New Jersey Department of Labor

Unemployment Insurance Modernization Project

Appendices to the Business Process Conceptual Design

April 2003

Contents

These appendices support the Business Process Conceptual Design deliverable and should be read in conjunction with that report.

Appendix A: Customer focus groups reports

Focus groups and interviews were held, prior to the workshops, with (a) claimants, (b) employers and (c) claimant advocates. Notes from these sessions are attached here.

Appendix B: Process scenarios

Result of scenarios developed in workshops, to create process steps detail and test high level processes.

Appendix C: Best practices cross-walk

The DOL team conducted a short survey of State best practices prior to the business process conceptual design workshops, which was used to inform some of the discussions. Before the last workshop, we cross-checked these best practices against the new New Jersey UI design – attached here.

Appendix D: Management information example

The seventh workshop was dedicated to management information (MI) and how greater availability of MI will change how managers in UI can work. The example attached here was produced to demonstrate how better MI could be used at senior management.

Appendix E: Detailed implementation ideas

Throughout the workshops, many ideas were expressed about how the blueprint might be implemented. In order to retain those ideas, they are presented here in a list – to be properly addressed in the strategic

planning phase.

Appendix F: Policy and procedure impacts

The business process conceptual design has a number of potential impacts on policy and procedure in New Jersey. Attached here is a first cut list of the potential impacts and how they might be addressed.

Contents (cont.)

Appendix G: Crosswalk with RFP requirements

Cross-referenced table that demonstrates compliance of the report with the RFP requirements

Appendix H: Crosswalk with Business/Systems Characteristics List

The State included a first-cut list of business and systems characteristics in the original RFP. These have been worked into the business design principles – demonstrated here.

Appendix I: Crosswalk with Parallel Initiatives

The State’s RFP calls for a cross-check of parallel initiatives with the Business Process Conceptual Design. Attached here.

APPENDIX A: CUSTOMER FOCUS GROUP REPORTS

Focus groups and interviews were held, prior to the workshops, with (a) claimants, (b) employers and (c.) claimant advocates. Notes from these sessions are attached here.

These reports were provided in Microsoft Word format and are therefore inserted into this document (behind this page).

APPENDIX B: BUSINESS PROCESS SCENARIOS

These scenarios were developed in workshops 1, 2 and 3 to create process steps detail and test draft high level processes.

The reports were provided in Microsoft Word format and are therefore inserted into this document (behind this page).

Workshop 1 scenarios: intake & adjudication Page 1

Workshop 2 scenarios: continued claims, appeals & inquiries Page 20

Workshop 3 scenarios: controlling benefit payments & collections Page 38

APPENDIX C: Best Practices Crosswalk

The DOL team conducted a short survey of State best practices prior to the business process conceptual design workshops, which was used to inform some of the discussions. Before the last workshop, we cross-checked these best practices against the new New Jersey UI design.

The document was produced in Microsoft Word format and is attached behind this slide.

APPENDIX D: Management Information Example

The seventh workshop was dedicated to management information (MI) and how greater availability of MI will change how managers in UI can work. The example attached here was produced to demonstrate how better MI could be used at senior management.

How MI Should Be Used at Senior Management Level: Example

Key values / objectives for senior management?

1. Provide a high quality service

2. Address legislative mandates and meet / exceed standards

3. Maintain the integrity of trust fund

4. Be the best agency in state government

5. Follow the example of “Fix DMV”

– Hassle free

– Customer centric

– Value people

– Provide help to people in their time of need

MI must enable senior management to deliver against agency objectives and targets. The next few slides provide an example of how those objectives might translate into performance metrics (to be extracted from MI).

