Saint Paul – As a result of Governor Pawlenty’s Drive to Excellence state government reform initiative, state and local governments will save an estimated $210 million on goods and services being purchased through Fiscal Year 2011.

The accomplishments are highlighted in a report prepared by the Drive to Excellence sub-cabinet, headed by Department of Administration Commissioner Dana Badgerow. In addition to cost savings, the report highlights customer service and quality improvements such as faster service for duplicate birth certificates and processing State Soldiers Assistance requests. Drive to Excellence was launched by Governor Pawlenty in April 2005.

“We have fundamentally improved the way state and local governments purchase goods and services and it’s paying off,” Governor Pawlenty said. “Using innovative solutions and plain old common sense, we’re able to deliver better customer service and reduce costs. This effort is off to a good start and we’ve set the stage for more reform in the coming years.”

The cost savings are being realized through a process known as “strategic sourcing” and are anticipated to accrue over five years at all levels of government on such items as computers, office furniture, supplies and other goods and services, based primarily on previous contract pricing.

Some specific costs savings include:

• Personal computer hardware and software - $40 million in cost reductions realized the first year, with an additional $55 million in anticipated cost reductions through FY11, with 88 percent of these reductions accruing to local governments, school districts and colleges and universities
• Multi-function (copy/print/scan/fax) devices - $45 million over five years
• Computer business recovery sites and services - $5.9 million
• Scanning and imaging systems - $1.34 million
• License agreement for statistical analysis system software - $1.6 million

Other accomplishments in the report include:

• Increased Quality via Lean Continuous Improvement Reform – The State has adopted “Lean Thinking” as its preferred process improvement tool. So far, 18 agencies are actively involved, with 302 staff members participating in 38 Kaizen improvement events. These events have yielded significant improvements in the delivery of state government services, from issuing duplicate birth certificates to processing State Soldiers Assistance requests.

Specifically, the Minnesota Department of Health reduced the time it takes to process requests for duplicate birth certificates by more than 80 percent, from six days to less than one and the Department of Human Services reduced by 89 percent the amount of time required for processing health care premiums.

• Increased Customer Service via Grants Management Reform – The establishment of an Office of Grants Management and a grants governance team that collaboratively revised and implemented 11 new statewide grants polices, conducted eight training sessions with 238 participants and created websites for grant information for the public and resources for agency grant managers and non-profits.
• Reduced Costs via Sourcing Reform – Standards for common products and services are leveraging volume to lower costs, while a strategy in which the state negotiates every contract is delivering better terms and conditions, including price.

“The successes of the Drive to Excellence so far are largely attributable to the more than 1,100 state employees who have contributed their time, talent and expertise toward improving state government,” said Commissioner of Administration Dana Badgerow, chair of the Governor’s Drive to Excellence Sub-Cabinet. “The projected savings are being realized across the spectrum and include cities, counties, school districts, colleges and universities.”

The recent reforms are detailed in the Drive to Excellence Annual Report to the Governor, available online at www.excellence.state.mn.us

The Drive to Excellence includes 15 specific projects for reforming state government, ranging from strategic procurement to a Lean continuous improvement effort and the reform of state grants management. The projects focus on improving quality and customer service and reducing costs in the delivery of government services to citizens.