Applying Business Process Re-engineering Progress & Lessons (Being) Learned from the Transition Management Team Kelly Sandy & Bill Broglie

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

Business Process Reengineering 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

NOAA Business Process Reengineering Project Objectives “[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 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

The Business Process Reengineering Journey Plan BPR Project Assess “As-Is” Processes Design “To-Be” Processes Plan Transition and Change Efforts Begin Execution/ Implementation Timeframe 1 90 days Timeframe 2 90 days Timeframe 3 180-210 days Timeframe 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

Phase 2: Assessing the “As-Is” Processes Plan Based on 12-Week Period 1 2 3 4 5 6 7 8 9 10 11 12 Master Project Plan and Functional Area Project Plans Plan for Project Definitions of Each Functional Area and Processes Structure Data Collection High-Level As-Is Process Maps Collect Information and Map Processes High-Level As-Is Metrics Analyze Data Identify Improvement Opportunities Results of Analysis Develop Recommendations Recommendations Indicates milestones and major deliverables in the 90-day assessment effort.

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

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

Degree of Expectations of BPR Benefits Organizational Transformation Radical Change From Today’s Operational Environment Incremental Change No Change Potential for High Benefits Restructuring Direction of BPR Efforts Incremental Benefits Process Improvement Status Quo No Benefits

What have we learned? 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 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

Questions?