sample business case for change

RE-INVENTING XYZ

BUSINESS CASE FOR CHANGE

Prepared for:

XYZ BPE Project

XYZ

The Ministry of Government Services

November, 1994

XYZ BPE Project Business Case for Change

Table of Contents

EXECUTIVE SUMMARY 1

1 INTERPRETING AND USING THE XYZ BUSINESS CASE FOR CHANGE 4

2 PROJECT ORIGINS, OBJECTIVES AND OUTPUTS 5

3 BUSINESS PROCESSES OF THE NEW XYZ 9

3.1 Control Access to and Use of Information 9

3.2 Accept and Secure Information (Approval) 10

3.3 Establish Standards 11

3.4 Enable Product and Service Development 12

3.5 Manage Relationships 12

4 OVERVIEW OF THE NEW ORGANIZATIONAL STRUCTURE 19

5 OVERVIEW OF THE TECHNOLOGY PROPOSED FOR THE NEW XYZ 27

6 FINANCIAL ANALYSIS 31

7 COMMUNICATIONS STRATEGY 43

Appendices

A. HOW XYZ BUSINESS PROCESSES WERE RE-ENGINEERED


B. COMPANION DOCUMENTS TO THE XYZ BUSINESS CASE FOR CHANGE


***User ID*** Page 1

EXECUTIVE SUMMARY

Company ABC is pleased to submit the XYZ Business Case for Change to XYZ. The business case is based upon the work of the “Re-Inventing XYZ” BPE project. The purpose of the Business Case for Change is to provide an informed assessment of the impact of implementing the recommendations of the XYZ BPE Project. Included in the analysis is a multi-year cash flow projection identifying the anticipated costs and benefits associated with the findings of the Process, Organization, Technology, Finance and Communications teams.

The XYZ Business Case for Change:

• Summarizes the rationale and performance measures governing the re-engineering project;

• Compares performance objectives originally desired by project leaders with objectives achieved by the re-engineering work; and,

• Quantifies the costs and benefits of the organizational, technological and workflow changes suggested by the re-engineering.

Companion documents to the business case explain in considerable detail the plan for process innovation, organizational restructuring, technological investment, and the financial analyses upon which the business case rests. Readers of the business case are urged to consult these companion documents, which are listed by title in Exhibit B.

Major Findings of the Business Case for Change

• Implementing the project recommendations achieves a staff reduction of 85%;

• Operating costs will be reduced by 45% of the 1994/95 budget;

• Significant opportunity for outsourcing exists, particularly for service delivery, specialty services supporting delivery, training, and document management;



• The time required to implement the changes is estimated at two years;

• The underlying technology in the proposed new organization will make XYZ records available throughout the region through the Private Agent network. Converting existing paper and micrographic records to electronic form represents a major cost of the change;

• Technology, severance, re-training, and outplacement consulting are the major costs of the change and total approximately $32 million;

• The payback period on the investment is estimated to be about 3.2 years and assumes all costs will be paid when incurred; and,

• Priority in the implementation of organizational and technological changes will be given to Service A and Service B.

The reinvention of XYZ is based upon the “re-engineering” of the business processes across the existing five services. Thus, the central purpose of the project is to integrate five XYZ divisions into one XYZ. Corollary purposes include reduced operating costs, use of appropriate technology to optimize activities of human resources, and the delegation of all but “essential governance” tasks to third party organizations.

The basis of the integration is the extent to which each of the existing five services share in the work required “to set and maintain standards for, hold safe and enable approval and access to information.”

Known within project circles as the “core task” of the new XYZ, this work will be done by a proposed new organization principally concerned with policy formulation and support for service delivery. The manufacture and distribution of actual, physical approvals will be the responsibility of an Agent Network.

The focus of the integration is the business processes which will enable the new XYZ to perform its core task:

• Control Access to and Use of Information



• Accept and Secure Information (Approval of Information)

• Establish Standards

• Enable Product and Service Development

• Manage Relationships

• Qualify Partners

• Provide Support

• Communicate With the Public

• Maintain Stakeholder Relations

These processes provide the foundation for the infrastructural requirements of the new organization.

From the point of view of the Public and other Stakeholders, a re-engineered XYZ would provide a single point of contact for all government protected information. XYZ will enact a governance role of protecting the integrity, access, and use of the information. Access to information will be through competitive and efficient business partners, enabling technologies, and the adoption of a lean organizational structure focused on ensuring Stakeholder needs are met.

From the point of view of an employee, a re-engineered XYZ would offer an environment free from artificial product and service boundaries and the duplication of skills. As proposed by the project, employees will be organized in workgroups and teams around the core processes, with clear roles and responsibilities covering all current and future product and service lines of XYZ.



1 INTERPRETING AND USING THE XYZ BUSINESS CASE FOR CHANGE

The Business Case for Change is − at bottom − a vision illustrating the process, organization, technology, and financial estimates for a new world of work for XYZ.

The focus of the Business Case, and the financial estimations within it, is solely on the work of the Process Design Teams and the work of the Specialty Teams (e.g., Communication, Technology and Organization). The financial estimates in this case do not touch upon, for example, existing plans by XYZ to outsource major parts of its information technology function, or other individual projects.

The Business Case is neither designed to be nor intended to be:

• An Operating Budget;

• A Technology Plan; or,

• An Employee Redeployment Plan.

We recommend that the XYZ Business Case for Change be used by the project sponsors to:

• Decide the rate and extent of implementing the changes proposed by the Re-engineering Teams;

• Determine alternative approaches to financing the changes proposed by the Re-engineering Teams; and,

• Communicate the vision, recommendations, and estimated results of the re-engineering project to stakeholders.



2 PROJECT ORIGINS, OBJECTIVES AND OUTPUTS

On August 18 - 19, 1994, key managers from XYZ and the Ministry of Government Services met to define the next phase of work to consolidate the existing five service units. Described by the Deputy Minister as the “Re-invention of XYZ”, this project was commissioned to:

• Define the new role of XYZ in terms of its value to its constituents;

• Chart the business processes required to perform the new role;

• Determine which processes are core and which can be outsourced;

• Recommend technology appropriate to the new role and core processes;

• Estimate human resource requirements of the new XYZ; and,

• Suggest a new organizational structure for the new XYZ.

The work scoped in the August workshop was done by approximately ten teams of XYZ personnel under the direction and guidance of business process engineering professionals from Company ABC. These teams began work in late August to project objectives established by the Deputy Minister. A key performance measure of the XYZ BPE project was stated:

“a significant reduction in the cost base of the XYZ Division from existing levels”

The timetable for the project required completion of re-engineering activities in time to permit their “full implementation” to commence early in 1995. “Full implementation” means the completion of all process design work; specification of the new organizational structure; specification of information technology architectural requirements; specification of training, communications, and determination of the resources required to manage and to lead the implementation.



