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U.S. DEPARTMENT OF LABOR
Working Together for Public Service




Snapshot: STATE OF OHIO

Improving the delivery of public services through labor-management cooperation "isn't about hitting home runs," says Steve Wall, director of Ohio's Office of Quality Services. "This is about hitting single after single after single after single. You score a lot more runs that way."Steve Wall and Paul Goldberg, executive director of the Ohio Civil Service Employees Association (OCSEA), an affiliate of the American Federation of State, County and Municipal Employees, made a presentation to the Task Force of their comprehensive cooperative labor-management relationship. As they explained, in the three years since Ohio launched its Quality Services through Partnership (QStP) initiative, more than 100 improvement teams have scored numerous, tangible results that are adding up to increased customer satisfaction and cost savings through reduced errors, elimination of delays and increased employee productivity. (See below, "Highlights of Improvement Teams" and The purpose of QStP is to transform state government into an organization where employees work together to continuously improve how work is done. Ohio Office of Quality Services materials assert, "We must unleash each employee's creativity and identify new ways to do our jobs more effectively. QStP supplies us with the knowledge and tools that will enable us to streamline the bureaucracy, analyze problems and improve our ability to respond to customer needs."

Central to the success of QStP is the real partnership between labor and management to improve service delivery, says OCSEA's Goldberg. QStP evolved from an earlier Total Quality Management Program after Governor George Voinovich was persuaded that the real key to quality improvement was cooperation with the state's five unions.

Today, Voinovich says that without labor support, any total quality management efforts will fail. "My feeling is that labor is key to this whole thing."Goldberg is similarly startled by the governor's response. "If you had asked me on January 7, 1991, whether we were going to have this kind of relationship, I'd have said, `No way.' "It is clear that both Goldberg and Voinovich have worked hard to ease the traditional stances of labor and management.

Today, Voinovich does not try to sell QStP as "a way to do more with less." In fact, contract language has been written to ensure that QStP will not result in layoffs, and thus employees feel free to make improvements even if they result in fewer workers in that particular agency or department.

And Goldberg, who admits that "some of the older labor people might think that young turks like me have been co-opted," says he can handle the accusation if that's what it takes to get his members some say in how they do their jobs.

While the state and the unions have agreed to keep the QStP initiative separate from the collective bargaining process, it was noted during the Task Force's hearings that collective bargaining and QStP are like parallel railroad tracks that seem likely to converge at some distant point. At the present time, the parties are establishing trust, building a record of success and learning to work together -- all skills that are slowly creeping into their handling of a range of issues. For instance, QStP has reduced union grievances even though that was not one of its objectives.

The QStP State Steering Committee consists of equal numbers of union and management leaders. In an arrangement typical to successful cooperative relationships, each department also has a steering committee to guide its QStP efforts made up of equal numbers of management and union personnel. To make the leadership structure work, more than 500 union and management members attended partnership training, called "Building Effective Steering Committees." Thus, QStP is developing a network of facilitators and a capacity for providing in-house training in joint quality improvement processes. Both union and management employees provide training and facilitate teams throughout departments, frequently co-facilitating or co-training with their counterparts.

Approximately 10,000 of the 59,500 state employees have completed a 3-day training program on QStP, another 5,000 employees have completed a shorter QStP overview and 120 employees have completed advanced training as QStP facilitators. "Quality forums" are held monthly and draw an average of 350 people. Each two-hour session brings state employees in contact with people and teams who have successfully used the tools and techniques of QStP.

Ohio QStP initiatives are in the beginning stages of implementation and are focused primarily on the first three steps of the state's strategic plan. The plan outlines specific "Steps to Quality" that will:

  1. Build awareness and commitment of QStP with management and union leadership through extensive training. This process goes on continuously.
  2. Develop the plan and structure, including vision and values, partnerships, quality leader and networks, steering committees, agency assessments and strategic planning.
  3. Ready organizations for cultural change, including preparing managers for quality leadership, employees to work as team members, union and management to work in partnership, pilot learning programs and celebrate efforts.
  4. Empower problem-solving at all levels: Establish quality improvement teams; push decision-making down to the lowest possible level; implement employee ideas; inter-agency teams to align organization's processes, and strengthen partnerships and increase communication with all employees.
  5. Integrate quality in all systems as government's business philosophy: Measure success and progress based upon customer requirements, renovate systems to reward team efforts and encourage leadership, move from hierarchies to networks, all agencies mission-driven and customer-focused, and develop customer/supplier relationships with all branches of government and the private sector.

The ultimate goal is to reach the time when the principles, process and tools will simply become the normal, preferred way of doing business. Experts say it will take five to 10 years to achieve the final step, and that people who try to move up the steps too quickly will fail. But with persistence, patience and continuous learning -- underscored by the fundamental belief that incremental change is more long-lasting than home runs -- the state of Ohio intends to successfully reach its goal.

Highlights of Improvement Teams

In addition to millions of dollars in savings thus far,[14] each month, new improvement teams are formed as QStP steadily makes it away through Ohio state government. Following are a few highlights of some QStP team action and results:

Streamlining a process from 28 to five days

The Ohio Department of Transportation purchase-order process had been taking 28 days from start to finish -- a source of constant customer dissatisfaction. A team of people from Purchasing, Accounting, Finance, Data Processing and a District came together to simplify the process. Eventually, they implemented a fully automated process that did away with most paperwork.

Results: The processing time now averages just five days -- an 82 percent reduction! Now, 15 percent of all requisitions are processed in one day. Additional savings are coming in because the new system uses so little paper. Customer satisfaction has been restored.

Adding four years to vehicle life

The effective "life" of a dump truck is about 11 years. After analyzing the factors contributing to dump truck demise, a Department of Transportation team developed a plan for extending the "life" of the fleet at minimal cost.

Results: The team foresees a one-third increase in a dump truck's life span -- from 11 to 15 years. Since there are 129 vehicles in the fleet, at a replacement cost of $55,000 each, the potential savings are enormous.

Saving 59,000 work hours per year

Two accounting systems had been operating side by side in the Ohio Department of Transportation, leading to duplicate entries and data in keeping track of equipment costs. A team put together a consolidation plan, discontinuing the old system and merging data into the newer system. The team was a true cross-functional effort, bringing together people from Finance, Accounting, Maintenance and a District office.

Results: The improvement is saving 59,000 work hours a year, plus an additional $5,800 in eliminated printing expense.

Trimming process time from 12 to 5 1/2 weeks

The process to fill requests for bids, for both services and highway materials, had long been a time-consuming undertaking. The Department of Transportation's Bureau of Purchasing set up a team to streamline the process, eventually developing and implementing five improvement strategies, including a revised procedure for batching bids.

Results: The average time for moving from requisition submission to purchase award has been cut in half -- from 12 to 5 1/2 weeks.

Yearly savings of $11,000

Some 150,000 work hours a year had been spent processing two notorious forms to record vehicle mileage and equipment use. A team took shape, bringing together people from Payroll & Federal Billing, Operations and District Offices. Team members identified better recording methods and ended up discontinuing the old forms.

Results: The work already is paying off, saving the Department of Transportation at least $11,000 annually.