February 14, 2012 Mr.

Chris Caldwell Commissioner Shelby County Schools 160 South Hollywood Street Memphis, TN 38112 Dear Mr. Caldwell and Mr. Pickler, The American Productivity and Quality Center (APQC) respectfully invites Shelby County Schools to join the APQC Education North Star Community and submits the following proposal for Process and Performance Management (PPM) Professional Development. The purpose of the project is to assist Shelby County Schools with the following work: 1.) Definition, Measurement, Improvement and Scaling-up of successful processes 2.) Definition and Structure for Processes that need to be defined and implemented 3.) Long-term Sustainability of a Process-Minded Vision for Continuous Improvement for the district The goal of this project is to help drive selected district processes to a higher level of effectiveness while also finding opportunities for cost-savings. In these times of financial scarcity, education leaders must learn to use the resources they have in a more efficient manner. Every opportunity for identifying and eliminating waste, strategically reducing costs, and harnessing the creative improvement ideas of all employees is imperative to student success and operational and fiscal stability. Process and Performance Management provides the tools needed to make these improvements. Process and Performance Management is a proven, transformative and powerful methodology that has been used successfully for decades in all business sectors – and in the last two years in education. We look forward to the opportunity to work closely with Shelby County Schools as you garner for yourself the types of results other education leaders are experiencing. Kindest Regards,

Fred A. Bentsen
Fred A. Bentsen Executive Director, Sales APQC Education 800-776-9676 x4745 fbentsen@apqc.org

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Process and Performance Management in K12 In January of 2009, APQC initiated a Process and Performance Management (PPM) demonstration project at 10 leading school districts around the nation in which leaders were trained and coached in PPM. This project was named North Star and included some of the highest performing districts in the country. Participating districts included a Broad prize winner, Baldrige and ISO Award winners, and some districts that had never participated in any type of PPM initiative. The group of 10 varied in terms of size, number of students and type of demographics. These are the types of benefits that districts realized as a result of participating in APQC’s PPM North Star project:        Automated after-hours computer shutdowns: cost savings of 13M Kilowatt Hours worth $1.6m Maintenance Support Efficiency Gains: cost savings of $1.2m Print Shop Process Changes: cost savings of $1.1m and 39,600 instructional hours Transportation Accident Prevention Program Improvement: cost savings of over $100,000 so far Dropout rate decreased from 6.5% to 3.8% Out of school suspensions reduced by 50% Seamless integration of state and district support for School and Classroom Improvement Initiatives

The results above speak for themselves, but here are two testimonials to the efficacy of APQC’s PPM work with K12 school districts: In short, the APQC focus on and training in process management and improvement has given us hope for the future of public education … and therefore, hope for our country. —Kirby Lehman Superintendent, Jenks Public Schools Jenks, Oklahoma We are facing a $140,000,000 budget deficit in Montgomery County Public Schools. Our work with APQC Education on Process and Performance Management has helped us know where and how to make intelligent budget cuts that minimize the negative impact on college and work readiness for our students. —Dr. Jerry Weast Superintendent, Montgomery County Public Schools Rockville, Maryland The districts participating in the pilot North Star Project shared one common, core belief; outcomes are created by processes, and if you don’t focus on the processes that generate the outcomes, you can never improve the outcomes. Additionally, the districts understood that it was critical to their success to build or enhance their process and performance management structures and to create an atmosphere of continuous improvement, stakeholder and customer engagement and a focus on sustainability and transferability of all solutions implemented.

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The diagram below shows how process and performance management (outcomes) must work synergistically to achieve results.

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The most critical of all outcomes is student achievement. As depicted in the next figure, many processes must be in place in order to positively impact student achievement. All processes from utilizing a well-defined curriculum to providing nutritious meals and safe transportation impact whether or not a student will be successful in school. For this reason, APQC approaches student achievement in a more holistic approach, seeking causes for problem areas that may result in low achievement scores or in higher costs to the district which may detract from the learning experience or instructional budget. For example, a Houston area school district selected a transportation project originally seeking cost savings, but soon found a key metric for “late buses” was the impact to instructional hours lost each school year, when buses failed to ensure children were at school for the beginning of class. This project team saved over $100,000, reduced the number of at-fault accidents by half AND reduced the number of instances late and the number of minutes late by 17%. They continue to monitor and improve this process as part of their sustainability plan.