The reinvention of XYZ was governed by a proven approach to business process engineering developed by Company ABC. Company ABC’s business process engineering approach provided the XYZ with the benefits of a discipline for transforming the current five-service structure into one organization focused primarily on governance and policy activities. The approach was adapted to XYZ as follows.

The high level design process model developed during the August workshop was used by cross-service process teams as a framework for reconsidering the present operation during a “baseline” phase of the project. Five dedicated teams reviewed the work of the entire Division in light of the six identified processes, identifying Customers/Stakeholders and their expectations, variances (problems), process flows, metrics, inputs/outputs, and performance criteria. The teams then re-assembled to design five new business processes using the perspectives which evolved during the baseline, and introducing new principles and performance expectations. One team chose to re-design the process based on the existing workflow framework; the other four designed from a fresh start. The teams designed around process outcomes, unfettered by current organization, technology, policy, or legislative constraints, and guided by the governance and policy characteristics of the new vision. Members of the teams from each service division “tested” the viability of each new process using the baseline material supplemented by their personal business knowledge. Finally, the material generated by the process design was used by Specialty teams (Organization, Technology, Finance, and Communications) to develop the Business Case for Change.

Over the course of the entire project, Process and Specialty teams concerned themselves with answering the following questions:

• What will be the role and responsibility of the new XYZ?

• On what basis will the performance of the new XYZ be measured?

• What will be the principal work of the new XYZ?

• What processes must exist to complete this work?

• Which of these processes are core to XYZ and which can be outsourced?

• How many employees will be needed for each core business process?

• What elements of each core process can be automated?

• What will be the appropriate and effective organizational structure for the new XYZ?



• How should employees be motivated and managed in the new XYZ?

• What are the financial costs and benefits of the changes to the organization and of the new technology required within it?

The basis of the Teams’ work is a new business model describing the essential business processes of the new XYZ. This model depicts the five core processes required to achieve the Core Task, and includes:

• the key processes required to operate the new XYZ to meet the standards and requirements of its business vision; and,

• the relationship of the key processes to one another and the benefits they will produce for stakeholders and the Alberta public.



Pictured below is the new business model for XYZ. First developed at the August 18-19, 1994 High Level Design workshop, and subsequently evolved during Process Re-design, the model is derived directly from the Core Task statement for XYZ.

XYZ - New Process Model

EstablishStandards

ApproveInformation

Control Accessto and Use ofInformation

Manage Relationships

Enable Product and Service Development

Public Will,Legislation,

Political Will

Standards,Rules,

ApprovedProduct and

Service Ideas

New Ideas,Policy/Standards

Issues

Standards, Rules

Standards, Rules

Operational Information

Inquiries

Contracts, Support,Feedback,

Service Level Agreement

New Requestsfor Information

Request for Support, Proposal

Requested Information

Invalid RequestNotification

Requested Information

Partners

Stakeholders

ProductConcept

New Information

Approved Information



3 BUSINESS PROCESSES OF THE NEW XYZ

The entire rationale for the case for change has its foundation in the radical rethinking of the business processes of XYZ. The five processes illustrated in the model above accomplish the Core Task of XYZ in new and innovative ways, realizing dramatic gains in organizational performance through a complete refocus of work. Fundamentally, the new processes differentiate that which needs to be done for governance purposes from that which can be done by the private sector. The following describes the five processes and how they work together, followed by a description of functions which are assumed will migrate out of XYZ over the course of process implementation.

The principles and method followed for re-engineering the business processes is described in Appendix A.

New Process Descriptions

The first two processes below are considered “transactional” in nature, and are highly mechanized. XYZ partners use these processes to provide service delivery to their customers − the public and other Stakeholder groups. Information technology plays a critical role in these processes, ensuring timely, accessible, community-based information services for the public.

3.1 Control Access to and Use of Information

The core task of the process is to control access to approved XYZ information, assess requests, process requests, and deliver the results to the Requester. The focus of the process is on those transactions where requests by qualified Stakeholders are received for information held by XYZ, and responses are provided back. The redesigned process incorporates the “one window” point of access concept as the means of providing services to end-customers. There are also direct electronic links into the XYZ database. Before fulfilling an information request, the process examines it for compliance with standards and rules, and conformance with conditions of a formal agreement with the requester, according to:

• the type of information requested;



• who is requesting it;

• the level of detail and grouping requested; and,

• the purpose of the request.

If it fails to meet these conditions it is rejected, thereby protecting the rights of the public by “holding safe” information that is ineligible for dissemination. If it passes, the information requested is processed and provided, usually electronically, to the requester.

3.2 Accept and Secure Information (Approval)

The core task of the process is to enable the approval, securing and managing of valid information to confer, restrict, recognize and/or guarantee an entitlement or status. The process focuses on reducing effort while improving customer service by having a common business process for approval. This common framework differs from current XYZ processes in that:

• The full approval service is available through a Private Agent;

• Support for Agents is expanded to include business technical, interpretation, and other support in addition to the Customer Service Coordination and system technical support presently provided;

• The computer system will play a significant role in determining whether an Agent can proceed with the approval immediately or independently of expert assistance; and,

• Certified “examiners” will perform approvals when an Agent is not authorized or qualified to do so, using the computer system to communicate data and results.

The process is responsible for monitoring and final acceptance of all information falling under XYZ’s sphere of control according to the standards and rules.



The following three processes are “strategic” in nature, and fulfil the need for XYZ to “govern” the standards, services and products offered, and levels of service offered to the public.

3.3 Establish Standards

The core task of the process is to develop, interpret, and where necessary, change legislation, policy, and other standards in order to hold safe and access information, enable approval, and enable the development of new products and services. The process must balance the public will, political will, legislation, and new ideas for information in developing standards used by all XYZ’s processes.

The enforcement of standards and rules can be based on legislation (including Acts and Regulations), internal policy, internal procedures, and specifications for the infrastructure. Public will, as expressed by an individual or the media, can influence the process directly. The expression of public will may take the form of complaints, suggestions, recommendations, demands, rallies, or lobby groups. Political will is influenced by public will and is initiated through a government minister, MLA, various government levels/departments, or national/international organizations.

Significant gains made in the new process include:

• Direct contact and interaction between customers/stakeholders and highly skilled individuals;

• Increasing the ability of current manpower resources to handle more issues arising from the anticipated increase in product lines and services;

• Encouraging staff to take a proactive approach;

• Consolidating the standards and rules process of the five XYZ services; and,

• Utilizing the appropriate level of automation, ensuring critical information is available electronically.



