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.

What is BPR?
Why BPR?
Principles & Methodologies of BPR
Issues & Challenges in BPR
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 eGovernment, 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.

There is nothing more useless than to do

efficiently that which shouldn't be done
at all.
E.g. Shining Brass when the ship is sinking

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 addition of sub-processes to handle
exceptions
with changes in environment and
We need to
with increase in customer expectations Reinvent
the
with increase in volumes
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.
7.
8.
9.

Equitable
Responsive
Customer-centric
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

Transformation

Using Technology

Transforming Channels

Enterprise Architecture
Standards
Unified Databases
Unified Networks
SOA
Portals

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

Phase
0
Strategy

Core Processes
Without Issues

Process
Core Processes
Impr
With Issues
ove
men
t
Plan
ning
Improvement
Plan

Reengineering - Breakthrough

Improved
Process

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 Reengineering
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.
2.
3.
4.
5.
6.
7.
8.
9.

Work Units change

from functional departments to process teams

Jobs change

from simple tasks to multi-dimensional work

Peoples roles change

from controlled to empowered

Job preparation changes

from training to education

Measures of Performance & compensation change

from activity to results

Criteria for career advancement change

from performance to ability

Values change

from protective to productive

Organizational Structures change

from hierarchical to flat

Executives change

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

Trying to Fix a process instead of Changing it
Lack of focus on Business-critical Processes
Lack of holistic approach
Willingness to settle for minor results
Quitting too early
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.
1.
2.
3.
4.
5.
6.

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

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 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