finding new and better ways of doing things business process re-engineering declan cooney, process...

Finding New and Better Ways of Doing Things

Business Process Re-engineering

Declan Cooney, Process Re-design Manager, Access to Bristol

'Making the Difference' – An Improvement Seminar

What is Business Process Re-engineering ?

Developed/ popularised by Michael Hammer in early 1990s

Technique for re-designing business processes, organisation structure , ICT and ways of working to deliver improved performance

Widely implemented in private sector industry from 1990s onwards (e.g. financial services)

Emphasis on developing a ‘process-focussed’ view of an organisation, understanding delivery of products/ services from customer’s point of view – as opposed to ‘functional’ or internal focus

Examples of Re-engineered ‘Processes’

Dell Computers - PCs built to order, integrated supply chain/ systems across multiple companies

Flight booking via the internet – direct access for customers to airline schedules and reservations, by-passing travel agents

Passport applications pre-checking service via Post Office – accuracy/ completeness checked, guaranteed processing time

Child Benefit – information submitted/ validated by telephone or web, pre-populated form sent back for signature and supporting evidence

Case Study – Re-engineering Housing Repairs


Background to Project

Project Context – Transforming Housing Programme

Project Objectives

Transfer customer contact for Housing Repairs into the Customer Service Centre (CSC) and Customer Service Points (CSPs)

Enable tenants to report response repairs to one city-wide telephone number and by e-mail/ web

Deliver cost savings, improvements in call answering, customer satisfaction, quality of repairs ordering

Business Analyst(s) - lead/ facilitate process analysis and re-

design

Staff Participation - hands-on process experience/ subject area expertise

Managers’ Participation- set re-design objectives/ constraints - review and quality assure outputs - make decisions on BPR recommendations/ change proposals


Skills and Resources Required

‘As Is Analysis’

‘To Be Design’


Key Stages in BPR Lifecycle

‘As Is Analysis’

Activities: Fact-finding meetingsProcess-mapping workshopsWork shadowingReview ICT systems and user documentationReview procedure/ policy documentationIdentify ‘known issues’/ problem areas

Outputs: ‘As Is Analysis’ report and process maps




‘As Is Analysis’ Findings

Repairs managed through 12 Area Housing Offices with individual ‘repairs lines’, and separate numbers for other types of repairs

Average telephone call answering performance – 45% of calls answered, 55% get engaged tone/ abandoned (e.g. due to telephony constraints)

Inconsistency – processes, team structures, staff training, use of technology, repairs policies, levels of customer service

Opportunities to improve business processes - eliminate ‘non-value added’ activities, greater accuracy of repairs ordering/ specification

‘To Be Design’

Activities: BPR workshops to identify change proposalsBest practice review/ benchmarking Evaluation of proposals against objectivesCost-Benefit Analysis

Outputs: ‘To Be Design’ report outlining business

process, organisation design and ICT change proposals

This report became the agreed ‘blueprint’ for programme of business change.




‘To Be Design’ Change Proposals

Customers able to request all response repair types on single phone number handled by CSC, face-to-face at CSPs, and by e-mail and web

Improved telephony and management information reporting systems to manage calls in the CSC

Consistent processes for repairs ordering and specification irrespective of channel – improved staff training, use of electronic knowledge-base and ‘graphical repairs ordering’

Re-designed processes – elimination of redundant steps, defined hand-offs and SLAs between ‘front’ and ‘back-office’ teams


Benefits Delivered through BPR

Improved Customer Service

Sources: Repairs and Maintenance As-Is Analysis/ Telephony Reports March 2006; Repairs and Maintenance Cost-Benefit Analysis March 2006;CSC Key Targets and Performance July 2007



Savings

Simplified processes/ eliminating non- value added activities (tenant receipt letter) – estimated saving £30k pa

Improved accuracy of repairs ordering and specification - estimated saving £145k pa

Source: Repairs and Maintenance Cost-Benefit Analysis March 2006Repairs and Maintenance Updated CSC Capacity Planning May 2007



Other Benefits

Improved understanding and management of end-to-end business process through process-mapping

Professionally run customer service function with dedicated focus on managing ‘customer experience’

Single point of contact for customers

Source: Repairs and Maintenance Cost-Benefit Analysis March 2006Repairs and Maintenance Updated CSC Capacity Planning May 2007


Lessons Learned

BPR project needs to be carried out within a project management framework (Bristol Project Manager) with a Project Board to approve change proposals - avoid ‘lowest common denominator’ outcomes

A robust Cost-Benefit Analysis for the BPR change proposals needs to be produced and considered alongside the ‘To Be Design’ document.


Lessons Learned

BPR work will identify potentially challenging business change proposals, whose implementation may require significant management effort e.g. business process change; staff/ organisational change; new technology.

Implementation of the BPR change proposals, and making

sure that the benefits are achieved, needs to be actively managed.


What would we do Differently ?

BPR Team needs to include relevant ‘subject-area experts’ (e.g. process, policy, ICT, HR) empowered to make/ obtain decisions on re-design options.

Make greater effort to release operational level staff (‘doers’) to take part in BPR workshops.

Challenge reluctance to compare with other Authorities/ organisations (e.g. financially).


What would we do Differently ?

Ability to realise full savings relied on existing staff transferring to new/ changed roles - in practice implementing staff change was complex/ difficult and savings lower/ slower than anticipated

Carry out full ‘end-to-end’ BPR of all major processes – decision to limit scope because of time/ resource constraints left some ‘back-office’ processes unchanged

Other Projects Using BPR - Some Examples

Repairs and Maintenance ‘Back-Office’ Processes – complete ‘end-to-end’ BPR for repairs appointments process and related back-office service delivery

Rent Management – process and team structure changes to focus on pro-active early intervention to prevent debt

Housing Benefits – ‘clean claims’, capturing and scanning at first point of contact all information/ evidence required to process benefit claims

PT&SD Parking Services and Concessionary Travelcards – draft proposals to introduce greater consistency and clarity for customers and more ‘joined up’ working across teams

Using BPR in Your Service Area or Project - A Simple Roadmap

Identify the Right Cross Section of Participants

Schedule To Be Design Activities – BPR Workshops, Best Practice Review

Communicate Purpose and Objectives, and Secure Time Commitment

Hold Meetings/ Workshops - Generate To Be Design Ideas

Investigate/ Evaluate Ideas and Prioritise Key Items to Progress

Prepare for meetings/ Workshops – Define Approach, Agenda, Objectives

Document Emerging To Be Design Proposals and Process Maps

Build in Regular Review Meetings / ‘Sense Checks’ with Stakeholders

Complete As-Is Analysis – Process Mapping Workshops, Work shadowing

Verify and Sign-off As-Is Analysis Report and Process Maps

Produce Cost-Benefit Analysis for To Be Design Proposals

Obtain Project Board Sign-off, Implement To Be Design, Track Benefits

Questions and Discussion

finding new and better ways of doing things business process re-engineering declan cooney, process...

Documents

quality of repairs

response repairs

repairs policies

process redesign manager

analysis findings repairs

process analysis

greater accuracy of

specification slide