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.
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
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 Century
to 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
with
with
with
addition of sub-processes to handle exceptions
changes in environment and
We need to
increase in customer expectations
Reinvent
increase in volumes
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
Legislative
Intent
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.
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
• 24x7
• 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
Core Processes
Without Issues
Strategy
Core Processes
With Issues
Reengineering - Breakthrough
Improved
Process
Improvement
Plan
Goals, Roles
Boundaries
Implementation
Plan
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.
Cannot verify
ownership
Verify
documents
and register
Buyer &
Seller
Buyer gets proof
of transaction
Pay fees
Land Title Office
Buyer
Complete
application
Submit
Appln for
Mutation.
Verify and
change
records
Buyer
Buyer gets
ownership
records
Buyer
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
Current Situation
Inter - departmental
co- ordination
issues
Poor state of
existing records &
services
Registration &
Stamps Dept.
Survey
Survey
& Land
Department
Records
Departmet
Local Bodies
Stakeholder
Revenue
Department
Presumptive Ownership
of Property
Need to approach four
different entities for
property services
TRANSFORMATION
Integrated Land Information System (ILIS)
Stakeholders
Citizen
Business
Govt.
Services
 Conveyance
 Sub-division
 Information Search
Ø Ownership
Ø Land use
Ø Graphical
 Market Valuation
 Value Added
Services
Delivery Channels
Web Based
Ownership
Info
Graphical
record
Land Use
Info
Geodetic
Network
ILIS Office
Integrated Land Information
Repository
Service
Provider
Other Info
Layers
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
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
Shared
Databases
Information can appear
simultaneously
at all the places it is needed
Only experts can perform
Complex work
Expert Systems
A generalist can do
the work of an expert
We should choose
between
Centralization &
Decentralization
Networks
We can get the benefits of
Centralization &
Decentralization
simultaneously
Managers make
ALL the decisions
Decision
Support
Systems
Decision-making is a
part 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 out
where things are..
RFID
Things tell you
where they are !
Plans get revised
periodically
High
Performance
Computing
Plans get revised
dynamically