How to Approach for Successful BPR

1. How to Approach for Successful BPR ICT Week September 21, 2016 Murod M.J. No ICT Consultant flytotheivy@gmail.com

2. Contents Why BPR is Important? BPR Methodology Trial and Errors in BPR Korean BPR Practices Critical Success Factors in BPR Change Management

3. Why BPR is Important? Through BPR, Government can optimize administrative business process and create productivity. Finally, citizen can be satisfied with government which provides convenient civil services. Furthermore, government can deliver a big trust to citizen and utilize IT and human resources internally such as avoiding redundant investment. Reasons why doing BPR X Quality ↑ Service ↑ BPR Value = Citizen-Centric Management X Cost ↓ Time ↓ Not supplier-oriented, but consumer-oriented Demand-centric services Productivity and Quality Improvement -Government side: productivity and efficiency improvement -Citizen side: satisfaction increase Efficient Resource Utilization -Utilizing IT and human resources-Performance increasing Optimized Information System -Administrative data & information sharing effectively -One-stop shop services for convenience Process Control and Enhancement -Continuous process improvement for -Establishing smart government ※ Source: Minder Chen, 1993-2011

4. BPR Methodology There are various types of BPR methodologies in the world. Choosing the appropriate BPR methodology is very important to carry out BPR projects successfully. Sometimes we need to customize methodologies to fit our conditions or objectives. Stage1. Understanding Strategy Stage2. Business process analysis and design Stage 3. Action planning Initiate Project 1 Benchmark (Drafting to-be process based on best practices) 5 Analysis of AS-IS process 6 Principles for redesigning process 8 10 Benefit Analysis Understanding strategic directions 2 9 Design To-Be Process Process Document Requirement analysis of stakeholders 3 11 Change management Legal F/W Process Document 4 Capacity analysis 7 Identificationof issues and challenges Legal F/W

5. 1 2 3 Trial and Errors in BPR Generally, during the BPR project, we can face many types of difficulties so that systematic management for BPR is essential to manage human resources, requirements and consensus. “Specific goals, objectives, and directions are critical for BPR” • Every members who are involved in BPR project should understand why we are doing BPR. It is very closely related to the goals and objectives for BPR. “Well trained human resources(specialists) are necessary” • BPR project is very difficult to carry out so that many experts should involve in BPR project. • Government officials should understand the way to carry out BPR. And officials should prepare a lot of materials such as application forms, registry books, and certificates. “Collecting and managing the requirements are important” • It is very important to collect requirements from government officials who know the current issues and problems. • Management of collected materials are very important to trace and identify issues and challenges.

6. Korean BPR Practices Basically, Korea government has carried out business process re-engineering before developing information system. Based on the results of BPR, new processes and application functions are designed to provide convenience to citizen and government officials. • Information System development life-cycle Project Planning Business Process Re-engineering Information System Planning Implementation Maintenance • Minwon 24(G4C Portal) • Information sharing platform

7. Critical Success Factors in BPR CSF for BPR Implementation Change management Factors Project Management Factors • Aligning BPR strategy with government strategy • Effective planning and use of project management techniques • Adequate human resource • Appropriate use of methodology • External orientation and learning • Effective use of consultants • Building a BPR vision • Integrating BPR with other improvement approaches • Adequate identification of BPR values • Revising reward and motivation systems • Effective communications • Empowerment • People involvement and Training • Stimulating the organization’s receptiveness to change Competence Factors • Strong leadership • Championship and sponsorship • Risk management IT Infrastructure Factors • Adequate alignment of IT infrastructure and BPR strategy • Building an effective IT infrastructure • Adequate IT investment and sourcing decision • Adequate measurement of IT infrastructure effectiveness on BPR • The effective re-engineering of legacy systems • Increasing the IT function competency Organizational Structure Factors • An adequate methodology • Effective BPR teams • Appropriate job definition and allocation of responsibilities

8. Change Management(1/4) Change management refers to a series of activities performed by the stakeholders to swiftly adapt to the changes of to-be objectives and to achieve performance improvement. Definition of Change Management Characteristics of Changes Definition TO-BE AS-IS • Systematic management of changes so that organizations can make a change from their status to the to-be status successfully. • Change management refers to a series of activities performed by the stakeholders to rapidly adapt to the changes of to-be objectives (online services and e-Government), and to achieve performance improvement. Changes Known Unknown Familiar reality (certain) Unknown future (uncertain) It is natural that man fears or resist changes into the uncertain future. Final Destination Objectives To maximize the expected results of changes by minimizing resistance, conflict, and confusion that may occur during the digitalization of administrative business process and by promoting active participation of the stakeholders Path of Change Starting Point • <Necessities> • Map • Milestones • Timetable • Transportation means, etc. Idea “ Properly managed, changes can be predictable.”