How MI Should Be Used at Senior Management Level

1. Drivers / measurements for high quality service? Timeliness of interaction or response (including phone wait times) Customer satisfaction surveys (real-time)

– Multiple models exist (e.g., random sampling) Minimized number of handoffs – requires the ability to take a “single, end-to-end claim view”

– One data base, one system

– Speed of retrieval Reduction of unemployment weeks paid (and faster reemployment) Error free

– Rate of re-work Success of self-service

– Number of people who begin the process via self-service options but are routed to an agent

– Percent of total claim volume that remain agent-free Integration with workforce partners

– Percent of UI claimants who are reemployed as a result of UI to ES integration / “handoff” Decrease in duration / exhaustion rates Overpayment and fraud – early identification methods

– Decrease in refunds

– QC measures: decrease in BPC projection rate Decreased adjudication / appeals

– Fewer determinations overturned, with agency error cited

– Fewer appeals caused by customer lack of understanding of the law

How MI Should Be Used at Senior Management Level

1. Drivers / measurements for high quality service? (continued)

Employer friendly

– Customer service measures (e.g., real-time survey)

– Decrease in rate of employer protests

– Decrease in number of inquiries

– Rate of employer service

– Decrease in (need for) correspondence (employer to UI)

– Participation in employer education

2. Drivers / measurements for addressing legislative mandates and meet or exceed standards?

Ability to be flexible to new mandates and standards

– Period of time required to adapt to the change

3. Drivers / measurements for addressing trust fund integrity?

Data required for calculation of tax rate (payments vs. tax collection)

Decrease in internal and external fraud

– Number of those caught and set up in fraud receivable

– Amount of collections related to fraud

– Time between a fraud event and the collection of money owed

Real-time, accurate numbers on status of the trust fund “drainage numbers”

APPENDIX E: Detailed Implementation Ideas

Throughout the workshops, many ideas were expressed about how the blueprint might be implemented. In order to retain those ideas, they are presented here in a list – to be properly addressed in the strategic planning phase.

Introduction to Implementation Ideas

The focus of the Business Process Conceptual Design workshops and the customer interviews was to develop the framework and blueprint that will guide UI Modernization over the next few years.

In the course of our discussions, some good detailed ideas were discussed. These have not been captured in our main document but are listed – in notes format - in this appendix so that the ideas are not lost. In the strategic planning phase, some of these ideas will become pertinent; others will need to be kept in mind during actual implementation.

A number of the ideas have been taken up by the Division as potential ‘quick wins’ and are being implemented as a separate initiative, led by Jim Boney.

Additionally, staff are able to submit ideas to the UI Modernization team via a ‘virtual suggestions box’. This list is maintained by Kelly Sacks.

Implementation Ideas List

General ideas

How to organize for an effective inquiry call center? To handle all inquiries – would it be separate from other RCCs?

Pro-active training: Instead of reactive to projects/hardware turning up - plan training ongoing throughout careers

Integrated services: To better reinforce with claimants and staff that the goal is reemployment and not unemployment, consideration should be given to UI/ES reporting to same Regional Managers. Suggestion made for long term consideration only.

Consolidate pamphlets sent out to claimants; quality of information provided would improve also (eg, PR94)

Output-based procedures: Make procedures output-based to allow flexibility in how services are delivered regionally and locally?

LO8V: 150 external agencies are using LOOPS through LO8V, future system should allow high level of external queries not affecting production cycle

Reports: High volume of reports should be able to run against consolidated consistent data without affecting production lifecycle

Data change synchronization: need to develop mechanism of data synchronization of data change notification between future UI system and partners’ systems

Imaging: remember benefits to indirect, support / control functions such as QC, appeals, training

Email: email will become a useful comms tool particularly for RCCs, adjudication center managers and staff who need to contact people whose phones are often busy

Address validation/correction: Use special US postal service software to validate/correct addresses and keep them in the standard format

Real time interfaces: SAVE, VERIS

General ideas (cont.)

Data upload from TAX: Sometimes LOOPS is transparent to and from other apps: it takes data from the TAX system and loads data into these apps. Maybe it can be done directly from TAX?