3.4 Enable Product and Service Development

The core task of the Enable Product and Service Development process is to anticipate, research, evaluate, design, and roll out new products and services or facilitates/supervises these tasks if performed by a third party. The process ensures:

• the efficient and rapid analysis of potential new products;

• the testing of promising products; and,

• the rapid launch and dissemination of new products and services to the various stakeholders which XYZ serves.

The process provides a framework for differentiating product development activities that belong within XYZ from those to be carried out by a third party.

3.5 Manage Relationships

The core task of the process is to communicate effectively with customers and stakeholders, promote mutually beneficial relationships, and maintain XYZ standards. Manage Relationships maintains XYZ’s standards and policies by supporting partners and communicating with stakeholders to foster mutually beneficial partnerships. Furthermore, in keeping with the project’s process re-design principles, the process anticipates the full integration of the current XYZ, with service delivery moved to the private sector. This process accomplishes a core business function to be retained by XYZ - that of ensuring that standards are maintained.

A key concept guiding the design team is one of moving from an enforcement to a partnership model - one which fosters partner independence and responsibility through understanding and meeting each others’ needs.

The process is organized into four inter-related sub-processes:



• Qualify Partners assesses the need for, selects, and commences operations of agents, subscribers, and other partners doing business with XYZ. A key component is the Service Level Agreement (SLA) associated with the contract for services;

• Provide Support generates the operational feedback that partners require to operate effectively, utilizing a shared “support file” containing key performance measurements corresponding to the SLA, and integrated into the operational information system;

• Communicate with the Public ensures that all questions and comments from the public are managed effectively. An innovation is the introduction of response standards and key messages that will enhance public confidence; and,

• Maintain Stakeholder Relations proactively seeks, creates, and maintains ongoing dialogue with a wide variety of Stakeholder groups, with the intention of stakeholders influencing strategic direction, policy, products, and services offered through XYZ’s partners.

The four sub-processes are interlinked with the intention and result of implementing and maintaining XYZ’s standards. This interaction between the sub-processes is an important element reinforcing the core task of Manage Relationships.



Functions Eligible for Privatization

The new business processes and organizational structure presume that a number of functions will not be performed by XYZ’s staff. These fall into four broad categories:

1. Service Delivery

Most remaining direct customer service will migrate to the Agent Network:

Service C Counter Service

• These services are presently complex and paper-bound, and require a strategy for training before XYZ can be confident that the public interest is protected if Private Agents approve Service C documents. However, the process teams are confident that these issues can be overcome, and full counter service could be privatized;

• There is a high level of customer expectation for these services, largely set by the legal community.

Service A

• All services except types T through W could be privatized;

• Some approvals could be handled by certain third parties.



Service E

• All remaining transactions excluding types X through Z could be privatized;

Service D

• Mail-in approval requests could be distributed to Private Agents or discontinued;

2. Specialty Services

Certain services requiring a higher degree of expertise than all Private Agents are likely to acquire may be privatized, where these do not conflict with XYZ’ governance responsibilities or public opinion. For example:

Document Examination

• Certified examiners could provide a service to Private Agents for approval activities that are not commonly available, such as access to records (electronic or otherwise), knowledge of legislation or precedents, or specific training;

• XYZ would continue to retain expertise through a group of business experts.



Technical Services

• Electronic access to records that require specialized equipment, such as plans or historical documents (poor quality imaging), could be handled by a small number of firms on behalf of the Agent Network. Engineering survey companies may have the equipment and interest.

Standards Interpretation Assistance

• There may be a viable opportunity for a service assisting Private Agents in interpreting certain standards and rules.

New Product Development

• As described in the Enable Service and Product Development process, third party development of new products is anticipated.

Operation of Telephone Voice Response System

• Once the current voice response systems are consolidated, its operation could be outsourced.

3. Training

The Qualify Partners sub-process of Manage Relationships identified a large number of potential training opportunities for third party trainers. Ideas include:



• Third party training for all XYZ agent staff;

• All transaction processing

• Policies and standards

• Certification system

• Have Agents qualified through certified training prior to commencing services;

• Have Agents pay for their own training;

• Training programs for driver examiners and driving instructors;

• XYZ On-line;

• Government & law enforcement agencies; and,

• Assume XYZ provides curriculum requirements and the training provider develops curriculum, works out methods, including computer based training (with ties to application systems for hands-on training).

4. Document Management

Throughout the transaction and support processes it is assumed that both XYZ’s and Private Agents’ staff will have access to electronic records for information that is presently in paper or micrographics form. Some of this information may even be in historical archives. The consolidation of the five XYZ services into one single approach provides an opportunity for these records to be managed in a consistent manner as well. A service provider could develop a strategy for meeting transaction needs that also addresses the long-term need to convert these records into electronic form for use across the region. The provider would manage the data transition, back-file image conversion, as-required image conversion, transaction access, security, mail room, and extraneous data entry not handled by Agents.

Such a central records facility would include:



• Service C documents;

• Service C micrographics;

• Service B documents and historical files;

• Service A archived records and micrographics;

• Service D search records; and,

• Service D micrographics for approvals, tests, and examinations.

This service arrangement could be transaction-based, with a service level agreement setting performance expectations for compliance monitoring.



4 OVERVIEW OF THE NEW ORGANIZATIONAL STRUCTURE

The principle drivers for the new organization structure for XYZ are the requirements of the core business processes of the organization. This gives rise to recommendations in two main areas:

• The proposed new organization structure for XYZ, the skills and competencies needed, the FTE’s required and the supporting policies and programs needed moving forward (including training requirements); and,

• The management of the associated downsizing through the two-year transition period.

The Proposed New Organization Structure:

The new organization structure:

i) has been built from the bottom up, based on the core processes rather than the traditional functions of the organization;

ii) has a single integrated structure;

iii) has superior competencies in the key areas of:

• Governance;

• Partnership Management.

iv) has been ‘enabled’ through a high level of Information Technology;

v) is flatter through the elimination of unnecessary ‘hand offs’, with front line staff ‘empowered’ to conduct the business of the department in a sensitive and fiscally responsible manner;

vi) is collaborative, operating on the basis of workgroups, teams and ‘matrix’ arrangements where it is necessary to bring together a range of skills and perspectives to deliver optimum results; and,



vii) ‘is smaller, better and cheaper’.

• Smaller through the significant downsizing (a reduction of 85% from 650 to 100 FTE’s), enabled through process streamlining, technology enablement, and the potential outsourcing of non core activities;

• Better in terms of the 87% reduction in manpower costs.

