Fy-10
FY-08 to FY-09, 14% drop in losses.
FY-09 to FY-10, 13.5% drop in losses.
Monetary Effect of the CLCP
Estimated saving for Auto-related losses
1.6 Million.
 Driver’s Alert provided an instant training
library available to ALL employees.
 Cost of Driver’s Alert: $130,000.
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Real Value
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We are saving lives and avoiding injuries.
We are giving the public a voice in how we use tax
dollars.
It’s like having a supervisor riding in 15,000 vehicles.
We are better trained and more aware of our
responsibilities.
We are the Face of the State.
Driver’s Alert
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They are one part of our solution.
Had a call during a theft of a vehicle!
Identified 100 employees that account for 16%
of our calls.
Pointed out trends: lane change, no signals,
drifting= phone use.
Allowed us to pinpoint training and reduce
claims.
Great Job!
Ed Finnegan
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404-463-7490
[email protected]
www.doas.ga.gov
All programs are up and available. Please feel
free to use any part.
Fleet Ideas for Success
June 17, 2010
Webinar
John E. Alley
Deputy Director, Fleet
Services
City of San Diego, CA
[email protected]
(619) 527-6020
Outline
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Business Process Reengineering (BPR)
Internal Service Funds for GF Departments
Fleet Creep – How to reduce your Fleet
Other Ideas for running your Fleet like a business
Business Process Reengineering
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What BPR is Not
What is BPR
What are the BPR Fundamentals
Organizing for a BPR
BPR Activities
How long does the process take
How long does it take to implement
What is BPR is Not
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It is not reorganizing
It is not downsizing
It is not incremental improvement or superficial
changes; it is about dramatic leaps in
performance
What is BPR
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A radical approach to business process redesign
BPR is the redesign of work processes (activities,
services or functions) for substantial improvement.
These work processes can be offered within or between
divisions and departments.
BPR focuses on rethinking from the ground up, finding
more efficient ways of working including eliminating
work that is unnecessary.
BPR Fundamentals
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The Mission is to Create Value for Customers
It is an Organization’s Processes that Create Value for
its Customers
Success Comes from Superior Process Performance
Superior Process Performance is Achieved by having
Superior Process Design, the Right People to Perform
it, and the Right Environment for them to Work in
Organizing for a BPR
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Identify Sponsor and Team Leaders
Organize Teams along Function Lines
Pick the most knowledgeable and productive
members for the teams
Organize a Plan
Define Activities
BPR Activities
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Conduct “AS IS” Process Mapping
Gather Benchmarking Information
Conduct “TO BE” Process Mapping
Conduct a SWOT
Develop MEO
Present MEO
Approve MEO
Meet & Confer
Time Line
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It took from April 2006 to May 2007
Aggressive Time Line
Some City organizations are still working on
their BPR
Meet & Confer – Major time investment
We are still discovering things “we did not
know, that we did not know!”
Expect a time line of 12-24 months
Results
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Consolidation of three fleets into one
organization
Savings
35 Full Time Equivalent (Staff)
 $3.5 Million Annually
 Eliminated two Unclassified Positions
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Established the Internal Service Fund for all GF
Departments
One Organization responsible for Fleet
New Organization
Internal Service Fund (ISF)
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An Internal Service Fund in place for all
Departments except Police & Fire
Police & Fire had an overage/mileage fleet of
50-75%
Under the ISF, Public Safety took on a #1
Priority
Police will take another 1-2 years
Fire will take another 4-7 years
Lease-Purchase a good financial tool
Fleet Creep
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We ALL Face It!
Establish a fix set of Criterion to start
SD uses 5K Miles or 500 Operating Hours
Run a report twice a year
Establish a positive working rapport w/
customers
Take into account customer restrictions
Use the authority of the Executive
Savings of $12 Million
Ideas to Consider
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Customer Visits / Rapport / Training
Benchmarking – Fleet Answers
Consortium Buying Power
Staff, Fuel, Parts – Highest Costs – Know the
details
Printers versus Copiers
Fleet Replacement Policy – Lifecycles
Invest in your Staff Professionalism
Recycling – Tires, Oil, Paper, etc.
