Business Process Reengineering Government Process Reengineering Agenda 1

Business Process Re-engineering & Government Process Re-engineering

Agenda 1. 2. 3. 4. 5. 6. 7. What is BPR? Why BPR? Principles & Methodologies of BPR Issues & Challenges in BPR Critical Success/ Failure Factors in BPR An example of BPR Conclusion

What is BPR?

What is BPR? Business Process Re-engineering or BPR is the analysis and redesign of workflow and processes within and between Organizations - Michael Hammer & James Champy, 1993

A Definition of BPR is the Fundamental rethinking and Radical redesign of Business Processes to achieve Dramatic improvements in critical measures of performance. . such as Cost, Quality, Service and Speed.

What is a Business Process (BP)? • BP is a collection of activities that takes one or more kinds of input and creates an output that is of value to customers • Examples of BP, in the context of e-Government, are: • • Issuance of a Driving License or Passport Registration of a Company Audit of a Tax Return Release of a Grant

Reengineering is not ……. • Automation of existing ineffective processes • Sophisticated computerization of obsolete processes • Playing with organization structures • Downsizing – doing less with less

Effectiveness Vs Automation • Automation : use technology to automate the “AS IS” process to make it happen faster often wrongly perceived as e. Government. • Effectiveness: To improve service and satisfy customer needs, while lowering costs. There is nothing more useless than to do efficiently that which shouldn't be done at all. E. g. Shining Brass when the ship is sinking

Automation & BPR • Automation is using technological tools to perform OLD processes, in a NEW way. • Like putting OLD Wine in a NEW bottle. • BPR is about Innovation • Making NEW Wine and putting it in a NEW bottle

BPR & Quality Initiatives • Quality Initiatives attempt continuous improvement • Six Sigma • TQM (Total Quality Management) • BPR attempts a radical redesign or transformation • Big Bang approach • Quantum Leap

Why BPR?

Problem Statement The Problem is that we are governing in the 21 st century with Processes and Organizations designed in the 19 th Century to work well in the 20 th Century! We need entirely different PROCESSES & ORGANIZATIONS for Governance in the 21 st Century

Symptoms of Poor Governance • Air of Mystification about procedures • Long Queues at delivery points • Multiple Visits to Government Offices • Pillar-to-Post • Outcome is in Suspense • OK or NOT OK ! • • Gatekeepers at every turn Poor Quality of Service is a Mercy - not a Right Too many Intermediaries, Shortcuts

5 Symptoms of Poor Processes 1. Extensive information exchange, data redundancy and re-keying 2. Huge inventory, buffers and other assets 3. Too many Controls and Checks 4. Rework, Iteration & Duplication of work 5. Complexity, Exceptions & Special cases

3 Goals of BPR 1. Customer Friendliness • • Meeting customer requirements closely Providing convenience 2. Effectiveness • • • Outcome-based approach Gaining loyalty of customers Image and branding 3. Efficiency • • • Cost Time Effort

12 Attributes of Customer-friendly Services 1. 2. 3. 4. 5. Simple Need-based Certainty Speed Convenience • • • Place Time Channel 6. Equitable 7. Responsive 8. Customer-centric 9. Quality of Service 10. Cost-effective 11. Accessible 12. Assisted

Principles & Methodologies of BPR

7 Basic Principles of BPR 1. Organize around outcomes, not tasks. 2. Identify all the processes in an organization and prioritize them in order of redesign urgency. 3. Integrate information processing work into the real work that produces the information. 4. Treat geographically dispersed resources as though they were centralized. 5. Link parallel activities in the workflow instead of just integrating their results. 6. Put the decision point where the work is performed, and build control into the process. 7. Capture information once and at the source.