Provide RCC application to Interstate: "IS claims very similar to normal UI claims - to speed up interstate claims?- Would require less training then to do IS- IS would get RCC technical support“ - (sent through as QUICK WIN)

Employers should be able to voluntarily provide separation data in the case of mass layoffs

Ideas from workshop 2 – continued claims, appeals and inquiries

Customize first payment certification sheet (sent through as QUICK WIN)

Resend employer handbook to all employers every 2 years (sent through as QUICK WIN)

Summarize decision on 1st line of letter sent by AT. Currently, the decision itself is on the last page, which can be found confusing

Provide instructional video clips beyond a video RO (in One Stop and on Web). Examples included:

– How to file

– Phone usage (continued claims)

– Virtual RO

Re-send determination to claimants who appeal based on lack of understanding with a COMPREHENSIBLE explanation. ALSO – ensure determination is communicated clearly in first place, with reference to UI law

Implementation Ideas List (cont.)

Ideas from workshop 3 – BPC and financial processes

Ensure all claimant’s information is on one screen for agent (example: ETA 227 overpayments/recovery). Currently, time wasted and service impaired because staff have to look through a series of screens and even work across both the RCC and LOOPS applications

Enable automated address updates (UI sends 60,000 letters/month)

Potential quick win: clean up write-offs and uncollectables on books? If the new system is financially resilient, would Treasury be willing to consider a one-off write off

Ideas from workshop 4 – Policy and Procedures

Email monthly compendiums of new policies / procedures to staff

New procedure is emailed and posted on Intranet,

All policies and procedures should always have a quick hit synopsis

Create hotline for clarification of procedures

[Note that ideas on the potential policy and procedure impacts of the conceptual business process design are included at Appendix F].

Implementation Ideas List (cont.)

Ideas from workshop 5 – One Stops

Scancard and automated resumes: increased data sharing between UI and OSOS – providing initial resumes, a base record in OSOS and scanning to track self-help

– Potential to become a smart/ATM card for UI

RO schedules can be available immediately (with proper access and training – with appropriate controls and business rules (attendance, etc.)

Change stationery and letter for RO (currently its on UI stationery)

Phone-hold script should provide ES information

Scheduling for RO should be through PROs system – already acted upon

Idea from workshop 6 – organization and culture

Potential quick win: assess informal mentoring – feedback loop: is it working?

Ideas from workshop 7 – management information

Possible medium term win: Add a customer service survey into existing phone / Internet systems

Possible quick win: Purchase new ODBC driver(s) - will automate MI collection in RCCs

Implementation Ideas List (cont.)

APPENDIX F: Policy and procedure impacts

The business process conceptual design has a number of potential impacts on policy and procedure in New Jersey. Attached here is a first cut list of the potential impacts and how they might be addressed.

Policy and Procedure Impacts: Overall Review time allotted for customer to Division interaction (general correspondence, fact finding

notification, etc)

– Current time allotted assumes that correspondence occurs via the US postal service

Review claimant access restrictions

– Should claimants using a non-New Jersey telephone number or cellular phones be prevented from accessing the system?

Review consistency of claimant treatment

– Claimants who access the system by any method should be treated equally. (Certification and interstate claims processes are currently different for phone and web processes.)

Develop electronic communication procedures

– To preserve customer privacy and ensure data security

Make policy decision regarding what information should be made available to customers (via electronic case file)

Consider changes to legislation and regulation

– Develop hit list of most important changes, particularly focused on eligibility requirements (e.g. base week)

• Identify anticipated impacts of changes

Make policy decision regarding whether an employee should be able to process claim from end-to-end (from taking claim to making payment?)

Digital signatures

– Develop statewide legislation and regulations governing use of digital signatures

Policy and Procedure Impacts: Triage, Intake and Adjudication Triage: Cross-training of UI / call drop-off

– Clarify jurisdiction over cross-service provision / triage

– Develop procedures for how customers will be handled

– Develop procedures for how triage functions

– Develop resourcing policies

• E.g., rotating staff between UI and ES to encourage cross-training

– Develop workload balancing procedures

Electronic filing of mass layoffs

– Provision of claimant data (name, SSN, address) by separating employer in case of mass layoff

Automated non-charging

– Investigate impacts of fully implementing non-charging law (Division will proactively relieve charges rather than responding to employers request for relief of charges)

– Make policy decision about the level of fact-finding and adjudication needed for non-charging determinations of other than most recent separating employers

Early determination

– Investigate the legal flexibility available to make early determination decisions

• How much pre-adjudication information can be gathered before formal fact-finding while preserving due process?

