APPENDIX A (cont'd)

A. BENCHMARKING EXAMPLES (cont'd)

Performance Measurement:

8. Performance Benchmarking (Revenue Canada and IRS)

Revenue Canada: The Department has published service standards for several of its services. It continues to develop new standards as part of a broader approach to provide informative, transparent & quality services. For many years the Department has produced statistics on the quality and quantity of production, at a program level, for offices involved in income tax activities. Year over year data is used as benchmarks to report results.

IRS: The Internal Revenue Service of the United States has applied performance benchmarking in their Tax Processing Centers. As tax forms were processed, results were posted in each Centre on bulletin boards so that staff could see performance comparisons of each of the other centres for the same work and with previous year's performance.

Contacts: Bruce Lawrence, Corporate Development Division, (613) 954-6085; Teresa Errett, Corporate Development Division (Service Quality), 952-7098

9. Change Initiatives - Measuring Local Progress (Revenue Canada)

Some offices hold a 3-day, facilitated workshop to assess progress implementing service quality. Prior to the workshop, employees fill in a questionnaire on progress in improving service, employee involvement, leadership, communications, work processes, etc., after 1-2 years of change initiatives. Employees are asked whether change occurred and the degree of change in order to establish old and new benchmarks. The results are presented to workshop participants (a cross-section of staff including management team members). It includes progress and areas to work on, as a basis for immediate discussion and the development of plans of action and follow-up.

Contacts: Bruce Lawrence, Corporate Development Division, (613) 954-6085; Dora Lee, Management Consultant, HR Branch, (613) 998-5764

10. A Framework For Benchmarking IT Applications (Revenue Canada)

Cost and performance models are being developed for IT applications. The models will enable work teams to benchmark the performance of each subsystem to the divisional and branch averages. A first annual baseline assessment is nearing completion. The processes and software tools needed for continuous metrics are being developed.

• Subsystems in Production:

• Subsystems performing in the top quarter can be examined for best practices; those in the bottom quarter examined to determine root causes, estimate potential resource recovery and make business cases for improvement.

• Development of New Systems:

• The business size of the specifications can be measured repeatedly through the development cycle to manage the scope of work. The total cost and costs by stage can be estimated and controlled throughout the project life cycle.

• Analysis of Productivity Factors:

• Trend analysis can be used to discover portfolio life cycle management strategies. Each staffing tactic, work management method, quality management method, systems development technique, technical tool, or technology can be benchmarked to branch averages to discover its degree of positive or negative influence.

Contact: Watson Seto, Project Leader, ITB Metrics, (613) 954-6751

11. Two Industry Examples[7]

Boulangeries Weston Quebec

The nature of the business made identifying objectives and measures based on a quality management program relatively easy. Accounting by activity was adopted to measure the viability of each product and quality and performance standards such as rejection rate are posted throughout the plant. The most important factor is that employees actually understand the significance of these measures - that the profit lost due to the rejection of one loaf of bread can only be recovered by producing 5 additional loaves.

Ault Foods Limited

Ault has applied a "Human Resources Index" to measure the value and quality of human resources. The HR Index has been rigorously tested and Ault has demonstrated that there is a significant relationship between index results and corporate performance at the operating level. Management uses this tool as a measure of employee response to change initiatives and as an indicator of the need for human resource management interventions.

B. Best Practices To Learn From / Benchmark Against

Departments, agencies and Crown corporations provided the following best practices to learn from or use as part of a benchmarking initiative. These sample practices are intended as a beginning and as a possible model for others who will contribute practices to future editions of this Guide or to data bases like the Interdepartmental Quality Exchange and CCMD's Management Resource Centre. Contacts for accessing these data bases are given throughout this Guide and in Appendix B.

12. Mail-in Program To Replace Interviews For Inland Immigration (Citizenship and Immigration)

A study showed that nearly 80% of the immigrant admissions workload was generated from six categories of applicants from within Canada. Approximately 100 points of service existed across Canada to handle applications, and staff members traditionally met applicants in an interview setting. A "mail-in" processing project was started in April 1994 to replace the existing processes. Two application processing centres were established: one in Vegreville, Alberta, the other in Mississauga, Ontario.

Results:

• The mail-in program reduced the points of service by nearly one-half.
• Approximately 30% reduction in regional workload and operating costs was achieved.
• The $12.5 million investment in the two processing centres will be paid back within two years since the net result was to realize annual savings of $6.5 million.
• A higher client satisfaction was recorded (e.g. shorter turn-around time).
• A consistent quality of decision-making was achieved.

