Applying Business Process Re-engineering

Progress & Lessons (Being) Learned from the Transition

Management TeamKelly Sandy & Bill Broglie

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Business Process Reengineering Defined What it is. . .

Starting from scratch and fundamentally changing the way you do business

Revolutionary Cross-functional, inter-departmental change Leveraging best practices

What it isn’t. . . Downsizing A “Quick Fix” Incremental process improvement Maintaining the status quo

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Business Process Reengineering Benefits Benefits. . .

Improved ability to make decisions based on detailed understanding of current operations

Improved quality in the output from operations Better allocation and alignment of resources

(people, technology, etc.) to achieve outcomes that are most important to customers

Results in. . . Increased customer satisfaction with services More efficient processes and execution

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NOAA Business Process Reengineering Project Objectives

Vision for efficient and effective financial and administrative services programs:

Clear, consistent policies and procedures A properly resourced workforce with appropriate competencies and skills Value-added business processes with maximum use of automation for improved

timeliness and quality of service delivery Performance metrics that enable program assessments, diagnostics, and

customer satisfaction

“[W]e are working to improve the management and delivery of financial and administrative services. Numerous studies… documented opportunities for improvements in financial and administrative service areas and recommended changes to both our organizational structure and business processes.”

- Memorandum from Conrad C. Lautenbacher, Jr. Vice Admiral, U.S. Navy (Ret.), September 9, 2004

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Plan BPR Project

Assess “As-Is” Processes

Design “To-Be” Processes

Plan Transition and Change

Efforts

Timeframe 290 days

Timeframe 3180-210 days

Timeframe 190 days

Begin Execution/

ImplementationTimeframe 4

Varies by degree of change

• Confirm expectations and expected Project outcomes

• Conduct Stakeholder Analysis

• Begin Change Management and Project Planning

• Determine and confirm performance measurements

• Identify resources (team members, experience requirements, facilities)

• Train Resources

• Conduct As-Is interviews

• Create As-Is process models and review performance data

• Conduct analysis of As-Is processes

• Solicit ideas for change and identify “Quick Wins”

• Reengineer the process

• Create a business case

• Validate performance measurement targets

• Identify workforce and technology requirements

• Define roles and structures to support the To-Be process

• Plan strategy and scope of implementation

• Create implementation plans

• Identify owners and implementation team

• Manage implementation

• Measure progress and improvements against targets

• Reassess and refine To-Be Models

The Business Process Reengineering Journey

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Phase 2: Assessing the “As-Is” Processes

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Plan for Project

Analyze Data

Develop Recommendations

Structure Data Collection

Collect Information and Map Processes

Identify Improvement Opportunities

Plan Based on 12-Week Period

Master Project Plan and Functional Area Project Plans

Definitions of Each Functional Area and Processes

High-Level As-Is Process Maps

High-Level As-IsMetrics

Recommendations

Results of Analysis

Indicates milestones and major deliverables in the 90-day assessment effort.

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What Are the Processes Identified in Each Functional Area?

Acquisition Acquire goods and services (i.e., simplified

acquisitions, contracts, purchase cards) Grants

Grants administration Environmental Compliance, Health,

and Safety Environmental compliance Occupational Safety and Health

Facilities and Logistics Real property acquisition

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What Are the Processes Identified in Each Functional Area (Cont.)? Finance

Payment services Reimbursable agreement services Permanent Change of Station (PCS) services

Budget Formulation Execution

Information Technology Application development and maintenance

Workforce Management Recruitment Organizational restructuring

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Degree of Expectations of BPR Benefits

Direction ofBPR Efforts

Restructuring

StatusQuo

Organizational Transformation

ProcessImprovement

Potential forHigh Benefits

Incremental Benefits

No Benefits

Radical Change From Today’s Operational

Environment

IncrementalChange

No Change

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The “learning curve” is greater than anticipated.

Continuity among team leadership and membership is critical. All team leads and team members should be committed to a minimum 18-24 month assignment.

Change management is crucial to success. Adequate contractor support necessary—

particularly when organization experience is immature.

Communication across organization is important: purpose and expectations.

What have we learned?

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What Are the Key Components of a Successful BPR?

Solid executive sponsorship Effective communication Preparing the organization for change and

appropriate level of detailed planning Assessing impact to groups and

individuals Empowered change agents Manage risk areas

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Questions?