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HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

PROJECT PROCESS RE-ENGINEERING

Desmond Young

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HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

CONTENTS

Introduction
Definition
Working SMART
Project Process Reenginering
Project Management
Why Projects Fail
Project Plan
HAJ Re-engineering Project
Why Change Management Fail
Change Management Strategy

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Recent Headlines

Continuous Reinvention Key to Business Success – Observer Friday, September 9, 2011

Jamaica Plummets in Competitiveness Ranking – Gleaner Friday, September 9, 2011

HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

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Project

A temporary endeavor undertaken to create a unique product or service.
An enterprise carefully planned to achieve a particular aim. (Oxford)

HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

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Process

Sequence of interdependent and linked procedures which at every stage consume one or more resources to convert inputs into outputs (Business Dictionary.Com)
Inputs serve as out puts for the next stage until a known goal or end result is reached.
Resources – employees, time, energy, machine, money
Inputs – data, material, parts, etc

HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

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Reengineering

Changes of various types and depth to a system, from a slight renovation to a total overhaul
Systematic starting over and reinventing the way a firm or a business process gets its work done (Hammer & Champy, 1993)

HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

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Business Process Reengineering

We cannot achieve breakthroughs in performance by cutting fat or automating existing processes
We must challenge old assumptions and shed the old rules that made the business underperform in the first place

HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

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Business Process Reengineering

Fundamental rethinking and radical redesign of business processes to achieve dramatic improvement in critical contemporary measures of performance such as cost, quality, service and speed (Hammer, 1993)

HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

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Business Process Re-engineering

Analysis & design of workflow processes within an organization (Davenport, 1990)
Set of logically related tasks performed to achieve a defined business outcome.

HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

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3R’s

Redesign
Retool
Re-orchestrate

HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

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HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

Design

Analysis

Investigation

Construction

Close Out

Concept

TIME

COST

QUALITY

Process

People

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Corner Stone of Organization

People – Motivated, working hard poor results if processes are cumbersome and non-essential activities remain
Processes – Reengineering key to transforming how people work even minor change in processes can have dramatic effect on performance and service delivery

HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

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HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

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Working S-M-A-R-T

S – Specific
M – Measurable
A – Attainable
R – Result orientated
T – Time bound

HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

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Basic Requirements

Mission Statement - purpose
Vision Statement – where do you want to go
Business Strategy – drive project objectives
Risk Analysis –issues that may prevent success
Performance Measures – standards for tracking
Culture Change – improvement in culture
New Initiatives – to improve performance

HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

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Aim

Improve business performance by optimising the efficiency of connecting activities in the provision of a product or service.
Concerned with 'mapping' and 'workflow' to enable understanding, analysis and positive change.
Flow diagrams' - are a central feature of the methodology.

HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

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Components

As Is - how the process works, now.
Analysis – determine weak points and bottlenecks
Aim - desired outcome of the process.
The start and end points- customer need and customer need fulfilment

HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

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Components

The activities that are performed.
The order of activities.
The people who perform the activities.
The documents and forms

HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

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HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

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Project Management

Application of; knowledge, skills, tools, and techniques to project activities to meet project requirements.
To deliver project on time within budget and with the desired quality.

HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

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Project Phase

Concept/Feasibility/Research
Development/Planning/Design
Execution/Implementation/Production
Finish/Termination/Closeout

HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

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Importance

To exercise control over a particular process.
To be able to plan and forecast event.
To predict problems and offer a solution.
To apply scientific approach to solutions.
To offer alternative

HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

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Why Projects Fail

Poor Planning
Poor Control
Insufficient PM Influence
Arbitrary Time Constraints
Poor Coordination
Inability to Manage Conflicts
Project Resources not Managed

HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

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Project Plan

Aim
Owner
Outputs
Quality
Resources
Budget

Milestones
Tolerance
Dependencies
Risk
Communication
Schedule

HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

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Project Process Reengineering

HAJ

HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

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HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

