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 BPR
4. Issues & Challenges in BPR
5. Critical Success/ Failure Factors in BPR
6. An example of BPR
7. 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 21
st
century
with Processes and Organizations
designed in the 19
th
Century
to work well in the 20
th
Century!
We need entirely different
PROCESSES & ORGANIZATIONS
for Governance in the 21
st
Century
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 to
Reinvent
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. Simple
2. Need-based
3. Certainty
4. Speed
5. 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
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 Processes
With Issues
Improvement
Plan
Goals, Roles
Boundaries
Implementation
Plan
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-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
from functional departments to process teams
2. Jobs change
from simple tasks to multi-dimensional work
3. Peoples roles change
from controlled to empowered
4. Job preparation changes
from training to education
5. Measures of Performance & compensation change
from activity to results
6. Criteria for career advancement change
from performance to ability
7. Values change
from protective to productive
8. Organizational Structures change
from hierarchical to flat
9. Executives change
from scorekeepers to leaders
Critical Success Factors in BPR
1. Clear Vision for Transformation
2. Top management commitment
3. Identification of Core Processes for BPR
4. Ambitious BPR team
5. Knowledge of Reengineering techniques
6. Engaging external consultants
7. Tolerance of genuine failures"
8. 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

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
Buyer

Submit
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 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
Ownership
Land use
Graphical
Market Valuation
Value Added
Services
Citizen
Business
Integrated Land Information System (ILIS)
Ownership
Info
Graphical
record
Land Use
Info
Geodetic
Network
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
[email protected]
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 everyones 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