Business Process Re-engineering

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 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
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.
 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 drink 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
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 addition of sub-processes to handle exceptions
• with changes in environment and
We need to
• with increase in customer expectations Reinvent
• with 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 Delivery
Process Delivery
Intent Channel
Problems Problems
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 6. Equitable
2. Need-based 7. Responsive
3. Certainty 8. Customer-centric
4. Speed 9. Quality of Service
5. Convenience 10.Cost-effective
• Place
• Time
11.Accessible
• Channel 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 Transforming Channels
• Multiple Channels
• Eliminate
• 24x7
• Simplify
• Access
• Automate
• Common Service Centres
• Base on Trust
• Mobile
• Integrate
• Self-Service
• Join Up
• Licensed Intermediaries
• Legislate Transformation
Using Technology Transforming People
•
• Enterprise Architecture •Training
• Standards • Change Management
• Unified Databases • CRM skills
• Unified Networks • Consultation
• SOA • Empowerment
• Portals • 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

Core Processes Reengineering - Breakthrough

Strategy
With Issues

Improved
Process

Improvement Goals, Roles Implementation

Plan Boundaries 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
• from functional departments to process teams
2. Jobs change
• from simple tasks to multi-dimensional work
3. People’s 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
 Existing System – Land Transactions
Cannot verify
Registration of ownership
deeds
Buyer & Complete
Seller Documents
Verify Buyer & Buyer gets proof
Submit of transaction
Appln. documents Seller
and register
Pay fees

Land Title Office

Submit Buyer gets
Buyer Complete Verify and
Appln for
Buyer ownership
application
Mutation. change
records
records

Land Surveyor

Sub-divide Buyer gets

Complete Submit the parcel Buyer boundary
Buyer appl. Appln for
Sub-division and change info.
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 Presumptive Ownership
co- ordination Registration & Local Bodies
Stamps Dept. of Property
issues

Poor state of Survey

Survey & Land
Department Stakeholder Revenue Need to approach four
existing records & Records
Department different entities for
services Departmet
property services

TRANSFORMATION

Integrated Land Information System (ILIS)

Stakeholders Services Delivery Channels

§ Conveyance
§ Sub-division Ownership Graphical Land Use Geodetic Other Info
Citizen § Information Search Web Based Info record Info Network Layers
Ø Ownership
Ø Land use
Ø Graphical ILIS Office
Business § Market Valuation
§ Value Added Integrated Land Information
Services Repository
Service
Govt. Provider
Conclusion

• BPR is about Radical Redesign of business

processes

• BPR brings Efficiency, Effectiveness & Customer-

friendliness

• BPR needs adoption of a structured methodology

• Top management commitment & Change

Management are critical to success
Thank You

ceo@nisg.org
Legislative Intent

• Old and Antiquated Laws

• Registration Act 1905
• Stamp Act 1899
• Survey & Boundaries Act 1923
• Revenue Code 18xx
• Basis of legal system is Mistrust, not Service
• Acts are department-centric, not citizen-centric
• Rules are complex and tedious
• 10,000 rules, 0.1 mil forms!
• Rulers are not accountable
Process Problems

• Controls instead of facilitation

• Asking for too much information
• by every agency, on every occasion
• Burden of proof thrown on Citizen
• Attachments, Annexures, Attestations
• Too many areas of discretion
• Complexity of rules & regulations
• Anything to do with money is more complex
• Heavy reliance on manual systems
• No concept of Quality Assurance
Delivery Channel Problems

• Jurisdiction
• too many ‘narrow domestic walls’ !
• too many ‘single windows’
• Restricted timings
• Disparate and sub-optimal delivery networks
• No choice of delivery channels
• Process & Delivery Channel often combined
• resulting in delay, malpractice
Delivery Problems

• Mindset & attitudinal problems

• Delivery Agents unsuitable
• Unqualified
• Untrained
• Unequipped
• Lack of empowerment of front-end people
• Lack of dedicated delivery teams
• Delivery is handled on a part-time basis
• Lack of service levels, measurement systems
 8 Rules of Disruptive Technologies (1/2)

Information can appear

Information can appear at Shared
simultaneously
only one place at a time Databases
at all the places it is needed

Only experts can perform A generalist can do

Expert Systems
Complex work the work of an expert

We should choose We can get the benefits of

between Centralization &
Networks
Centralization & Decentralization
Decentralization simultaneously

Decision
Managers make Decision-making is a
Support
ALL the decisions part of everyone’s job
Systems
8 Rules of Disruptive Technologies (2/2)

Field personnel can

Field personnel need
Wireless, send and receive
a fixed place for
Laptops & PDAs Information
communications
anytime, anywhere

Personal contact with Virtual contact with

Interactive
customer Customer
Video
Is the best contact is more conveneint

You have to find out Things tell you

RFID
where things are.. where they are !

High
Plans get revised Plans get revised
Performance
periodically dynamically
Computing