Contact: Peter Hill, Chief, Planning and Renewal, (819) 997-8174

13. Quality Management Program (Fisheries and Oceans)

Restructuring and downsizing were the major reasons for initiating a new inspection system. A Quality Management Program (QMP) was implemented by the department in 1992. Members of the fish products industry now are responsible for monitoring their own processes and products while the department monitors the industry. The QMP involves a rating system whereby plants with a history of high levels of compliance are monitored less frequently.

Results:

• The number of plant inspections was reduced by more than 50%. Inspection efforts are directed to areas that require closer monitoring.
• Service standards (time frames) are monitored nationally for inspection activities.
• The inspection system is highly regarded by others, meets various international standards and maintains Canada's reputation for producing high quality fish products.

Contact: Vance McEachern, Inspection Directorate, (613) 993-6930

14. Grants and Contributions Management (Health Canada)

Health Canada has a goal to provide a uniform departmental Grants and Contributions (G&Cs) delivery model to replace over 20 different forms and a variety of automated systems to track applicants. In March 1995 a report was issued recommending:

• finalize and adopt a generic application form & contribution agreement;
• provide electronic access for clients to G&C application & program material;
• integrate a hybrid shareware and off-the-shelf G&C applications;
• set evaluative criteria and performance indicators.

Expected result:

The application processing time will be reduced and the approval process expedited.

Contact: Ottley Lacelle, Chief, Systems Development, (613) 952-9532

15. METS Process Improvement Teams PIT Kit (Natural Resources Canada)

The Mineral and Energy Technology Sector's PIT Kit is a guide to forming, leading and participating in a process improvement team (PIT). Members of the METS Quality committees, former PIT members and facilitators contributed to the development of this document. It provides a wide range of information starting with what a PIT is all about, how and why it is formed, what goes in a team's mandate, how to choose the members, what their role is, etc. It also includes many practical techniques to use during their meetings, i.e. how to map a process, how to conduct surveys, etc. Finally, this kit contains an inventory of PIT activities, and a list of trained facilitators.

Contact: Gisèle Vazquez, TQM Office, (613) 992-6255

16. Payment Authorization Centre (Province of Quebec)

Quebec's "Centre d'autorisation et de paiement des services de santé Inc. (C.A.P.S.S.)" is an electronic data interchange (E.D.I.) network for real-time transmission, validation, authorization and payment of claims in the health care field in Quebec.

Results:

• C.A.P.S.S eliminated the use of forms, centralizes and validates information, minimizes the application process, time and costs; provides better levels of service; better control over program access and payments;
• Services are available in 95% of pharmacies throughout Quebec. There are 265,000 users and 6,600 businesses using the services of C.A.P.S.S.;
• The audit function was eliminated and human resources reduced by 18%;
• Pharmacists receive payments during same working day.

Contact: Johanne Brosseau, (514) 289-2842

17. New Business Relationship (Revenue Canada)

In an unprecedented partnership with Canadian business, the Department has been moving to fundamentally alter the administrative procedures for importing commercial goods into Canada. This effort has been complemented by extensive consultations with a cross-section of businesses, trade associations and other government departments. The New Business Relationship is designed to significantly reduce the costs and complexities of importing and to facilitate the competitiveness of Canadian companies through concepts such as electronic commerce, streamlined reporting and release, audit verification, and increased client assistance. Companies estimate they will save tens of millions of dollars over the next several years due to these tailored options and streamlined procedures.

Contact: Diane Tait, (613) 941-0096

18. Supporting Volunteers Serving Canadians (Revenue Canada)

The Community Volunteer Program is composed of volunteers who help the elderly, shut-ins, the disabled, single parents, etc. complete income tax forms; people who might have difficulty fulfilling their obligations and receiving their refunds. Revenue Canada supports volunteers with training and instructional materials. It also surveys volunteers to gauge results and use their comments to improve tax forms & procedures. For 1994, the 7,117 volunteers who responded to survey (54%) said they helped over 200,000 people.

Contact: Monique Sike, Client Services Directorate, (613) 957-9370

19. Consolidating Revenue Canada (Revenue Canada)

Legislation was passed to enable the "consolidation" of Revenue Canada - Taxation and Revenue Canada - Customs and Excise. Implementation was via an Administrative Consolidation Project Team, regional project teams, office-level project teams, full-time co-ordinators, extended and extensive consultation with staff and internal clients, several models of possible structures / territories / service models produced for management consideration. Levels of internal administrative services were maintained and major savings realized.