Payment Methods

– Review policy and procedural implications of multiple payment mechanisms (e.g., credit card, debit card, UI benefits card)

Policy and Procedure Impacts: Continued Claims, Self-help

Preventing payment control via system checks

– Develop policy identifying what the triggers should be for a BPC investigation in early phases of a claim

– Develop procedures to reflect earlier and additional system cross-checks

Certification schedule

– Investigate impacts of making certification frequency more flexible (implications on staff workload, removal of this confirmation of claimant availability)

– Develop claim reassertion procedures

Self-help

– Assess impact of data provision on claimant privacy

• E.g., Provision of personal claims history and ability to change basic data such as address via Internet

– Develop procedures for educating customer on how to use self-help solutions

Policy and Procedure Impacts: Appeals Appeal filing

– Develop policies to support phone filing of appeals

Reviewing determination post-appeal

– Enforce existing policy: re-determinations must be made before beginning appeals process

Board of Review decision and precedent case book – simplification and updating

– Make policy decision to initiate simplification and update process and solicit approval of outcome

Evidentiary rules

– Review evidentiary rules for appeals (e.g. evidence of communication date for electronic communications, permissibility of imaged files and electronic communications)

Policy and Procedure Impacts: Preventing Overpayments, Collections

Fraud disqualification

– Extend fraud disqualification policy to encompass preventative cross-check activities

Jurisdictional issues between appellate bodies and Division of UI

– Confirm jurisdictional boundaries between AT/BoR and UI

• To what extent does the AT and BoR’s impartiality prevent these bodies from assuming the functional activities of the Division?

- E.g. Should AT set up refunds schedule, make payments / adjustments to a claim after an appeal decision?

Investigate cost effectiveness of interstate recovery through Federal reciprocal arrangements (perhaps only with NY and PA)

Collections

– Undertake a systematic review of collections procedures

– Review best practices to determine how other states address collections process

APPENDIX G: CROSSWALK WITH RFP REQUIREMENTS

Cross-referenced table that demonstrates compliance of the report with the RFP requirements

The RFP Requirements for This Deliverable

UI Modernization RFP Requirements

“3.2.3.2 Business Processes Conceptual Design (Price Line #3)

The Contractor will provide a detailed description of the reengineered Division of UI processes and the

workflow for these processes that incorporates the validated and updated Business and Systems

Characteristics (Section 3.1) and Systems Initiatives (Section 1.2.5) underway. Working closely with the

project manager and the subject matter experts, the Contractor will ensure that each business function is

addressed in the reengineered processes and meets the objectives of the Division for a seamless and

integrated service. The Contractor will employ an efficient combination of document reviews, interviewing,

process observation, and collaborative group discussion (focus groups) to analyze current business processes

in order to identify and develop the reengineered business processes, workflow, and interfaces. While the

majority of focus groups will be with the Division of UI staff and internal NJDOL customers, the Contractor

must also conduct focus groups to obtain input from external customers. At a minimum, this must include

claimants, employers and employer agents. The Contractor shall document the results of this task including

sufficient detail to support clear definition of specific reengineering projects recommended in the Strategic

Plan (see Section 3.2.4).”

Breakdown of the RFP Requirements

“The Contractor will provide a detailed description of the reengineered Division of UI processes and the workflow for these processes that incorporates the validated and updated Business and Systems Characteristics and Systems Initiatives underway.”

Provide a detailed description of the reengineered processes and workflow

Incorporate Business and Systems Characteristics, Systems Initiatives

Working closely with the project manager and the subject matter experts, the Contractor will ensure that each business function is addressed in the reengineered processes and meets the objectives of the Division for a seamless and integrated service.