The Profile of the Organization:

The profile of the new organization compared with that of today is as follows:

94/95Profile

New Impact-600

-400

-200

0

200

400

600

94/95Profile

NewXYZ

Impact

Managers

Professional/Technical

Administrative



Two models of the organization structure are presented on the following pages:



Director of PolicySOC 1:7

Director of CustomerServices

(Operations) SOC 1:6

Relat Mgr

Relat' Mgr

Relat Mgr

Relat Mgr

Relat Mgr

Relat Mgr

Relat Mgr

Relat Mgr FTE's (5)

Standards

SOC 1:13

Manager (1)

Set Stds (8)

Finance (2)

Clerical (2)

Ad Hoc Initiatives

FTE's (1)

SupportCase Load 2

SOC 1:12

Manager (1)

CSC (10)

Clerical (2)

SupportCase Load 1

SOC 1:12

Manager (1)

CSC (10)

Clerical (2)

InformationCentre

SOC 1:9

Manager (1)

ICO (8)

Mail (1)

New ProductDevelopment

SOC 1:3

Manager (1)

NPD Team (3)

BusinessExperts

SOC 1:14

Manager (1)

Bus' Exp (12)

Clerical (2)

TransactionTeam

SOC 1:8

Manager (1)

CSC (7)

Clerical (1)

InfraSupport

Tech Supp (5)

Admin Co-ord (1)

Ad Hoc Initiatives

FTE's (1)

Contract

SOC 1:8

Manager (1)

Contracts (7)

Clerical (1)

= 100 FTE's= 10 Managers= 3 Levels= AV SOC 1:10 approx

XYZORGANIZATION STRUCTURE - VERSION 1

Deputy Minister



Deputy Minister

Head ofGovServSOC 1:8

SupportCase Load 1

SOC 1:12

Manager (1)

CSC (10)

Clerical (2)

InformationCentre

SOC 1:9

Manager (1)

ICO (8)

Mail Room (1)

BusinessExperts

SOC 1:14

Manager (1)

BE's (12)

Clerical (2)

TransactionTeam

SOC 1:8

Manager (1)

TX Team (7)

Clerical (1)

Infra'Support

Tech (5)

Admin Co-ordinator (1)

Ad Hoc Initiatives

FTE's (1)

ContractsSOC 1:8

Manager (1)

Contracts (7)

Clerical (1)

Relat Mgr

Relat Mgr

Relat Mgr

Relat Mgr

Relat Mgr

Relat Mgt

FTE's (5)

Bus. Stds.and PolicySOC 1:15

Manager (1)

Set Stds (7)

Finance (2)

NPD (3)

Clerical (2)

Ad Hoc Initiatives

FTE's (1)

SupportCase Load 2

SOC 1:12

Manager (1)

CSC (10)

Clerical (2)

Director ofCustomer Services

SOC 1:6

XYZORGANIZATION DESIGN - VERSION 2

= 99 FTE's= 8 Managers= 3/4 Levels= Av SOC 1:10 approx



Version 1 of the organization is based on:

• the process orientation of the structure has resulted in an integrated XYZ Organizational Structure;

• building the structure on the basis of the work that needs to be done, ensures that the organization is performance driven based on the outputs and outcomes required by XYZ customers and stakeholders;

• building from the bottom up has resulted in two senior managers with ‘distinct responsibilities’ i.e. Policy and Operations reporting directly to the Deputy Minister, whose own ‘span of control’ has been extended by one;

• areas of ‘Matrix’ management (dotted lines) exist within the structure for the purposes of ‘tapping into’ the required expertise, for example, Stakeholder Relationship Management; Strategic Contract negotiation; new product and service development; undertaking of ad hoc strategic/operational initiatives; and,

• the Director of Policy has direct accountability for the management of Stakeholder relationships.

The essential differences within Version 2 are a follows:

• a Head of XYZ exists, reporting directly to the Deputy Minister. The Director of Customer Services reports directly to the Head of XYZ;

• one additional level of management is added in the Customer Services area;

• the Contracts team reports directly to the Head of XYZ; and,

• Establish Standards and New Product Development are absorbed within a single work group - ‘Business Standards and Policy’.



The Management of Downsizing through the Transition

In moving XYZ forward towards its end goal, the following human resource impacts are known:

i) the downsizing is significant - 85% reduction in force from this year’s budget.

ii) old ‘jobs’ will disappear, and new multi-skilled roles will emerge, requiring new and additional skills, competencies, attitudes and experience;

iii) some groups will be affected to a greater degree than others, and are more vulnerable in terms of placement:

• entry to mid-level administrative positions are likely to be eliminated or transferred to private industry, as technology takes up many of the activities traditionally performed at this level;

• this group also are not likely to be readily redeployed within government, or even outside it.

iv) the role of management will be redefined;

v) the time scale for the transition will be two years; and,

vi) the two-year transition will present some resource management challenges:

• key individuals may be difficult to retain during a ‘prolonged’ transition period;

• individuals whose current positions are displaced early in the program, may be suitable candidates for new positions coming on stream later in the program.

‘Managing People Through Change’

The downsizing initiative will be strongly supported by good staff communications and the careful execution of a number of key HR strategies and programs throughout the transition, with an overriding commitment to:



i) provide clear up front information on the proposed changes and transition plan;

ii) manage with respect, sensitivity and fairness all matters affecting individuals in the organization throughout the transition;

iii) invest in training opportunities for those displaced in order to improve their marketability;

iv) build the required skills and competencies from the existing skill base wherever possible;

v) endeavour to manage the transition with the best interests of people in mind;

vi) be candid about the fact that there are no ‘guarantees’ for anyone; and,

vii) to treat the bargaining and non-bargaining units equitably.

Investment will be made in packaging and communicating a comprehensive portfolio of support programs to employees as a program for ‘Managing People through Change’.



5 OVERVIEW OF THE TECHNOLOGY PROPOSED FOR THE NEW XYZ

Imaging technology will be central to the newly automated XYZ. Details of the entire technology and the approach for its development and deployment are described in the Technology Report companion document to this Business Case.

The highlights of the proposed technology include the following features, functions and benefits:

• A number of significant changes will be made to the existing application environment

• new applications for are envisioned for Service A and Service B; both of these systems are supported by the use of imaging technology;

• the Service C and Service D systems will be augmented to provide Private Agents with a user-friendly interface, and will also employ imaging technology; and,

• the Service E system will be provided with the consistent user interface; there is not a requirement for imaging services within this application.

• Approved information will be electronic

• may include receipt of electronic data;

• eliminates handling of hardcopy documents;

• customer inquiry of approval status will be possible at any stage of the process; and,

• information converted to an electronic format provides agents with additional product opportunities.



• Full approval service is provided by a Private Agent

• computer based training, on-line help, and electronic communication tools will be used to augment agent support;

• provides additional retail opportunities for the PA community;

• improved information retrieval methods will allow agents to submit more specific queries; and,

• the system forwards approvals requiring examination to specialized agents.

