KH - Los Angeles County, Californiafile.lacounty.gov/SDSInter/lac/225252_KHConsulting.pdf · KH...

County of Los AngelesOffce of the Chief Administrative Offcer

Offce of Unincorporated Area Services and Special Projects

.~ Proposal for a Master Agreementto Provide Strategic Planning Consultant Services

February 13,2001

1901 AVENUE OF THE STARS, SUITE 1900 . LOS ANGELES, CALIFORNIA 90067(310) 552-9229, (310) 203-5417 . FAX (310) 203-5419E-MAIL khcgêaol.com . WEB SITE www.khcg.com

KHCONSULTINGGROUPMANAGEMENTCONSULTANTS

KHCONSULTINGGROUP

MANAGEMENTCONSULTANTS

I - COVER LETTERr

COUN OF LOS ANGELESOFFICE OF THE CHIEF ADMOOSTRA TIV OFFICEROFFICE OF UNCORPORA TED AREA SERVICESAN SPECIAL PROJECTS

Proposal for a Master Agreement for Strategic Planning Consultant Services

February 12,2001 KHCONSULTINGGROUPMANAGEMENTCONSULTANTS

Ms. Nan FletteCountywide Strategic Plan Implementation CoordinatorOffice of Unincorporated Area Services and Special ProjectsChief Administrative Offce500 West Temple Street, Room 750Los Angeles, CA 90012

Re.: Proposal for Master Agreement to Provide Strategic Planning Consultant Services

Dear Ms. Flette:

Attached is the proposal KH Consulting Group (KH) prepared in response to your Request for Proposal(RFP) for a Master Agreement to provide Strategic Planning Consultant Services, dated January 4,2001.KH Consulting Group (KH) is a full service management consulting firm, offering services in:

o Strategic planning and marketing

o Organizational design and productivity

o Business reorganization and financial restructuringo Human resourceso Information systems (lIS).

The key contact, proposed project manager, and individual who can represent the firm for this proposalis:

Gayla Kraetsch Hartsough, Ph.D.

PresidentKH CONSULTING GROUP1901 Avenue of the Stars, Suite 1900Los Angeles CA 90067Status: S-Corporation (California)

Phone: (310) 203-5417FAX: (310) 203-5419Web Site: ww.khcg.comE-mail: khcggak(Ðaol.com

Federal Tax ID #: 95-4046604Founded: May 1986

KH understands and agrees that the submission of a proposal constitutes an acknowledgement andacceptance of, and wilingness to comply with, all terms and conditions of this RFP and any addenda.KH is registered to do business in California under corporate charter number 1373688.

If you have any questions or if our proposal requires modifications, we would be pleased to meet withyou and discuss your needs further.

Sincerely,

G.llSCh Harsough, Ph.D.President

Attachment.

Note: KH Consulting Group is a Woman-owned Business Enterprise (WBE), certified by the Countyof Los Angeles.

1901 AVENUE OF THE STARS, SUITE 1900 . LOS ANGELES, CALIFORNIA 90067(310) 552-9229, (310) 203-5417 . FAX (310) 203-5419E-MAIL khcg(¡aol.com . WEB SITE www.khcg.com

KHCONSULTINGGROUP


II - TABLE OF CONTENTS

COUN OF LOS ANGELESOFFICE OF THE CHIEF ADl\lIl\iSTRA TIV OFFICEROFFICE OF UNCORPORATED AREA SERVICESAN SPECIAL PROJECTS

Proposalfor a Master Agreementfor Strategic Planning Consultant Services

KHCONSULTING

COUNTY OF LOS ANGELES GROUPMANAGEMENT

OFFICE OF THE CHIEF ADMINISTRATIVE OFFICER (CAO) CONSULTANTS

OFFICE OF UNINCORPORATED AREA SERVICES

AND SPECIAL PROJECTS

PROPOSAL FOR A MASTER AGREEMENT TO PROVIDE

STRATEGIC PLANNING CONSULTING SERVICES

TABLE OF CONTENTS

Section Page

I COVER LETTER

II TABLE OF CONTENTS

III FIRM INFORMATION ..0............0....00....0.......0.....0.....111-1A - Business Information . . 0 . . . . . . . . . . . . . . 0 . 0 . . 0 0 0 . . . . . . . . . . . . 0 . 0 0 . . 111-1B - Type of Firm . . 0 0 0 . . . . 0 . . . . . . . . . 0 . . . . 0 0 . . . . . . . . . . . . . . . . . . . . . . . . 111-1C - Summary of Relevant Background Information ..........00........111-1

Representative KH Clients .0.......0........0.............0..111-1

KH Philosophy and Approach .00...00..............0.........111-3

D - Current and Previous Contracts with the County of Los Angeles ..... 0 111-5

KH Relevant Project Descriptions ....0....000............. 0 . . .111-8

E - KH Team Experience and Capabilties ....0............0........111-18

Contract Manager and Alternates 0..0..0................0..0.111-18

Team Biographies .....0........0.........00.0..00.........111-18

Gayla Ao Kraetsch Hartsough, Ph.D. . . . . . . . . . 0 . 0 . 0 . . . . . . . . . 111-18Thomas Ro Greer ... 0 . . . . . . . . . . . . . . . . . . 0 0 0 0 . 0 . . . . . . . . . . 0 111-20Charlotte Maure 0 . . 0 . . . . . . 0 0 . . . . . . . 0 0 . . 0 . 0 0 0 . . 0 . . . . . . . . . 111-22Catherine M. Schuster. 0 0 0 . 0 0 0 . . 0 . . . . 0 0 . . . . . . . . . 0 . . . . . . . 0 111-24Robert C. Schiling. . 0 . . . . . . . . . . . . . 0 . . 0 0 0 . . . . . 0 . . . . . . . 0 . . 111-25Paul Do Epstein. 0 . . . . . . . . . . . . . 0 . . . . . . . . . . . 0 0 0 0 0 . . . . . . . . . 111-27

F - Health Insurance Statement ...... 0 0 . . . 0 . . 0 . 0 . . . . . 0 0 0 . . . . . . . . . . . 111-31G - GAIN Participation Statement. . . . . . . . . 0 0 . . . . 0 0 . . . . . . . . 0 0 . . . . . . . 111-31H - Insurance and/or Performance Bond Compliance Statement 0 . . . . . 0 0 . 111-31I - Child Support Compliance Program Statement ...0.....0.0...0....111-31

J - Small Business Definition Statement ... 0 . . . 0 . . . . 0 0 . . . . 0 0 . . . 0 0 . 0 . . 111-31K - Pending Litigation Statement. . . . . . . . 00. . . 0 . . . . 0 . . 0 . . . 0 . . . . . . . . . 111-32

iv WORK STATEMENTS .............................................. IV-iA - Project Background. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV-iB - Project Objectives and Scope .................................... IV-i

Joint Team Approach ....................................... IV-2

C - KH's Strategic Planning Model .................................. IV-3

Phase I: Development of the Strategic Plan ..................... IV-3

Phase II: Implementation of the Strategic Plan . . . . . . . . . . . . . . . . . . IV-4D - Project Tasks ................................................. IV-5

V FEE SCHEDULE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. v-i

VI FINANCIAL STATEMENTS

VII ADDITIONAL INFORMTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. VII-i

VIII EXCEPTIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. VIII-iPart A ........................................................ Vlll-l

Part B ........................................................ Vlll-l

IX REQUIRED FORMSForm A - Proposer'slBidder's CertificationForm B - Firm/Organization Information Form, Los Angeles

County/Community Business Enterprise (LAC/CBE) SanctionsForm C - Certification of Lobbyist RequirementsForm D - Child Support Compliance Program CertificationForm E - Consultant Services Client Reference Forms

11

KHCONSULTINGGROUP


III - FIRM INFORMATION

COiJN"T OF LOS ANGELESOFFICE OF TJfIE CHIEF ADMOSTRA TfV1EOFFICEROFFICE OF UNCORPORA TED AREA SERVICES

Al"\ SPECIAL PROJECTS


III - FIRM INFORMATION

A -BUSINESS INFORMATION

KH Consulting Group (KH) has been in business since May 1986. KH is a full service managementconsulting firm, offering services in: strategic planning and marketing, organizational design andproductivity, business reorganization and financial restructuring, human resources, and informationsystems (liS).

Specifically, in the area of strategic planning, KH provides the following management services:

o Strategic planning/. Evaluation of available options (acquisitions, divest~res, mergers) available to

enterprises and selection of best option &r. Environmental and competitive assessment

. Assessment of an organization's resources (staffing, capital, facilities, etc.) andcompetencies to determine if they are sufficient for achieving the desired strategicdirections

. Assistance in preparing strategic plans or master plans

. Analysis of customer satisfaction and opportnity; evaluation of different scenarios for

service delivery. Structuring of activities to achieve strategic goals and objectives

o Preparation of Balanced Scorecards for accountability of achievement of Strategic Planso Community assessments, research, and opinion surveyso Definition of policies, objectives, and goals for building a long-term competitive advantageo Design of marketing and sales database information systems.

This chapter presents KH's firm qualifications, including the requested County information, descriptionsof our previous work in strategic planning and government, and team qualifications.

B - TYPE OF FIRM

KH Consulting Group, a privately owned S-Corporation in the State of California, has been in

continuous business since May 1986, The owner and President of the firm is Gayla A. KraetschHartsough. The County's requested compliance statements are in Section H at the end of

this chapter.

C - SUMMARY OF RELEVANT BACKGROUND INFORMATION

Since its inception in May 1986, KH has completed management studies in Eur._~pe, Asia, The MiddleEast, and North America, including 24 states in the United States. Our 150 clients represent a spectrumof industries, including public and private sector clients.

REPRESENTATIVE KH CLIENTS

Action on Smoking and Health (ASH)Advantage Printed Sportswear

AECOM Technology CorporationAerojet

KH CONSULTING GROUP, PAGE 111-1

Allan Hancock Joint Community College DistrictArizona Nuclear Power Project (ANPP) of Arizona

Power CompanyArthur Andersen ConsultingArthur D. LittleAuto GiantAutomobile Club of Southern CaliforniaBemard KriefBlue Cross of CaliforniaBlood Systems, Inc.Booz, Allen & Hamilton, Inc,Bulletproof, Inc.Cabrillo Crane & RiggingCalifornia Special Olympics, Inc.California State University SystemCelebrity Duplicating Services, Inc.Chrysler Corporation (fomÍerly American Motors

(Canada) Corporation)City ElectricConcordConfidential Client (a large international engineering

and consulting firm)Confidential Client (I/S)Consortium of Health Insurance CariersDavid M. Griffith and AssociatesDay Runner, Inc.D.C. Credit ServicesDeloitte & ToucheDix-See SalesDean Witter ReynoldsDynasty ClassicsEastern New Mexico UniversityEdutrain Charter SchoolEmployers' Health Care Coalition of Los AngelesEverex, Inc. (CFLC, Inc.)Federal Home Loan Bank of BostonFederal Housing Finance Board and 12 Federal Home

Loan BanksFirst Boston CorporationFleetwood EnterprisesGE Capital - ResComThe Gett Conservation InstituteGlendale (Califomia) Unified School District, Board of

EducationHarvey Rose Accountancy CorporationHome Express, Inc.Hong Kong Shanghai Bank Corp. (Singapore)HQ Offce SupplyIlinois Power CompanyITT Canon and ITT GilfillanJames Gile and CompanyKaiser PermanenteKern Community College DistrictLA *Vets

Lina Lee, Inc.Long Beach (California), Port ofLos Angeles City Employees Association (LACEA)Los Angeles, City of, Departent of AirportsLos Angeles, City of, City CouncilLos Angeles, City of, Offce of the City Administrative

OffcerLos Angeles, City of, General ServicesLos Angeles, City of, Harbor DeparentLos Angeles, City of, Personnel DepartentLos Angeles Community College District (LACCD)Los Angeles, County of, Board of SupervisorsLos Angeles, County of, Agricultural

Commissioner/Weights & Measures DeparentLos Angeles, County of, Deparent of Health

Services (DHS)Los Angeles, County of, 1999-2000 Grand JuryLos Angeles, County of, Information Technology

Service (ITS)Los Angeles, County of, Internal Services Deparent

(ISD)Los Angeles, County of, Information Technology

Service: Mid-Range Services SectionLos Angeles, County of, Ad Hoc Panel on Performance-

Based Pay (PBP)Los Angeles, County of, Executive Office for the Board

of SupervisorsLos Angeles, County of, Assessment Appeals Division

in the Executive OffceLos Angeles, County of, Departent of Children and

Family Services (DC&FS)Los Angeles, County of, Departent of Human

Resources (DHR)Los Angeles, County of, Departent of Regional

PlanningLos Angeles, County of, Office of the Auditor-

ControllerLos Angeles, County of, Office of the Chief

Administrative Offcer (CAO)Los Angeles, County of, Offce of the Registrar-

RecorderLos Angeles, County of, Office of Unincorporated Area

ServicesLos Angeles, County of, Sheriff s DepartentLos Angeles County Transportation Commission

(LACTC/Metro)Los Angeles Departent of Water and Power (DWP)Los Angeles Higher Education Roundtable

Los Angeles Unified School DistrictLos Medanos College (Pittsburg, California)Marriott CorporationMarymount CollegeMatcoMaui & Sons

KH CONSULTING GROUP, PAGE III-2

Mayo Clinic Scottsdale (MCS)Mental Health Association of Los AngelesMETRO (Los Angeles)Metropolitan Water District of Southem CaliforniaModem ModeMontgomery Watson Americas, Inc.National CoachNational Medical FellowshipNorthwestem UniversityÆvanston Research ParkOakland, Port ofOcean Pacific Sunwear, Ltd.Orange County Transit Authority (OCTA)Orange, County of, Departent of Human ResourcesOmniplan, City of West CovinaPak-Poy & Kneebone Consulting Engineers (Adelaide,

Australia)Pasadena Senior CenterPink's Famous Chili DogsPioneer Refining (Singapore)Public Health Foundation Enterprises, Inc,

Queen's Health Care Plan, TheRadnet (Medcom)Rice and Siegel Law FirmRonald Doades & CompanyRose Medical Center (Denver)San Bernardino, County of, General Services Group,

Deparent of Information ServicesSan Diego Unified Port DistrictSan Francisco Community College District (SFCCD)San Jose/Evergreen Community College District

(SJECCD)Saudi Arabian Marketing And Refining Company

(SAMAREC) (Jeddah, Saudi Arabia)Scientific Micro Systems (SMS Technologies)Security Pacific Automation Companies (SPAC)Sega of AmericaServatronShorebreak Unlimited Inc.Sierra West - Big DogsSiller Brothers, Inc,Snell and Wilmer Law Firm

KH PHILOSOPHY AND ApPROACH

South Australia Departent of Marine and HarboursSouthern California Edison (SCE), Customer Energy

Services DivisionSouthern California Edison (SCE), Health Care

DepartentSouthern California Gas (The Gas Company)Southern California Rapid Transit District (RTD)Southern California TeesSouthland Master DistributorsSRI InternationalSt. John's Regional Medical CenterSt. Joseph's Hospital and Medical Center (Phoenix, AZ)Systems & Computer Technology Corp. (SCT)Tehachapi Valley District HospitalTelecommunication Management International (TMI)Texas Utilities Electric (TU)Traditional Industries

Transamerica Pension ServicesTravelers Insurance, TheTW GraphicsUniversity of California at Los Angeles (UCLA)University of California at Los Angeles (UCLA)-

Campus PoliceUniversity of the PacificUniversity of Southern California (USC)U.S. Departent of Health and Human Services

(DHHS), Health Care Financing Administration(HCFA)

U.S. Departent of Health and Human Services(DHHS), Health Resources and ServicesAdministration (HRSA)

U.S. Departent of Labor, Employment and TrainingAdministration

U.S. Veterans Administration (VA), Sepulveda VAMedical Center

Van de Kamps BakeryVentura County National BankWashoe Medical Center (Nevada)W. M. Keck FoundationWorld Vision InternationalWORLDPORT LA (Port of Los Angeles, CA)Zenith Insurance

KH uses an interdisciplinary approach in conducting strategic planning assignments. Our project teammembers are experts in strategic planning processes in a variety industries (including the private andpublic sectors) and consensus building with diverse stakeholders. As a firm, KH contributes thefollowing background experiences:

o KH has extensive, relevant experience in government and strategic planning. Within theCounty of Los Angeles, KH assisted the Office of Unincorporated Area Services in its recent


strategic planning efforts, and the Internal Services Departent (ISO) in the preparation of itsStrategic Plans, including its individual Service Plans, a Customer Service Plan, and its BalancedScorecard. KH is currently working with the Departent of Regional Planning in facilitatingand preparing its Strategic Plan, performance measures, and succession plan. KH has alsoserved the 1999-2000 Grand Jury, Sheriffs Departent, Department of Children and FamilyServices (D&FS), Department of Health Services (on a major reengineering assignment withArthur Andersen and APM), Department of Human Resources, Auditor-Controller,theExecutive Offce of the Board of Supervisors, Registrar-Recorder, and the Chief AdministrativeOffce (CAO), among others. Within the City of Los Angeles, KH has conducted managementstudies for the Department of Airports (LAW A), WORLDPORT LA, Personnel Departent,Department of Water and Power, the Los Angeles Police Departent (LAPD), the CityAdministrative Offcer, and the City Council, among others. In addition, KH has worked withother governmental entities, including the County of Orange, City and County of Denver, SanFrancisco Community College District, U.S. Departent of Labor, U.S. Departent of Healthand Human Serv.ices, among others.