9. Change Management(2/4) According to the analysis result of major failure factors in e-Government projects, major high-level failure factors are related to the change management. Change management is essential for e-Government to make an innovation and better performance. Failure Factors of Other Projects Risk Factorsto Change Difficulty to exercise Leadership • Types of Entities are various including central ministries, public organizations, local governments (wide-area authorities, Hokimiyats), and project-related institutions. • Each authority has a high level of autonomy and self-governing power. • There is no strong tool for controlling allEntities collectively. Impractical project schedule Delay in personnel deployment Personnel lacking skills Shortage of project manpower Unreal expectations Lack of active support of high-level officials No consensus among high-level officials Constraints caused by existing systems Resistance against changes Unfamiliarwith new services • Most users are lack of experience of new services. • Most users are familiar with the past methods based on offline and manual work for several decades. 10 20 30 40 50 60 70% Analysis Result of the Failure Factors of Other Projects Departmental Selfishness (territorial culture) • Users may not participate in the project in a cooperative manner because of departmental selfishness. • According to the analysis result of major failure factors in e-Government projects, major high-level failure factors are related to the change management. • Innovation projects often fails not because new systems have insufficient functions or because work process is unreasonable, but because stakeholders regards changes as negative and do not actively participate in • It is necessary to address and analyze the causes of resistance to changes with systematic response. Insufficient Communication and Misunderstanding • Lingual and cultural barriers lead to insufficient communication and misunderstanding because foreign enterprises carries out the project. • Vague and uncertain expectations for foreign enterprises hamper smooth process of projects. ※ Source: Best Practices and Lessons Learned in Large Scale Transformational Change Projects, Accenture, 2006

10. Change Management(3/4) The target of the change management in e-Government project is a people.The scope of the change management in e-Government project covers positive adoption of new services, stable introduction and utilization in the initial stage, and establishment of the base of constant development. Scope of Change Management 3 Key Elements of Innovation People Positive adoption of new services • Improved recognition of stakeholders related to new services • To make stakeholders recognize the utility of new services through training and promotion • Prevention and mitigation of adverse reaction, non-participation, non-cooperation, resistance, and etc. against changes. • To mitigate fear and anxiety of stakeholders, and to prevent organized adverse reaction. Process System & Technology Stable introduction and utilization in the initial stage • Supportstakeholders toadoptnew services smoothly and to utilize it stably. • Successful adoption and utilization of new servicesare the most important factor of the success of the project. • Establishment of change management plan by stage to maximize performance through constant and active utilization of e-Government System • Establishment of implementation tasks by stage through analysis of change management targets and causes of resistance • Promotion strategy by promotion target • Establishment of strategic promotion measures through analysis of promotion targets Establishment of the base of constant development • People, process, and system/technology should be changed in harmony to achieve innovation. • The most fundamental target of management is people, even though it is also necessary to manage changes of process and system/technology in implementing the project.

11. Change Management(4/4) The roles of change management can be broadly divided into the change champion, the change agent, and the change target. For successful change management, it is desirable to employ the top-down approach from presenting the change direction to the sponsors at the top who bring about changes to diffuses gradually down to their subordinates and related people. Role Classification of Change Management Top-Down Change Implementation Method Central Axis of Change Implementation I.S Initiating Sponsor The initiating sponsor raises validity and utility of changes, and presents direction of changes. I.S Dissemination Axis of Change Change Sponsor Sustaining Sponsor The sustaining sponsor is a helper who has firm willingness to change, encourages changes over a long period of time, and provides supports in various areas. S.S S.S T T Change Champion The change champion is a leader who commands so that the implemented tasks can be settled down and be constantly utilized in business sites. C.C T T T T C.C Change Agent C.A Change Agent The change agent is a working-level person who performs actual work for changes in each area. C.A T T T T T T Change Target Change Target The change target is a person who experiences changes in work performance. T T ※ Source: James H. Harrington, Change Management Excellence, 2006 ※ Source: Accenture, Best Practices and Lessons Learned in Large Scale Transformational Change Projects, 2006

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