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Implementing Business Process Reengineering (Example Model) Edited by Megacom Hassan El-Meligy Version 1.0

Version 1.0 Notes • Please remember that business process reengineering (BPR) efforts may lead to establishing a high performing organization (HPO); there is no requirement at present to designate an activity that undergoes BPR as a high performing organization. • This example model may be modified as needed so long as results conform with the requirements contained in the attachment at • We have embedded the BPMN which is not only a notation but a tool to facilitate the process of collecting and analyzing Business Processes

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Topics • • • •

What is Business Process Reengineering? What is a High Performing Organization? What is a Most Sustainable Organization? BPR/HPO Implementation Steps and Tasks – Methodology brief – Tools – Certification

• Implementing BPR/HPO is a Team Effort • Additional Information – Successful BPR – Summary 8/13/2012

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What is Business Process Reengineering? • An organizational change method used to redesign an organization to drive improved efficiency, effectiveness, and economy. • Organizational change tools may include: – – – – – – – – – 8/13/2012

Activity based costing analysis Baselining and benchmarking studies Business case analysis Functionality assessment Industrial engineering techniques Organization analysis Productivity assessment Workforce analysis Others, as needed (e.g., human capital tools) 4

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What is a High Performing Organization? • An organization that demonstrates and measures – improved operational performance (e.g., effectiveness and efficiency), – cost and manpower savings (e.g., economy), and – improved competency levels

through evaluation and improvement of its business management and human capital practices.

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What is a High Performing Organization? (continued) • Applies to commercial activities (may also be applied to inherently governmental activities) • May include existing contracted functions • Requires a business case (including human capital assessment, if appropriate) • Does not require public-private competition • Operates as a Most Sustainable Organization

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Business Process Reengineering • “Reengineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance such as cost, quality, service, and speed.”

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Business Process Reengineering Life Cycle Define corporate visions and business goals

Visioning

Identify business processes to be reengineered Analyze and measure an existing process

Identifying Analyzing

Identify enabling IT & generate alternative process redesigns

Redesigning

Evaluate and select a process redesign

Possible comparative analysis

Evaluating

Implement the reengineered process

Implementing

Continuous improvement of the process

Improving

Manage change and stakeholder interests

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Using Value Chain to Identify High-Level Processes Corporate Infrastructure Human Resource Management Supporting Activity

Technology Deployment Procurement Added Value

Primary Activity

Inbound Logistic

Operation Outbound Logistic

Sales and Marketing

Service

Process Mining

Notation • Any notation could be used as long as explained. • Standard notation are used for better portability and transparency • We used BPMN not only as a notation but as a tool to facilitate the BPR

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Tools • We use in general cases VISIO 2010 as it contains already the BPMN set • Other tools such as the following we also use and have experience with – – – – – – – –

BizAgi iGrafix Sprax iServer ARIS QPR Rational Rose And others

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Social network and groups • We have a social BPMN and BPR group at LinkedIn more than 3000 members discussing BPMN and BPR • We have a BPMN Facebook page • We communicate with most BPM companies and experts. • Certifications and references that could be required are not limited to the following – A BPR Practitioner has demonstrated working knowledge of the theory and application of the key concepts of BPR enabling him/her to be a participant and contributing member of a BPR team. – Certifications could be around Open Group TOGAF which the top certification in Enterprise Architecture for individuals and companies 8/13/2012

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Other related certifications and refernces • Lean Six Sigma • Business Analyst (International Institute of Business Analysis (IIBA®) using Business Analysis Body of Knowledge • UML Certification (companies) • PMI Project Management Certifications • Microsoft Visio certified • All ISO certification are part of QM which is in return adds value to process modeling and engineering

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Process Data • Basic Overall process data: – – – –

Customers and customer requirements Suppliers and suppliers qualifications Breakthrough goals Performance characteristics: Cost, cycle time, reliability, and defect rate. – Systems constraints: Budgetary, business, legal, social, environmental, and safety issues and constraints.