• Third party service providers may act as agents for approvals; low-volume users would use Agents

• information is captured at source; and,

• documentation is controlled at source.

• One standard interface will be developed for the Private Agent environment

• consistent navigation and function standards will reduce agent training and support requirements;

• new Service A and Service B applications will conform to the defined "look and feel" conventions;

• over time the Service C, Service D, and Service E applications will be modified to conform to the standard interface; and,

• a common revenue system will be implemented to provide XYZ and Private Agents with information related to transaction costs.



• Work group technologies will be used to automate internal business activities

• customer requests, approval processes, and product development cycles will be moved through the business process electronically;

• shared databases will allow efficient creation and management of stakeholder, agent, customer, or product information;

• office automation products and usage standards will be implemented; and,

• performance statistics will be automatically collected to allow for the management of cycle times and further improvement of the automated processes.

• A comprehensive telephone system will be implemented

• XYZ currently receives 4,500 calls per day; calls are often redirected because personnel do not share the same system; and,

• key points of access: general public calls regarding XYZ; calls from Private Agents for support or business requirements.

• Information security

• system provides validation of an Agent's authority to complete the transaction, and records the transaction for financial, audit and performance evaluation purposes;

• provides level of security required to permit remote approvals;



• XYZ personnel will control the security privileges granted to all users; and,

• security rules will also be applied internally to ensure that electronic information is made available to authorized staff only.

• Service delivery considerations:

• agents without digital scanners will not be able to enter digital images;

• agents without high-speed telecommunications connections will not be able to enter/retrieve digital images (for these access will be asynchronous: 1 page/min.); and,

• not all agents will provide all services.

The conversion of existing paper files to electronic files will be a major task of automating the re-engineered XYZ. The Technology Report elaborates on options available to XYZ to make conversion manageable and feasible. Under consideration, for example, is the determination of exactly which information needs to be converted.

There are business issues and policies to be resolved before full remote approval is possible. Policy and legislative changes permitting proofs of consent other than signatures on documents would permit the use of text conversion rather than imaging, enabling agents to capture electronic data from corporate clients.



6 FINANCIAL ANALYSIS

A key performance measure of the XYZ BPE project was stated at the High Level Design Workshop in August, 1994:

“a significant reduction in the cost base of the XYZ Division from existing levels”

To measure progress against this performance measure, the Finance Team was created with the responsibility of developing financial models and analyses to estimate the impact of implementing the recommendations contained in this report.

It is important to note that the analysis is not a definitive and/or detailed study of all the costs and all the benefits. It quantifies, at a high level, recommendations having the largest financial impact, their value, and their timing. Budget forecasts do not anticipate the costs and benefits of other XYZ’s projects and initiatives. It must be seen as an input only to future XYZ Budgets.

Estimating financial impact requires the completion of four major activities.

• development of a financial model;

• identification of the financial baseline;

• assessment of the financial impact; and,

• analysis of risk.

Each of these activities are summarized here. More detail can be found in the Financial Analysis Report under separate cover.



The Financial Models

A financial model is simply a framework for analysis. It identifies the major costs and benefits of implementing the project recommendations and illustrates them in a format suitable for communication to stakeholders. In the XYZ BPE Project, two models were created:

• A forecasted Cash Flow Analysis; and,

• A forecast of XYZ’s Operating Expenditures for the budget years 1994/95 to 1997/98 showing percentage reductions in operating expenditures and totals.

The XYZ Operating Expenditures Forecast is particularly important as it measures the progress against the Deputy Minister’s above-mentioned performance measure.

Each model is based on the following major sources and uses of cash:

One-time Impact Periodic or Annual Impact

• Severance and Outplacement • Manpower Savings

• Information Technology • Supplies and Services Savings

• Acquisition • Information Technology

• Custom Software Development • Maintenance Costs

• Project Management • Operating Costs

• Communications • Outsourcing Costs

• Training



• Consulting

• Human Resources

• Implementation Management



The Financial Baseline

During the baseline phase, it was determined that “existing levels” are best represented by the complete 1994/95 XYZ Budget and the more recent 1994/95 Forecast.

XYZ Financial Baseline

1994/95 Budget 1994/95 Forecast

Manpower $ 25,000,000 $ 22,000,000

Supplies and Services 15,000,000 15,000,000

Implementation Costs 1,000,000 500,000

Other Costs 2,000,000 2,000,000

Total Operating Budget $ 43,000,000 $39,500,000



Assessment of Financial Impact

The following is the estimated XYZ Operating Expenditures for the years 1994-98 based on the full implementation of all recommendations and assumptions as outlined by the Process Designs, the Technology Report, the Organization / Human Factors Report, and the Base Case Discussion above.

Forecasted Operating Expenditures

Baseline Forecasted Forecasted Forecasted Forecasted1994/95 1994/95 1995/96 1996/97 1997/98

Category ($000) ($000) ($000) ($000) ($000)

Operating Expenditures

Manpower 25,000.0 22,000.0 20,762.5 7,625.0 3,150.0

Supplies and Services 15,000.0 15,000.0 15,099.4 15,372.5 15,450.0

Implementation Costs 1,000.0 500.0 3,095.5 9,047.0

Other (Amortization) 2,000.0 2,386.1 4,016.3 4,860.0 4,860.0

Forecasted Operating Expenditures 43,000.0 39,886.1 42,973.7 36,904.5 23,460.0

Forecasted Capital Investments 4,000.0 2,700.0 11,400.0 5,900.0

Forecasted FTE's 650.0 600.0 566.3 215.0 100.0



The next chart compares the Forecasted Operating Expenditures for XYZ to the 1994/95 Baseline Budget indicating the percentage reduction anticipated for each line item.

Forecasted Operating Expenditures Comparison - 1994/95 Baseline

Baseline Forecasted Forecasted Forecasted1994/95 1995/96 1996/97 1997/98

Category ($000) ($000) % Chg ($000) % Chg ($000) % Chg

Operating Expenditures

Manpower 25,000.0 20,762.5 (17%) 7,625.0 (70%) 3,150.0 (87%)

Supplies and Services 15,000.0 15,099.4 1% 15,372.5 2% 15,450.0 3%

Implementation Costs 1,000.0 3,095.5 210% 9,047.0 805% (100%)

Other 2,000.0 4,016.3 101% 4,860.0 143% 4,860.0 143%

Forecasted Operating Expenditures 43,000.0 42,973.7 (0%) 36,904.5 (14%) 23,460.0 (45%)

Forecasted FTE's 650.0 566.3 (13%) 215.0 (67%) 100.0 (85%)



The following chart is a Cash Flow analysis of the costs and benefits of implementing the XYZ recommendations.

