Business Process Re-engineering &

Government Process Re-engineering

J Satyanarayana

As part of the Capacity Building Workshop under the Joint Economic Research Program (JERP)

Agenda

1. What is BPR?2. Why BPR?3. Principles & Methodologies of BPR4. Issues & Challenges in BPR5. Critical Success/ Failure Factors in

BPR6. An example of BPR7. 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

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 eGovernment.

• Effectiveness: To improve service and satisfy customer needs, while lowering costs.

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 21st century with Processes and Organizations

designed in the 19th Centuryto work well in the 20th Century!

We need entirely different PROCESSES & ORGANIZATIONS for Governance in the 21st Century

Problem restated…

• All processes are simple & efficient when originally designed• User-friendly• Deploying contemporary tools & techniques

• Processes become complex & inefficient with passage of time• with addition of sub-processes to handle

exceptions• with changes in environment and• with increase in customer expectations • with increase in volumes

We need toReinvent

the processes

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• 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

Root Causes of Poor Service Delivery

LegislativeIntent

Process Problems

Delivery Channel

Problems

Delivery Problems

BPR is an important part of the Solution

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. Simple 2. Need-based3. Certainty4. Speed5. Convenience

• Place• Time• Channel

6. Equitable7. Responsive8. Customer-centric9. Quality of

Service10.Cost-effective11.Accessible12.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 toTransformation

Transformation

• Eliminate • Simplify• Automate• Base on Trust• Integrate• Join Up• Legislate

Transforming Process• Multiple Channels• 24x7• Access• Common Service Centres• Mobile • Self-Service• Licensed Intermediaries

Transforming Channels

• Enterprise Architecture• Standards• Unified Databases• Unified Networks• SOA• Portals

Using Technology• •Training• Change Management • CRM skills• Consultation• Empowerment• Education• Awareness

Transforming People

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

Improved Process

Core Processes Without Issues

Core ProcessesWith Issues

Improvement Plan

Improvement Plan Goals, Roles

Boundaries

Goals, RolesBoundaries

ImplementationPlan

ImplementationPlan

Strategy

Continuous Improvement

Reengineering - Breakthrough

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-engineering4. Managing the BPR initiative5. Controlling Risks 6. Maximizing the Benefits7. Managing Organizational Changes8. Implementing the re-engineered Processes

9 Changes occasioned by BPR1. Work Units change

• from functional departments to process teams2. Jobs change

• from simple tasks to multi-dimensional work3. People’s roles change

• from controlled to empowered4. Job preparation changes

• from training to education5. Measures of Performance & compensation change

• from activity to results6. Criteria for career advancement change

• from performance to ability7. Values change

• from protective to productive8. Organizational Structures change

• from hierarchical to flat9. Executives change

• from scorekeepers to leaders

Critical Success Factors in BPR

1. Clear Vision for Transformation2. Top management commitment3. Identification of Core Processes for BPR4. Ambitious BPR team5. Knowledge of Reengineering

techniques6. Engaging external consultants7. Tolerance of “genuine failures"8. Change Management

Critical Failure Factors in BPR

1. Trying to Fix a process instead of Changing it2. Lack of focus on Business-critical Processes3. Lack of holistic approach4. Willingness to settle for minor results5. Quitting too early6. Limiting the scope of BPR by existing

constraints7. Dominance of existing corporate culture8. Adopting bottom-up approach9. Poor leadership10.Trying to avoid making anyone unhappy11.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

Buyer & Seller

Complete Documents

Pay fees

Submit Appln.

Registration of deeds

Verify and change records

Buyer & Seller

Buyer Complete application

Submit Appln for

Mutation.

Verify documents and register

BuyerSubmit Appln for Sub-division

Complete appl.

Land Title Office

Sub-divide the parcel and change records

Land Surveyor

Buyer

Buyer

Buyer gets proof of transaction

Buyer gets ownership records

Buyer gets boundary info.

Cannot verify ownership

Existing System – Land TransactionsExisting System – Land Transactions

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

TRANSFORMATION

Survey Department

Survey & Land Records

Departmet

Registration & Stamps Dept.

Stakeholder

Presumptive Ownership of Property

Inter - departmental co-ordination

issues

Need to approach four different entities for property services

Poor state of existing records &

services

§ Conveyance§ Sub-division§ Information Search

Ø OwnershipØ Land useØ Graphical

§ Market Valuation§ Value Added

Services

Citizen

Business

Integrated Land Information System (ILIS)

Ownership Info

Graphical record

Land Use Info

GeodeticNetwork

Other Info Layers

Integrated Land Information Repository

Web Based

Service Provider

ILIS Office

Stakeholders Services Delivery Channels

Local Bodies

Revenue Department

Current Situation

Govt.

Conclusion

• BPR is about Radical Redesign of business processes

• BPR brings Efficiency, Effectiveness & Customer-friendliness

• BPR needs adoption of a structured methodology

• Top management commitment & Change Management are critical to success

Thank You

ceo@nisg.org

Legislative Intent

• Old and Antiquated Laws• Registration Act 1905• Stamp Act 1899• Survey & Boundaries Act 1923• Revenue Code 18xx

• Basis of legal system is Mistrust, not Service• Acts are department-centric, not citizen-centric• Rules are complex and tedious

• 10,000 rules, 0.1 mil forms!

• Rulers are not accountable

Process Problems

• Controls instead of facilitation• Asking for too much information

• by every agency, on every occasion

• Burden of proof thrown on Citizen• Attachments, Annexures, Attestations

• Too many areas of discretion• Complexity of rules & regulations

• Anything to do with money is more complex

• Heavy reliance on manual systems• No concept of Quality Assurance

Delivery Channel Problems

• Jurisdiction• too many ‘narrow domestic walls’ !• too many ‘single windows’

• Restricted timings• Disparate and sub-optimal delivery

networks• No choice of delivery channels• Process & Delivery Channel often combined

• resulting in delay, malpractice

Delivery Problems

• Mindset & attitudinal problems• Delivery Agents unsuitable

• Unqualified• Untrained• Unequipped

• Lack of empowerment of front-end people• Lack of dedicated delivery teams

• Delivery is handled on a part-time basis

• Lack of service levels, measurement systems

8 Rules of Disruptive Technologies (1/2)

Information can appear at only one place at a time

SharedDatabases

Information can appear simultaneously

at all the places it is needed

Only experts can performComplex work

Expert SystemsA generalist can do

the work of an expert

We should choose between

Centralization &Decentralization

Networks

We can get the benefits ofCentralization &Decentralizationsimultaneously

Managers makeALL the decisions

DecisionSupportSystems

Decision-making is apart of everyone’s job

8 Rules of Disruptive Technologies (2/2)

Field personnel need a fixed place for communications

Wireless,Laptops & PDAs

Field personnel can send and receive

Information anytime, anywhere

Personal contact with customer

Is the best contact

Interactive Video

Virtual contact with Customer

is more conveneint

You have to find outwhere things are..

RFIDThings tell youwhere they are !

Plans get revisedperiodically

High PerformanceComputing

Plans get reviseddynamically