• Measure critical process metrics – – – – –

Cycle time Cost Input quality Output quality Frequency and distribution of inputs

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Evaluation Criteria • Costs – – – –

Design and implementing the business process Hire and train employee Develop supporting IS Purchase of other equipment and facilities

• Benefits – – – –

Customer requirements Breakthrough goals Performance criteria Constraints

• Risk – – – –

Technology availability and maturity Time required for design and implementation Learning curve Cost and schedule overrun

Criteria for Selecting Processes • • • • • • • •

Broken Bottleneck Cross-functional or cross-organizational units Core processes that have high impacts Front-line and customer serving - the moment of the truth Value-adding New processes and services Feasible

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What is a Most Sustainable Organization? •

•

An organization that achieves goals through planned improvement and evaluation of its business management (and human capital practices). Is the product of management analyses (and human capital assessment) that includes, but is not limited to: Management Analysis Tools • Activity based costing analysis • Base-lining and benchmarking studies • Business case analysis • Functionality assessment • Industrial engineering techniques • Market research comparison • Organization analysis • Process reengineering studies • Productivity assessment • Others

Human Capital Assessment Tools • Competency and staffing gap analysis • Evaluation of Federal Human Capital Survey results • Evaluation of human capital strategic linkage with mission • Evaluation of skills mix • Workforce analysis • Others

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BPR/HPO Implementation Steps and Tasks Step 1 Establish BPR/ HPO Project Plan

 State the reason for BPR/HPO nomination  State the BPR/HPO’s objectives  Identify affected activities, employees, and FTEs  Identify impacted customers and stakeholders  Identify ongoing contractor support  Describe desired organizational change outcomes, including metrics

Step 2 Conduct Preliminary Planning

 Identify and assign Most Sustainable Organization (MSO) development team members  Develop action plan with milestones  Develop communications plan

• Establish

data analysis requirements and collection methods

Step 3

Step 4

Develop Business Case

Implement Business Case

 Implement communications plan  Conduct AS-IS organization analysis  Develop Most Sustainable Organization (MSO) (TO-BE)  Measure gaps between AS-IS and TOBE organizations

• Develop

phase-in and HR transition plans

 Identify and assign Most Sustainable Organization (MSO) implementation team members  Establish Letter of Obligation (between agency head and MSO activity manager)

• Initiate

phase-in and HR transition to the MSO

Step 5 Track and Validate MSO Performance

Using metrics identified in Step 1, measure the success of - closing performance gaps, - closing skill and competency gaps, - achieving savings, and - improving quality and timeliness.

 Identify business and human capital management evaluation process if different than described in Steps 2-5.

• Brief leadership

and employees/union/others

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Step 1: Establish BPR/HPO Project Plan •

State the reason(s) for BPR/HPO nomination – – – – – –

•

State the BPR/HPO’s objectives – – – –

• •

Activity is prohibited from public-private competition (e.g., activity includes both inherently governmental and commercial FTEs) There exists a statutory prohibition on competitive sourcing No suitable private/public sector source No private sector interest To improve Federal Human Capital Survey results To improve Mission Critical Occupation competencies Improved operational performance (by closing performance gaps (business management)) Reduced costs and manpower savings (by application of management analysis tools and techniques) Improved competencies (by closing skill and competency gaps (human capital)) Others

Identify affected activities, employees, and FTEs (e.g., by commercial and inherently governmental inventories’ status, reason code, function code, location, etc.) Identify impacted customers and stakeholders

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Step 1: Establish BPR/HPO Project Plan (continued) • •

Identify ongoing contractor support (if any) Describe desired organizational change outcomes, including metrics – Improved operational performance/customer satisfaction (increased service timeliness and quality) – Cost and manpower savings (e.g., reduced costs via process streamlining and automation, etc.) Improved workforce competency/sustainability (e.g., competency/ staffing gap closure, reduced turnover, timely recruitment, etc.) – Improved Federal Human Capital Survey results (e.g., Leadership and Knowledge Management, results-oriented Performance Culture, Talent Management, etc.) – Others

• •

Identify business and human capital management evaluation process if different than described in Steps 2-5. Brief leadership and employees/union/others

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Step 2: Conduct Preliminary Planning • Identify and assign Most Sustainable Organization (MSO) development team members (e.g., program manager, project manager, Human Resource Advisor (HRA), AS-IS and TO-BE members, communications representative, etc.) • Develop action plan with milestones • Develop communications plan • Establish data analysis requirements and collection methods (e.g., workload from interviews, Federal Human Capital Survey results, workforce statistics, etc.)