John E. Alley
Deputy Director, Fleet
Services
City of San Diego, CA
[email protected]
(619) 527-6020
LEASE PLAN
Place Image Here
100 Best Fleets
Maximizing Your Fleet Resources
Today’s Agenda
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Government Fleet Goals
and Objectives
Helping You Reach Your
Goals
Solutions Employed
LeasePlan Leadership
Strategic Fleet
Management
Benchmarking
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Consulting
Reporting
Maintenance & Repair
Management
Accident Management
Fuel Management
Review of Government Fleet Goals & Objectives
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Current State
Desired State
Reduced tax revenue
Budget shortages
Delayed purchases
Unhappy stakeholders
Unsafe work conditions
Unusable assets
 Meet goals & objectives
 Acquire vehicles as
needed
 Provide optimum service
within budget
 Provide safe and reliable
vehicles
First Things First – The “O”
Word
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Maximize Your Fleet Resources
What Is The Most Efficient Way To
Accomplish Your Goals?
How Does It Work At Home?
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Yard Work
Electrical
Plumbing
Major Construction
How Can Outsourcing Work For You?
Fleet Services
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Maintenance & Repair
Management
Accident & Risk Management
Fuel Management
Fleet Consulting
Acquisition and Disposal
Acquisition Management
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Acquire Vehicles With
Transparent Pricing Formula
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Potential Savings Over “State
Bid” Pricing
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Reduced Acquisition
Administration
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Single Source For All Makes
And Models
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100% of Manufacturer
Incentives Passed to Fleet
Benefits to Government Fleets
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Measure fleet performance
Data analytics
Improve efficiencies
Reduce spend
Enhance savings
Validate decisions
Drive down total cost of
ownership
Thank you!
Matthew Betz
VP, Government Fleet Services
404.610.4187
[email protected]
Fleet Forum Webinar of Best
Business Practices and Innovations
from the 100 Best Fleets
FLEET COST SAVING IDEAS
COST SAVING IDEAS
Dave Vasquez
 Currently - Manager Fleet Services
SECO Energy Sumterville , Florida .
 Formally - Fleet Maintenance Director
Lake County – Tavares, Florida.
 Winner - 2010 NAFA Larry Goill Award
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Assignment Justification
Model
Vehicle Justification Model
Calculates Justification for a Vehicle Assignment
 Uses Cost of Capital and Actual Vehicle Cost
 Defines cost of ownership by year, month and mile
 Identifies Business versus Commuting Usage
 Calculates Business versus Commuting Costs
 Uses variable data and adjustable LC parameters
 Defines Fuel, Maintenance, and Insurance Costs
 Uses Maintenance costs based on Accumulated
Mileage
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Hi Dave,
I love what you have done with this spreadsheet model. I think your improvements are significant enough
that they could win you a Larry Goill Quality Fleet Ideas Award so consider submitting it. It is gratifying to see some
of my work put to use helping improve fleet management elsewhere. Oddly enough seeing that you are also presenting
a labor rate development model, I won a Larry Goill Award the first year it was so named for a budget model
spreadsheet that I developed in St. Louis County to set my fully-burdened labor rates, parts markup, fuel markup and
commercial markup.
I'd appreciate seeing your presentation file after you present and adjust it. It might make a great presentation to share
with other chapters or to use as a Webinar.
Thank you for sharing your work with me and NAFA. If you enjoy education development and presenting, I'd love to
discuss an appointment to a national committee with you. I have always found it fulfilling as a great opportunity to
grow as a professional.
Chris
Christopher D. Amos, CAFM
Commissioner of Equipment Services
City of Saint Louis, Missouri
MONEY
FUEL
Insurance
MPG
Mileage
Commuting
DAYS
IRS Rate
That concludes my presentation on the vehicle
justification model.
As you have seen - the model is designed to
simplify vehicle justification – making it hard to
argue with the results.