."

o KH supplements its public sector background with strategic planning expertse in a varietyof settings. In addition to our public sector experience (already cited), KH's proposed teammembers have diverse experiences in strategic planning processes in different settings, includinglocal government, higher education, public schools, federal government, banking, utilities, hightechnology firms, and others. Some of our major strategic planning efforts have been with theCounty of Los Angeles (already listed); Federal Housing Finance Board and its Federal HousingFinance Bank System; Public Health Foundation Enterprises, Inc.; Travelers Insurance; andEastern New Mexico University, among others.

o KH is locally based, but has a diverse client base. KH has performed consulting studies in 24states of the United States and in five foreign countries on five continents. Since its formation,KH has served more than 150 clients.

o KH has a strong commitment to the County of Los Angeles. KH was founded in 1986 in theCounty of Los Angeles where it has maintained its headquarters. Although KH has served morethan 150 clients around the world, the majority of our work is in southern California in generaland in the County of Los Angeles and the City of Los Angeles. Almost all of our consultantsreside in the County of Los Angeles. Needless to say, KH is highly rooted and committed to LosAngeles. Therefore, KH is able and wiling to commit and maintain staffing - both in numberand level- to successfully conclude this engagement in the timeframes specified.

Because we are management consultants, we think strategically, organizationally, and operationally. Inother words, our recommendations must be viable for you, and not merely "quick" solutions. In thesedynamic times, KH clients retain KH because of their own:

o Inability to bring about change from within

o Time pressures and staff constraints to perform the work effort internallyo Need for special expertise and toolso Desire for a fresh perspective and new ideas

o Requirement for independence, objectivity, and discretiono Interest in "lessons learned" elsewhere.

KH CONSULTING GROUP, PAGE lII-4

Our corporate philosophy emphasizes a strong commitment to our clients. Our charter is to serve ourclients in achieving their objectives. The recommendations we offer are practical and achievable. Therapport we establish makes our final recommendations shared conclusions, not external pronouncements.Our clients accomplish specific objectives for reasonable investments of time and money. Theinformation developed during the course of our work is treated confidentially.

KH uses an interdisciplinary approach in conducting strategic planning assignments. Our projectteam members are experts in strategic planning processes in a variety industries (including the privateand public sectors). Moreover, KH's consultants bring a wide range of experience in the public sector,analysis of strategic alternatives, planning, consensus building with diverse stakeholders, documentreview and preparation, and other areas of relevance to this project. Our clients are the beneficiaries ofthe cumulative experience of KH' s staff.

KH has rigorous project quality assurance procedures. Our quality assurance procedures are designed

to enhance the likelihood that our performance will exceed that anticipated in terms of time, cost, andresults. Each team member typically spends time in critical areas so that alternatives and conclusions arethoroughly analyzed. In this way, we can ensure that our end products are relevant to the problemsaddressed and result in positive and beneficial change.

KH tailors the study to your needs. We are keenly aware of the necessity for the end products to betailored to our clients' needs. Our experience in similar projects has refined our review processes andhas enabled us to develop Strategic Plans that are visionary, yet specific, quantifiable, achievable, andpracticaL. Although consideration should be given to overall planning techniques, effort must be directedtoward identification of practical and implementable strategies. We believe that practical and achievablestrategic plans originate from clear, objective research and planning efforts.

KH's clients successfully implement their strategic plans and our related recommendations. Becauseof our firm philosophy, KH is able to provide customized work in close cooperation with our clients, sothat they can implement the strategic plan with the knowledge and skils necessary to succeed. Wedocument our findings and recommended actions in well-honed Strategic Plan documents, which serveas useful references during implementation. We will extend our commitment throughout theimplementation process if the client so chooses.

D - CURRENT AND PREVIOUS CONTRACTS WITH THE COUNTY OF ios ANGELES

FOR THE SAME OR SIMILAR SERVICES

County Department:Project/Objective:

Office of Unincorporated Area Services (UAS)Assist in the development of a Countyide Strategic Plan for theunincorporated areas of Los Angeles County.00-120$99,979June 2000 - PresentMs. Lari SheehanCounty of Los AngelesChief Administrative Offce723 Kenneth Hahn Hall of Administration500 West Temple StreetLos Angeles, CA 90012(213)974-1174

Agreement No.

Amount of the Contract:Dates:Contact Person(s):

KH CONSULTING GROUP, PAGE lii-S

County Department:ProjectlObjective:

Agreement No.


Departent of Regional PlanningAssist in the development of a Strategic Plan for the Department of RegionalPlanningS40813$78,125Februar 2001 - PresentMr. Richard GuizadoContracting OffcerCounty of Los AngelesDepartment of Regional Planning320 West Temple Street, Room 1390Los Angeles, CA 90012(213) 974-6631

County Department:ProjectlObjective:

Agreement Nos.Amount of Contracts:Dates:Contact Person(s):

Internal Services Departent (lSD)To develop Strategic Plans for lSD's four services, design a customerservice program, and define performance measurements.3002877,3002876,3002875$94,988 + $94,989 + $95,0008/99-4/00Joan Ouderkirk, Executive DirectorCounty of Los Angeles1100 N. Eastern AvenueLos Angeles, CA 90063(323) 267-2103


Agreement No.


Departent of Health Services (DHS)To assist with the reengineering project, focusing on human resources in themedical centers and centrally.Subcontract to Arthur Andersen$150,0008/97-4/98Bob Navarro, Director of Human ResourcesCounty of Los AngelesDepartment of Health Services, Human Resources5555 Ferguson Dr.Commerce CA 90040(323) 890-8313


Agreement No.

Amount of the Contract:

Department of Health Services (DHS)To assist with implementation ofthe reengineering project recommendationsfor human resources, focusing on new organizational structures andreallocated responsibilities.3000186$99,999

KH CONSULTING GROUP, PAGE ~i-6

Dates:Contact Person(s):

11/98- PresentMs. Kate EdmundsonCounty of Los AngelesHuman Resources313 N. Figueroa St., Room 518Los Angeles, CA 90012(213) 240-8123

County Department:

Project/Objective:

Agreement Nos.Amount of the Contract:Dates:Contact Person(s):

Internal Services Department (ISO)To conduct a benchmarking and rate-setting study for Facilities OperationsService (FOS) and Real Propert experience.3006544$39,9859/00- PresentDavid Lambertson, General Manager, FOSMarie NunezCounty of Los Angeles1100 N. Eastern AvenueLos Angeles, CA 90063(323) 267-2276; 738-2001


Agreement No.


Internal Services Departent (ISD)To design a new organizational structure and develop new classifications forcontract and procurement positions. Conduct a compensation survey ofcomparable positions in competitive organizations.3000067$99,91010/98-4/00David Lambertson, General ManagerAdministrative Services and FinanceCounty of Los Angeles1 i 00 N. Eastern AvenueLos Angeles, CA 90063(323) 267-2136

County Department:

Project/Objective:

Agreement No:


County of Los Angeles, Department of Human Resources (DHR)Develop Management Appraisal Program (MAP) to replace thePerformance-Based Pay (PBP) Program; additional amendment to conductMAP training and support MAP Plan; and recent amendment to conductCoaching and Constructive Feedback Training in support of MAP92-36$ i 68,3882/95- 7/97, including Amended Parts II and IIMichael Henry, Personnel DirectorLu TakeuchiCounty of Los Angeles

KH CONSULTING GROlIP, PAGE 111-7

Departent of Human Resources

3333 Wilshire Boulevard, Suite 1000

Los Angeles, CA 90010Telephone: (213) 974-1488; (213) 738-2299


Agreement No:

Amount of the Contract:Dates:Contact Person:

County of Los Angeles, Executive Offce, Board of SupervisorsConduct an organizational and operational review of the Executive OfficeAssessment Appeals Board Public Education Program.PS42520$41,6117/96- 7/98Joanne Sturges, Executive Director (retired)John McKibben, Deputy Executive Offcer

Kenneth Hahn Hall of Administration500 West Temple Street, Room 383Los Angeles, CA 90012Telephone: (213) 720-6886


Agreement No:


County of Los Angeles, Executive Office, Board of SupervisorsConsultant Services for the Assessment Appeals Board for Assistance inTeam Building/Conflict Resolution Skils.S25995$24,92711/95- 7/98Ms. Joanne Sturges, Executive Director (retired)Ms. Georgette Dame, Senior Deputy Executive Officer (retired)Kenneth Hahn Hall of Administration500 West Temple Street, Room 383Los Angeles, CA 90012Telephone: (213) 974- 1403

KH RELEVANT PROJECT DESCRIPTIONS

Some consulting firms list lengthy descriptions of work done during the last few decades; however, theproposed study teams frequently have little relevant experience. In contrast, KH performed thefollowing projects in recent years; these projects show the size and scope of projects we can manage.We conduct small and large studies - both in terms dollar amounts and complexity of managementissues. Our consultants have worked previously with large, international consulting and accountingfirms.

KH has performed consulting studies for the U.S. Federal Government, have met the FederalGovernment's accounting standards, and have negotiated a Government-approved overhead rate. Inaddition, KH currently has:

o A third three-year master agreement with the Chief Administrative Offcer (CAO) in the Countyof Los Angeles to perform human resource consulting services

KH CONSULTING GROUP, PAGE II-8

o A third three-year master agreement with the Auditor-Controller in the County of Los Angeles toperform management audits and special studies and projects.

County of Los Angeles, Offce of Unincorporated Area Services (VAS)in the Offce of the Chief Administrative Offcer (CAO)Project: Development of a Strategic Plan

KH was retained to assist the Office of Unincorporated Area Services (UAS) to work with approximately17 County departments and other stakeholders in developing a strategic plan for delivering municipalservices to unincorporated areas of the County of Los Angeles. KH reviewed various documents onmunicipal services provided, departmental surveys, related budget information, and the County's overallplan. In addition, KH interviewed various departental heads which further helped design a series ofstrategic planning retreats and meetings. The outcome is a draft Strategic Plan with an Action Plan,which is currently being reviewed within the County.

County of Los Angeles, Department of Regional PlanningProject: Development of a Strategic Plan

KH was retained in February 2001 to prepare a Strategic Plan, a succession plan, and performancemeasurements for the Department of Regional Planning (ORP) in the County of Los Angeles. KH is justnow launching this project.

County of Los Angeles, Internal Services Department (ISD)Projects: Strategic Planning for ISD Services and Development of Performance Measurements

and a Customer Service Program

iSO had developed a Strategic Plan for the department but the Executives wanted to drive the ISOStrategic Plan down through the organization with its major Services and lines of businesses developingtheir own Strategic Plan on how to best support the ISO Strategic Plan. KH worked with the ISO, asubgroup of Strategic Sponsors, and four Service Strategic Planning Teams. KH worked with ISO toconduct two large forum presentations with workshops for approximately 350 of its executives andmanagers. KH also conducted a total of 12 Workshops with smaller forums in four strategic planningcycles to develop five Strategic Plans for Facilities Operations, Purchasing and Central Service,Administration and Finance Service, Customer Service, and Information Technology Service (using IBMas a partner).

KH then applied a Balanced Scorecard model to help ISO focus on the high-priority measurements formonitoring and measuring success. The Balanced Scorecard required an iterative process to develophigh priority metrics for ISO's four Services; the Department as a whole; and for accountability reportingto the Board of Supervisors, CAO, and ISO customers. In general, the ISO Executives had taken a boldmove by pioneering Balanced Scorecards with KH in the County for the first time.

Public Health Foundation Enterprises, Inc. (PHFE)City oflndustry, California

Project: Strategic Planning

KH worked with the Board of Trustees and the Executives of Public Health Foundation Enterprises, Inc.to develop its first strategic plan. This process involved four all-day, off-site retreats with Board

KH CONSlJLTING GROUP, PAGE 111-9

members and PHFE executives and managers. KH has now been retained to assist with implementationof the new plan.

Eastern New Mexico UniversityPortales, New MexicoProject: Strategic Planning

KH has been assisting Eastern New Mexico University (ENMU) in its strategic planning process for thelast two years. Initially, a KH consultant conducted an initial reconnaissance to:

o Determine ENMU's readiness to undertake a strategic planning processo Define some of the strategic issues and institutional priorities facing ENMUo Identify a viable approach for undertaking a participatory approach to planning at ENMU.

In addition to extensive document reviews and trend analysis, KH conducted a series of individualinterviews and focus groups with administrators, deans and departent chairs, faculty, students (mostlycampus leaders), and community leaders who have working relationships with ENMU. The range oftopics covered in these interviews included ENMU's vision, mission, strengths, challenges, and barriers.

KH also conducted a two-day kick-off, strategic planning workshop with all of the University's faculty.The purpose of the kick-off was to introduce faculty to the strategic planning process, its linkage to theaccreditation process, and the strategic challenges facing the University. The outcome of the two-dayworkshop was a more comprehensive listing of the University's strengths, weaknesses, opportunities,and threats in both its external and internal environment and initial consensus regarding the majorpriorities facing ENMU. Some ofdiese priorities involved:

o Enrollment management

o Faculty and administrative attrition

o Resource constraints and the need to reallocate resources to match institutional priorities andstrategic directions, including both program development and programmatic reduction

o Distance education and related technology.

Since then, KH performed additional mini-workshops with representatives from the administration,professional staff, support staff ranks, and student forums, and met periodically with ENMU's Board toexplain progress to date. KH wrote the draft Strategic Plan which then underwent extensive review anddiscussion. The outcome is a Board-adopted Strategic Plan. KH then assisted ENMU in developingspecific initiatives to implement the strategic goals and objectives.

Federal Housing Finance BoardWashington, D.C., and the 12 Federal Home Loan Banks(Subcontract with First Boston Corporation)Project: Strategic Planning

The Federal Housing Finance Board embarked on a major strategic planning effort to redefine its role inU,S. housing for the balance of the decade.

Phase I - Ci-tique of Strategic Planning Papers. As a subcontractor to First Boston Corporation in

New York City, during Phase I, KH critiqued 12 papers the Federal Home Loan Banks had preparedon the topics of governance, customer base, capital, regional structures, etc.

KH CONSULTING GROUP, PAGE II-to

Phase II - Governance and Structure of the Federal Home Loan Bank System. As part of PhaseII, KH then performed its own independent analysis of how the Federal Housing Finance Boardshould govern the Federal Home Loan Bank System, including its governance structure, regionalstructure, and accountabilities. As part of the fact-finding, KH conducted site visits at the FederalHome Banks in San Francisco, New York, Atlanta, and Des Moines. The recommendations involveda new configuration to the Federal Housing Finance Board (FHFB) and a regional structure morereflective of those found in Freddie Mac and Fannie Mae.