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Theory of Action for Shelby County Schools

The purpose of this project is to assist Shelby County Schools with the following work: 1. Definition, Measurement, Improvement and Scaling-up of successful processes 2. Definition and Structure for Processes that need to be defined and implemented 3. Long-term Sustainability of a Process-Minded Vision for Continuous Improvement for the district The goal of this project is to help drive selected district processes to a higher level of effectiveness while also finding opportunities for cost-savings. APQC Education proposes to address these purposes and goals with a plan comprised of two essential components: 1. Process and Performance Management – Strategic Overview 2. Process and Performance Management – Action Teams and Knowledge Base Access Component details are set out in the following pages.

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Process and Performance Management – Strategic Overview

APQC Education proposes a full-day Process and Performance Management Overview for up to 20 members of the Shelby County Schools leadership team. This overview would cover the following topics:       Introduction of Process and Performance Management and results that our partners have seen through PPM implementation Introduction of DMAIC and why it is such a powerful methodology for continuous improvement Mapping of current state for high level processes Overview of project selection for Process Improvement and Process Redesign Cost/Benefit Analysis measurement using Process and Performance Management – how to measure and maximize return A summary report from APQC Education with high-level recommendations on where we feel you can best deploy Process and Performance Management methodologies to increase system efficiency and effectiveness

Pricing APQC Education proposes to deliver this one-day component of the project for $4,000 plus travel expenses.

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Process and Performance Management – Action Teams

The desired outcome of the PPM Professional Development for Shelby County Schools is to better define, measure, improve and scale-up successful services and to define and create structure for processes that need to be improved. APQC Education proposes to meet and exceed your needs in this regard by delivering PPM Professional Development combined with access to the APQC Education Knowledge Base. All professional development will deploy DMAIC, the best and most proven model for these activities. DMAIC is an acronym that stands for Define, Measure, Analyze, Improve and Control. This model has been used in a vast variety of organizations over the last 25 years with major improvements in organizational efficiencies and the ability to meet the needs of their customers (effectiveness).

Specifically, PPM Professional Development for Shelby County Schools will be delivered as follows: Initial Planning Call: Activities for PPM Professional Development begin with an initial planning call to identify areas for improvement (project options) and discussions of resource requirements for the district. The conversations started in the Strategic Overview component of this overall project will be powerful contributors to project selection finalization.

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Four days of PPM Professional Development: Four days of application-based PPM Professional Development will provide the opportunity for up to 25 participants (4-5 teams of 5-6 people each) to learn the skills and tools necessary to implement PPM. Project action teams attend these workshops and immediately begin to apply the process improvement concepts learned during the session. This provides a powerful “kick-start” to the projects. Day 1 – PPM Overview  Audience: project team(s) and district leaders. APQC Education suggests that Shelby County Schools invite other stakeholders to the morning component of this day: Key leaders within the district, members of the School Board, key community members, business partners that helped provide funding. The “maximum of 25” component of this agreement does not apply to the morning of Day 1 as it is important to gain key stakeholder buy-in for the projects.  Introduce Process and Performance Management concepts  Review and refine project selection  Establish business rationale for projects  Introduce process improvement structure Days 2-4 – Process Definition and Improvement  Audience: project teams  Introduce DMAIC for process improvement o DEFINE the problem, the process and customer requirements o MEASURE performance and calculate baseline o ANALYZE process, root causes and data o Create and test solutions to IMPROVE the process o Create a CONTROL plan to sustain gains and internalize the changes

Follow-up and Implementation Monitoring: Subsequent coaching will be completed via virtual and on-site meetings with project personnel to ensure fidelity of implementation and success. This work will focus on assisting the teams with solution implementation and the creation of control plans. Additionally, formal project reviews or tollgates will be established. Follow-up will be delivered as follows:   Periodic teleconference or videoconference calls of approximately one-hour duration from the genesis of the projects through the completion of the projects. One additional site visit to Shelby County Schools for project review and project coaching.

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Pricing for Process and Performance Management – Action Teams

APQC invites you to join the APQC Education North Star Community and participate in this Professional development which we can deliver to Shelby County Schools for $36,000 plus travel expenses. This includes the following:   Process and Performance Management Professional Development as outlined on pages 7 and 8 of this proposal. Attendance at the annual APQC Education PPM Conference: a 1.5 day networking event to share success stories and lessons learned, maximum four people. Note: Admission to the conference is free. Client is responsible for their own travel expenses. Access to the APQC Education Knowledge Base for six months. The APQC Education Knowledge Base includes all storyboards and results from all project participants along with results from all of the benchmarking projects ever completed by APQC Education. Invitations to periodic North Star Community webinars related to Process and Performance Management; created to network, learn, and share data with peers and subject matter experts on specific issues.