It was recognized by NAFA as a simple method
for helping control Fleet costs. Thank you.
Best part … it is Free
Please send me an E-mail if you’d like a free
copy or if have any questions.
David [email protected]
352 -793 3801 ex. 1071
Presenter
Greg Haglin
Contract Manager
National Joint Powers Alliance® (NJPA)
Fleet Webinar
June 17, 2010
GOVERNMENT
HELPING
GOVERNMENT
R.F.P. ?
Not for me!
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Who is NJPA ?
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NJPA is the National Joint Powers Alliance®
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A governmental agency
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Directed to serve all:
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Created by State statute
Governed by publicly elected board
Government
Education
non-profits
Membership - No cost, No obligation, No liability
More than 31,000 member agencies
NJPA - Our purpose
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Create efficiencies for you
NJPA offers governmental purchasing contracts, which were
competitively bid nationally
We bring buyers and suppliers together
Contract Purchasing……..
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No need to establish and/or duplicate bid docs or bidding and
contract process
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Your membership ties your agency to our procurement files
National volume pricing and full line of contracted products
Purchase through your local dealers, referencing our awarded
contract on your p.o.
A valid alternative for purchasing agents that won’t use “piggybacking” or negotiated bids
CHOICE…… is an option municipals deserve
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Products you want
Ability to standardize - reduction of parts inventory
“Just in time” inventory in some cases
Features & Benefits of Leasing
National Cooperative Leasing
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Leverage annual appropriations by 3, 4 or 5 times!
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Ask Questions, Be Creative, Find the Best program for You.
A $25,000 budget appropriation, may provide enough "buying power" to place $100-125,000 of new
equipment into service, today!
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Faster, less complicated and much less expensive than other forms of public
debt.
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A lease is not treated as debt. Nor does a municipal lease contribute to your
debt ceiling. The obligation is a current expense subject to the annual
appropriation of funds.
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Carl W. Langner
220 22nd Avenue East, Suite 106
Alexandria, MN 56308
Cell:
320-491-7821
Phone:
866-763-7600
Fax:
866-763-9600
E-mail:
[email protected]
Website:
www.nationalcooperativeleasing.com
California Statute
Title 1 Div. 7 Chapter. 5 Article 1
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§ 6500 Gov't.
As used in this article, "public agency" includes, but is not limited to, the
federal government or any federal department or agency, this state, another
state or any state department or agency, a county, county board of education,
county superintendent of schools, city, public corporation, public district,
regional transportation commission of this state or another state, or any joint
powers authority formed pursuant to this article by any of these agencies.
…continued…
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§ 6502 Gov't.
If authorized by their legislative or other governing bodies, two or more
public agencies by agreement may jointly exercise any power common to the
contracting parties, even though one or more of the contracting agencies may
be located outside this state. It shall not be necessary that any power
common to the contracting parties be exercisable by each such contracting
party with respect to the geographical area in which such power is to be
jointly exercised. For purposes of this section, two or more public agencies
having the power to conduct agricultural, livestock, industrial, cultural, or
other fairs or exhibitions shall be deemed to have common power with
respect to any such fair or exhibition conducted by any one or more of such
public agencies or by an entity created pursuant to a joint powers agreement
entered into by such public agencies.
Membership List
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NJPA has more than 31,000 members nationally
To access membership list: www.njpacoop.org
Click on the “marketing button” on the home page
Click on “membership” and enter the password “value”
Bookmark this site - it is updated periodically
Closing thoughts……
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NJPA may not be the answer to all of your budget issues, but we
can help in some areas.
Visit our website to reach your own comfort level with our
agency and our contract purchasing alternatives.
Read your local purchasing laws regarding contract (cooperative)
purchasing.
Contact your local dealer for pricing, using their NJPA awarded
contract.
Why not start today by joining NJPA?
…another look at some purchasing solutions available to you…
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Thank You!
Greg Haglin
Contract Manager
National Joint Powers Alliance® (NJPA)
200 First Street NE
Staples, MN 56479
(218) 894-5488
[email protected]
www.njpacoop.org