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Step 3: Develop Business Case • Implement communications plan • Conduct AS-IS organization analysis – Develop Performance Work Statement – Collect data (e.g., workload, workforce statistics, competency, Federal Human Capital Survey, equipment, materials, performance, contractor support, etc.) – Identify and collect baseline data including costs – Identify industry and agency benchmarks/metrics for modeling TO-BE organization (e.g., professional association’s competency model, timeliness and quality standards, etc.)

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Step 3: Develop Business Case (continued) • Develop Most Sustainable Organization (MSO) (TO-BE) – Develop MSO proposal (e.g., organization, staffing plan, gap closure plan, workforce plan, equipment plan, contractor support plan, quality control plan, etc.) – Identify MSO proposed costs and enter them into COMPARE (or suitable spreadsheet

• Measure gaps between AS-IS and TO-BE organizations) (i.e., in terms of performance, competencies, staffing, operating cost, etc.) • Develop phase-in and human resources (HR) transition plan

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Step 4: Implement Business Case • Identify and assign Most Sustainable Organization (MSO) implementation team members • Establish Letter of Responsibility (between agency head and MSO activity manager) • Initiate phase-in and HR transition to the MSO

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Step 5: Track & Validate MSO Performance Using metrics identified in Step 1, measure the success of – – – – –

closing performance gaps, achieving savings, improving operational quality and timeliness, closing skill and competency gaps (as needed), and improving Federal Human Capital Survey results (as needed).

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Implementing BPR/HPO is a Team Effort • Acquisition Officer – Participates in agency BPR/HPO efforts and supports sourcing arrangements

• MSO development and implementation team members – Development team • Working group responsible for developing the MSO • Should include functional experts, budget/management analysts, personnel specialists, support contractors, etc. – Implementation team • Working group responsible for implementing the MSO • Should include – Development team members – Employees who will work in the MSO 8/13/2012

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Implementing BPR/HPO is a Team Effort (continued) • MSO Activity Manager – Accepts Letter of Responsibility from Agency Head – Day-to-day MSO activity manager

• Human Resource Advisor – Represents the Human Capital Officer and advises both MSO teams on human resources and implementation of human capital goals (e.g., competency and skill gap closure, application of human capital flexibilities, etc.)

• Human Capital Officer – Participates in agency BPR/HPO efforts and supports achievement of human capital objectives

• Others, as needed (e.g., CFO, Budget Officer, General Council, support contractor, etc.) 8/13/2012

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How to Avoid BPR Failure • To avoid failure of the BPR process it is recommended that: • BPR must be accompanied by strategic planning, which addresses leveraging Information technology as a competitive tool. • Place the customer at the centre of the reengineering effort, concentrate on reengineering fragmented processes that lead to delays or other negative impacts on customer service. • BPR must be "owned" throughout the organization, not driven by a group of outside consultants. • Case teams must be comprised of both managers as well as those who will actually do the work.

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How to Avoid BPR Failure • The Information technology group should be an integral part of the reengineering team from the start. • BPR must be sponsored by top executives, who are not about to leave or retire. • BPR projects must have a timetable, ideally between three to six months, so that the organization is not in a state of "limbo". • BPR must not ignore corporate culture and must emphasize constant communication and feedback.

Megacom References Beneficiary / Funding

Project name

Tourism

Re-engineering of tourism licensing

Health

Re-engineering of local and imported medicine licensing

EMRA - IFC

Business Process Re-engineering for the licensing's of mining and quarrying

GRMS Yemen - IFC

Business Process Re-engineering for the licensing's of mining and quarrying

IDA – IFC - GAFI

Agriculture, wood manufacturing, tourism and building processes

ECA

Business Process mapping for the Egyptian completion authority for the prevention of monopolistic practices

TVET ETP 4

Business Process mapping ETP provided services (BCM, Eng, Wood, Food)

TVET LMIS

Business Process mapping for local market information system and relevant solution

ERP Companies

Several mapping of business processes for trade, logistics and manufacturing

SFD

Social Fund For Development SFD mapping of the one stop shop OSS business /licensing processes (Land, Building, Environment)

SFD

Social Fund For Development SFD mapping of Lending process

HIO - Health

Modeling of All Administrative Processes Health Insurance Organization HIO that manages the relation between service provider and health membership,

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More informati on

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Summary • Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements • BPR has emerged from key management traditions such as scientific management and systems thinking • Rules and symbols play an integral part of all BPR initiatives

Summary • We don’t assume anything - remember BPR is fundamental rethinking of business processes • Make sure re-engineered processes are goal oriented

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