Forecasted Cash Flow

Budget YearsCategory 1994/95 1995/96 1996/97 1997/98 Totals

Benefits:Manpower Reduction Savings 1,237,500 14,375,000 18,850,000 34,462,500Supplies and Services Savings 50,625 577,500 750,000 1,378,125

Total Benefits 1,288,125 14,952,500 19,600,000 35,840,625Costs:

Severance (2,967,500) (8,665,000) (11,632,500)Information Technology Operating (150,000) (950,000) (1,200,000) (2,300,000)Training (123,000) (357,000) (480,000)Consulting (5,000) (25,000) (30,000)CommunicationsOutsourcing

Total Costs (3,245,500) (9,997,000) (1,200,000) (14,442,500)Capital Investments:

Information Technology (2,700,000) (11,400,000) (5,900,000) (20,000,000)Total Capital Investments (2,700,000) (11,400,000) (5,900,000) (20,000,000)

Total Forecasted Cash Flow (2,700,000) (13,357,375) (944,500) 18,400,000 1,398,125

Cumulative Cash Flow (2,700,000) (16,057,375) (17,001,875) 1,398,125Payback Period 3.2



Operating Expenditures Comparison

0.0

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10,000.0

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1994/95 1995/96 1996/97 1997/98

Budget Years

Ope

ratin

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s ($

000

's)

Baseline Operating Expenditures

Forecasted Operating Expenditures

Forecasted Expenditures 1997/98

Supplies and Services

66%

Manpower13%

Other (Amortization)

21%

Implement. Costs0%

Cumulative Cash Flow

-20,000.0

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1994/95 1995/96 1996/97 1997/98 1998/99 1999/2000

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The following observations and conclusions are significant:

• The Forecasted Operating Expenditure Comparison to the 1994/95 Baseline shows the forecasted operating expenditures falling to $23,460,000 by 1997/98, a 45% improvement.

• Manpower Costs have been reduced by 87% to $3,150,000 from $22,000,000. Combining Manpower and Supplies and Services Costs gives the best representation of long term operating costs. By 1997/98, the combination decreases from $37,000,000 to $18,600,000, a 50% improvement.

• There is a spike in the forecasted operating expenditures in the 1995/96 Budget Year. This is due primarily to the $3 million cost of severance in the third quarter and the $2 million increase in amortization from the bulk of the systems development work. The cost of technology can be managed further through a partnership with a systems integration firm willing to forego some development revenues until later in the projects. As well, the Base Case represents a worst case scenario for the severance costs by assuming that all employees affected by the reduction in force would receive a separation payment. The scenario in which some staff is redeployed by the government and separation payments are avoided is illustrated in Exhibit F.

• The Cumulative Cash Flow graph illustrates that, assuming XYZ pays for all costs up-front, including technology, the investment in the recommended changes will not pay back until late in the 1997/98 budget year. This produces a 3.2 year payback period measured from January, 1995. However, following 1997/98, the manpower reductions will provide an annual positive cash flow of $18.4 million after accounting for the increased cost of information technology operations.

Risk Analysis

To enhance decision-making, several variations of the analysis are represented to demonstrate financial impact:



• Base Case - the best, most realistic, estimates provided by each of the teams;

• Cost + 25 - a case in which costs are increased by 25% to estimate the impact of significant cost overruns;

• Benefit - 25 - a case in which benefits are decreased by 25% to illustrate the impact if benefits have been overestimated;

• Redeployment - a case in which some employees are redeployed by the government thereby reducing severance costs; and,

• Late Completion - a case in which projects on the critical path are assumed to take one quarter longer than expected producing an overall delay of 6 months for complete implementation..

The % change (reductions expressed in parentheses) in the XYZ Total Operating Expenditures, from 1995/96 to 1997/98, versus the 1994/95 Baseline Operating Budget for each case is provided in the table below:

Case 1995/96 1996/97 1997/98

Base Case (0%) (14%) (45%)

Cost + 25 1% (12%) (43%)

Benefit - 25 1% (5%) (34%)

Redeployment (3%) (22%) (45%)

Late Completion (5%) (7%) (32%)

It is the opinion of the Finance Team that these results fairly represent the estimated costs and benefits resulting from the implementation of the recommendations of each of the XYZ BPE project teams.



The following charts illustrate the progress of the BPE project against the XYZ’ portion of the Ministry of Government Services Business Plan (draft 1, July 29, 1994).

0.05,000.0

10,000.015,000.020,000.025,000.030,000.035,000.040,000.045,000.0

1994/95 1995/96 1996/97 1997/98

Business Plan Op.ExpendituresBPE Project Op.Expenditures

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

1994/95 1995/96 1996/97 1997/98

Business Plan FTE'sBPE Project FTE's

Overall, the Base Case illustrates a positive scenario for XYZ. The large investment required to achieve the one window vision is more than compensated by the benefits of the reduced manpower requirements, improvements in customer service, and the potential to increase the number of products and services provided through the Private Agent Network.

With the help of an information technology financing agreement and active redeployment to smooth the operating expenditure spike in 1996/97, the BPE project provides the necessary cost and FTE reductions to permit XYZ to meet its stated financial targets, FTE targets, customer service goals, and one window vision.



The Finance Team recommends that XYZ proceed with the implementation of the project recommendations in partnership with a systems integrator capable of providing the necessary capital investment distribution to permit the financing of development through the savings achieved.



7 COMMUNICATIONS STRATEGY

The communications strategy is designed to provide an overview of the new purpose, objectives and strategies for all communication activities. Additionally, the strategy provides a set of key messages consistent to all audiences that are intended to be reflected in all communications activities, including stakeholders external to the organization.

Goals of the Communications Strategy

• To facilitate understanding among all audiences about the role of the XYZ and the rationale for the transformation;

• To maintain productivity and customer satisfaction through the period of transition;

• To communicate an underlying sense of dignity and respect to all employees, whether they leave or stay; and,

• To build confidence among all audiences about the new XYZ organization and its new way of doing business.

Key Strategies

• Communications will be managed as an essential business process;

• Downsizing will be positioned as an outcome of the business process re-engineering, not the goal of the initiative;

• The primary channel of communications with employees is face-to-face, with printed information provided as tools, background and reinforcement;

• Top management of XYZ will serve as the communications leader;

• Communication with all audiences will build in opportunities for feedback;



• Information will be communicated as soon as it is available to those directly affected by re-engineering so they can make informed decisions;

• Information communicated to those affected will be realistic so individuals understand that change will be radical, not incremental; and,

• XYZ will be prepared to address media inquiries but will not take a proactive media approach.