Marymount Weekend College (MWEC)Rancho Palos Verdes, CaliforniaProject: Develop Marketing Strategy and Survey Students

KH performed a marketing study for Marymount Weekend College (MWEC), which had found itsenrollment at lower levels than previously. KH developed a list of alternative strategies for marketingthe school's unique program and worked with leaders among the faculty and administration to implementthose with the most immediate possible payoff. We also designed, administered, and analyzed a surveycovering all current MWEC students to determine their views of the schools's strengths andopportunities.

Travelers InsuranceSan Francisco and Los Angeles, CaliforniaProject: Strategic and Market Assessment

KH assisted this Fortune 500 East Coast company to determine how best to position itself in the LosAngeles market. In essence, KH conducted a marketing intelligence study and surveyed health benefitsleaders and consultants regarding trends in the health insurance field, including HMOs, PPOs, etc. Aspart ofthe survey, KH defined 18 factors that enter into the competitive bid or "buy" decision. KH thenused a factor comparison process to identify the key factors and what insurance carriers are the trendsetters for each factor. As a result ofthis survey, KH developed marketing and sales strategies unique tosouthern California for Travelers.

Pasadena Senior CenterPasadena, CaliforniaProject: Strategic Planning and Operations Review Study

Pasadena Senior Center (PSC) was one of 8 recipients of an $80 million endowment from the MargaretBundy Scott Trust Fund. Each year, PSC was to submit a proposal to the Trust Fund, outlining its needs,requesting special funding, and demonstrating how the funding would complement its proposed strategicdirections. Each year, however, PSC received marginal funding because of a lack of a well-formulated,articulated strategic plan.

Consequently, the PSC Board of Trustees retained KH to conduct a strategic planning study, As part of

this study, KH surveyed 10,000 Pasadena households (with individuals aged 50 or older) to determinethe needs of senior citizens. KH designed the mailed survey and coordinated the sorting, mailing, andcompilation of results. We also worked closely with City of Pasadena officials regarding program needsfor the elderly, As part of our analysis, we reviewed program requirements for educational, recreation,and services for senior citizens.


KH then conducted a series of goal-setting workshops with the Board of Directors. As a result of thegoals and objectives established in these workshops, KH worked with Board members and staff todevelop specific strategies, tactics, and plans for achieving the goals.

KH also completed an organizational and operations review of PSC's structure, staffing, facilityconstraints, and management processes, including financial systems.

Northwestern UniversitylEvanston Research ParkEvanston, IlinoisProject: Market Research on Fortune 100 Companies

Northwestern University entered into a partnership with the City of Evanston and Charles H. ShawCompany (a developer) to build a research park. Although the University had conducted its ownresearch and sales presentations regarding the park, it retained KH to validate its findings, to obtainobjective market intelligence information, and to interview selected companies which had not be easilyaccessible to the University for discussions.

As a result, KH conducted personal interviews with heads of research and development operations atFortne 100 companies in the mid-West. The purpose of the interviews was to solicit reactions touniversity-related research parks in general and one affiliated with Northwestern University specifically.We explored such factors as facility requirements, laboratory configurations, university affiiations,support requirements, etc. KH compiled this information into a booklet of case studies and thendeveloped marketing strategies for the Northwestern UniversityÆvanston Research Park.

Dr. Kraetsch Hartsough, President ofKH, presented the results of the survey (with NorthwesternUniversity's permission) to the American Association of University Related Research Parks (AAURRP)in San Francisco, California, in May 1989.

u.s. Department of Labor (USDOL), Employment and Training AdministrationUnemployment Insurance ServiceWashington, D.C.

Project: Contingency and Disaster Recovery Planning

USDOL retained KH to assist the 53 State Employment Security Agencies (SESAs) in developingcontingency and disaster recovery plans for Unemployment Insurance operations. Phase I involveddocumenting what the SESAs were doing regarding contingency and disaster recovery planning. KHconducted site visits at six SESAs and surveyed nine other SESAs. During Phase II, we prepared aTechnical Assistance Guide (TAG), outlining how SESAs could:

o Develop their recovery strategieso Prepare their own Disaster Recovery Plans (DRPs)

o Test and train their SESAs on the DRPs

o Update and disseminate DRP information.

Phase II entailed conducting two two-day workshops - one on the East Coast and one on the West

Coast - on the TAG for more than 100 SESA and USDOL attendees.


Subcontract with Towers Perrin forMental Health Association of Los AngelesLos Angeles, California

Project: Strategic Planning Study

As a subcontractor to TPF&C (formerly, Cresap), interviewed 50 mental health opinion leaders,including psychiatrists, psychologists, social workers, service providers, family members of mentalhealth patients, legislators, and other association professionals. The purpose of the interviews was todetermine how the Mental Health Association should best use a Trust it recently inherited. Alsointerviewed major foundations in the Los Angeles area to solicit their input.

OTHER KH PROJECT DESCRIPTIONS

County of Los Angeles 1999-2000 Grand JuryProjects: Two Management Audits of the Inmate Welfare Fund of the Los Angeles County

Sheriff's Department and Foster Family Agencies for the Department of Children andFamily Services

KH recently completed two management audits for the County of Los Angeles i 999-2000 Grand Jury:

o County of Los Angeles, Sheriff's Department, Inmate Welfare Fund (IWF). At the directionof the Grand Jury Audit Committee, KH conducted a management audit of the Inmate WelfareFund (lWF), which averages approximately $35 milion in revenues from services provided toinmates (e.g., collect telephone calls, canteen, etc.). KH documented the history of the IWF, itslegislative requirements, historical uses, and current situation. Moreover, KH interviewed morethan 39 individuals involved with the IWF as either commissioners, managers, vendors, etc. KHalso reviewed innovative practices in other Sheriff operations, using IWF funds.

The outcome was a series of recommendations submitted to the Grand Jury that encouragedstrategic planning for the multi-year use of these funds to maximize their benefits. As per Stateof California legislation, the primary purpose of the funds should be for the health, welfare, andeducation of inmates. Other recommendations focused on governance, innovative programdevelopment, and financial accountability. KH encouraged the Sheriff's Department to use thefunds for piloting new programs that would help other jurisdictions benefit from the County'sexperiences. In this way, the Sheriff's Department could become a national leader of programsthat make a difference in terms of inmate recidivism and integration into society.

o County of Los Angeles, Department of Children and Family Services (DC&FS), FosterFamily Agencies. At the direction of the Grand Jury Audit Committee, KH conducted amanagement audit of the Foster Family Agency (PFA) model employed at DC&FS. DC&FScontracts with approximately 75 FF As to recruit, screen, train, and support foster families tomeet the County's need for foster homes. Approximately 8,000 children are housed in FFAfoster homes. During the last decade, DC&FS has received ongoing negative press regarding itsorganization, placement of foster children, internal politics, lack of accountability, etc. Our areaof focus was on the selection, training, and monitoring of FFA foster parents, investigation ofcomplaints and abuse, and information and communication.

Our fact-finding was extensive involving 23 interviews, focus groups with 32 D&CFS socialworkers, document review, 25 site visits to FF As, 8 focus groups with 50 foster parents,

KH CONSlJLTING GROlJP, PAGE 111-13

NEW S . .'JUJ..(rww-JJow Update

RL E l. T EVol. XII No.8July 1998

KH CONSULTING GROUP, MAAGEMENT CONSULTANTS

KH'sStrategic Planning and Marketing Practice

INSIDEKH's Strategic Planning and

Marketing Services. . , , . .. 1Representative Strategy and

Marketing Assignments .., I

Activity Analysis . . , , . . . . , ", 2

"If opportunitydoesn't knock,build a door."

- Milton Berle

..UJ J(rwwJJw UpJole

KH offers the following

management services:

CJ Strategic planningo Marketing

;¡ Focus Groups

p. Market surveys

~ Market research

o . Organizational design and

restructuringo Human resources

o Employee communi-

cations strategieso Team building and

executive coaching

KH CONSULTING GROUP1901Ave, a/the Stars #1800Los Angeles. CA 90067Telephone: (310) 203-5417FAX: (310) 203-5419E-Mail: khcg&Jaol,eom

"Small opportunities are oftenthe beginning of great

enterprises. "- Demosthenes

KH Consultig Group (KH) is a full-servicemanagement consultingfinn. We offerservices in strategy and marketing,organiztional planing, human resources,

management processes, and informationsystems. Our clients represent a spectr of

industres, including public and private sector

clients.

KH's Strategic PlanningAnd Marketing Services

KH offers the following services via itsStrategic Planing and Marketing Practice:

o Define policies, objectives, and goals forbuilding a long-tenn competìtive

advantage

o Evaluate options (acquisitions, divestitues,mergers) available to enterprises and selectamong them

o Assess an organization's resources

(staffing, capital, facilities, etc.) andcompetencies to determine if they aresuffcient for achieving the desired

strategic directions

o Analyze an organization's externalenvironment and competition

o Assist with preparation of strategic plans or

master plans

o Conduct market research, includingcommunity needs assessments and opinionsurveys

o Analyze market position and opportity;

evaluate different scenarios for product,geogrphic, and. service diversification

o Assess environmental and competitive

situations

o Strctue marketing activities to achievestrategic goals and objectives

o Design marketing and sales database

information systems

o Conduct Board and management planing

retreats.

"When you come acro.ss a treethat you do not recognize,

learn its namebefore you considerchopping it down. "

-Anonymous

Representative Strategy/Marketing Assignments

KH perfonns many types of sureys, often as

par of larger strategic planning, productivity,

organizational, or human resource studies. Inthe area of activity analysis, more than119,000 respondent surveys have beencoilected, processed, and analyzed. Below aresome of the highlights of surveys performed:

II Los Angeles Department of Water and

Power. . As part of a larger efficiency review,KH randomly selected approximately 100major customers to survey by telephone tosolicit their perceptions of the major accountsprogram at the Los Angeles Departent of

Water and Power (DWP).

NEW s - - -J(j J~ow.Jow Update

RLETT EVol.XII No.2July 1998

KH CONSULTING GROUP, MANAGEMENT CONSULTANTS

KH's Innovative Tools and TechniquesINSIDEKH Tools and Techniques. . .. 1Productivity Tools ".",.'" 1

Organizational and HumanResources Tools , . . . , . , " 1

Attitudinal Survey Tools, , , . " 1Customer Service Tools ", , " 2

Program Evaluation, , . . , , , " 2.Technology Assessment Tools , 2

Litgation Support Tools , :., " 2KH'S Sarvey Clients ........ 2

VAL-ACT Software. . . . . . . .. 2

J( J(fWw-W - UpdaoKH Consulting Group

We wil gladly meet withyou to discuss the nature of~1~nagernent issùes

confronting yourorganizàtion and to find OUt

how we can contribute totheir solution,

If interested in learing moreabout KH's tools. techni-ques, and services, contact:

Gayla Kraetsch Harsough.Ph,D" President

KH CONSULTINGGROUP

i 90 1 Ave, ofthe StarsSuite 1800

Los Angeles, CA 90067Telephone: (310) 203-5417

FAX: (310) 203-5419

Note to Public SectorClients: KH qualifes as aWoman-Owned BusinessEnterprise (WBE).

KH Tools and Techniques

On the basis of our consulting experience, KHConsulting Group (KH) has developed computertools and techniques that facilitate the consultigprocess. AlI of these techiiques activelyinvolve our clients so they can readilyunderstand and accept the recommendations.

KH's tools and techniques are focussed onaddressing specific issues - productivity,

organizational, human resources, employeeattitudes, technology,-customer service, programevaluation, and litigation support needs. If theyso desire, at the conclusión of the studies, ourclients can purchase the customized softareand data bases we have developed. In this way,they can update our work on their own in thefutue and assess the effectivèness of changesundertake:i.

. VAL-JOB - Using oUr VAL-JOB

softare, we define th.e V ALue of JOBsperformed in an organization, as par of ajobevaluation process. The outcome. is updated jobdescriptions and classification strctues.

. Accountabilty And Decision-making

Ànalysis - Using succinct matrix formats,we

document individual responsibilities for making_specific management decisions. Such anapproach permits a clear delineation of authorityand accountabilities in an easy-to-read format.

. V AL- TRAIN - We initially define skilrequirements for the workplace to developpotential training programs. Skil requirementsare organized in a lexicon format, starting with

I higher-level skil categories (e.g., computerskils, administrative skils. human relationsskils, etc.) and ending with detailed skilldescriptions. Employees complete the survey,rating each descriptive skil by indicating itscriticaiity, frequency of use, and skil levels intheir jobs. We then analyze the survey results toidentify training requirements by occupationalgroupings; organizational units (deparents,divisions,or units); and managerial, supervisory,and line status. These training needsassessments then help in developing potentialtraining programs that meet specific skil needsin the work environment.

Attitudinal Survey Tools

. Q2 Focus Group Technique - KH'SQ2 isan in-depth, disciplined interview strategy toobtain both Quantitative and Qualitativeperspectives - for quantifying information that

is more qualitative in nature. Focus groupparticipants first indicate their attitudes on ratingscales to obtain a Quantitative assessment ofopinions. The focus group then discusses

selected priority topics and Qualitativestatements are solicited. The infonnation isentered into a data base Îor analyzing

Productivity Tools

. VAL-ACT Activity Analysis - Using ourVAL-ACT softare, we evaluate productivityand the Value of Activities performed in anorganization through activity analysis.VAL-ACT assesses labor costs for performingvarious activities across organizational lines andby employee positions. As a result ofVAL-ACT, our clients typically save between 3to 10 times the cost of the study within the firstyoar. To date, KH's VAL-ACT consultantshave handled surveys from more than 119,000

incumbents.

Organizational and HumanResources Tools

. Compensation Manágement System

(CMS) - KH's Compensation Survey Analysisprogram analyzes compensation data forbenchmark positions collected from multiplesources.

attendance at Blue Ribbon Task Force meetings, meetings with the FFABCK SteeringCommittee, review of25 investigation case files (randomly selected), site visits to 5 fosterfamilies who were investigated, survey of "best practices" in other states, etc. Because so manyinquiries have been conducted over the years regarding DC&FS, KH chose to focus onestablishing a "context for change." This context for change was to help DC&FS make the FF Amodel more viable, including the initial assessment and placement of children into foster care;case management and case load; investigations; FFA foster parent roles and responsibilities; FFAfoster family recruitment, training, orientation, and monitoring; tracking of decertified fosterfamily homes; quality assurance; and FF A operations.

Both of these management audits were delivered and accepted by the Grand Jury. The Grand Jury issuedits report in June 2000.

County of Los Angeles, Department of Health Services (DHS)Project: Reengineering and Change Enablement of Human Resources Functions

(Subcontract with Arthur Andersen and APM)

KH was part of the APM-Arthur Andersen team that undertook the $15 million reengineering effort ofCounty health operations. The County's Department of Health Services (DHS) employs more than24,000 employees, working in five major medical center networks. KH's role was to reengineer humanresources functions and develop strategies that would enable the change process in the otherreengineering areas to occur. Overall, because of a Federal agreement, DHS had to restrcture itsoperations by reducing its expenses by at least $300 million.

The basic structure of the reengineering efforts for human resources was the formation of a HumanResources Core Team which had two Co-chairs. Human resources was divided into functional areas forin-depth review by seven Human Resources Work Groups, each headed by a Work Group Leader,including:

o Work Group NO.1: Classificationo Work Group NO.2: Workforce Reduction

o Work Group NO.3: Placement ofImpacted Employees

o Work Group NO.4: Hiring and Testingo Work Group NO.5: Incentives and Awardso Work Group NO.6: Position Controlo Work Group No.7: Human Resources Functions.

The Core Team and each Work Group had further representation from DHS management; humanresources management - both from HSA and within the facilities; facility management; the County'sChief Administrative Offce (CAO), Department of Human Resources (DHR), and the Auditor-Controller; employee representatives; and various labor representatives from Local 660, Local 434, andBTC. In total, more than 82 individuals were involved in the Core Team or one or more of its WorkGroups. Meetings were held over a six-month period. Some of these meetings were weekly; others weresemimonthly. Most lasted all day, some half-days.

