Presentation Outline

1. Presentation Outline 5:00 My Introduction … 10:00 AMS – “speed of business”, measures, AZDOR 30:00Process Review I. Huddle Board II. Coaching III. Gemba Walks 10:00 Wrap Up and share other tips, tricks and ideas …

2. Process Review

3. INTRODUCTION to AMS10:00 mins

4. A Case Study in State Government: Implementing the Arizona Management System

5. A Case Study in State Government: Implementing AMS at Arizona Department of Revenue (ADOR)

6. The Vision

7. “Tracking and Improving Performance”

8. Arizona “Speed of Business” categories • Respond Faster - Total Elapsed Time between initial contact and meaningful response. • Resolve Faster - Total Elapsed Time between awareness of the issue and meaningful resolution. • Decide Faster - Total Elapsed Time between customer request and agency decision. • Increase First-pass Compliance - A passed inspection means that there was no formal or informal enforcement action. • Serve More Citizens - Citizens directly benefiting: a key service provided by an agency that directly benefits a group of citizens. • Increase Customer Satisfaction - Reviewing customer input and feedback will help agencies identify and resolve service related problems. • Finish Projects On Time - % Schedule Adherence • Finish Projects On Budget - % Budget Adherence • Pay Bills On Time - Days to Pay: Total Elapsed days between initial invoice and payment.

9. 1. # OF AGENCY FTE COUNT Metric Description: Number of active employees in HRIS (excluding board and commission members, interns, volunteers, and “pool” positions) 2.ARIZONA MANAGEMENT SYSTEM IMPLEMENTATION SCORE Metric Description: Metric Actual is reported as a number (#) from the ‘FY18 AMS Assessment Agency Implementation Score’ and based on the average maturity of each component across the organization. 3. # OF REGRETTABLE ATTRITION Metric Description: The number of voluntary separations of employees whose performance ratings were meets expectations or better (e.g. MAP score of 2.0 or higher) AND whom the agency indicated they had planned to retain the employee 4. # OF ADMINISTRATIVE RULES IMPROVED OR REPEALED Metric Description: # of administrative rules eliminated or streamlined by your agency - An improved rule is defined as the repeal of a rule that is overly burdensome, antiquated, contradictory, redundant, or nonessential; or modification of a rule to reduce regulatory burden Standard Agency Performance Reporting Metrics

10. 5. # OF BREAKTHROUGHS ACHIEVED Metric Description: Count of current Breakthrough metrics that have been completed and moved to operational / sustainment on the scorecard bowling chart. 6.% OF SERVICES ONLINE Metric Description: # of agency services provided online - Online defined as where the entire process from the customer perspective can be completed electronically. (No physical mail, wet signature, or office visit requirements) 7. # OF IMPROVEMENT IDEAS IMPLEMENTED ORIGINATING FROM AGENCY EMPLOYEES Although this statewide metric is currently pending, agencies should begin considering how to track this data. 8. # OF IMPROVEMENT IDEAS IMPLEMENTED ORIGINATING FROM CUSTOMER FEEDBACK Although this statewide metric is currently pending, agencies should begin considering how to track this data. Standard Agency Performance Reporting Metrics

11. Doing More Good for Arizona Tracking and Improving Performance

12. Doing More Good for Arizona

13. Function: Fund Arizona’s Future • The Arizona Department of Revenue (ADOR) administers collection and distribution of individual and corporate income, transaction privilege (sales), withholding, and luxury taxes. • ADOR is also responsible for oversight on property tax and unclaimed personal property. • The Department recognizes the trust Arizonans have placed in the agency to protect their confidential tax information and to securely collect the taxes that continue to fund programs critical to Arizona’s future.

14. Balance Sheet

15. “ADOR employees working together solving problems using data driven decisions that focus on customer value.”

16. Go Team(s), Go !!

17. “Decisive and deliberate actions… to deliver more efficient and effective services.”

18. “This ambitious program remains a priority …”

19. AMS Adoption is a Goal linked to the Strategic Plan

20. - Deploy …, Measure …, Implement Ideas…

21. An intentional, results-driven approach … … teams coming together on a regular (daily or weekly) cadence to reflect on how they are doing the work that matters most to their agency’s mission, finding the gaps between actual and expected performance, and deploying countermeasures when necessary to get back on track …

22. An intentional, results-driven approach … … so that every employee, at every level, with discipline, reflects daily on how they did, finds the waste, and decides how to do better going forward with sustainable progress …

23. Leader Standard Work Leader Standard Work is a set of actions, tools, and behaviors incorporated into the daily work of leaders. • Applies to each management level in an organization (i.e. supervisors, managers, directors, etc.) • Examples of leader standard work include: • One-on-ones (work reviews) • Coaching on & encouraging employees to become problem solvers • Participating in Gemba “Walks” Regular attendance at your team’s huddle meetings (led by department employees)

24. │ │ │ │ │ │ │ │ │ │ │ │ │ │ “Content” “Process” Leaders Drive Culture Change

26. Process Review

27. I.) HUDDLE (Idea Kanban)(part of LSW…)15:00 min

28. Huddle Boards contribute to 5 of 11 AMS Categories • Scorecard/Business Review • Breakthrough Projects • Leader Standard Work (LSW) • One on One Coaching • Gemba Walk • Visual Performance Management (Metrics) • Workplace Organization / 5S • Tiered Huddles • Standard Work / Visual Process Adherence • Basic Problem Solving • Intermediate Problem Solving