Key Messages

• This initiative is consistent with the government’s strategic direction of deficit reduction by moving out of service delivery;

• The result will be a more efficient government and improved service to constituents, based on a user-pay model;

• A new core task, which emphasizes the XYZ role in enabling access to information and providing data stewardship, will drive all business process activities and flow through all communication;

• XYZ is committed to making this transformation succeed;

• The redesign project is a well-planned process involving teams of staff members and Company ABC consultants; and,

• Re-engineering will produce major organizational changes, which will include job redesign and a restructuring of the organization. These changes are not incremental.

Three -Phased Approach

The communications strategy addresses the needs of three distinct phases during the transition − stage-setting, process roll-out, and post roll-out:



1. Stage-Setting

This is the period when the process team activities are completing their high-level design. Stakeholders, particularly those directly affected by the re-engineering, know that re-engineering is under way but there is still uncertainty over what will happen and specific time frames. The goal of communication during this phase is to prepare the audiences for what will come, focusing on the large-scale nature of the change. The content of the communication during this phase should focus on the rationale for re-engineering, providing information as it becomes available. During this period, it is appropriate to position the leaders/managers as the face-to-face communicators, establish regular feedback channels, and reinforce government benefits such as training, retraining and early exit options.

2. Process Roll-Out

As the business case is implemented, there will be a time of high uncertainty and concern within the organization. Clear, consistent communication is essential to minimize impacts on productivity and to provide support for those affected. The content of the communication moves away from rationale and focuses on the “what” and the “when” so those affected can make informed choices. There should also be a heavy emphasis on communicating the resources that are available to employees, such as outplacement. During this phase, communication needs to be as personal and individual as possible. Leadership needs to be especially visible and accessible. Messages need to be reinforced continuously through larger forums and print media.

3. Post Roll-Out

Once the new organization is in place, the goal is to move beyond the re-engineering implementation. The XYZ can expect high levels f anxiety reduced loyalty, guilt and increased work stress as employees begin to understand their new job duties and new skills that may be required. This is the time when it is critical to reinforce the business priorities. Although it may be difficult, communication work would focus on obtaining involvement from as many people as possible in the work of the new organization.



Stakeholder Analysis

Groups who have a stake in the outcome of the XYZ re-engineering have been reviewed regarding their desired attitude and behaviour towards the changes, with key messages and activities identified. This analysis is available in the Communications Strategy companion document. Principle Stakeholder groups are:

• Business Community

• Government

• Citizens

• Employees/Union

• Legal Community

• Media

• Private Agents

XYZ BPE Project Business Case for Change - Appendix A

November, 1994 Page A-1

A. HOW XYZ BUSINESS PROCESSES WERE RE-ENGINEERED

A.1 Principles Governing the Design of XYZ Business Processes

The work of the Process Design Teams was governed by the following principles relating to customer perspective, process efficiency, new technology architecture, and data architecture.

Principles Relating to Customer Perspective

1. Services must be easily accessible throughout the province.

2. Services must be provided in a timely manner.

3. The accuracy and security of XYZ data will be assured.

4. Wherever possible, enhanced services, including improved access to information, will rely on per-use fees for cost recovery.

5. Information about customer requests must be available at any time.

Principles Relating to the Business Processes

6. Two main objectives driving the process restructuring are improving the internal efficiency, and improving service to customers.

7. The architecture will accommodate the distinction between the core administered by XYZ, and the delivery system operated by private parties.

8. The five services will be integrated gradually.



9. Technology solutions must be flexible and adaptable to change.

10. Alternatives to paper-based processing will be given high priority.

Principles Relating to New Technology Architecture

11. The new processes will include mechanisms for measuring the key performance parameters.

12. The technology will present a common face to the users.

13. Technology will enable workflow automation and collaborative problem solving.

14. The architecture should include office automation systems.

15. The architecture strategy will be based upon gradual evolution from mainframe-based to client/server architecture.

16. The architecture will include industry standards wherever feasible.

Principles Relating to Data Architecture

17. Each event will be recorded once, close to its source.

18. The physical location of data storage will not be of any concern to the users accessing the data.

19. Integrated customer database will be used for identification, to simplify data entry.

20. Data processing will be integrated with document processing.

21. Ownership of all XYZ data will be clearly defined.

22. For most types of XYZ data, the history of all updates will be stored, but not necessarily the history of all inquires.



23. When a new data format is introduced, the decision to convert the data stored in the old format will be based on cost analysis.



A.2 Summary of the XYZ Baseline Process Mapping Phase

Mandate of the Process Teams

The mandate of the Baseline Process Mapping teams was to examine the current situation of XYZ in terms of the business model derived from the High Level Design Phase of the XYZ BPE initiative. The analysis was to derive a workflow for each of the core processes, with inputs and outputs for each one, record the process and cycle times, identify variances, note the technology used in enabling the process, and record customers, their expectations, and any issues associated with the process.

The details resulting from the examination of the individual processes and sub-processes are provided in the documentation for each core process.

Processes Examined

The model which the High Level Design BPE team constructed included six major processes:

• Accept and Secure Information

• Control Access To and Use Of Information

• Build Infrastructure, Hold and Distribute Information

• Establish Standards

• Enable New Product and Service Development

• Manage Relationships



Issues with the High Level Business Model

Several issues arose in the analysis of the baseline of XYZ under the business model derived from the High Level Design workshop. Among them were:

• the division of the “end-to-end” view of processes among two or more core processes as they were defined in the business model;

• as a result of the division, the difficulty of determining an “end-to-end” time, both process and cycle, for a complete customer request fulfillment;

• the mingling of “transactional” and “longer-term” sub-processes within the core process groups of the business model; and,

• some elements of the ‘Build Infrastructure’ processes, especially as they related to “holding safe” were static in an operational sense, not procedural.

Some process teams recognized very early in the analysis that there were possibilities for processes to overlap. The inputs and outputs, therefore, had to be clearly defined in order for the process teams to continue their work. This was especially true of the Manage Relationships, Establish Standards, and Enable Product and Service Development groups. In addition, there was a tendency to equate process boundaries with functional groups. The teams overcame this by coming to grips with the process as distinct from any organizational structure which would be required to implement and carry it out.

Organizational Structure

The processes had a wide range of organizational levels involved in the processing of requests for approval, for access to information, and for non-transactional processes.

The most complex, in terms of organizational levels, were:



• Access to Service A information, with as many as nine organizational layers involved in responding to a customer request;

• Qualification for on-going access to information by Private Agents and GOL, with ten levels; and,

• the Hold Data process within Build Infrastructure, Hold Data, and Distribute Information, with eleven levels.