Work closely with Project Manager and subject matter experts

Ensure each business function is addressed in reengineered processes and meets UI objective for seamless and integrated service

The Contractor will employ an efficient combination of document reviews, interviewing, process observation, and collaborative group discussion (focus groups) to analyze current business processes in order to identify and develop the reengineered business processes, workflow, and interfaces. While the majority of focus groups will be with the Division of UI staff and internal NJDOL customers, the Contractor must also conduct focus groups to obtain input from external customers. At a minimum, this must include claimants, employers and employer agents.

Analyze current processes to develop reengineered business processes, workflow, and interfaces

Methods to include document reviews, interviews, process observation, collaborative group discussion

Focus group audiences to include NJUI staff, NJDOL customers, and external customers

The Contractor shall document the results of this task including sufficient detail to support clear definition of specific reengineering projects recommended in the Strategic Plan.”

Documentation should support next task of defining clear projects for the Strategic Plan

Deliverable Section

Approach

Purpose and audience

Vision, objectives, & measurements

Business design principles

Blueprint: process descriptions

Blueprint: process interfaces

Blueprint: enablers, MI, org & culture

Building the momentum for change

Next steps

Appendices

(Covered in baseline description)

APPENDIX H: CROSSWALK WITH BUSINESS/SYSTEMS CHARACTERISTICS LIST

The State included a first-cut list of business and systems characteristics in the original RFP. These have been reviewed as part of the development of the business design principles. The table shown here demonstrates the link between the business characteristics and the principles.

Note: many of the characteristics initially listed by the State are pure systems characteristics. These will be kept and used as a checklist for the technical architecture.

Mapping the Business Characteristics

System Availability Principle to which it maps

Maintain equally the integrity of systems, processes and financesAlso a technical requirement, to be addressed in the Technical Architecture phase

Business Continuation PlanCovered as an action in organization workshopAlso a technical requirement, to be addressed in the Technical Architecture phase

Customer-Friendly ApplicationsEnsure staff have tools and training needed to do their jobsAlso a technical requirement, to be addressed in the Technical Architecture phase

Self-Service for Claimants and Employers

Make the customer experience easy, efficient and informedEncourage remote self-service (via phone, web or email) while preserving in-person service for those who need itCustomers will be able to access a holistic elecrtonic case file, remotely

Electronic Communication Option

Streamline communications, using modern tools and encourage customers to use the same tools, particularly employersMake the customer experience easy, efficient and informedCustomers will be able to access a holistic electronic case file, remotely

Web-enable UI Functions

Encourage remote self-service (via phone, web or email) while preserving in-person service for those who need itCustomers will be able to access a holistic electronic case file, remotelyUse tools effectively to enable performance management, development

Systems must be available to internal and external customers for all business functions 24 hours a day, 7 days a week with minimal down time for routine maintenance.

In the event of a disaster, redundancy and contingency plans must be in place to insure system availability of at least 99.5%.

Applications must be designed so they follow the logical business processes and eliminate duplication.

Systems and applications must be designed to build in self-service options where appropriate to be used by external customers.

An option for electronic communication (fax, email, EDI, etc.) with employers and claimants must be built into systems and applications to increase efficiency and reduce the cost of printing and mailing.

All UI functions must be Web-enabled using the Departmental Intranet for internal staff use and using the Internet as an option for use by external customers.

Mapping the Business Characteristics (Cont.)

