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Welcome

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’Leary@hks.harvard.edu

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Welcome

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  1. Welcome Greg Haglin

  2. Introduction Tom Johnson

  3. 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’Leary@hks.harvard.edu Fleet Webinar June 17, 2010

  4. The Challenge • Challenge: To create real public value with diminishing resources: • Revenue is down at all levels • Demand for public services already exceeds capacity • Incremental improvements will be insufficient to meet the public’s needs

  5. The Response • A “Better, Faster, Cheaper” approach that focuses relentlessly on results. • The “BFC” approach is a two-step method of analyzing government that can be applied to a variety of functional areas

  6. Steps of BFC Approach • Step 1: Reexamine and rearticulate the public purpose of every program. • Step 2: Explore new ways of creating that public value using a variety of “BFC” techniques

  7. BFC Approach: Step 1 Reexamine the public purpose of every program. • 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

  8. “BFC” Approach: Step 2 Explore new ways of creating that public value using a variety of techniques: • 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.

  9. Effective Service Involves Both Government and Private Sector

  10. 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

  11. Contracting = New Challenges • 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

  12. “If We Can Put a Man on the Moon…” • Good Idea • Well designed plan • Get the “Go Ahead” • Implement effectively • Monitor Results

  13. Gale A. Blackburn Vice President, Marketing Driver’s Alert, Inc. 5340 N. Federal Highway, Lighthouse Point, FL 33064 800-741-5454 (extension: 416) gblackburn@driversalert.com Improving safety, lowering costs... One driver at a time.

  14. Ed Finnegan State Auto Insurance Program Officer Risk Management Services Department of Administrative Services

  15. State of Georgia • We self-insure for Workers’ Comp, Property, General Liability and Auto losses. • $160,000,000. per year in operating costs. • $26 Billion in Property Coverage. • Were we in the private sector, we would be the 25th largest insurance company in the world.

  16. Our Fleet/Our Exposure • Over 20,000 vehicles • Steve Saltzgiver is the Director. • We also cover 125,000 state employees while performing their official duties in ANY vehicle.

  17. Comprehensive Loss Control Program • We passed a law allowing us to bill premium to the 160 agencies based on their loss experience, rather than their head count. • The CLCP addresses Loss Control measures in 9 areas, one of which is Auto.

  18. The Auto Component • Driver Qualification Program • Accident Review Panel • Report My Driving Program • We provided deductible and premium incentives and training to cut losses.

  19. Three Year Claims Count FY-08 to FY-09, 14% drop in losses. FY-09 to FY-10, 13.5% drop in losses.

  20. 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.

  21. Real Value • 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.

  22. Driver’s Alert 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!

  23. Ed Finnegan • 404-463-7490 • Ed.finnegan@doas.ga.gov • www.doas.ga.gov • All programs are up and available. Please feel free to use any part.

  24. Fleet Ideas for Success June 17, 2010 Webinar

  25. John E. AlleyDeputy Director, Fleet ServicesCity of San Diego, CA Jalley@sandiego.gov (619) 527-6020

  26. Outline • 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

  27. Business Process Reengineering • 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

  28. What is BPR is Not • It is not reorganizing • It is not downsizing • It is not incremental improvement or superficial changes; it is about dramatic leaps in performance

  29. What is BPR • 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.

  30. BPR Fundamentals • 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

  31. Organizing for a BPR • 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

  32. BPR Activities • Conduct “AS IS” Process Mapping • Gather Benchmarking Information • Conduct “TO BE” Process Mapping • Conduct a SWOT • Develop MEO • Present MEO • Approve MEO • Meet & Confer

  33. Time Line • 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

  34. Results • Consolidation of three fleets into one organization • Savings • 35 Full Time Equivalent (Staff) • $3.5 Million Annually • Eliminated two Unclassified Positions • Established the Internal Service Fund for all GF Departments • One Organization responsible for Fleet

  35. New Organization

  36. Internal Service Fund (ISF) • 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

  37. Fleet Creep • 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

  38. Ideas to Consider • 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.

  39. John E. AlleyDeputy Director, Fleet ServicesCity of San Diego, CA Jalley@sandiego.gov (619) 527-6020

  40. LEASE PLAN 100 Best FleetsMaximizing Your Fleet Resources

  41. Today’s Agenda Consulting Reporting Maintenance & Repair Management Accident Management Fuel Management • Government Fleet Goals and Objectives • Helping You Reach Your Goals • Solutions Employed • LeasePlan Leadership • Strategic Fleet Management • Benchmarking

  42. Review of Government Fleet Goals & Objectives Current State Desired State • Meet goals & objectives • Acquire vehicles as needed • Provide optimum service within budget • Provide safe and reliable vehicles • Reduced tax revenue • Budget shortages • Delayed purchases • Unhappy stakeholders • Unsafe work conditions • Unusable assets

  43. First Things First – The “O” Word • Maximize Your Fleet Resources • What Is The Most Efficient Way To Accomplish Your Goals? • How Does It Work At Home? • Yard Work • Electrical • Plumbing • Major Construction • How Can Outsourcing Work For You?

  44. Fleet Services • Maintenance & Repair Management • Accident & Risk Management • Fuel Management • Fleet Consulting • Acquisition and Disposal

  45. Acquisition Management • Acquire Vehicles With Transparent Pricing Formula • Potential Savings Over “State Bid” Pricing • Reduced Acquisition Administration • Single Source For All Makes And Models • 100% of Manufacturer Incentives Passed to Fleet

  46. Benefits to Government Fleets • Measure fleet performance • Data analytics • Improve efficiencies • Reduce spend • Enhance savings • Validate decisions • Drive down total cost of ownership

  47. Thank you! Matthew Betz VP, Government Fleet Services 404.610.4187 matt.betz@leaseplan.com

  48. Fleet Forum Webinar of Best Business Practices and Innovations from the 100 Best FleetsFLEET COST SAVING IDEAS

  49. 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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