Extensive work was devoted to understanding how the processes currently worked; this effort wasaccomplished through flow charting; review of manuals, policies, and procedures; and overview of otherstructures in place, Once all participants had a good grounding in the current processes, the WorkGroups then developed and critiqued the strengths, weaknesses, opportunities, and threats (i.e., SWOT

KH CONSULTING GROUP, PAGE III-l4

analysis) to build consensus on the major areas requiring improvement. These opportunities forimprovement then became the basis for developing recommendations. All the recommendations weresummarized in an Executive Summary and elaborated in detailed Concept Papers, one per Work Group.Each recommendation had an action plan, including proposed accountability for its implementation (ifadopted), time lines, and expected outcomes. The Human Resources Core Team reviewed eachrecommendation; some recommendations were adopted, others modified, and some rejected before beingsubjected to DHS's executive review processes.

The Work Groups also balanced the human resources recommendations from HSA and the facilities toensure they did not conflict with each other and aligned with human resources "best" practices (or, atleast, "better" DHS practices). For example, some facilities wanted to achieve some of their targetsthrough centralized testing for hiring; in contrast, HSA wanted to achieve part of its target bydecentralizing testing. Because these two testing strategies are in conflict with each other, two WorkGroups (No.4 and No.7) had to analyze the entire process to determine how testing could be performedmost cost-effectively while meeting user needs within DHS. Consequently, the focus of the HumanResources Work Groups' efforts was on overall net savings to DHS (and not just a myopic focus onsavings to reach stand-alone facility or HSA targets). The Human Resources Work Groups generatedcost savings that met the established targets. Across HSA and the facilities, savings of $1.7 milion inhuman resources functions were identified and adopted.

The most notable accomplishment was the bringing together of diverse perspectives in the County toconsider ways to reengineer or streamline human resources from a process and user perspective. Inaddition to DHS's human resources professionals meeting at times for the first time on such intenseissues, few previous meetings had such integral involvement of CAO, DHR, and Auditor-Controllerrepresentatives. Unlike Department-wide functions that are unique to DHS, few human resourcesfunctions are unique to DHS and often required complementary changes to how the County in generalapproaches human resources. Consequently, the recommended change required buy-in from DHS, aswell as the CAO, DHR, and other County departments. The labor and employee representatives were afurther enhancement to the work efforts because they served as a further check and balance.Fundamentally, DHS needs to view human resources differently if it is to manage its work force moreeffectively. These concepts were also outlined in a separate White Paper, prepared independently by KHConsulting Group (KH).

County of Los Angeles, Department of Health Services (DHS)Project: Implementation of Corporate Human Resources Structure as Recommended in the

Reengineering and Change Enablement Project

KH was later retained directly by DHS to assist Human Resources in designing and implementing thenew Corporate Human Resources organizational structure. This effort required detailed analysis anddiscussions of staffing allocations between the central function and the site operations. Certain keyfunctions were identified for consolidation and centralization, thereby reducing overall costs andimproving customer service. KH also negotiated the allocation of roles and responsibilities through amatrix of accountabilities between the proposed Corporate Human Resources Offce and the Site HumanResources Offices.


County of Los Angeles, Department of Human Resources (DHR)Project: Management Appraisal and Performance (MAP) Plan Study

KH designed a new Management Appraisal and Performance (MAP) plan for approximately 1,000 toplevel County of Los Angeles managers. The new plan, to replace an outdated individually-orientedperformance-based play plan (PBP), focuses on defining County- and Department-specific priorities andthe achievement of related goals. Throughout the study, KH worked closely with the Ad Hoc Panelcharged with developing the plan and with the Department of Human Resources (DHR), which wiladminister the plan.

The fact-finding component of the study included the review of all documents relating to the old plan, aswell as structured interviews and focus groups with all groups involved with or affected by the plan,including plan participants, their Department Heads, the Board of Supervisors, the CAO, and theDepartment of Human Resources. As part of consensus building, throughout the plan design component,KH consultants presented findings and plan concepts to the Ad Hoc Panel, Departent Heads, the CAO,and other key constituents to ensure the plan met broad Department, County, and participantrequirements.

"Best Practices" Analysis of Pay- for-Performance Practices in the Public and Private Sector.Too often, public sector entities believe that they can adopt private sector concepts with littleattention to their own unique circumstances. Consequently, for the County, KH also researched whyprivate sector "best" pay practices have often failed or, at a minimum, not resulted in the desiredoutcomes in the public sector. Much of the research was focused on the results in the U.S. FederalGovernment which has had a merit pay plan for the largest number of governmental employees.Causes for the failures were documented and made available to the Ad Hoc Panel, DepartmentHeads, DHR, and the County Board of Supervisors. The new plan was designed to circumvent manyof the causes for such failures.

As a result, the MAP plan was designed to address current County concerns, including managementaccountability for individual and departmental performance, recognition and reward for outstandingperformance, and compensation and appraisal fairness. Furthermore, it is designed to enhance andcomplement Departmental planning efforts, the development of relevant and measurable goals, and thecommunication of Department and County priorities.

The plan was presented to the County Board of Supervisors on December 19, 1995, and adopted inconcept. The ordinance was then prepared and adopted in September 1996. KH then implemented abroad, comprehensive training program (involving 1,000 managers in small group settings of 20) toensure successful plan implementation. These training sessions, averaging 3 hours in duration, weredesigned to: (1) tailor the plan to the strategic directions of the department, (2) define groupmanagement goals and management behaviors, (3) outline how to develop performance measures such asfundamental performance expectations, and (4) discuss expected management behaviors givendepartmental values.

County of Los Angeles, Executive Offce, Board of SupervisorsProjects: Four Different Projects, Involving Organizational Structure of the Executive Offce,

Work Processes of Assessment Appeals, and a Public Education Outreach

Organizational Review of the Executive Offce. For the Executive Offce of the County of LosAngeles, KH performed four assignments. The first project was a review of the organizational structure


of the Executive Offce to assist the then-newly appointed Executive Director. The design of the newstructure was linked to the recently adopted organizational goals.

Phase I: Reengineering and Processing of Assessment Appeals Applications. As a result of thateffort, the Executive Office retained KH to assist its Assessment Appeals Board in the receipt and initialprocessing of approximately 40,000 applications, covering approximately 60,000 parcels of land in theCounty. The review ofthis seasonal influx of applications was completed within 60 days. With currentstaffng levels and work processes, it would have taken 18 to 24 months to complete. This projectrequired:

o The review of current processing procedureso Identification and development of clear criteria for application receipt, review, rejection, and

initial acceptanceo Day-to-day supervision of application work flow and of 16 temporary employees assigned to

processing the applications.

This assignment included setting up a new work area; defining detailed work flows; providing qualityreview of work performed; and ongoing training of temporary employees, not previously knowledgeableof assessment appeals applications or processing procedures.

Phase II: Refinement of Work Processes for Future Years and Closure on Work Backlogs. Theapplication processing assignment evolved to include development of recommendations for processingfuture years' applications and a detailed review of prior years' Assessment Appeals applications. Thedetailed review of prior years' applications compared manual files to automated system fies to: (a)identify procedural deficiencies and (b) develop or recommend methods for correcting deficiencies. Thispart of the project also involved developing clear review criteria, training temporary employees, andworking closely with the client on a day-to-day basis.

These assignments had high client contact at both the management and operations leveL. KH workedclosely with the client to ensure the transfer of "lessons learned" and procedural improvement.

Los Angeles County's Assessment Appeals Public Education Program (AAEP), a publiceducation outreach program. As an outgrowth of the work with the Assessment Appeals Board, KHwas asked to develop a new series of seminars dealing with the assessment appeals process, as part of anew public education outreach program.. The resulting seminar series was part of Los Angeles County'sAssessment Appeals Public Education Program (AAPEP).

KH developed brochures, seminar materials, and collateral informational handouts and flyers for theAAPEP, The purpose of AAPEP is to provide taxpayers with an overview of the Assessment Appealsprocess, how to fie an appeal, how to collect and organize evidence in support of an appeal, and whathappens at the appeal hearing. In addition to the primary audience of County taxpayers, seminars werealso developed for internal training of Assessment Appeals Board personnel and for County employeesof other departments that had public contact with taxpayers and needed to have a clear understanding ofthe Assessment Appeals process.

Materials developed for the program were recognized by the State Board of Equalization for theirthoroughness and were used as a template for the development ofmaterIals and similar programs in othercounties, The program was recognized both by the California State Association of Counties, receiving a

Challenge Award, and by the National Association of Counties, receiving a special recognition award.


County of Los Angeles, Department of the RegistrarlRecorderProject: Work Effectiveness Study

KH conducted a review of the efficiency of designated Registrar-Recorder functions for the County ofLos Angeles, using interviews and surveys to collect information from employees. Comparative orbenchmark information was also collected from neighboring counties as well, and was used to evaluatethe potential of recommendations for change at Los Angeles County's operations.

E - KH TEAM EXPERIENCE AND CAPABILITIES

CONTRACT MANAGER AND ALTERNATES

..

As KH President, Gayla Kraetsch Hartsough, Ph.D., would serve as the Contract Manager, AccountManager, or Project Director. She would take an active role in the conduct of

the projects because of her

extensive background in strategic planning in both the private and public sectors, including the County ofLos Angeles. She would be assisted by one to three ofKH's Senior or Resource Consultants, anyone ofwhom could serve as alternates to Dr. Kraetsch Hartsough as the Contract Manager. They can allperform all aspects of strategic planning that may be required. We have also added Mr. Paul Epstein, anexpert on performance measurements and balanced scorecards, in the event a County departent wishesto embark on such an approach.

A popular concept today is the virtal corporation and strategic alliances. KH began developing suchalliances in the mid-1980s as a means of bringing needed expertise to client engagements at reasonablecosts. In addition to KH's core of professional project managers and consultants, we maintaincontinuing relationships with a large number of

resource consultants (on a contractual basis) practicing

in many specialized areas. If appropriate, these professionals are engaged on our KH study teams. Therouting blending of experienced, full-time staff and expert outside consultants has enabled KH torespond to a wide range of requests for services. It permits KH's permanent staff to consider complex,controversial issues in a professional and conceptually sound manner, while containing our overheadcosts for our clients.

TEAM BIOGRAPHIES

GAYLA A. KRAETSCH HARTSOUGH, PH.D.

KH PRESIDENT

(May 1986 to Present)

Dr. Gayla A. Kraetsch Hartsough has been the President ofKH Consulting Group since 1986. Hercompany specializes in organization and strategic planning, marketing, human resources, informationsystems, and management processes. She has conducted numerous management studies in both thepublic and private sectors in the United St..tcs and overseas,

Dr. Kraetsch Hartsough has a 20-year career specializing in management issues. Prior to launching herown firm in 1986, Dr. Kraetsch Hartsough was a Managing Consultant for six years with Cresap, aTowers Perrin Company. Before Cresap, she was a Senior Program Officer with the ManagementDivision at the Academy for Educational Development (AED), a not-for-profit research finn inWashington, D.C.

KH CONSULTING GROUP, PAGE II-I8

Public Sector Expertise. Dr. Kraetsch Hartsough has worked extensively with local, state, and federalgovernmental agencies, as well as non-profit organizations and health care providers. She has extensiveexpertise in public policy, strategic and master planning, service delivery, community needsassessments, stakeholder buy-in, and the political realities of local government in California.

o Local and State Government. County of Los Angeles - Office of Unincorporated AreaServices, Department of Regional Planning, Executive Offce for the Board of Supervisors,Department of Human Resources (DHR), Internal Services Department, Information TechnologyService, Internal Auditor, and Chief Administrative Office; City of Los Angeles - CityAdministrative Office, City Council, General Services Department, Departent of Water and

Power (DWP), Personnel Department, and Harbor Department (WORLDPORT LA or Port ofLos Angeles); Orange County Transportation Authority; County of Orange (California);Metropolitan Water District of Southern California; Port of Oakland; South AustraliaDepartment of Marine and Harbours; Commonwealth of Virginia, Title IV-C Projects;Commonwealth 'of Kentucky, Department of Education; Florida State Legislators; MississippiState Legislature, Commission of Budget and Accounting; New Mexico State Library; OhioBoard of Regents; State of South Carolina, Departent of Pupil Transportation; West VirginiaState Legislature, Joint Committee on Government and Finance and Joint Committee on HigherEducation.

o Federal Government. Federal Home Loan Bank of Boston; Federal Housing Finance Board(FHFB); U.S. Department of Labor; U.S. Veterans Administration (VA) for a Congressionallymandated efficiency review of Sepulveda VA Medical Center; Federal Library Committee; andU.S. Department of Health and Human Services.

o Not-for-Profit Education-Related Organizations and Foundations. Over the years, she hasconsulted to: The Gett Conservation Institute; California Special Olympics (CSO) Inc.; MentalHealth Association of Los Angeles; National Medical Fellowship; Pasadena Senior Center;REDIRECT Project, Diversified Educational Cooperative; WBRA- TV (Educational TelevisionProgramming in Virginia); W. M. Keck Foundation; World Vision InternationaL.

o Health Care Clients. She has worked with a number of health care organizations, including theU,S. Department of Health and Human Services, the Sepulveda Veterans AdministrationMedical Center, Department of Health Services in the County of Los Angeles, the Bureau ofMedicine and Surgery in the Department of the Navy, St. John's Regional Medical Center inOxnard, and Rose Medical Center in Denver, among others.

o Education Clients. Dr. Kraetsch Hartsough recently managed the landmark management audits

for San Francisco Community College District (SFCCD) and Los Angeles Unified SchoolDistrict (LAUSD). Her other education clients include more than 50 colleges and universities(e,g" Eastern New Mexico University, California State University System, Gallaudet College,Georgetown University, Hood College, Kern Community College District (KCCD), Los AngelesCommunity College District (LACCD), Northwestern UniversitylEvanston Research Park,University of California at San Diego, Institute of the Americas, Villanova University,University of the District of Columbia, UCLA, and University of Southern California (USC).Among her dozen school district clients are: Glendale (California) Unified School District(GUSD), Long Island (New York) Action Committee, Pittsburgh (Pennsylvania) Public Schools,Roanoke (Virginia) Public Schools, and San Jose (California) Unified School District.


Key Strategic Planning Projects. Dr. Kraetsch Hartsough has served as the Project Director for variousKH strategic planning projects, including work for the Internal Services Department in the County of LosAngeles, Eastern New Mexico University, Public Health Foundation Enterprises, Inc., Travelers'Insurance, and the Federal Housing Finance Board. In addition to training on goal-setting for more than800 County managers involved with MAP, she has conducted planning workshops with the DistrictAttorney, Sheriffs Department, Fire Departent, and various other County departments.

Other Areas of Expertise. In total, she has served more than 100 clients since she began her consultingcareer. Some of her other clientele include Alpha Therapeutics; Chrysler; CBS, Inc.; Greyhound BusLines (Trust Office); Hughes (Summa) Corporation; Qantas Airways Limited; St. John's Regiona!Medical Center; Transamerica Pension Company; AECOM Technology Corporation; GE Capital _ResCom; Chrysler Corporation (AMC Canada); Dean Witter Reynolds; Trans World Airlines; CandleCorporation; MSI Data Corporation; Pak-Poy & Kneebone Engineer Consultants (Australia); IlinoisPower Company; The Gas Company (Southern California Gas); Snell and Wilmer Law Firm; DayRunner; and Travelers Insurance.

Education and Awards. Dr. Kraetsch Hartsough has published more than 20 articles and chapters inbooks on public sector, research, and management issues. Dr. Kraetsch Hartsough received a B.S.degree in speech from Northwestern University; an Ed.M. degree from Tufts University; and M.Ed. andPh.D. degrees from the University of Virginia. After completing her Ph.D., she was awarded a WoodrowWilson National Fellowship Award in higher education administration; was a National Finalist for theWhite House Fellows Program; was named one ofTen Women of Achievement (1990) (EntrepreneurCategory) by the Century City Chamber of Commerce; is cited in Who's Who as well as in other similarpublications; was a Pacesetter Volunteer and an Associate Vice Chairperson with the westside UnitedWay of Los Angeles; is the Past President of the Organization of Women Executives; and is on theAdvisory Councils for Northern Trust of California and Northwestern University's School of Speech.