Project Title:	HAJL Process Mapping & Re- engineering Project Plan	Project Acronym:	PMRP
Executive Sponsor:	Mr. Joseph Shoucair Managing Director	Agency:	Housing Agency of Jamaica Limited (HAJL)
Project Manager:	Mr. Desmond Young Director, Technical Services	Target Project Completion Date:	July 31, 2010

PROJECT PLAN

GENERAL INFORMATION

PROJECT PLAN SUMMARY

Business Problem

The Government of Jamaica envisions a transformed cohesive Public Sector that is performance based, efficient, cost effective and service oriented. Similarly, the Agency’s strategic objectives are to become an effective financially viable and environmentally responsible housing solutions provider and facilitator by 2013. The Process Mapping and Re-engineering project (PMRP) will contribute to achieving a high performance organization by improving productivity levels and viability through streamlining the Organizations processes.

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HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

Each department’s Policy and Procedures Manuals were accurately documented all processes Management will actively participate in focus groups discussions Management will ensure that Team members have adequate time to complete project task HRD will ensure that all Administrative Assistants are trained in using the recommended programme for the mapping exercise and ensure that guidelines are issued for the preparation of flowcharts All Administrative Assistants have access to the recommended programme Management will “buy in” and assign a liaison person to clarify issues regarding the procedures All project participants will abide by the guidelines identified within this plan. The Project Plan may change as new information and issues are revealed. All change requests will be assessed and approved by the Project Manager

2. Assumptions

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HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

PMRP is a sub project of the Agency’s Public Sector Transformation Project. The project is intended to assist in streamlining the Agency’s activities to achieve optimal performance by improving viability and productivity. The PMRP will graphically display of all procedures/processes for each department within the Agency and undertake a re-engineering exercise from which recommendations will be posited to optimize efficiency and reduce overlaps in activities and the processes adjusted accordingly. The implementation of the recommendations is geared towards improving the Agency’s customer services, financial viability and delivering the targeted number of housing solutions annually. The Agency’s thirteen (13) administrative assistants will be utilized to map the process for their respective departments. Other staff member will be incorporated to assist with the re-engineering exercises, focus group meeting and auditing of the mapped process. The project duration is two (2) months. The PMRP will produce a comprehensive document outlining recommendations for new/ideal processes for the Agency to be presented to the Agency’s Public Sector Transformation Committee by July 30, 2010.

3. Project Scope

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HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

4. Performance Plan Summary

Project Objective	Performance Goal	Methodology
To graphically display all procedures	Map existing Processes	Each Administrative Assistant is required to prepare flowcharts documenting Departments’ procedures using MS PowerPoint.
To ensure mapped processes for accuracy are accurate and coincide with existing operations within departments	Ensure best practices	Review and verify mapped process with Policy Manual for each department. A random sample will be undertaken with 3/4 departments to test processes and interview personnel. Update flowcharts based on existing processes identified from sampling exercise.
To critically asses the process flows for each department	Minimize overlaps and improve efficiencies	Identify best practices for organizational restructuring locally and internationally and apply to re-engineering process
To present draft document to HAJL’s PST Committee	Sensitize and seek approval of personnel of the recommendations posited	Distribute documents to Committee for review
To incorporate issues identified from focus group meetings	Ensure personnel have an input in the recommendations	Convene meeting with Divisions/Departments and document recommendations for inclusion in final document
To submit final document to HAJL PST Committee	Seek approval and to start implementations of new/ideal process	Distribute final document and seek sign off by Executive Sponsor

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HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