Contact: Dorothee Bouwhuis, Corporate Development Division, (613) 954-6086

20. Tax Information Phone Service (T.I.P.S.) (Revenue Canada)

A country-wide telephone information line called the Tax Information Phone Service (T.I.P.S.) features pre-recorded voice messages that provide clients with general and personal income tax information. Clients identify themselves and request information using the keypad of their telephone. T.I.P.S. provides clients with immediate answers to routine questions thereby allowing enquiries officers to concentrate on answering the more challenging questions.

Contact: Darlene Ouellet, Client Services Directorate, (613) 957-2929

C. Best Practices Sharing Examples

In some of the following examples the ways best practices are shared (i.e., face-to-face, on paper or electronically), are best practices themselves (e.g. Citizenship and Immigration's "Maximizing Electronic Mail For Sharing"). In other cases the emphasis is more on a continuous improvement process and the results of the best practices sharing (e.g., Revenue Canada's "Improving Communications Using Best Practices").

21. Maximizing Electronic Mail For Sharing (Citizenship & Immigration)

Virtually all of our approximately 60 overseas and 100 Canadian offices are connected electronically. What has emerged is that managers in these far flung offices have begun, quite spontaneously, to use "E-Mail" to share information and best practices and to broadcast calls for information and assistance to colleagues, 1 or 2 colleagues in some cases or a more general broadcast for help in others. Usage of this practice is increasing because people are seeing the obvious benefits, because they are getting used to networking electronically and also because it makes sense to be seeking assistance and support during these periods of rapid change.

Contact: None. It is like InterNet: self-managing and informal.

22. The IPAC Collection (CCMD)

CCMD is making available the Institute Of Public Administration Of Canada (IPAC) collection of award applications. The several hundred IPAC applications provide information on management practices at all levels of government. The collection is available for viewing at CCMD.

Contacts: Margot Brown, (613) 996-6165, John Dingwall, (613) 995-6019

23. Improving Communications Using Best Practices (Revenue Canada)

Senior management and Revenue Canada's (10,000+) Audit community were looking for ways of improving communications and auditor effectiveness. Each field and HQ office was asked to form a committee of a cross-section of employees to report communication best practices, barriers & recommendations. A report including the best practices was sent to the Audit committees in each office for action. Most practices involved face-to-face contact with opportunities to ask questions, comment, share and develop ideas, see the reaction of others, etc. The leader's role in initiating and sustaining communication processes was stressed. There were many examples of how leaders shared information, held effective meetings (town halls, skip-a-step, team, cross-divisional, etc.), involved staff in problem solving and improving services, championed staff ideas, empowered staff, etc.

Contacts: Barry Paulson, National VECR Committee, (613) 952-7426; Loretta Bemister, National VECR Committee, (604) 666-8557; Marcel Ricard, National VECR Committee, (613) 941-0909

24. Internal Electronic Sharing (Revenue Canada)

Managers, trainers, consultants & team leaders wanted to electronically share the best practices from Revenue Canada's change initiatives.

• When 100 practices were written up, they were put on "conference boards".
• Practices usually are on 1 screen, describe results, have a contact name and tel. number.
• Practices are grouped under Service and Organizational Development topics.
• Authors input practices without vetting. System adds name. No problems in 3 years.
• 800 letters and growing.

Lessons Learned:

1. Keep It Simple - a brief description, contact name and telephone number.
2. Use existing platforms (low cost and low learning curve).
3. Work with innovative employees to write out 50-100 best practices. Get permission for contents and sharing. Arrange by topics and begin electronic sharing.
4. Market continuously - electronic messages, presentations, newsletters, etc.

Contacts: Bruce Lawrence, Corporate Development, (613) 954-6085; Andrée Tremblay-Thomas, Corporate Development, (613) 952-1928

25. Using Newsletters To Share Best Practices (Revenue Canada)

Revenue Canada has many internal newsletters published by district offices, work areas and interest groups. Over half were created during the period of the Administrative Consolidation of Customs and Excise, and of Taxation into one Revenue Canada, and of their respective continuous improvement initiatives. Most include a wide variety of information and the sharing of best practices.

At least one "Talking Newsletter" is produced using the existing telephone system. The system is accessible from either inside or outside the office (many employees work outside the office). Employees dial the telephone number, enter the password, followed by the number of the menu they want, in order to hear a recorded message.

Contact: Francine Chartrand, Corporate Development Division, (613) 954-8230

26. Best Practices Fair (Revenue Canada)

In December 1992, the Customs Programs Branch, Trade Administration committed itself to a new set of operating principles - "to judge ourselves by how well we served our clients, and by how well we treated each other". The ADM challenged employees to turn these principles into reality by starting projects within each work unit that would improve service to the public and the work environment.