THOMAS R. GREER

RESOURCE CONSULTANT

(April 1999 to Present)

Thomas R. Greer has over 33 years of senior executive experience in municipal government, health care,insurance, merchandising, and consumer finance. His extensive career as a chief administrator in anurban setting furnished great insights into political, governance, service delivery, and changemanagement issues in government. While at KH, he worked on the governance issues in the City ofLos Angeles pertaining to KH's project with the Los Angeles World Airports, an organizational designproject at East Los Angeles College of the Los Angeles Community College District, strategic planningfor the Offce of Unincorporated Area Services in the Office of the Chief Administrative Offcer, and anorganizational design project for the Proposition i 0 Commission.

Prior Work Experience. Prior to collaborating with KH he held many senior positions in both the Cityof Toronto and the Government of Ontario. As Commissioner of Community Services and Member ofthe Board of Management, Mr. Greer led Community Services (Fire, Public Health, Housing, Parks andRecreation, and the Health City Office) and shared the responsibilities of Chief Administrative Officerwith three other Commissioners on a Board of Management. Community Services had a staffcomplement of2,740, a capital budget of more than $12 million, and an operating budget of $187million. Accomplishments included:


o A new management structure that reduced the number of senior managers from 81 to 41 andsaved $2.3 million

o A revitalized working environment including major organization-wide initiatives on businessplanning, customer/citizen service, and "employees as our best asset"

o Council approved strategic initiatives including: an economic development plan; a financial planincluding a streamlined capital and operating budget process; responses to municipal reform; taxreform; and amalgamation.

Mr. Greer also served as Executive Director of the Management Services Departent (MSD) of the Cityof Toronto. The Department had a dual service and control role in budgeting and long-term financialplanning, computer services, organizational development, and human resources. The overall goal of theDepartment was to develop, implement, and manage new strategies, policies, and systems thatcontributed to greater effectiveness and productivity at the City. Some of the Department'saccomplishments included:

o Implementation of the City's Streamlining Programo Development and approval of the Corporate Review, a total reorganization of the City's

administrative structure, resulting in the adoption of the Board of Management model by the CityCouncil

o Reorganization of the Management Services Department from nine to four divisions with areduction of 66 positions and savings of over $2 million, a i 7% reduction of the Department'sbudget

o A review of Publici Private partnership opportunities resulting in the privatization of theComputer Centre Operations.

Mr. Greer also served as Chief of Staff in the Mayor's Office of the City of Toronto. The Chief of Staffwas responsible for the Mayor's major policy initiatives, day-to-day troubleshooting, and managing theoperations of the Mayor's Office. Other duties included maintaining relationships with variousindividuals, groups, and organizations such as the City Council, the civic service, the community, theprivate sector, the three other levels of government, and the media, representing the Mayor whenrequired. Accomplishments include:

o Contributions to the Mayor's initiatives in housing, the environment, development,

transportation, day care, drug abuse, and the artso Reorganization and automation of the Mayor's Office, increasing efficiency and effectivenesso Selection of Toronto as the site ofthe head offce of the International Council for Local

Environmental Initiativeso Co-chaired (provincial/city task force) the development of the $1 billion Ataratiri Urban

Renewal Plano Facilitation of World Cities and Their Environment, a conference of 120 Mayors from major

cities around the world, which resulted in a signed environmental protocol.

Additionally, Mr. Greer twice served as the Director of the Management Consulting Division for the Cityof Toronto. Reporting to the Executive Director of Management Services, the Director managed a 12-person multi-disciplinary consulting team, augmented as required by external specialists. The Divisionprovided consulting services to the City Council and Departmental management on strategic planning,program evaluation, design of new organizational structures, policies and systems, job descriptions, wagerates, budgets, training, and the negotiation ofthe changes with the unions. The Director was also theDeputy Department Head and acted for the Executive Director during his absences. He successfully


developed a strong consulting ream, reversing the previously negative image of the Division. TheDivision had over 400 successful assignments, examples of which include:

o A review of the goals, programs, and organization of the Public Health Department culminatingin a decentralized department

o A review of the City's current Senior Management compensation practices against other NorthAmerican public and private sector plans

o A moraleltrust building program to improve the climate and productivity of the PropertDepartment

o Organization of the City's International Office to support the City's sister city, economic, andfriendship agreements with Amsterdam, Chongqing, Chicago, Frankfurt, Thessalonika, Lisbon,Tallinn, Riga, Vilnius, Volgograd, Kiev, Capetown, Lima, and Sao Paulo

o A review of the functions of the Planning, Development, and Buildings Departments, whichculminated in a consolidation of these three departments into two

o Development and coordination of the City's Streamlining Program, resulting in reductions ofover 1,400 positions and savings of over $90 million. This program involved extensiveconsultation with unions, staff, and politicians, and positive human resource strategies resultingin a more effective and effcient organization and downsizing without layoffs.

Mr. Greer served as the Coordinator of the Policy Development Group for the Ontario Ministry ofHealth. The Group was created by and reported to the Minister of Health. The Coordinator organized

and facilitated task forces and project teams that identified high priority problems or opportnities in thehealth care system and recommended new Government policies, programs, and actions. Otherresponsibilities included working with the industry and agencies of other jurisdictions on these issues andrepresenting the Ministry on Federal and Provincial Committees, such as the Federal Committee onProgram Evaluation in Health.

Education. Mr. Greer has a Bachelor of Science degree in Mathematics from the University of Torontoand a Masters of Business Administration from York University, also in Toronto.

CHARLOTTE D. MAURE

RESOURCE CONSULTANT

(January 1999 to Present)

Ms. Maure has eleven years experience directing multimillon dollar administrative support functionsin a cost-competitive, customer focused public sector environment. She possess strong conceptualanalytical skills; a proven ability to develop and lead staff to perform as an effective team in theaccomplishment of complex projects; and effective personal implementation oftelecommunications,systems, and administrative projects responding to fundamental change. Some of Ms. Maure's key

accomplishments include:

o Implemented systems, administrative and telecommunications improvements required whencustomer base increased in 18 months from 300 institutional investors to 11,000 shareholders.

o Directed operations of department with annual $60 million budget, and over 500 union,

professional, and administrative staff.

o Oversaw successful completion of simultaneous complex projects such as centralization of allagency records; introduction of electronic document management; establishment of agency-wide


offce copier contract saving $2 milion annually over existing practices; production of agency

Annual Report; and fabrication of building signs for the World Trade Center.

o Developed and implemented standard purchasing procedures which maximized buyer focus onlarge value purchases and sensitive purchasing issues.

o Chaired Executive Director's Diversity Advisory Task Force which developed recommendations

for measurable organization-wide program to improve Port Authority's diversity management.

Prior Work Experience - Payden & Rygel. Ms. Maure served as Senior Operations Manager for thefirm of Pay den & Rygel in Los Angeles, providing telecommunications, systems, and administrativesupport for an 85 person firm managing $24 billion. Some of her accomplishments included:

o Evaluated, maintained and improved remote disaster recovery site located in Phoenix, Arizonao Planned and executed improvement to phone system including installation of voice mail, voice

recording, automated call distribution, switch upgrade, equipment upgrade, and direct inwarddialing system

o Coordinated efforts of three- to-five person systems support unit implementing LAN expansion,Internet access and presence, and multiple simultaneous major system changes.

Prior Work Experience - Port Authority of New York and New Jersey. From 1977-1996, Ms.Maure served in many different capacities at the Port Authority of New York and New Jersey, including:

o Deputy Director, Chief Operating Officer, General Services Department, where she wasresponsible for effective operations of a department handling annual purchase of $325 million ingoods and services; operation of eleven stockrooms; distribution of maintenance and operatingmaterials at all facilities; design, purchase and maintenance of fleet of i ,200 vehicles; facilitiesmanagement - leasing and operating officeltechnical buildings; planningldesignlconstruction ofover i million square feet of office space in World Trade Center; and provision of food andcatering services to headquarters and facility staff.

o Manager, Communications Services Division, which delivered over $10 million worth ofgraphics, audio/visual, photographic, printing, mail and delivery, and records managementservices; assured cost competitiveness with outside vendors; prepared annual budgets andworkforce requirements; coordinated production of over 7 million copies monthly; managedcommunications services at a net savings of $3 million annually as compared to contract bids foridentical services; outsourced noncompetitive functions; and established new cost comparisonsystems for departmental operations to save money by outsourcing.

o Supervising Management Analyst, Organization Planning Division, where she managed andparticipated as senior advisor to teams of consultants and management analysts preparingmedium and long range plans; advised the Executive Director on revisions to policies andorganizational structures; oversaw operations analyses; and assisted line units in theimplementation of recommendations and reorganizations,

o As a Financial Analyst, World Trade Center Sale Task Force, Ms. Maure led analyses of several

aspects of the fair market value of the World Trade Center, reporting directly to the ChiefFinancial Officer. She recommended terms and conditions of sale which would maximize returnto the Port Authority.


o As Assistant to the Executive Director, Ms. Maure managed preparation and production of actionitems to be approved by the Board of Commissioners, which included all significant financialand operating undertakings. She coordinated response to written inquiries and complaints toexecutive offices by outside organizations, patrons, community groups, and others.

o As a Management Analyst, Corporate Planning Task Force, she identified significant needs andtrends for the Authority in the areas of local, interstate, and national public policy, and developedalternate policy approaches to assure that legislative and community relations supported strategictrends of agency,

Key Strategic Planning Projects. Ms. Maure was the Lead Consultant in designing the Customer

Service Strategic Plan for the KH project for the Internal Services Department (lSD) in the County ofLos Angeles. She has also conducted strategic planning studies ofISD, the Office of UnincorporatedArea Services in the Offce of the Chief Administrative Offcer, and the Department of RegionalPlanning.

Education and Certificates. Ms. Maure received a Bachelors of Art degree, cum laude, in History fromVassar College, and a Master of Public Administration in Intergovernmental Management from theUniversity of Southern California. She is also a Certified Trainer in Affirmative Action/EEO, InteractionManagement, and Meeting Planning.

CATHERINE M. SCHUSTER

RESOURCE CONSULTANT

(KH Senior Consultant 1991 to March 2000; Resource Consultant April 2000 to Present)

Ms. Catherine Schuster has more than a decade experience in management consulting and training foremerging and established organizations in both the private and public sector. Much of her work hasbeen in surveying and assessing opinions of diverse stakeholders, including citizens, manager,employees, customers, politicians, business leaders, students, etc.

She specializes in planning, organizational structure and design, management development, planning,and human resources. She has worked successfully with managers and employees at all organizationallevels, including senior management teams, to develop and implement programs resulting in increasedorganizational effectiveness, enhanced internal coordination and communication, and improved moraleand productivity.

Consulting Assignments. Ms. Schuster has conducted numerous management audits and studies usingfocus groups, interviews, and surveys to assess specific environmental and internal challenges. She isthe creator of KH's QZ focus group technique. To date, she has used the QZ technique with more than1,500 focus group participants on various KH projects. Furthermore, Ms. Schuster has conducted

market studies, feasibility studies and economic impact analyses using the tools of market research andcomputer-based financial and data base modeling.

A partial list of recent clients includes Fortune 500 companies, the public sector, healthcare, and rapidlygrowing entrepreneurial organizations: Altium, ARCO Transportation Company, Bon AppetitMagazine, Cedars Sinai Medical Center, Covercraft, Inc., Day Runner Inc., Department of Health andHuman Services, Devon Industries, Edutrain Charter School Inc., Glendale Unified School District(GUS D), Hughes Aircraft Company, Jet Propulsion Laboratory, City of Los Angeles, County of Orange(California), County of Los Angeles (Internal Services Department, Registrar-Recorder,


Agriculture/Weights & Measures, and the Department of Human Resources), Los Medanos College inthe Contra Costa (California) Community College District, San JoselEvergreen Community CollegeDistrict, Metropolitan Water District of Southern California, Mission Energy, National MedicalEnterprises, Inc., National Medical Fellowship, Inc., Navistar International, Project California, RoseMedical Center (Denver), Sharp HealthCare, Southern California Gas Company, Teleflora, TheTraveler's Insurance, UniHealth America, University of Southern California, University of Califomia atLos Angeles (UCLA), and Washoe Medical Center (Nevada).

Key Strategic Planning Projects. Ms. Schuster has served as a Senior Consultant on various KH

strategic planning projects, including work for the Internal Services Department in the County of LosAngeles, Eastern New Mexico University, and Public Health Foundation Enterprises, Inc.

Prior Work Experience. Prior to KH, Ms. Schuster worked for Laventhol & Horwath, ManagementSystems Consulting Corporation, Meek and Associates, Right Associates, ROI Consulting Group, andthe Watson Wyatt Company.

Education. Ms. Schuster received her M.B.A. degree from the Anderson Graduate School of

Management at UCLA in strategy and finance, and her B.A. degree with honors in comparative literaturefrom Scripps College.

ROBERT C. SCHILLING

RESOURCE CONSULTANT

(September 1998 to Present)

Mr. Schilling is a builder of teams and organizations, including the development and implementation oforganization structures and processes designed to produce effective and effcient performance. A provenmanager of operations and support services, Iie is capable of providing excellent customer servicetlirougli team building and staff development. Mr. Scliillng is also an e.l:perienced problem solverwlio tackles signifcant service delivery cliallenges witli tiglit deadlines and produces excellent results.Some of Mr. Schiling's key accomplishments include:

o Provided leadership for the revitalization of the New York Coliseum, including a creativerevenue reinvestment program and an increase in bookings from 10 events per year to 52 in1996,

o Developed and implemented policies and procedures to govern administrative services for a staffof 2,500 located in 1 I facilities.

o Managed 100,000 square foot offce space expansion to accommodate increased staff; saved$500,000 over cost of new space by modifying existing offces to meet new needs withoutcomplete reconstruction.

o Planned and executed move of20,000 line item warehouse in six weeks, saving $200,000 inlease penalty charges.

o Managed John F. Kennedy International Airport (JFKIA) inter-terminal bus system to break-even for first time in 5 years.

Prior Work Experience - Port Authority of New York and New Jersey. For the Port Authority ofNew York and New Jersey, Mr. Schilling served in three different capacities: Supervisor, Rail Programs,Supervisor, Ground Transportation, JFKIA, and Management Analyst. In these capacities, he:

KH CONSllLTlNG GROllP, PAGE 111-25

o Prepared recommendations incorporated into initial Urban Mass Transit Administrationcommuter rail funding programs

o Managed all aspects of ground transportation services at Kennedy International Airport (KIA),including taxi dispatching, $450,000 inter-terminal bus contracts, and parking lot operation,which generated net revenues of $4 million

o Served as an internal consultant, including projects to restrcture the management of NewarkInternational Airport; developed a computer-based parking lot inventory system; evaluatedaccuracy of Engineer's Estimates; and modernized rail transit timekeeping.

o Participated in major corporate planning effort to assess institutional capacity of organization tomeet rapid change.

Prior Work Experience - Saudi Public Transport System. Mr. Schilling served as Director,Operations Staff Services for the Saudi Public Transport System in Riyadh, Saudi Arabia, where hemanaged maintenance and support services for a Kingdom-wide local and long-haul bus service. He wasresponsible for all maintenance activities for an 1,100 bus fleet with $1.5 million budget, as well as formajor project troubleshooting, including warehouse relocation. He established a warehousing and partsinventory control system, and served as team leader for service expansion evaluation teams.

Prior Work Experience - New York City Transit Authority. For the New York City TransitAuthority, Mr. Schillng served as Manager, Truck Administration and Chief, Maintenance Analysis, incharge of fleet management of a 75 unit truck and construction equipment unit. He also led the transitionfrom contract to in-house provision of major trucking and construction equipment services, improvingservice and reducing annual costs by $200,000. Additionally, he was responsible for procurement of allTransit Authority trucks and construction equipment. As Chief, Maintenance Analysis, he served as asenior internal consultant, leading teams that measured reinvestment benefits in bus replacement, rail carreplacement/renovation, and track replacement. Track replacement analysis led to significantmodification of the 1985-1990 capital program, reducing derailments by 50%.

Prior Work Experience - MTA Bridges & Tunnels (New York City). As the Director,Administration for MTA Bridges & Tunnels in New York, Mr. Schilling directed a multi-functionaladministrative services department for 11 facilities. He was directly responsible for facilitiesmanagement, including offce space design (construction, furniture acquisition and installation,telephone, and computer systems installation) and coordinationl management ofHV AC and otherbuilding services for 100,000 square feet of commercial office space. He developed and implementedpolicies, processes and team structures to provide services and meet organizational goals; instituted acustomer service program for the department; served as an internal consultant in the development ofpersonnel policies and procedures; and served on selection committees for building management,security, and engineering services contracts.