The essence of BPR is Transformation

A 4 -Pronged Approach to Transformation Transforming Process • Eliminate • Simplify • Automate • Base on Trust • Integrate • Join Up • Legislate Using Technology • Enterprise Architecture • Standards • Unified Databases • Unified Networks • SOA • Portals Transforming Channels Transformation • Multiple Channels • 24 x 7 • Access • Common Service Centres • Mobile • Self-Service • Licensed Intermediaries • Transforming People • Training • Change Management • CRM skills • Consultation • Empowerment • Education • Awareness

4 Steps in BPR 1. Understanding the Current Processes • • • ‘AS IS’ study – mapping current processes Analysis of Root Causes for Inefficiencies Identifications of Problems, Issues 2. Inventing a NEW Process (‘TO BE’ Process) • • Survey of Best Practices Consultation of Stakeholders 3. Constructing the NEW Process • • Bringing in new Laws and Rules Adopting Disruptive Technologies 4. Selling the NEW way of functioning • • Change Management Communication Strategy

BPR Methodology Continuous Improvement Phase 0 Strategy Process Impr ovem ent Plann ing Core Processes Without Issues Core Processes With Issues Improvement Plan Phase 4 Process Management Reengineering - Breakthrough Phase 1 Project Def. Goals, Roles Boundaries Phase 2 Process Analysis & design Implementation Plan Phase 3 Implementa Improved tion Process

Challenges, Critical Success Factors & Critical Failure Factors … in BPR

Challenges in a BPR Exercise 1. Identifying Customer Needs & Performance Problems in the current Processes 2. Reassessing the Strategic Goals of the Organization 3. Defining the opportunities for Re-engineering 4. Managing the BPR initiative 5. Controlling Risks 6. Maximizing the Benefits 7. Managing Organizational Changes 8. Implementing the re-engineered Processes

9 Changes occasioned by BPR 1. Work Units change 2. Jobs change 3. People’s roles change 4. Job preparation changes 5. Measures of Performance & compensation change 6. Criteria for career advancement change 7. Values change 8. Organizational Structures change 9. Executives change • from functional departments to process teams • from simple tasks to multi-dimensional work • from controlled to empowered • from training to education • from activity to results • from performance to ability • from protective to productive • from hierarchical to flat • from scorekeepers to leaders

Critical Success Factors in BPR 1. 2. 3. 4. 5. 6. 7. 8. Clear Vision for Transformation Top management commitment Identification of Core Processes for BPR Ambitious BPR team Knowledge of Reengineering techniques Engaging external consultants Tolerance of “genuine failures" Change Management

Critical Failure Factors in BPR 1. Trying to Fix a process instead of Changing it 2. Lack of focus on Business-critical Processes 3. Lack of holistic approach 4. Willingness to settle for minor results 5. Quitting too early 6. Limiting the scope of BPR by existing constraints 7. Dominance of existing corporate culture 8. Adopting bottom-up approach 9. Poor leadership 10. Trying to avoid making anyone unhappy 11. Dragging the BPR exercise too long.

An Example of BPR

Land Records in India – Existing System (AS IS) § Legacy of British System § Land Records created mainly for ‘Land Revenue’ § Based on ‘Presumptive Ownership’ of land parcels § Managed by multiple departments § Title § Survey § Registration § Local Government § Processes & services, mostly manual § Citizens have to visit several offices & wait for months for title changes

Existing System – Land Transactions Buyer & Seller Registration of deeds Complete Documents Submit Appln. Pay fees Cannot verify ownership Verify documents and register Buyer & Seller Buyer gets proof of transaction Land Title Office Buyer Complete application Submit Appln for Mutation. Verify and change records Buyer gets ownership records Buyer gets boundary info. Land Surveyor Buyer Complete appl. Submit Appln for Sub-division Sub-divide the parcel and change records

International Best Practices in Land Records Management a. New Zealand – Land Information Online b. Canada – Land Title & Survey Authority c. Singapore – Singapore Land Authority d. Australia – Land Victoria

Vision of BPR – Integrated Land Information

Conclusion • BPR is about Radical Redesign of business processes • BPR brings Efficiency, Effectiveness & Customerfriendliness • BPR needs adoption of a structured methodology • Top management commitment & Change Management are critical to success