Increasingly, elements of public service administration are being outsourced to external service providers. One Canadian ministry was outsourcing a key benefit processing program. This program experienced annual intakes of approximately 100,000 applications, 1.5 million receipts, 500,000 calls and 800,000 pieces of mail. However, less than one year into the program, the service provider was experiencing significant operational and fiscal challenges.
Deetken was asked to conduct an operational diagnostic to understand the key sources of operational and financial gaps. Applying a six-sigma methodology, we uncovered data, volume, process, and technology issues and considered their contribution to financial performance. Based on our findings, a turn-around plan was developed and executed. This helped to meet service levels and dramatically improve efficiency as well as partially address financial pressures. Deetken also worked with client and service provider teams to restructure the services contract so that it better reflected the new operating environment, while also ensuring fiscal sustainability for both parties.