What is business process re-engineering?
The revision of processes which involves a redesign of business processes to achieve improvements in performance.
Local Authority Performance Division Performance Development Team
What else makes a difference?
PDT research shows there is a correlation between increased efficiency and business process re-engineering. However, research also suggests it is often a combination of initiatives which when implemented alongside business process re-engineering helps to make the real difference.
Contributory initiatives identified include: • • • • • changing organisational structures. improving performance management. improving stakeholder management. replacing IT systems. training and providing guidance to staff.
Local Authority Performance Division Performance Development Team
Our approach to helping you
Key to our approach is ensuring managers and staff are involved in resolving the initial problem but also develop the future design and changes. This is how we do it.
Applying a Lean* thinking approach, with on-going support from the PDT Consultant, your team may typically be involved in:
• • • mapping existing key business processes identifying areas of failure demand – processes that involve rework and waste designing and refining business critical processes based on 3 change criteria:
– improving customer service – increasing business efficiency – building staff capability and engagement
• • helping ensure all staff are aware of individuals’ roles and responsibilities developing a culture that encourages the identification, appraisal and implementation of options that will deliver continuous improvement.
*Lean is a management system which focuses activity, people and resources on serving customers and eradicating waste Local Authority Performance Division Performance Development Team
Criteria for making process changes
Improving customer service • reduce the time to make benefit decisions • easy to understand process • fewer handoffs • information asked for only once • less paperwork to read and sign
Increasing business efficiency • simpler process • less rework and duplication Building staff capability and engagement • team accountable for work allocation and problem solving • enhance role of team leaders to become performance managers
Local Authority Performance Division Performance Development Team
The desired outcome: lean processes
Driven and influenced by Metrics
Focus is making real customer improvements
Lean Processes
Intense focus on the customer Flow created through processes Waste driven out from everywhere
Lean Management
Clear roles and accountabilities Performance management Supporting infrastructure
Rollout
Improvement that is continuous
Lean Behaviours
Leadership at all levels High performing teams Behaviour aligned to lean values
Sustained improvement Communications and project management
Local Authority Performance Division Performance Development Team
Practical example
Bring the entire group together to review and design the end-to-end information gathering process
Understanding the end-to-end current ‘As-Is’ from the customer and value view
Housing Office ‘As Is’ process walkthrough Contact Centre ‘As Is’ process walkthrough Postal Claim ‘As Is’ process walkthrough End to End ‘As Is’ Process walkthrough
Lean training session
Designing the ‘To Be’ process for new claims and around what the customer values
End to End ‘To Be’ High level design
Housing Office ‘To Be’ Detail design
Contact Centre ‘To Be’ Detail design
Postal Claim ‘To Be’ Detail design
Stakeholder workshops
End to End ‘To Be’ Detailed design
Local Authority Performance Division Performance Development Team
Case studies
We have included some case studies where we have identified local authorities that have increased efficiency. There are often other initiatives too that have helped make the difference – we have highlighted these and the benefits each local authority has realised during the process transformation.
Local Authority Performance Division Performance Development Team
Improving efficiency – case study 1
Type of authority: Greatest impact: How: Unitary • streamlining of verification and assessment processes – reduced double handling • increased productivity with reduced staffing levels • • • • • streamlined verification and assessment processes – reduced double handling telephoned customers to obtain and chase information made better use of document imaging system – automated allocation of work worked closer with delivery partners – Jobcentre Plus and The Pension Service trained staff to deal with a greater range of work
Other benefits:
• improved performance e.g. new claims take 19 days compared to 34 in 2004/05 • resource savings re-invested to proactive work e.g. benefit take-up work • office culture changed with focus clearly on enhancing the customer experience
Local Authority Performance Division Performance Development Team
Improving efficiency – case study 2
Type of authority: Greatest impact: Small District Council • increased productivity with reduced staffing levels • eliminating waste from the key processes e.g. by dealing with customers’ enquiries at the first point of contact • • • • • • worked with management consultants to redesign key processes staff team identified and process mapped areas of repetition and double handling piloted new ways of working and tweaked new processes accordingly replaced benefits IT system worked closer with delivery partners – Jobcentre Plus and The Pension Service trained staff to deal with a greater range of work
How:
Other benefits:
• reduced new claims processing times from 20.5 to 17.5 days • resource savings re-invested to provide greater resilience to overall service • office culture changed with focus clearly on enhancing the customer experience
Local Authority Performance Division Performance Development Team
Improving efficiency – case study 3
Type of authority: Greatest impact: How: London Borough • streamlining of information gathering processes – reduced double handling • increased productivity with reduced staffing levels • • • • • • • • • • • introduced a performance management framework reviewed and streamlined use of document workflow system streamlined information gathering processes – reduced double handling telephoned customers to obtain and chase information made better use of document imaging system – automated allocation of work worked closer with delivery partners – Jobcentre Plus and The Pension Service trained staff to deal with a greater range of work new claims processing time reduced from 55 to 26 days reduced reliance on temporary/agency staff to process key business activities significantly less rework required - 20% reduction in complaints reduced local authority errors and increased subsidy return
Other benefits:
Local Authority Performance Division Performance Development Team