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Pricing Summary

APQC Education will deliver services for this proposal as outlined here:   Component #1 – Process and Performance Management – Strategic Overview - $4,000 plus travel expenses Component #2 – Process and Performance Management – Action Teams and Knowledge Base - $36,000 plus travel expenses

Total Pricing - $40,000 plus travel expenses

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APPENDICES

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Appendix A: Client References

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Appendix B: Organization Overview APQC Founded in 1977 as a member-based nonprofit, APQC (the American Productivity and Quality Center) has become one of the world’s leading proponents of process and performance improvement. APQC helps organizations adapt to rapidly changing environments, build new and better ways of working, and succeed in a competitive marketplace. One of the ways in which this is achieved is by connecting individuals to facilitate knowledge sharing and learning. APQC research and services include:
   

Open standards research Best practices research Creation of Knowledge Base research libraries Process and Performance Management Training

APQC’s achievements include organizing the first White House Conference on Productivity, spearheading the creation and design of the Malcolm Baldrige National Quality Award (1987), launching knowledge management as a key business practice (1995), introducing the Open Standards Benchmarking CollaborativeSM (2004) research, and creating the C. Jackson Grayson Distinguished Quality Pioneer Medal (2008). APQC Education Since 2000, APQC has been committed to enhancing the K-12 education system by helping educators achieve excellence in both instructional and operational processes in districts across the nation. APQC Education furthers the mission of APQC by applying many of the concepts and techniques that have proven successful in business to the education sector, such as comprehensive Process and Performance Management that helps district personnel learn the skills that support student and operational achievement. APQC Education has a proven track record working successfully with over 250 school districts in 41 states to help them achieve results through process and performance management services. Using its proven benchmarking methodology, APQC Education has also conducted fee-based benchmarking studies in a variety of topic areas, including:           Professional Development Assessing Student Achievement Information Technology HR Processes Math & Science English Language Learners Data Driven Decisions Professional Learning Communities Response to Intervention (RTI) Data Driven Decision Making: Using Data in the Classroom (current)

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Additionally, APQC Education has developed the Process Classification Framework (PCF) for Education. The PCF enables education organizations to understand the inner workings from a horizontal process viewpoint, rather than a vertical functional viewpoint. This framework is an integral component of the training tools used during the first two days of the workshop. Additional services and partnerships in association with APQC: CATALYST Catalyst is APQC’s principal leadership program for the Texas Education Agency. This program is an innovative self-paced professional development program for principals and aspiring principals in the Texas public school system offered through the Texas Education Agency. The objective of the program is to provide an opportunity for participants to increase their leadership and management skills through customized learning and the application and implementation of innovative practices on the campus. Unique aspects of Catalyst include:      Participant Assessments including 360 assessments Learning Networks with colleagues and coaches Individual Learning based on individual goals and objectives Coaching that provides instruction, support and accountability Principle Success Continuum with a rubric aligned with TExES Standards

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Appendix C: Project Examples Many other educational entities are currently engaged in Process and Performance Management projects. For example: Poudre Public Schools, Cypress-Fairbanks ISD, Fulton County Public Schools, Hampton City Schools, Henrico County Public Schools, Montgomery County Public Schools, Clark County Public Schools, Jenks Public Schools, Alief ISD, Houston ISD Aldine ISD, Ft. Bend ISD and Wyoming Department of Education Examples of Process Management or Redesign/Design projects are:           Creating Enterprise-Wide Process Management Implementing State Basic Education Programs Empowerment school block Standardizing Common Math assessments Position Control Budget Process Redesign Early Childhood Funding & Tracking Equity & Excellence New Construction, Additions and Renovations Design Creating online school for grades 6-12

Project Examples to improve processes and remove wastes include:        On-time Graduation Rates – went from 71.2% to 75.6% in one school year Reduce Errors in Professional Development Absence Tracking – ongoing Textbook Order Errors (ex: $150k est. so far) Maintenance & IT Support (ex: 1 project, est. capital savings of $1.4m so far, with ~$1.4m in labor costs over the next few years) Transportation: Accident Prevention (ex: over $100k saved so far) Support Calls to Admin: Reduce labor hours, estimated to save 13,792 labor hours (ongoing) Reduce Allocation Handling Labor by 50% (on-going)

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