Timmons

Like every other sector in this slow economic recovery, government must learn to do more with less.

“An organization’s only sustainable advantage in today’s economy is to work lean,” says Anthony Timmons, director of budget and business services for Wisconsin’s Department of Revenue. Timmons, who oversees his department’s budget, revenues, and expenses, says that organizations should use a strategy of rigorous methodologies to remove waste, control costs, and improve quality.

To help his own division work lean, Timmons enrolled in Six Sigma executive education courses at the University of Wisconsin-Madison. He says the on-site, three-day classes offered an exploration of various frameworks for diagnosing, improving, and designing systems that eliminate waste and improve efficiency. Timmons, who has an M.B.A., already used many of the processes but in a less formalized, more ad hoc way. He wanted to develop a methodology that would address departmental inefficiencies and increase his confidence in his analysis. “With this instruction, I’m better equipped to address the nuances that make government service delivery uniquely challenging,” says Timmons. Crediting Six Sigma with enhancing his department’s processes, Timmons applied the following takeaways:

Data is king. Without comprehensive data, project team members often risk making recommendations based on inaccurate or incomplete information and may fall prey to blaming each other for process problems. Timmons created process maps that outlined customer service activities so the division could gain a better understanding of its process. To improve efficiency across the tax processing function, which involves multiple divisions, Timmons highlighted cross-functional employee interactions to ensure an objective analysis of the divisions’ work flow.

Understanding variability is crucial. “While variability is more likely to occur in service industries, it doesn’t necessarily indicate a faulty process,” says Timmons, whose overview of the customer service process helped the division distinguish between acceptable and unacceptable variance. “A spike in customer call wait times is expected during tax season, but a spike in tax bill mistakes is not.”

Effective process improvements address root causes, not just symptoms. Process improvement projects should include a root cause analysis to identify underlying reasons for problems, such as mistakes, delays, duplication, and inefficiencies. After uncovering reasons for delays in processing tax returns, including lengthy reviews, excess paperwork, and time spent fixing mistakes, Timmons discovered that the real culprit was the ineffective management of the tax return backlog.

ELC CEO Carl Brooks

Over the past two days the Executive Leadership Council has been holding its annual series of meetings—private CEO summits, its hot-ticket recognition awards gala and a mid-level managers conference. For those of you who haven’t heard of ELC, it is an organization composed of senior African American executives who help manage major corporations across the globe.  Or as the group’s CEO Carl Brooks says: ” our membership includes the baddest brothers and sisters on the planet.”

That’s not just hype. Among the awardees and attendees at last night’s dinner included former Secretary of State Colin Powell, superstar entrepreneur Earvin “Magic” Johnson, United States Trade Representative Ron Kirk,  ex-football player cum real estate mogul Emmitt Smith, Amway Chief Marketing Officer and 2009 BE Corporate Executive of the Year Candace Matthews, Commerce Department Deputy Chief of Staff Rick Wade, GE Diversity Chief Paula Madison, AARP CEO A. Barry Rand and Darden Restaurants CEO Clarence Otis and Michael Strautmanis, to name a few.

The ELC conference, however, has never been about power on parade.  Under the theme “A New Era, A New Vision,” this year’s event has focused on the value and relevance of an inclusive corporate America as the nation and the world is undergoing reconstruction. One recurring theme has been voiced during the conference: As ING Americas CEO Tom McInerney, one of 70 CEOs of the world’s largest corporations in attendance, said: “The US will only stay competitive if it uses its secret weapon: diversity.”

To validate the message, you only need to look at the achievements of ELC’s New Day Award recipient: President Barack Obama. Hailing from a background that’s a fusion of Ivy League education, community organizing and political prowess, he has had the vast, rich and life-shaping journey of many within ELC’s current membership. Moreover, he’s proven the global impact of diverse experiences, skills development and fresh perspectives. In the case of Obama, these attributes  has resulted in salvation and redesign of our nation’s financial system and a foreign policy of engagement and dialogue which has redeemed America’s standing on the world stage and earned him the Nobel Peace Prize. As Brooks stated: “President Obama is an example of the new generation of leadership” American business must embrace.

As the ELC continues its series of  discussions related to the progression of African American executives, it must focus on a number of planks on its platform. First, define diversity for today’s new realities. When our Black Enterprise Editorial Director Sonia Alleyne interviewed Food Lion CEO Rick Anicetti for a Black Enterprise Business Report television segment, he laid out the evolution of diversity as being business critical. In his 15 years of focus on the area, he says it “has gone from diversity to inclusion. Now, we are at cultural competence,” in which the differences of employees must be used to maximize competiveness. ELC will serve as one of the organizations to further frame the diversity discussion as well as bring a number of corporations into the 21st Century.

Another area Brooks stressed has been the power of strategic partnerships. One effective example is the collaboration among ELC; National Association of Investment Companies, a group of private equity firms that finances minority companies; The Marathon Club, an association of entrepreneurs; and New America Alliance, a group of Latino business leaders. These organizations have come together to provide entrepreneurial options for its members, expand supplier diversity within corporations and close the education gap. Such strategic alliances will be needed to tackle the daunting challenges facing American business as the world economy recovers.

Lastly, the ELC must remain vigilant in feeding the talent pipeline. The organization’s responses has included its annual Mid-Level Managers’ Symposium; The NextGen Network, which identifies young professionals who can be placed on the corporate leadership track and its scholars programs that provides funding for promising students.  With continued restructuring of corporations, such programs will prove even more valuable in maintaining and replenishing the flow of capable managers of color.

Brooks views today’s environment as one of great challenges but bountiful opportunities. He’s right. If corporate America fully applies diversity as a strategic thrust—with ELC’s help, of course—then it will gain a phalanx of talented executives that will develop the audacious and innovative products, services and strategies needed to advance global business for decades to come.

Derek T. Dingle is the editor-in-chief of Black Enterprise magazine.