Several months later, all employees of the Branch were invited to the "In Search of Excellence" exhibition of Branch exemplary practices to share the results. Over 60 exemplary practices were exhibited in kiosks manned by Branch staff. There was a sense of pride of accomplishment, of sharing, of learning from colleagues; surprise at the ingenuity, creativity and humour in preparing the exhibits; and satisfaction from the variety of service and organizational improvements.

Contact: Tia McEwan, (613) 954-7403

27. Innovation And Quality Exchange (IQE) (Treasury Board Secretariat)

The Treasury Board Secretariat is posting examples on Internet of initiatives of departments, agencies and Crown corporations which significantly raised service levels or lowered costs. Information is presented on total quality management, service standards, activity-based costing, cost reduction, outsourcing, re-engineering, commercialization, etc., along with the names of contact persons to exchange experiences and practices.

Twenty initiatives have already been posted. Initiatives have metrics associated with them. Public sector managers can find out what world class performance is for their business line, as described in the IQE's classification system. Future plans include a news group for dialogue on re-engineering and quality. You can hyperlink to the Innovation and Quality Exchange from the Treasury Board Secretariat's home page located on the World Wide Web at the following address: http://www.tbs-sct.gc.ca/

Contact: Adel Shalaby, Treasury Board Secretariat, (613) 957-2493

28. HR ConnEXions (Treasury Board Secretariat)

HR ConnEXions is an electronic repository of best practices from departments and other parts of the government, submitted by the authors. Over 100 notes were posted in 1991. About another dozen examples were added since. The information is in summary form (one screen), bilingual and provides a contact person's name. We are looking at how to update information and to be part of a larger contemporary electronic sharing of practices.

Contact: Danielle Zierl, Treasury Board Secretariat, (613) 957-3725

29. Interdepartmental Quality Network (IQN) (Treasury Board Secretariat)

Public servants interested in quality, from federal government departments, Crown corporations and agencies, meet the first Thursday of every month to share experiences, practices and common concerns. They get involved in conferences such as the "Quality Learning Event", editing the Transformation bulletin, contributing best practices to the Interdepartmental Quality Exchange (IQE) and other fora, etc. Many were involved in preparing the quality service publications, including this Guide.

Contact: Chris Dodge, Treasury Board Secretariat, (613) 957-2484

30. Transformation Newsletter (Treasury Board Secretariat)

Transformation is a forum for federal employees to exchange ideas about changes, and to share our experiences and approaches in delivering quality services. The first issue - Fall 1995, had articles on "Changing the Corporate Culture", "The Plus Is Putting People First (Health Canada's Learning Centre Plus), "A Few Words From Art Eggleton", "Update on Downsizing", "Sharing Services: Sharing Success" and "Pushing the Envelope for Open Government". Most articles have contacts and tel. / fax numbers.

Contact: Terri Doherty, Treasury Board Secretariat

31. Improving The Employment Situation Of Employment Equity Target Groups (TBS)

A "Best Practices" study was done on the employment of Women, Persons with Disability, and Aboriginal Peoples in a range of Canadian organizations to help the Federal Government improve the employment situation of target groups. Recruitment, training, development, counselling and community support initiatives were documented to provide departments with ideas. A best practices framework was provided to assist departments to design strategies. A "compendium of ideas for managers" was prepared.

Contact: Emmanuel Tsèvi, Treasury Board Secretariat, (613) 952-3053

32. Electronic Registries To Track Progress / Best Practices

• Canada Mortgage and Housing (CMHC) has an electronic data base in which the progress and emerging best practices of "Business Improvement Teams" are recorded.
• The Internal Revenue Service (United States) has used a central computer registry to track progress and best practices of Quality Improvement Teams throughout the service.

Contacts: Susan Smith, (CMHC), (613) 748-2323; Bruce Lawrence, Revenue Canada, (613) 954-6085

33. Continuous Improvement GE-Style (General Electric)[8]

Fortune Magazine described how the GE corporation transforms itself using 3 continuous improvement methodologies - division-size employee "workouts" to get action on key service and organizational issues, "process mapping" by employee teams to reengineer complex processes and "best practices" sharing to accelerate the pace of change.

34. Re-engineering With Love (Corning)[9]

Corning is described as a model to emulate when reengineering and sharing practices. Its initiative began with setting objectives that included employment protection. Employees and internal facilitators carried out reengineering using continuous improvement methods. The results were significant process improvements and cost reductions without major job losses. Another result was greater acceptance and trust of reengineering projects. The sharing of best practices was an important feature of this methodology.