Reports

Customers will be able to access a holistic electronic case file, remotelyManagers and all staff should be held accountable for realistic performance targets that are sensitive to local variationAlso a technical requirement, to be addressed in the Techn

Accessibility

Encourage remote self-service (via phone, web or email) while preserving in-person service for those who need it

Continued Claims and Payments

Web enabled certificationEncourage remote self-service (via phone, web or email) while preserving in-person service for those who need it

New payments methods Make the customer experience easy, efficient and informed

Information Interchange with Employers

Streamline communications using modern tools and encourage customers to use the same tools, particularly employersMake the customer experience easy, efficient and informedOur customers are our claimants, NJ employers, our partners and NJDOL staff - and

Employer services website See aboveUse workflow and case management to optimize end-to-end case processingAlso a technical requirement, to be addressed in the Technical Architecture phase

Benefit Accounts Reconciliation - on cash basis Maintain equally the integrity of systems, processes and finances

Reports used in administering and reporting unemployment insurance operations must be reengineered and redesigned. Most internal reports must be Web-based and retrievable as needed via the Departmental intranet. There must be query and standard reports fo

Accessibility to services for those with disabilities must be maintained. On-line and Web-enabled methods must not be the only option to obtain unemployment insurance services.

Maximum Use of Imaging or Other Paperless or Paper-Light Technology

Mapping the Business Characteristics (Cont.)

Adjudication Processes

Streamlined adjudications process

Use workflow and case management to optimize end-to-end case processingAchieve a high-quality determination or decision as soon as possible

Expert adjudication system See above [also expert system recommended in solution]

Electronic communicationsStreamline communications using modern tools and encourage customers to use the same tools, particularly employers

Appeals ProcessesUse workflow and case management to optimize end-to-end case processingEncourage remote self-service (via phone, web or email) while preserving in-person service for those who need itCustomers will be able to access a holistic electronic case file, remotely

Auto posting of decisions and calculation of monetary/non-monetary outcomes

File appeals, receive case status information and obtain decisions on-line.

APPENDIX I: CROSS-WALK WITH PARALLEL INITIATIVES

The State’s RFP calls for a cross-check of parallel initiatives with the Business Process Conceptual Design. Attached here.

Introduction to Crosswalk With Parallel Initiatives

Following this defined Business Process Conceptual Design, it will be timely to review parallel initiatives across unemployment insurance. The list attached here indicates

Which initiatives from our December 2002 review are still ongoing

Whether each initiative fits with the general direction of the Business Process Conceptual Design

Any actions or explanations required.

Any ongoing initiatives will be reviewed for fit during the Technical Architecture and Strategic Plan phases also.

Crosswalk With Parallel Initiatives

Project, as at December 2002Project still

live?

Fit with Business Process

Conceptual Design?

Notes

Continued claims conversants consolidation

Y Y Contributes towards achieving a single phone entry point

Adjudication centers reorganization

Y Y Short term, detailed process improvements

OSOS and scancard Y Y Owned by Workforce NJ

B289 (DB2) migration N N/A Completed

Web-enabling of continued payments

N Y Now live

Web inquiry conversation for other agencies

N? Y To be investigated in Technical Architecture and Strategic Plan

BARTS2 Y YIn business terms, the direction of BARTS2 fits; however the technical architecture phase will investigate long-term delivery of BPC functionality

UCX/UCFE claims change N Y Federal requirement

One-Stop UI integration plan Y YShort-term project focusing on performance in One-Stops. Ongoing need to co-ordinate

Eligibility regulation update Y N/A Due for implementation July 01, 2003. Legislative change.

Improve monetary claims adjudication performance

Y Y Short-term project focusing on performance. Ongoing need to co-ordinate

Project, as at December 2002Project still

live?

Fit with Business Process

Conceptual Design?

Notes

Improve non-mon claims adjudication performance

Y Y Short-term project focusing on performance. Ongoing need to co-ordinate

AT Appeals backlogs Y Y Short-term project focusing on performance. Ongoing need to co-ordinate

Claims without agents N ?Currently planned for fiscal year 2004. Need decision (in Strategic Plan phase) on whether this should be delayed to the new system build

BTQ reviews Y N/A Ongoing requirement

Interstate liable claims N YNot yet started. To be investigated in Technical Architecture and Strategic Plan

4-digit check Y?Unsure of status. To be investigated in Technical Architecture and Strategic Plan

Integration of RCC databases Y Y Due late Summer/early Fall.

Crosswalk With Parallel Initiatives (Cont.)