29. Huddle Boards • High-level Overview

30. Team Name (Locator Code) Huddle Time: Wednesday 9am Huddle Board Components

31. Team Name (Locator Code) Huddle Time: Wednesday 9am Huddle Board Components: Team

32. Team Name (Locator Code) Huddle Time: Wednesday 9am Huddle Board Components: Performance Metrics

33. Team Name (Locator Code) Huddle Time: Wednesday 9am Huddle Board Components: Improvements

34. Team Name (Locator Code) Huddle Time: Wednesday 9am Huddle Board Components: Kudos

35. Honest and Open Communication

36. II.) COACHING10:00 min

37. II. Coaching • Scorecard/Business Review • Breakthrough Projects • Leader Standard Work (LSW) • One on One Coaching • Gemba Walk • Visual Performance Management (Metrics) • Workplace Organization / 5S (where appropriate) • Tiered Huddles • Standard Work / Visual Process Adherence (VPA) • Basic Problem Solving • Intermediate Problem Solving

38. Purpose – Why Do 1:1 Coaching? • Embed 1:1 coaching as an AMS standard and leadership capability • Facilitate alignment on expectations and enable quick course corrections • Increase problem solving capability and employee development • Achieve stronger results & behaviors • Build stronger relationships of trust

39. AMS 1:1 Coaching Standards & Guidelines c c

40. 1 Prepare • Schedule regular 1:1s • Observe & reflect on performance from Huddle Board metrics, customer feedback, standard work and process adherence, etc. • Create the meeting agenda from the Discussion Points listed on the 1:1 Coaching Notes Sheet. • Identify opportunities to recognize good work and prepare to address any performance concerns. • Build the employee’s problem solving skills by coaching through the PDCA cycle.

41. AMS 1:1 Coaching Tools

42. Coaching Through the PDCA Cycle • PLAN THE WORK • What is the goal and plan to achieve it? • How will you know when the work is done right/well? • How will you measure results (performance measures)? The GROW Coaching Model PLAN Set Targets, Expectations and Standards • TAKE ACTION TO CLOSE GAPS • What action will you take? • Is it the best action to close the gap to meet your goal? • What is your first step? • When will you take it? • DO THE WORK • What work are you doing? • Are you measuring your results? Are you on track? • Will this work help you meet your goal(s)? • What’s your next step? Coaching Through the PDCA Cycle ACT DO Take Action to Close Gaps Measure Results Against Targets CHECK Identify Gaps Between Targets and Results • CHECK THE WORK FOR GAPS • Did you hit or miss the target? • If there is a gap, what caused it? • What could you do to close the gap? • What are your options (countermeasures)?

43. 2 Facilitate • Facilitate open, honest dialogue, specific to employee needs. • Provide feedback – celebrate often and adjust performance as needed. • Build the employee’s problem solving skills by coaching through the PDCA cycle. • Capture discussion points, including counter-measures, key decisions, actions and tasks to be completed.

44. Manager’s Notes Employee’s Notes x x Chris Lee Chris Lee 3/15/18 Alishia Jay Alishia Jay 1/15/18 • Wins? • MS Word training Feb • HB shows Tracking Project is on track • EA feedback? Karen complaint… no input • (Use PDCA) • Vacation request • Talent Matrix Meetings • Current Project Status • Room issues • Vacation was approved CL: Schedule class before 1/19 and email confirmation to Alishia • Schedule class before 1/19 & email confirmation to Alishia CL: Follow-up with Karen in Cust Svc to get input by COB Friday • Check availability of rooms not publicly listed or… • Ask if those in large room could move to smaller room CL: Check availability of rooms not publicly listed or… Ask if those in large room could move to smaller room • Talent Matrix Meetings • Begin 2/12 • Not enough rooms to seat 30 people • Follow-up with Karen in Cust Svc to get input by COB Friday • Approved Vacation • March 19-23

45. 3 After Actions • Reflect on the employee’s performance and take action if course correction is needed: • If the employee continues their current performance & behavior, will they achieve goals and be successful long term? • Does the employee demonstrate the State’s Core Values and Beliefs in their daily actions: • Core Values: Do the right thing? Commit to excellence? Care for one another? • Core Beliefs: Seek to understand and provide solutions for customer needs? Identify & solve problems? Improve processes and measure results?

46. Governor’s Fundamentals Map 06.01.16 * Indicates the measure is active and measure history is known or it is a brand new measure with no history measure

47. Manager Reflection 3 After Actions 06.01.16 * Indicates the measure is active and measure history is known or it is a brand new measure with no history measure

48. Employee Reflection 3 After Actions 06.01.16 * Indicates the measure is active and measure history is known or it is a brand new measure with no history measure

49. III.) GO TO GEMBA5:00

50. GEMBA WALKS Preface: When we talk about Gemba Walks, we are really referring to leadership members - from the director to front-line supervisors - going where the work is being performed and discussing with employees problems they face with the work they do. Gemba Walks, are intended to provide an opportunity for direct discussions with employees on how to better improve the process. This up-close, grassroots employee-engagement approach is showing positive results on opening up the discussions to new ideas.