Key Strategic Planning Projects. Mr. Schiling was the Lead Consultant on the Purchasing and Central

Services Strategic Plan for the KH project for the Internal Services Department and facilitated strategicplanning retreats for the Offce of Unincorporated Area Services in the Offce of the ChiefAdministrative Officer in the County of Los Angeles.

Education and Certificates. Mr. Schilling received a Master of Public Administration degree from theUniversity of Southern California (USC) and a Bachelor of Arts in History and Political Science from


Whittier College. He has specialized training in executive coaching and is certified as a PersonalEffectiveness Coach. He has attended Fire Safety Director's Training and High-Rise Building SecurityTraining at New York University, and Project Management and Financial Management seminars givenby the American Management Association.

PAUL D. EpSTEIN

KH RESOURCE CONSULTANT FROM

EpSTEIN AND FASS ASSOCIATES

(August 1999 to April 2000; thereafter as needed)

Mr, Paul Epstein, a KH Resource Consultant and Principal of Epstein and Fass Associates, has over 25years' experience in public performance measurement, quality and productivity improvement,customer service improvement, and sharing innovative practices. He is experienced in managingcomplex projects, and facilitating leadership and working groups of government offcials and citizens,

He has helped entire local governments develop performance measures and improvement projects. Andhe has assisted local, state, Federal, United Nations (UN), and non-profit agencies that provide servicesas diverse as child welfare, health, aging services, engineering, public works, public safety, codeenforcement, libraries, parks, housing, auditing, probation, and courts. He has also helped publicorganizations plan, measure, and improve internal services, including data processing andcommunications, financial management, inventory control, purchasing, and, for the UN, translation anddocument production and international conference and meetings management.

Mr. Epstein's many publications include the book Using Performance Measurement in LocalGovernment, used by public managers across the country. He has advised the Governmental AccountingStandards Board (GASB) on initiatives exploring state and local performance reporting, and organized apublic hearing and comments from around the country on GASB concepts. GASB is now engaging himas a consultant on its performance reporting initiatives. The work of a professional committee he chairedwas cited by Congress in its report on the Government Performance and Results Act, signed by PresidentClinton in 1993. That year he was tapped by Vice President Gore's National Performance Review toassist initiatives to reinvent the U.S. Federal Government.

Consulting Assignments. Some of his projects are described below:

o For Dallas County, Mr. Epstein provided staff training and follow-up consultation to helpdepartments identify performance measures to report in the budget process. At the start of theengagement, he met with elected County Commissioners to explore the potential value ofperformance measures for the County, and the Commissioners' expectations for howperformance measures should be used and how the county should benefit as a result.

o For the City of Albuquerque, Mr. Epstein facilitated a retreat for executive and departmentmanagers, and council members and staff, to develop the direction of new performancemeasurement initiatives. Albuquerque then invited him back to provide inter-departmentalworkshops and consulting to help the City develop performance measures based on Council-approved goals. The City now issues public progress reports focused on the Council'sperformance goals, emphasizing outcome measures.

o Mr. Epstein facilitated a major strategic planning effort for the City of New York's centralcomputer and data communications agency. He planned and facilitated many planning sessions

KH CONSlJLTING GROUP, PAGE ~i-27

involving all management levels from the department head to shift supervisors, to identifystrategic objectives and develop an action plan to achieve them. A major thrust was to help theagency plan its shift from a traditional internal service monopoly to a customer-orientedorganization that provided capital-dependent services (e.g" use of main frame data centers andwide-area communications lines) as a "utility," and other services (e.g., local client systemsdevelopment and programming) on a competitive contracting basis. Even for the non-competitive utility services, the agency was shifting to performance-based service agreementswith customer departments, and emphasizing improved customer service.

o He conducted a two-phase project for the United Nations, starting with a comprehensive reviewof Conference Services performance issues related to organization, management, and resources.Conference Services, a large internal services division with 1,200 employees in New York andabout 1,800 worldwide, includes, for example, scheduling and interpreting UN meetings; andediting, translating, and printing UN documents. Phase 2 was an action phase, involving manyimprovement teams of Conference Services staff, with Mr. Epstein providing training, technicalassistance, and group facilitation. As a result, the use of outmoded documentation workloadstandards, which reduced effciency, were superseded by performance benchmarking acrosslanguage services. Also, electronic document submission standards were issued to increaseproduction efficiency and reduce costs; customer-supplier transactions were improved; andConference Services achieved significant savings on travel and per diem costs for the UNConference on Women in Beijing through remote translation of documents, using electronictransmission via the Internet.

o Mr. Epstein has conducted several measurement and improvement projects for the HartfordPublic Library. Most recently, he has assisted the Library's children's services staff inidentifying outcomes for customers of their Family Literacy programs, and has helped themlearn from their reported measures to make significant program improvements.

o Working through the Fund for the City of New York, Mr. Epstein served as a facilitator ofstrategic planning, goal-setting, and executive development for management teams of severalNew York City agencies. He also facilitated inter-agency groups to solve problems faced bymany agencies, such as improving purchasing of computer services and equipment.

o He directed a project to help the New Jersey Courts develop efficiency models and productivityimprovement strategies. This involved introducing court and probation managers tobenchmarking and continuous improvement, and recommending strategies for the court systemto "get ahead of the budget curve" by investing in productivity improvements such as increasedautomation and high-performance case management teams.

o For the UN's Department of Administration and Management's Management Advisory Services,

Mr. Epstein prepared a research study on ways to measure and improve the work of professionalstaff at the UN, These included hard-to-analyze professionals such as staff economists, andother staff facing competing demands of customer-service and organizational economy, such aspurchasing agents. A variety of measurement approaches were explored and presented in Mr,Epstein's reports, including project-oriented measurement, output-based measurement, andvalue-based measurement approaches.

o For Vice President Gore's National Performance Review (NPR), he reviewed the Social Security

Administration's (SSA' s) strategic plan and customer service measurement, leading to customer-


testing ofSSA's strategic goals and objectives, and integration of strategic planning andcustomer-oriented performance measurement and improvement. He also helped develop NPRrecommendations for investing in building employee and management capacity and productivityimprovement, including improving performance measurement and creating "innovation funds"for productivity investment. He also prepared a report to guide federal "reinvention labs" inmeasuring their performance.

o For the New York State Office for the Aging, Mr. Epstein used his innovative approach foranalyzing the productivity of professional services, combined with organization culture surveys,staff feedback sessions, and customer focus groups, leading the agency to revise its strategic planand to restructure its field operations to increase effciency, The agency asked him back tofacilitate top management and staff-level goal-setting groups to develop new operating goals andobjectives to focus staff efforts more effectively on agency priorities.

o For Sarasota County, Florida, he provided performance measurement training for nearly 100

department directors and staff, and follow-up expert review of proposed performance measures,leading to inclusion of performance measures with the county budget.

o For the City of Wichita, he provided performance measurement training for over 100 department

directors, division directors, and high level staff, including development of draft measures in theworkshops, Years later, Wichita's public "Performance Measures" reports credited Epstein withhelping the city get started in measuring performance.

o For the City of New York and the State of Connecticut, he provided performance measurementand productivity training to hundreds of managers as part of executive and managementdevelopment programs. Some of the New York training included follow-up consulting onperformance measurement of participants' productivity improvement projects.

o For the City of New York, Mr. Epstein conducted several projects involving complex operationsanalyses of health and human services. For example, he led a project that resulted in aproductivity index for public health clinic dentists, new clinic scheduling techniques, and adentist productivity increase of 21 percent. He also developed an operations reviewmethodology, and defined and analyzed functions and activities of child welfare caseworkers andtheir supervisors in all five counties of New York City, leading to major performanceimprovement recommendations and a resource allocation modeL.

o Also for the City of New York, Mr. Epstein analyzed infrastructure engineers' work by function

(e.g., quality assurance, project management) and use of professional skills, and analyzed the

organizational culture, After implementing productivity improvement recommendations, theclient agency replicated the methodology in other engineering divisions.

o For a comprehensive improvement project involving eleven New Jersey municipalities, heprovided performance measurement training to over i 00 chief administrators and departmentheads. He also provided training and consulting in productivity improvement, creative problemsolving, and project management, and helped the cities develop performance improvementprojects to meet community needs while building their management capacity.

Prior Work Experience - Sloan Foundation. Mr. Epstein was Director of the "Citizen-driven,Results-oriented Assessment of Government Performance" funded by the Sloan Foundation in Dayton,

KH CONSlILTlNG GROlIP, PAGE ~i-29

OH, and Montclair, NJ. The project involved measuring performance, including community outcomes,and use of performance data by citizens and local governments to make services more responsive tocommunity needs.

Prior Work Experience - City of New York. Before he started Epstein and Fass Associates, asManager of Cityide Productivity for the City of New York, Mr. Epstein helped integrate productivityimprovement with the budget process, leading to productivity savings and revenue of over $1 bilionannually. He also edited public performance reports and helped many agencies develop relevant, usefulperformance measures.

Key Strategic Planning Projects. Mr. Epstein was the Lead Consultant in developing performance

measurements and a Balanced Scorecard for the Strategic Plans developed by KH for the InternalServices Departent in the County of Los Angeles.

Education. Mr. Epsteiri has an engineering degree from Massachusetts Institute of Technology (MIT),

and has taught graduate public management courses at New York University (NYU), the University ofHartford, and Baruch College.

. .Paul D. Epstein: Selected Publications:

BOOK: Using Performance j\¡easurement in Local Government, Hardcover: Van Nostrand Reinhold,New York (1984); Paperback: National Civic League Press (1988).

INTERNATIONAL TRAINING MANUAL: Participant's Manual and Instructor's Guide for the trainingmodule "Improving Office Effectiveness." Co-authored with David A. Shay for the InternationalLabor Organization's series Productivity and Quality Management: The Modular Programme. ILO,Geneva ( i 994).

PRACTITIONER GUIDE: Managing with Performance Measures in Local Government: A Dialogue,edited with G. Ritzenthaler, U.S. Dept. ofHUD (PD&R), Washington, DC (1980).

PROFESSIONAL RESOLUTION: Resolution Encouraging the Use of Performance Measurement andReporting by Government Organizations (principal author), adopted April 14, 1992 by the AmericanSociety for Public Administration, and quoted by Congress in its report on the GovernmentPerformance and Results Act of 1993 (P.L. 103-62).

JOURNAL SYMPOSIA, both in the National Civic Review (NCR):"The Achieving Organization," editor of this four-article symposium on local governments

attempting comprehensive performance and organizational improvement, and author (with D.Cutchin) of two of the articles, in NCR, VoL. 76, NO.2 (1990).

"Strategies for Government Performance," co-editor, with S, Fass of this symposium co-author, withS. Fass, of lead article, in NCR, VoL. 76, No, 2, Mar-Apr 1987.

Three chapters in the Public Productivity Handbook (edited by M, Holzer, Marcel Dekker, Inc., NewYork, 1992):

"Measuring the Performance of Public Services.""Measuring and Analyzing the Productivity of Professionals and Managers.""Improving Productivity of Professionals and Managers" (with E. Greenberg & M. Thier).

An essay reviewing the first seven GASB performance measurement research reports, and theimplications of the GASB standards-setting process for state and local governments: "Get Ready:The Time for Performance Measurement is Finally Coming" in Public Administration Review, Vol.52, NO.5 (i 992).

Numerous articles, including:

KH CONSULTING GROUP, PAGE 1I-30

"The Value of Measuring and Improving Performance" in Public Productivity Review, Sept. 1982,and reprinted in two books;

"Technology Transfer in the Trenches," with A. Leidner, in Urban Resources, Vol., No.1, NewYork edition (University of Cincinnati, 1986), and reprinted in the National Civic Review, VoL.76, No.2, Mar-Apr 1987.

"Difficulties of Measuring Human Services Performance: Keeping Your Eye on the MovingTargets," in Journal of Health and Human Resources Administration VoL. 14, No.1, 1991, andexcerpted in Public Service Performance: An ASPA Classics Volume, R. Kearney and E.Berman, eds., Westview Press, Boulder, CO., 1999.

"Reinventing Government is Not Enough: Invest in Government Productivity Growth" in PublicProductivity and Management Review, VoL. 16, No.4, 1993,

"Engaging Citizens: Dayton, Montclair Projects Aim to Shape Policies and Programs" with R. Stock,P. Woodie, and M. Holzer in The New Public Innovator, May-June 1998.

F - HEALTH INSURANCE STATEMENT

Since 1988 (and updated January 1,2000), KH has had a Flexible Health Benefit Spending AccountPlan, including child care benefits, for its employees. The plan was initially designed and later updatedby Gamer Consultants, a professional health benefits consulting firm. Employees are paid above-marketcompensation rates and then determine what level of health care insurance they want to purchase throughthe Flexible Spending Account.

G - GAIN STATEMENT

KH is willng to consider GAIN participants for any future employment opening if they meet theminimum qualifications for that opening and to provide access to KH's employee mentoring program, ifavailable, to assist in obtaining employment or promotions.

H - INSURANCE AND/OR PERFORMANCE BOND STATEMENT

KH will comply with the Insurance requirements in the Sample Contract in Part D of this RFP. If aperformance bond is required, this would be provided as an additional cost to the County.

I - CHILD SUPPORT COMPLIANCE PROGRAM STATEMENT

KH wil comply with the Child Support Compliance Program requirements in the Sample Contract inPart D of this RFP.

J - SMALL BUSINESS DEFINITION STATEMENT

SMALL BUSINESS/COMMUNITY BUSINESS ENTERPRISE (CBE)/

WOMAN BUSINESS ENTERPRISE (WBE)

KH qualifies as a small business and a Women-Owned Small Business Enterprise (WBE) and is certifiedas such by the County of Los Angeles (as a Community Business Enterprise (CBE)), as well as the Cityof Los Angeles, the City of San Diego, the State of California, and numerous other municipalities,utilities, and public agencies (e.g., AT&T, Cal-Trans, City of Santa Monica, Cordova Corporation, LosAngeles Department of Water and Power, Philadelphia Gas Works, Rapid Transit District (RTD),


Southern California Association of Governments (SCAG), Southern California Edison (SCE), SouthernCalifornia Gas, State of California, State of Washington, and WMBE Clearinghouse). Copies ofcertifications are attached.

K - PENDING LITIGATION STATEMENT

No litigation is pending against KH Consulting Group or the principal of the firm.


BOARD OF PUBLIC WORKSMEMBERS

CITY OF Los ANGELESCALIFORNIA

PRESIDENT

C. BERNARD GILi'ININSPE;C"'OR ~F" PUBL.IC ',vO¡;ø:3

,.NQOIR€CTOR

BUREAU OFELLEN STEIN

M,E, "REO. MARTINEZ

TOO A, BURNET

CONTRACT ADMINISTRATION221 N. FlGUEROA ST., STI;, 700

LOS ANGELES. CA 90 1 2(213) 580.1382

VALERie: LYNNe: SHAWVICE PRESIDENT

MARIBEL MARINRICHARD J, RIORDAN

MAYOR

JAMES A, GIBSONSECRi;ARV

Ms. Gayla Kretsch HarsoughKH Consulting Group1901 Avenue of the Stas, 18ih FloorLos Angeles, CA 90067

I,

September 2, 1999

File: CCA- 199Expiration Date: 9/02Ethnicity: CaucasianPhone: (310) 552-9229

Dea Ms. Harsough :

WOMEN BUSINSS ENTERPRISE (WBE) RECERTIFICATION APPROVAL

Pursuant to the provisions of the Deparment of Transporttion Rules and Regulations 49 CFR, Par 26 and thepolicy of the City of Los Angeles Bureau of Contrct Administration, Offce of Contract Compliance (OCC),we are pleased to inform you that your firm has been recertified by the Bureau of Contrct Administrtion, Offce'of Contrct Compliance (OCC) as a Women Busines Enterprise (WBE) and has also been placed in the Cityof Los Angeles MBE/WBE/DBE directory as a firm specializing in Management Consulting.