Although some of the Service A complexity arose from the confidential nature of the information being requested, this XYZ function was also the one which was the least automated. The Hold Data process involved a large number of levels in the microfilming and filing of information. Furthermore, Qualification for Ongoing Access involved many levels of senior government officials, together with control points, training, network, and support staff.

The processes which had the least number of levels were:

• Direct Service from Service B to the public with only the Front Counter and Customer Service involved;

• Qualification for Specific Request, which involved only the Private Agent;

• Service C access to information generally, with only two levels involved in some of the access processes; and,

• the highly automated Service E access processes, with only one level affected in the most efficient case.

Process and Cycle Times

The variety of types of processes gave rise to a wide range of process and cycle times.

The shorter times generally were those associated with specific requests for approvals and access to information, i.e., transactional processes. These processes were at the core of the XYZ task to allow individuals to obtain approval and have access to information.



By and large, because the nature of the transactional information was consistent, the reasons for approval were driven by specific events, and the responses were based on rules, the processes had evolved into repeatable patterns and sequences of steps. Many of them had been automated, or had incorporated enabling technology into them.

In the Service E access to information process, the customer could receive responses to requests for information in a matter of minutes. In Service A, access was lengthened because of the confidential nature of the information, process times being extended to almost an hour, yet the cycle times could be as large as two weeks. Much of the delay arose from the large numbers of organizational levels involved, together with the delays in transferring tasks from one level to the next.

The processes which called for more human judgement, were not susceptible to consistent repetition, or involved few specific rules were longer in both process and cycle times. These non-transactional processes included more complex relationship management, standards setting, and the enabling of the development of new products and services. In these processes few, if any, specific rules, guidelines, or detailed procedures had been developed and applied in a rigorous, consistent manner.

Customers and Customer Expectations

The Baseline study shows that there is a larger number of types of customers who request government-held data than those who request to store it.

The smaller number of customer types requesting to store information exists for a number of reasons:

• information is approved or recorded by individuals, or their agents, who are associated with very limited specific events;

• the occasions for approval in the lives of individuals are often interspersed by long periods of time; and,

• with some types of approvals the event is not repeated.



The qualified access to the data, however, is distributed across a wide variety of users, and includes:

• the originators of the information or those acting on their behalf

• law enforcement agents

• statistical organizations

• government organizations

• commercial organizations

• research organizations

• other governments and government jurisdictions

• and others.

Much of this access is also event driven, but much is also repetitive, as with statistical or medical use, or is provided on a regular basis under contractual arrangements.

Integration

Little integration exists across the five former XYZ database functions. Apart from the ability of Private Agents to access a variety of data from a terminal running appropriate emulation programs, the services remain separate. Agents, for example, receive multiple separate invoices billing them for the provision of XYZ’s products and services to the end-customer.

During the Baseline analysis, the process groups were very enthusiastic about the potential that this situation provided in terms of new products and services to the public and to commercial clients. If the databases could be cross-linked, new products could be developed, benefiting both the public, with new services, and the government, with additional revenue.



A.3 Summary of the XYZ Re-design Process Phase

Mandate of the Process Teams

The mandate of the Process Re-design teams was to examine existing documented processes and re-design them to make them more efficient in terms of customer service and cost. Where no formal processes existed, the process teams were asked to create processes that could serve as models for the efficient delivery of the outputs required of them within the definition of the business model.

Processes Examined and the Business Model

In order to remove the difficulties which arose from the work of the Baseline teams, the business model of XYZ was modified from six core processes to five. Sub-processes within Build Infrastructure were distributed among the other major processes.

Some of the resulting benefits which arose from the modification to the model were:

• it was possible to have an end-to-end perspective of the transactional activities which had been artificially distributed across two or more core processes;

• the new model allowed for the “filtering” of sub-processes into transactional and non-transactional processes;

• once transactional processes had been clustered together, the core processes which accounted for their activity were then grouped together in a way which allowed for a concentration of technology and technology issues, such as outsourcing potential, to be considered within a core process context. For example, the transactional processes were grouped together under the Accept and Secure Information processes, and under the Control Access To and Use Of Information processes. The line-of-business technology, that equipment used for approving and accessing information, was restricted largely to this group;

• the non-transactional processes were grouped into longer-term “strategic” processes; and,



• the strategic processes were characterized by having more knowledge-intensive activity than the more repetitive, predictable, transactional ones.

Organizational Structure

The re-designed processes usually contained fewer organizational levels than the baseline processes. This organizational leveling was the result of two important factors:

• Technology was assumed to be capable of playing a significant role in the re-designed processes, especially in the transactional processes. In the provision of approval and access services, for example, it was assumed that all information was going to be available in electronic format. This assumption was necessitated by the need to make information available in a timely fashion to the various communities in region. The only way to accomplish this objective was with information technology.

• In order to facilitate the provision of XYZ information in the new distributed model, it was also assumed that the Private Agents would be authorized to conduct activities which had been carried out previously by XYZ staff. This assumption has several implications which are dealt with in the Process Re-Design and Organization / Human Factors reports. Some of the major implications, though, are:

• the possible need to introduce legislation authorizing agents to perform more functions;

• the need for specialized training for Agents;

• the need for auditing Agent performance, especially in light of the confidential information they will be handling;

• the possible need for more specialized equipment at Agents’ sites, and how that would affect the policy of all products being carried by all Agents. Some of the equipment is expensive, or the product which requires it has low demand, and may not be required at all sites; and,

• the probability of re-training XYZ staff for other functions, such as audit, service and support roles.



Process and Cycle Times

Process and cycle times dropped significantly in those processes where technology and organizational restructuring were introduced. This was especially true in Service A where many of the processes are very manual. The change, however, does assume that the appropriate operational controls can be introduced to protect confidential information from unauthorized access, and to maintain public trust and confidence in the system. Customer cycle times will also be dramatically reduced for services presently only available in the two major cities.

XYZ BPE Project Business Case for Change - Appendix B

November, 1994 Page B-1

B. COMPANION DOCUMENTS TO THE XYZ BUSINESS CASE FOR CHANGE

Conclusions and recommendations offered in the Business Case for Change are substantiated and supported by the following companion documents:

Baseline Process Reports (available from project files)

• Accept and Secure Information Process

• Control Access To and Use of Information Process

• Establish Standards Process

• Enable Product and Service Development Process

• Manage Relationships Process

Process Re-Design Reports (available from project files)

• Approval Process (Accept and Secure Information)

• Control Access To and Use of Information Process

• Establish Standards Process

• Enable Product and Service Development Process

• Manage Relationships Process

XYZ BPE Project Business Case for Change - Appendix B

November, 1994 Page B-2

1. Organization / Human Factors Report

2. Information Technology Report

3. Financial Analysis Report

4. Communications Strategy Report

sample business case for change

Documents