Business Process Re-engineering &Government Process Re-engineeringJ SatyanarayanaAs part of the Capacity Building Workshop under the Joint Economic Research Program (JERP)

AgendaWhat is BPR?Why BPR?Principles & Methodologies of BPRIssues & Challenges in BPRCritical Success/ Failure Factors in BPRAn example of BPRConclusion

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 PassportRegistration of a CompanyAudit of a Tax ReturnRelease of a Grant

Reengineering is not .Automation of existing ineffective processesSophisticated computerization of obsolete processesPlaying with organization structuresDownsizing doing less with less

Effectiveness Vs AutomationAutomation : 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 & BPRAutomation is using technological tools to perform OLD processes, in a NEW way.Like putting OLD Wine in a NEW bottle.

BPR is about InnovationMaking NEW Wine and putting it in a NEW bottle

BPR & Quality InitiativesQuality Initiatives attempt continuous improvementSix SigmaTQM (Total Quality Management)

BPR attempts a radical redesign or transformationBig Bang approachQuantum Leap

Why BPR?

Problem StatementThe 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 restatedAll processes are simple & efficient when originally designedUser-friendlyDeploying contemporary tools & techniques

Processes become complex & inefficient with passage of timewith addition of sub-processes to handle exceptionswith changes in environment andwith increase in customer expectations with increase in volumesWe need toReinvent the processes

Symptoms of Poor GovernanceAir of Mystification about proceduresLong Queues at delivery pointsMultiple Visits to Government OfficesPillar-to-PostOutcome is in Suspense OK or NOT OK !Gatekeepers at every turnPoor Quality of ServiceService is a Mercy - not a RightToo many Intermediaries, Shortcuts

5 Symptoms of Poor ProcessesExtensive information exchange, data redundancy and re-keying

Huge inventory, buffers and other assets

Too many Controls and Checks

Rework, Iteration & Duplication of work

Complexity, Exceptions & Special cases

Root Causes of Poor Service DeliveryLegislativeIntent Process Problems Delivery Channel Problems Delivery ProblemsBPR is an important part of the Solution

3 Goals of BPRCustomer FriendlinessMeeting customer requirements closelyProviding convenienceEffectivenessOutcome-based approachGaining loyalty of customersImage and branding EfficiencyCostTimeEffort

12 Attributes of Customer-friendly ServicesSimple Need-basedCertaintySpeedConveniencePlaceTimeChannelEquitableResponsiveCustomer-centricQuality of ServiceCost-effectiveAccessibleAssisted

Principles & Methodologies of BPR

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

The essence of BPR is Transformation

A 4-Pronged Approach toTransformationTransformation

4 Steps in BPRUnderstanding the Current ProcessesAS IS study mapping current processesAnalysis of Root Causes for InefficienciesIdentifications of Problems, IssuesInventing a NEW Process (TO BE Process)Survey of Best Practices Consultation of StakeholdersConstructing the NEW ProcessBringing in new Laws and RulesAdopting Disruptive TechnologiesSelling the NEW way of functioningChange ManagementCommunication Strategy

BPR MethodologyImproved ProcessCore Processes Without IssuesCore ProcessesWith IssuesImprovement PlanGoals, RolesBoundariesImplementationPlanStrategyContinuous ImprovementReengineering - Breakthrough

Challenges,Critical Success Factors &Critical Failure Factors in BPR

Challenges in a BPR ExerciseIdentifying Customer Needs & Performance Problems in the current ProcessesReassessing the Strategic Goals of the OrganizationDefining the opportunities for Re-engineeringManaging the BPR initiativeControlling Risks Maximizing the BenefitsManaging Organizational ChangesImplementing the re-engineered Processes

9 Changes occasioned by BPRWork Units changefrom functional departments to process teamsJobs changefrom simple tasks to multi-dimensional workPeoples roles changefrom controlled to empoweredJob preparation changesfrom training to educationMeasures of Performance & compensation changefrom activity to resultsCriteria for career advancement changefrom performance to abilityValues changefrom protective to productiveOrganizational Structures changefrom hierarchical to flatExecutives changefrom scorekeepers to leaders

Critical Success Factors in BPRClear Vision for TransformationTop management commitmentIdentification of Core Processes for BPRAmbitious BPR teamKnowledge of Reengineering techniquesEngaging external consultantsTolerance of genuine failures"Change Management

Critical Failure Factors in BPRTrying to Fix a process instead of Changing itLack of focus on Business-critical ProcessesLack of holistic approachWillingness to settle for minor resultsQuitting too earlyLimiting the scope of BPR by existing constraintsDominance of existing corporate cultureAdopting bottom-up approachPoor leadershipTrying to avoid making anyone unhappyDragging the BPR exercise too long.

An Example of BPR

Land Records in India Existing System (AS IS) Legacy of British SystemLand Records created mainly for Land Revenue Based on Presumptive Ownership of land parcelsManaged by multiple departmentsTitleSurveyRegistrationLocal GovernmentProcesses & services, mostly manualCitizens have to visit several offices & wait for months for title changes

Buyer & SellerComplete DocumentsPay feesSubmit Appln.Registration of deedsVerify and change recordsBuyer & SellerBuyerComplete applicationSubmit Appln for Mutation.Verify documents and registerBuyer

Submit Appln for Sub-divisionComplete appl.Land Title OfficeSub-divide the parcel and change recordsLand SurveyorBuyerBuyerBuyer gets proof of transactionBuyer gets ownership records Buyer gets boundary info.Cannot verify ownershipExisting System Land Transactions

International Best Practices in Land Records ManagementNew Zealand Land Information OnlineCanada Land Title & Survey AuthoritySingapore Singapore Land AuthorityAustralia Land Victoria

Vision of BPR Integrated Land Information

ConclusionBPR 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 Youceo@nisg.org

Legislative IntentOld and Antiquated LawsRegistration Act 1905Stamp Act 1899Survey & Boundaries Act 1923Revenue Code 18xxBasis of legal system is Mistrust, not ServiceActs are department-centric, not citizen-centricRules are complex and tedious10,000 rules, 0.1 mil forms!Rulers are not accountable

Process ProblemsControls instead of facilitationAsking for too much informationby every agency, on every occasionBurden of proof thrown on CitizenAttachments, Annexures, Attestations Too many areas of discretionComplexity of rules & regulationsAnything to do with money is more complexHeavy reliance on manual systemsNo concept of Quality Assurance

Delivery Channel ProblemsJurisdictiontoo many narrow domestic walls !too many single windowsRestricted timingsDisparate and sub-optimal delivery networksNo choice of delivery channelsProcess & Delivery Channel often combinedresulting in delay, malpractice

Delivery ProblemsMindset & attitudinal problemsDelivery Agents unsuitableUnqualifiedUntrainedUnequipped Lack of empowerment of front-end peopleLack of dedicated delivery teamsDelivery is handled on a part-time basisLack of service levels, measurement systems

8 Rules of Disruptive Technologies (1/2)

8 Rules of Disruptive Technologies (2/2)

**So the challenge is to improve service options, access, speed in all imaginable ways and at the same time reduce costs

And one option is to throw technology at the problem and automate. This was what the private sector did initially; soon realised that RoI was the victim; corrected by tryinjg to align IT strategy with Business strategy continuously.

As we discussed yesterday that is not eGov