This certification is valid for three yeas from the date of this letter. If after three years you wish to be certfiedby the City of Los Angeles and have not received recertification documents, please contact this offce. Alsoduring this three year certification period, you must provide to this offce, every year on the anniversar date ofyour certification, a notarzed affdavit affirming that there have been no changes in the firm's circumstacesaffecting its ability to meet ownership, control, size, or disadvantaged status requirements set forth by 49 CFR,Par 26.

If there are any changes in ownership, control, or work category of your firm during the certification period, youare required to notify this office of those changes in writing. Also, please include your file number on each pageof correspondence relating to these matters.

The City reserves the right to withdraw this certification if at any time it is determined certification wasknowingly obtãned by false, misleading or incorrect information. The City also reserves the right to requestadditional information and/or conduct on site visits at any time during the certification period to verify anydocumentation submitted with your application. By accepting certification, the firm of KH Consulting Grouphereby consents to the examination of its books, records and documents by the City.

DISADVANTAGED BUSINESS ENTERPRISE (DBE) RECERTIFICATION DENIAL

Based on your correspondence dated July 26, 1999 in which you declined certification as a DisadvantagedBusiness Enterprise (DBE), your firm cannot be counted toward DBE goals for any program covered by theFederal Department of Transportation (DOT) regulations.

IN REPLY PLEASE R€F'ER TO ¡:ILE NUMBER SHOWN ABOVEADQRESS ALL. COMMUNICATIONS TO rHE: BUREAU

en

KH Consulting GroupSeptember 2, 1999

Page 2

If you would like to be recertified as a DBE at a later date, you must submit a written request along with acompleted Personal Net Worth Statement to:

Bureau of Contract AdministrationOffce of Contract ComplianceAttention: Angela Riddle600 South Spring Street, Suite 1300Los Angeles, CA 90014

Should you have any questions, please contact Angela Riddle at (213) 847-5574.

Sincerely,

WgLf-fI:4 FoR.

HANNAH CHOI, Program ManagerOffice of Contract ComplianceBureau of Contract Administration

COUNTY OF LOS ANGELESOFFICE OF AFFIRMTIVE ACTION COlVIPLIANCE

Kenneth Hahn Hall of Administration500 West Temple Street, Room 780

Los Angeles, California 90012(213) 974-1080/ FAX (213) 626-7034

TOO (213) 974-0911

MEMBERS OF THE BOARD

DENNIS A. TAFOYADirector

GLORIA MOLINAYVONNE BRATHWAITE BURKE

ZEV YAROSLAVSKYDON KNABE

MICHAEL D, ANTONOVICH

July 19, 1999

Ms. Gayla A.Kraetsch-Hartsough, PresidentKH Consulting Group1901 Ave. of the Stars, 18th FloorLos Angeles, CA 90067

CBE Program 1.0.#: 12395Status: WBE

Dear Ms. Kraetsch-Hartsough:

Congratulations! Your firm has been recertified as an eligible participant in the County of Los AngelesCommunity Business Enterprise (CBE) Program. This recertification is valid until July 19, 2001.

The County of Los Angeles Office of Affirmative Action reserves the right to request additional informationandlor conduct an on-site visit at any time during the certification process to verify any documentationsubmitted by the applicant. If there are any changes in ownership or control of the firm during this certificationperiod, you are required to notify this office immediately.

Again, congratulations on your recertification. If you have any questions, please call (213) 974-0912 and referto the identification number above.

Sincerely,

DENNIS A. TAFOYADirector

Thl1~~Marjorie SmithSenior Deputy Compliance Officer

DAT:MS:DG

~Metropolitan

Transportation

Authority

One Gateway Plaza

Los Angeles, CA

90012-2952

September 7, 1999

Ms. Gayla A. KraetschPresidentKH CONSULTIG GROUP1901 Avenue of the Stars, SlUte 1774Los Angeles, CA 90067

SUBJECT: WBE RECERTIFICA nON APPRO V AL

Dear Yf. Kraetsch:

Pusuant to the provisions of the Department of Transportation Rules and Regulations found at49 CFR,. Part 23 and the policy of the Los Angeles County Metropolitan Tranportation

Authority'(MTA), KH CONSULTIG GROUP has been granted approval for Women BusinessEnterprise (WBE) recertifcation status. The Standard Industrial Classifcation (SIC) code(s)used in deternug your firm's eligibilty is(are):

SIC Code(s) # 8742

Only work in the above mentioned SIC code(s) wi be counted towards WBE participationgoal.

MT A reserves the right to withdraw thi recertifcation if at any time it is determied that

recertifcation was knowigly obtained by false, mileadig, or incorrect information. MT Aalso reserves the right to request additional information and/or conduct on-site visits at anytime during the recertifcation period. The firm KH CONSULTIG GROUP thereby consentsto the examnation of its books, records, and documents by MTA.

Th recertification is valid for a period of two years. To continue doing business with MT A as

a WBE, a recertification affdavit and current Federal Tax Returns must be submitted prior tothe firm's recertifcation expiration date of September 7,2001.

If there are any changes in the ownership or control of the fIrm during the recertifcationpt:riod. you are required to notifY this offce í.1.i1neù~¡;i.dy ai. (213) 921-26ÛO.

II

SiV-' erè¡. /.. i .-- '. .,.. .. \.'f.: "-il. ".",

VINTON SlGEREqual Opportunity Programs Representative

VS:nmc:9¡99

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DEP.\IlHfENT OF,\DI\INISTRATIYE SERVICES ern- OF SACR.--'vIE~-'TO

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February 28, 2000Il)\("..(H_()- .-

r:.\\ i\l!()) .2()'l-I)-n~i It ìTLl\E 11)1"11.':'-"1)25

Gayla HarsoughKH Consulting Group1901 Avenue of the Stars Ste. 180

Los Angeles, CA 90067

Subject: MinoritylWomen Business Enterprise Certfication

Congratulations! In accordance with U.S. Departent of Transportation Code of Federal Regulations

(CFR) 49 Part 23, the City of Sacramento Office of Small Business Development (OSBD) hasdetermined that your firm meets the criteria for certification as a(n) Woman-Owned BusinessEnterprise.

Effective this day, your firm has been certified as a(n) Woman-Owned Business Enterprise. Thiscertificate wil expire July 1, 2001. It is your responsibility to notify this office, within thirt days, ofany certification status change issued to your firm by another CFR 49 Certifying Agency, Failure to doso wil result in revocation of this certification issued by this offce. The City's Offce of Small BusinessDevelopment reserves the right to review your certification for purposes of certification compliance.

Currently, OSBD provides certification for the following MlE Joint Certification Program (JCP)Agencies: City of Sacramento, County of Sacramento, Sacramento Regional Transit District (RT),Sacramento Housing & Redevelopment Agency (SHR), Sacramento Municipal Utility District(SMUD) and the Sacramento Public Library Authority.

Your vendor code number is KHCSOOOA30P. It may be used when working with any of the abovementioned agencies, You must notify this office within thirt (30) days if there is a change of ownershipof your business, Additionally, please inform this offce of any business name or address change. It willalso be your responsibility to contact this offce prior to your expiration date for a recertificationapplication.

Keep this letter as proof of JCP certification. Thank you for your cooperative efforts in this M/WBEjoint program venture. If you have certification questions, call (916) 264-6747,

Sincerely,

'., '''.i

i, ,_/

Trevor WaltonAdministrative Services Officer

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OF.P,\RT:\IE:"T OF,\DMIN ISTRA T1VE SERVICES

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¡1i)rU:,.Eiul(11 !.";.':-I'l)2L~

Feburar 28,2000

Gayla HaroughK. Consultig Group

1901 Avenue of the Sta Ste. 180

Los Angeles, CA 90067

Subject: Emergng and Small Business Enterprise Certfication

Congratulations! The City of Sacramento Offce of Small Business Development (OSBD) hasdetermined that your firm meets the criteria for certfication under the Emergng and SmalBusines Development Program (ESBD).

Effective this day, your firm has been certified as a(n) Small Business Entei"rie. Thiscertificate wil expire July 1, 2001. It is your responsibility to notify this offce, within thir (30)days, of any change in certfication status of your firm. Failure to do so will result in revocationof this certification issued by this offce. The City's Offce of Small Business Developmentreserves the right to review the certification at any time for purposes of certification compliance.

Your vendor code number is KHC5000A.0P. It may be used when working with any City ofSacramento procurement or contracting project. You must notify this offce within (30) days ifthere is a change of ownership, business name, or address. it will also be your responsibiiity tocontact our offce prior to your expiration date for a recertification application.

Keep this letter as proof of ESBD certification. Thank you for joining the City of Sacramento

ESBD Program family. If you have any questions about your certification, call (916) 264-6747,

Sincerely,

\~''-J\ "','

Trevor WaltonAdministrative Services Offcer

KHCONSULTINGGROUP


IV - WORK STATEMENTS

COUN OF LOS .AI..~':l"¡GEJLESOFFICE OF TliE CHiEF r~DMINSTRA TJ( OFFICEROFFICE OF UNCOJRORriTED .A.REr~ SERV1CES

Ai"' SPEClriL PROJECTSProposalfor a Master Agreementfor Strategic Planning Consultant Services

IV - WORK STATEMENTS

This chapter outlines KH's proposed objectives, scope, tasks, and role in assisting the County of LosAngeles in its strategic planning endeavors.

A - PROJECT BACKGROUND

As part of initial strategic planning efforts, on November 16, 1999, the Los Angeles Board ofSupervisors adopted a Vision Statement, Organizational Goals, and Strategies for the County, which wilform the framework for the future Strategic Plans to be prepared by County departments. TheOrganizational Goals and related Strategies are:

o Service Excellence

. Develop standards and training

for user-friendly service. Design structures and systems

for seamless service. Provide convenient, timely,

accurate, and courteous services

o Organizational Effectiveness

. Implement strategic

management systems. Promote continuous quality

improvement. Collaborate across functional

and jurisdictional boundaries

o Fiscal Integrity. Extend and leverage partership

. Invest in the public

infrastructure. Build a revenue base

o Workforce Excellence

. Recruit, develop, and retain

dedicated and productive

employees. Create a positive work

environment. Enhance workforce

communications

B - PROJECT OBJECTIVES AND SCOPE

The objective of most strategic planning processes is to assist in: 1) preparing a Strategic Plan; 2)training managers in strategic thinking and planning; 3) establishing an ongoing strategic planningprocess; and 4) conducting or assisting with customer service strategies, plans, or satisfaction surveys.The CAO is committed to using the strategic planning process to:

o Reinforce "a single-County focus under unified leadership"

o Focus on a limited number of high-priority County-wide Goalso Instill in County employees "expected behaviors critical to our success"

o Align priorities, resources, and outcomes with the budget process.

The initial step in developing a Strategic Plan for any organization is to articulate its purpose andobjectives. Simultaneously, the County departments should define who the audiences are for theirrespective Strategic Plans. The County departments require documents that can be used for both:

KH CONSULTING GROUP, PAGE IV-i

o Internal constituencies, such as the Board of Supervisors, department managers, employees,

etc.

o External audiences, such as legislators, State and Federal government agencies, other localgovernmental entities, citizens, partners, etc.

Consequently, the Strategic Plan needs to furnish the necessary background information for the reader toappreciate fully the issues and challenges facing the County department. Even for an internal audience,specific background information should be included because it forces the comparison of assumptions.

The next step is to define the strategic planning model and relevant components for a comprehensiveStrategic Plan. As part of this proposal, KH has prepared a "straw" planning model as a usefulframework for discussing the planning process and for developing the County's Strategic Plan. Needlessto say, the model must be adapted to reflect a given County departent and refined as we proceed duringthe strategic planning process. Each component represents a part of the Strategic Plan; once each part isaddressed and a consensus is reached, an integrated Strategic Plan should result. The County has alreadydefined some of these components, including Vision, Philosophy, Position, and Organizational Goals andrelated Strategies.

For simplicity, KH has divided the strategic planning process into two phases: Phase I defines the basicsfor a Strategic Plan and Phase II links the Strategic Plan to existing management processes (e.g.,budgeting) to make the Strategic Plan a reality. This proposal focuses on Phase i. Although an outsidercan write a strategic plan, such plans are meaningless without the appropriate and needed discussions,acceptance, and ownership of the plan. As such, the role of a consultant is best confined to one of "astrategic navigator": designing the process, facilitating meetings, raising diffcult strategic issues,analyzing and negotiating alternatives, and preparing drafts of the strategic plan for the client to critique.Moreover, we serve an important role in raising questions, probing potential risks, and ensuring staffcommitment.

Meaningful strategic planning is a continuous process of systematically evaluating the nature of anorganization, defining its long-term objectives, identifying quantifiable goals, developing strategies toreach these objectives and goals, and allocating resources to carr out these strategies. Therefore, the

planning process must be an ongoing, high profie process. In this way, the efforts can gain widespreadbuy-in to the issues and best alternatives.

JOINT TEAM ApPROACH

Change is never easy and always requires commitment from executives and management. Over theyears, KH has also found active client involvement to be critical for successful outcomes of strategic andorganizational change projects. Without such commitment, strategic plans tend to gather dust and notbecome meaningful guidelines for change and for addressing new strategic directions. Those managersand employees who must collaborate to achieve the new strategic directions have greater ownership andcommitment if they are part of its development. We believe such active client involvement has severaladvantages, including:

o Client knowledge and capabilities are integrated into the planning process and Strategic Plan,o Input from a cross-section of County department stakeholders wil ensure that our approach has a

better chance of gaining acceptance.

KH CONSULTING GROUP, PAGE IV-2

The Department should also assign an analyst to assist in the strategic planning process andadministrative support for coordinating meetings and off-site workshops.

C .. KH'S STRATEGIC PLANNING MODEL

Exhibit iv -I displays a KH conceptual model for strategic planning in the County. We have divided theeffort into Phase i (the development of the Strategic Plan) and Phase II (the implementation process).

