Process Improvement Really Works—Ask Me How!

by Heather Norberg

A year ago August, the Accounting & Tax team in Payroll (aka the Challengers), began to work on process improvement. Instead of choosing one process for the entire team to focus on, each member chose a process from their desk, found a partner and set to work. The result was a medium-rate process improvement which focused on seven different processes: RST, Non-Resident Alien I9/1388 forms, Direct Deposit Reversals, Overpayments, Child Support, Bank Reconciliation and Non-Resident Alien Stipends. Flow charts were created, re-work eliminated, input and output measures identified and a Process Improvement Database created to track our new found data.

Over a year later we are still going strong. Applying what was learned in the “Managing with Data” class we began to look below the surface of the data we collected to find the root causes of problems. The Non-Resident Alien paperwork is an excellent example. When we first looked at this process, only 54% of the paperwork received was correct. A new feedback letter was designed to tell the Payroll Coordinators the specific problems with the form and was implemented in November. Over the next three months, the correct paperwork received increased to an all time high of 75%. The next step was to put revised instructions and forms on the web. Our rate stayed the same so we knew we had to do more. Over the summer, we held a focus group and asked payroll coordinators what they needed to fill out the paperwork correctly. Based on their suggestions, a few thoughts of our own, and several e-mail communications to the coordinators we made more improvements to the website. We are extremely pleased that the rate for October was 82% and November even better at 86%! We still have a few more ideas and are aiming for a goal of 97% correct.

The RST (Retro-Salary Transfer) was another process that was frustrating for the departments and for the Payroll office. Paperwork was received with missing data, old forms were used, and the number was only increasing. It took many months and the input from several process partners, but a new form has been created and put on the web. This form is simpler for the departments to fill out, groups the data for easy data entry and includes reasons for the RST. We have collected data on which departments submit the RST and the reasons and will be mining the data for training opportunities. In the mean-time we have also begun gathering data on the process time. A process that once took weeks or months is now taking less than two weeks, 99% of the RSTs received are processed within two weeks and many are processed within 2 days! This is a major improvement.

Emboldened by our successes we have taken a look at many other processes and are currently developing a dashboard for the Challenger team. We have identified many measures currently under development. This data will help us find areas that need improvement and the areas where we are doing well. We have begun to post our measurement graphs in our team area to give us incentive to improve, and to celebrate the good news. Process Improvement Really Works – Ask Me How!

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