PHASE I: DEVELOPMENT OF THE STRATEGIC PLAN

The components in Phase i are iterative and are not necessarily listed in sequential order. For example,during the development of the Action Plan, adjustments may need to be made in terms of the target datesfor the objectives.

o Vision. The vision is what a department can be, and should be. The Vision Statement considers

the County department's future requirements. It describes what the County departent couldbecome in the next 5, 10, or more years.

o Mission and Values. On the basis ofthe compiled information, the departental mission should

also be revisited, asking such questions as: "Who are we?" "Why were we?" "How are we?""Where are we?" The answers to these questions can serve as a starting point for honing itsvalues for achieving its mission.

o Strategic Priorities: Organizational Goals and Strategies. The Mission Statement wil form the

foundation for establishing priorities or goals. KH typically recommends that clients limitpriorities to the top three to six priorities. These priorities should be set by departentexecutives. These priorities can then cascade down into Line and Support objectives that aremeasurable, discussed later.

o Exernal Environment. Next, an objective analysis of the current external environment in whichthe County department operates needs to be undertaken. The external analysis should consider:environmental, social, economic, demographic, governmental, planning, legislative, technology,competition, customer satisfaction, and related issues. The Plan should examine how publicpolicy has affected or could potentially impact the County or the department. In each of theexternal areas reviewed, the County department should consider its strengths, weaknesses,opportunities, and threats (i.e., a "SWOT" analysis),

o Internal Environment. Coupled with the examination of the external environment, the County

department should conduct an internal environmental review, which describes its coreoperations, history, purposes, quality standards, desirable operating size, facilities, availableresources, governance and organizatio!1al structure, performance and current values, andexpectations and outcomes. Similar to the external environmental review, a SWOT analysis ofthe various parts of its internal environment is needed.

o Planning Assumptions. Probably one of the most important next steps is the definition ofplanning assumptions, including the County department's response to the SWOT analysis of

the

external and internal environment, its opportunities, and abilities to address potential barriers tochange. In developing the planning assumptions, the department can consider the "best case,""most likely case," and "worst case" scenarios. Such scenarios distinguish a strategic planning


CONCEPTUAL MODEL FOR THE STRATEGIC PLANNING PROCESSFOR THE COUNTY OF LOS ANGELES KH

SULTINGUP

ANAGEMENTSULTANTS

I COUNTY VISION l

..'Exhibit IV-1 Gl

l M0

COUNTY MISSION AND VALUES

Expected Values -

lCOUNTY ORGANIZATIONAL

GOALS AND STRATEGIES/ ~THE EXTERNAL ENVIRONMENT THE INTERNAL ENVIRONMENT

Environmental Impact Historical Profile

Social Expectations InfrastructureEconomic Trends Working RelationshipsDemographic Trends Available ResourcesGovernmental Planning Facilities/EquipmentLegislative Initiatives Organization Structure/GovernanceTechnology Trends Current Values and Work Culture

~ ~PLANNING ASSUMPTIONS

Response to External EnvironmentInternal Assumptions

IPotential Barriers

lSTRATEGIC MODELS

V ~ SUPPORT OBJECTIVES

SERVICE OBJECTIVES FinanceAdministrative ServicesInformation TechnologyHuman Resources

~ ~PERFORMANCE MEASURES

.OTHER COUNTY PLANS

IOrganizational and Staffng PlansHuman Resources PlansFacilities PlansTechnology or Information PlansTraining PlansEtc,

lBUDGETS

Income Budget

Expense BudgetCapital Budget

l

I

EVALUATION PLAN I

I

process from a master planning process, which merely extrapolates the "most likely case"scenario into the future. In the context of strategic planning, the County has the opportnity toexplore whether the "most likely case" scenario is desirable and, if not, develop strategies tomake the "best case" scenario more likely. Priorities should then be set.

o Service Delivery and Support Objectives. The first part of the strategic planning process is anoutgrowth of research, discussions, meetings, and internal reviews. What is critical to thisplanning process, however, is the development of the specific models and objectives that willforge the County's future directions and become operationaL. Therefore, County departmentexecutives and managers should set goals that support the County's priorities. In turn, managersshould prepare objectives that support these goals and reflect the requirements for day-to-dayoperations.

o Preparation of Action Plan for Implementing the Objectives. These goals and objectives can then

be summarized into an Action Plan, which outlines how the County departent wil implementthe newly defined strategic directions. The Action Plan should summarize the Strategic PlanGoals, Strategies, and Objectives and indicate at a minimum:

. Relative priority (high, medium, or low)

. Timing (immediate, near term, long term)

. Ease of implementation (hard, medium, easy)

. Assigned accountability (who is responsible for implementation).

PHASE II: IMPLEMENTATION OF THE STRATEGIC PLAN

Phase II is important if the Strategic Plan is going to be a reality and integrated with County operations.

o Other County Plans. The other County plans are those documents that support the strategicdirections and can include the County's Budget, Organization Plans, Staffing Plans, FacilitiesPlans, Technology Plans, or Information System Plans, among others.

o The County's Budget. Too often, Strategic Plans are developed in isolation from an organization'sfinancial reality. When such isolation occurs, the Plans become "wish lists" and little isimplemented. Consequently, to ensure appropriate reality checks occur, the goals and objectivesof the Strategic Plan must be incorporated into the budgeting process. In some cases, wherecertain investments may be needed, the target dates for completion may need to be adjustedbecause of financial constraints. In other cases, new high priority initiatives may receive neededfunding over other historically valued activities.

o Evaluation of Results. An integral part of the strategic planning process is the ongoing evaluationof progress and results. Evaluation is critical for furnishing feedback on the implementationprocess, changes in the external or internal environment, and impact on the community,government relations, the County's clients, etc. Through such evaluation and feedbackmechanisms, the Strategic Plan can be refined as warranted and become a useful road map forthe future.

o Annual Refinement of the Strategic Plan. Accomplishments from the prior year can bedocumented and used for redefining the subsequent year's goals and objectives. A strategicplanning calendar should also be part of the evaluation process. In this way, the specific time


frames for reviewing accomplishments, reviewing progress toward priorities, and redefininggoals and objectives are formally defined and can become part of routine operations. Throughsuch scheduling, strategic planning becomes an ongoing business process.

D - PROJECT TASKS

KH proposes a multitask approach to this strategic planning process. Some of the tasks will overlap to

ensure efficient use of time and resources. In addition, we have built in review points and junctures

requiring agreement before KH proceeds. In this way, a department can avoid spending time and moneyon consulting efforts that are not sufficiently focused.

Task 1. Document Review and Working Knowledge of Strategic Planning Efforts and

Accomplishments to Date.

KH would begin by reviewing background materials on a departent, such as prior Strategic Plans,organizational charts, organizational mission statements, the budget, performance measurements, andrelated background documents.

We would conduct several interviews with key individuals - especially the department head and keymanagers - to understand:

o What planning methods or processes have been used to dateo What techniques proved to be most effectiveo What are the implications of the already defined vision, values, organizational goals, and

strategies set for the County.

To increase the sample size, some of these meetings may be done in small group sessions, whichgenerally spark greater discussion of the strategic challenges.

Task 2. Development of a Work Plan for the Strategic Planning Process.

Strategic planning typically requires a top-down perspective, coupled with a bottom-up process.Planning must be an iterative process to ensure all alternatives and issues are considered and buildconsensus regarding the best future directions for the department. Moreover, those planning processesthat complement existing decision-making, budgeting, and governance structures are more likely tobecome ongoing processes with annual reviews and updates. Consequently, the strategic planningprocess should emulate the existing governance structure,

By necessity, the County department requires a road map on how to undertake its strategic planningeffort, as well as in subsequent years. On the basis of our document review and management interviews,we ;"ould prepare a draft Work Plan, expanding on the tasks in this proposaL. This Work Plan wouldoutline the tasks, resource requirements, responsibility assignments, involved group(s), expectedoutcomes, and target dates for completing the strategic planning process. In other words, the firstdeliverable would be a "Plan to Plan,"

This Work Plan may require modification as the project progresses, as circumstances (such asredefinition of scope or change in priorities) dictate, Any Work Plan must be considered as a guiderather than a limiting constraint on innovation and professional judgment. This Work Plan, however,


would be useful, particularly given the work schedules of the County's executives, managers, andemployees.

Critical to any strategic planning effort is the need for a,communication strategy that wil reach theappropriate constituents on key issues to solicit constrctive input. KH can work with the Countydepartment in designing such a communication strategy as part of its "Plan to Plan."

Task 3. Feedback and Concept Confirmation.

We would then meet with departmental management to:

,~

o Review and refine the Work Plano Furnish feedback on the results of our interviews and fact-findingo Present the inventory of strategic issues to be considered

o Review fundamental concepts to ensure agreement.

During the meeting, we would explore topics related to the County's and the departent's vision,

mission, strengths, challenges, and barriers. Moreover, the discussions should explore how a strategicplanning process with managerial involvement and training might work most effectively in thedepartment. As a result of these discussion, KH would develop an understanding of the differentexecutives' perspectives on future directions, where the departent wants to be in three to five years, andwhat are the critical opportunities that the deparent wants to exploit.

Task 4. Design and Faciltation of Strategic Planning Sessions.

KH would design the strategic planning sessions to address specific components of the strategic planningmodeL. Our preference is to conduct fewer but more intense sessions, involving all-day planning retreats.Such meetings are more productive because greater closure can result regarding the strategic issuesraised. We typically schedule time for up to three one-day sessions; the County department may prefersome other combination, such as one one-day session and two half-day sessions. KH would be flexibleto meet the County's needs,

The outcomes of these meetings would be the development of the following key strategic planningcomponents:

o Environmental Scan, including the department's external and internal environments. Toconduct the environmental scan, KH typically applies the SWOT analysis technique whichassesses the external and internal strengths, weaknesses, opportnities, and threats. The purposeshould be to build sufficient consensus regarding planning assumptions and potential objectives,given the County's vision, organizational goals, and strategies. This is an area where we mayrequest that department managers prepare background information on their assessment of theirenvironmental issues prior to the workshop.

o Preparation of Objectives Linked to the County's Organizational Goals. Unlike theCounty's goals, objectives are more specific and measurable with defined, realistic outcomes andtime frames for their achievement. This effort would focus on the high-priority objectivesrelated to service delivery, coupled with the specific objectives in support areas that are neededto achieve service delivery objectives. In some cases, the objectives are going to require efforts


that cut across departmental organizational lines. In other areas, the objectives may be morespecific to a given division in the departent.

o Review of Draft Goals and Objectives. The department would require a process for reviewingdraft goals and objectives, for identifying areas of overlap or conflict, and for obtainingresolution of differences. Critical to the objective-setting process is the needfor simplicity. KHcan help to design a process for obtaining appropriate review and refinement, beginning with theindividuals or organizations responsible for implementing the objectives, involving variousstakeholders, and continuing up through the organizational hierarchy to those who must approvethe goals.

Task 5. Preparation of the Strategic Plan.

As consensus is reached. regarding each strategic planning component, we draft materials for review andrefinement. Each of these components becomes part of the written draft Strategic Plan.

o Draft Strategic Plan. The process of reviewing the draft Strategic Plan is important for furtherbuilding consensus regarding the Strategic Plan and new directions. As part of our Work Plan(Tasks 1,2, and 3), we would explore with the department the kinds of draft reviews that shouldoccur. The draft Plan generally undergoes multiple reviews by executives, managers, and otherstakeholders deemed appropriate. Among the stakeholders who might offer their input arepotentially representatives of the various service recipients, other governmental agencies, theBoard of Supervisors, the CAO, etc.

o Draft Action Plan. Once the Strategic Plan is refined, KH prepares an Action Plan and time linefor its implementation and outlines the steps required for the departent to monitor, evaluate,and update the Strategic Plan on an ongoing basis. Specifically, the Action Plan serves as aguideline for progress monitoring, including objectives reached, action steps completed, andremaining levels of effort. We would also submit the Action Plan as a draft for review by thedepartment's executives.

Task 6. Performance Measurements, Balanced Scorecard, and Report Cards.

KH basically believes that performance measurements are critical for superior performance and strategicsuccess. Fundamentally, what gets measured typically gets done. The challenge is how to translate avision and strategy into a performance measurement system.

In the past decade, many public sector entities have used Key Performance Indicators (KPIs) as a meansof identifying critical measurements, particularly regarding customer satisfaction and service delivery. Aconcept that has taken KPIs a step further is the Balanced Scorecard or Report Card approach thatidentifies the key performance measurements of success - both in the short term and, over time and inaggregate, for the long term. Either approach is viable to monitor progress and successes.

KH can use either approach but generally finds the Balanced Scorecard approach better because itfocuses on a limited number of high-priority measurements of success. Most will be strategic in nature;some will be transactionaL. A Balanced Scorecard basically focuses on four types of measurementswhich align with the County's vision, goals, and strategies.


The County department must balance and link ...

o Service Excellence metrics. How do customers view current services? What are the keymeasurements of success regarding what services the County department must provide toresidents?

o Fiscal Integrity metrics. On the basis of these clientele-focused measurements, what are thecritical financial indicators of success? How well does the County department provide valueto its customers (e.g., the publ ic, the indigent, taxpayers, its parters, other governmentalentities)? What kind of investments doeslcan the County department make that wil addvalue in the short term? Long term?

... which wil then drive ...

o Organizational Effectiveness metrics. How well do the departent's core processes

produce value? To achieve the desired customer and financial measurements, whatprocesses require improvement?

... and then determine needed ...

o Workforce Excellence metrics. How can the department's organization, systems, andemployees learn, improve, and grow? What does the department need to do to ensure thatthe workforce adapts to accommodate the needed values (e.g., customer service, servicequality, etc.)? Strategic changes? New work processes? Organizational changes? Whatkind of training do the employees need?

These cross-functional measurements are then arrayed in a Balanced Scorecard linked to the County'sStrategic Priorities, Goals, and Objectives. Our aim is that the County's Balanced Score would:

o Complement financial measurement systems that are already in placeo Help the Executives and managers to manage performance and monitor progress

o Enable the County department to achieve and sustain strategic success as the environmentchanges

o Integrate with other measurement tools and techniques, such as MApl

o Focus on high priority KPIs or Balanced Scorecard metrics.

I Task 7.Customer Service

A comprehensive Customer Service Plan can be developed in the following way:

o Custome!' Service Principles. KH would initially develop Customer Service principles inconsultation with a representative group from within the County Department. Ideally, theseprinciples should be developed in conjunction with the performance measurements outlined inTask 6, in collaboration with the department's customers.

¡Note: KH is the firm that assisted the County's Department of Human Resources (DHR) in thedesign and implementation of the Management Assessment Performance (MAP) Plan formanagers.


o Design of a Model Comprehensive Customer Service Program. KH could develop a modelCustomer Service Program (complaints, resolution process, request center, monitoring, etc.). Wewould review this model to solicit the department's reactions and input as a means for furtherrefining and adapting the model to the County department.

o Customer Service Training Needs. On the basis of the model, KH could develop andadminister a training needs assessment instrument which KH would use to identify trainingneeds and other programs for promotion of a customer-oriented organization. The training needsassessment would include recommendations for the provision of training in Customer Serviceskills and principles as well as the implementation strategy.

o Customer Service Communications Program. An effective communications strategy shouldbe twofold: communications regarding Customer Service strategies within the Countydepartment and communications externally with department customers. Obviously, bothcommunications 'programs should be compatible but staggered. It is critical that departentemployees understand the Customer Service model and expectations, as part of the roll out.

Once employees are reached, the department can then communicate its Customer Servicesprogram with its customers. By not communicating effectively with departental employeesfirst, the department runs the risk of elevating customer expectations before its employees arepoised to respond.

o Employee Recognition Program. KH could propose a process for recognizing departmentemployees and teams who promote Customer Service. Such programs need to be carefullydesigned to ensure they are motivational, rewarding, and consistent with the deparent'sCustomer Service ModeL.

o Customer Satisfaction Survey. KH has extensive experience in Customer Satisfaction Surveys,including focus groups, written surveys, telephone surveys, individual interviews, case studies,and combinations of these techniques. KH designs the approach and statistical methodology,coordinates or administers the data collection process, processes the data, and analyzes andinterprets the results. Chapter II on "Firm Information" outlines in greater detail work KH hasdone in each of these areas.

Task 8. Distribute and Communicate the Strategic Plan, Action Plan, and KPIs or BalancedScore Card.

Once reviewed and refined, KH would work with department executives to design forums to share theStrategic Plan, Action Plan, and KPIs (or Balanced Scorecard) with employees. The KH Team isprepared to assist with public presentations of the contents of these documents if desired.

I Task 9. Outline of Next Steps (Phase II).

At the end of the first phase of the strategic planning process, KH can develop recommendations for howthe department can address its strategic planning initiatives on an ongoing basis so that the process isproactive, iterative, and current. Strategic Plans cannot be written as stagnant, isolated occurrences intime; instead, they must be routinely reviewed, monitored, and updated, particularly as events mightcause the County or a department to consider alternative strategies, Moreover, efforts to improveorganizational effectiveness, workforce excellence, and business processes should be a continual process.

KH CONSliLTING GROllP, PAGE IV-9

Department management would have to assume primary leadership to ensure that the goals andobjectives of the Strategic Plan are covered in the departent's other plans (e.g., budget, organizationalplans, staffng plans, technology plans) and related budgets. Otherwise, the Strategic Plan would onlybecome a paper exercise without meaningful integration into the department's operations.

KH CONSULTING GROUP, PAGE iV-tO

KHCONSULTINGGROUP


v - FEE SCHEDULE

COUN OF lLOS ANGELESOFFICE OF THE CJHIEF ADMOOSTRA TNE OFFICEROFFICE OF ~TJCORPOR.A. TED AREl'~ SERVICESAN SPECIAL PROJECTS


v - FEE SCHEDULE

The following table shows KH's hourly fee schedule for all staff that may provide services underthis Master Agreement. Miscellaneous administrative expenses wil equal between 5% and 7%of professional fees.

KH HOURLY FEE SCHEDULE

BY JOB FUNCTION

JOB CLASSIFICATION/FuNCTION HOURLY BILLING RANGE

KH Offcer $225 - $250

Contract Manager or Project Director $200 - $225

Resource Consultant $150 - $230

Senior Consultant $175 - $200

Consultant $150 - $175

Researcher $125 - $150

Clerical $55 - $70

KH CONSULTING GROUP, PAGE V-I

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