	Milestone or Event	Responsibility	Duration	Projected Date of Completion
1	Convene meeting & assignment of responsibilities to AA	PM	1dy	April 28, 2010
2	Prepare project plan	BA	5dys	May 17, 2010
3	Obtain sign off of project plan	PM	1dy	May 25,2010
4	Conduct training session for AA in the preparation of flowcharts using MS Power Point	HRD	1day	May 17, 2010
5	Review processes for accuracy	Manager/Team Leader/AA	5dys	June 4, 2010
6	Complete mapping of all department’s processes	AA	10dys	June 9, 2010
7	Provide report of mapped process	AA
8	Sampling/Testing of mapped processes with current operations	BA	5dys	June 11, 2010
9	Conduct focus groups re-engineering meetings with Departments	PM/AA	5dys	June 18, 2010
10	Complete 1^st Draft of Processes re-engineering recommendations	PM/BA	10dys	June 25, 2010
11	Prepare & review 1^st draft	PM/AA	5dys	July 2, 2010
12	Deliver mock presentation to HAJL’s PST Committee	PM	1dy	July 2, 2010
13	Incorporate Committee recommendations	PM	5dys	July 9, 2010
14	Prepare and submit final document	PM/AA	5dys	July 16,2010
15	Presentation of completed project	PM	1dy	July 30,2010
16	Project close out	PM	1dy	July 31, 2010

Critical Milestone Summary

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HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

Department	Assignee
Project Implementation	Dionne Reid
Engineering & Design	Annmarie Whitfield
Project Development	Shelly- Ann Thompson/Julian Burke
Quantity Surveyor Unit	Carol Schurton
Technical Services	Carol Schurton
Finance	Judith Kirlew
Sales	Pauline Samuels
Legal	Arlene Dunn
Public Relations	Tracey Ann Howell
Mortgage	Donette Ayton
Internal Audit	Robert Reynolds
General Administration	Jennifer McKay
Documentation & MIS	Marcia Reid
Human Resources	Michelle Keeten

6. Responsibility Assignment Matrix

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HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

#	Description	Probability	Impact	Mitigation Strategy
1	Inconsistencies in mapping processes and delays	High	Low	Training sessions in flow chart preparation using MS PowerPoint. PM to convene weekly meetings with AA to clarify concerns.
2	Limited corporation of staff to provide timely feedback during review/testing	High	High	MD/PM to sensitize all Managers/Team Leaders of the importance of the project and ensure full corporation by all staff members
3	Intense resistance or non corporation among personnel to recommendations of re-engineering exercise	High	High	MD/TSD to sensitize all Managers/Team Leaders the document proposes recommendations and final decision are taken by the Public Sector transformation Unit
4	Workload load of team members to meet stringent timeline	High	High	All Managers would be briefed on the nature of the project. Other members may be incorporated into the Project Team as need arises.
5	Changing or adding new requirements after the project has started	High	High	PST Committee to sign off on project deliverables outlined in project plan

7. Risk Analysis

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HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

8. Communication Plan

Who/Target	Purpose	Frequency	Type/Documents Distributed
Public Sector Transformation Unit	To provide final deliverables	Quarterly	Reports
Executive Sponsor	To provide update on progress and receive feedback and directives	Monthly	Meeting/Report on progress, risks and issues
PST Committee/ Programme Manager	To provide update on progress and receive feedback and directives	Weekly in initial stages, then monthly	Meetings/Report on progress, risks and issues
Team Members	To provide update on progress	Weekly	Meetings

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HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

HAJ Project Analysis & Development Flowchart

ORIGINAL - 21/12/2008

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Project Analysis & Development Flow Chart� RE-ENGINEERED

HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

Start

Site Visit

Land Evaluation Result

( Form A)

Preliminary Analysis

Marketing Plan & Detailed Analysis

Design Philosophy

Explore Financing

Secure Financing

Conclude Land Agreement & Sign Joint venture or Land Purchase, etc.

If YES

Select Design Team

Design

Design Review

Environmental Permit (EP) Application

NO - Stop

REJECT - Not Profitable/Not Viable

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Project Analysis & Development Flow Chart�RE-ENGINEERED

HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

Bill of Quantities

Bill of Quantities Review

Post Tender/ Tender Process

Feasibility Analysis

NCC or other Procurement Process

Conclude Financing

Approval

(Environmental Permit, Sewage License)

Assign Project Team

Develop Project Management Plan

Award Contract

Joint Review Meeting (Sales, Marketing, Public Relations, TSD, Legal)

Execute Project Management Plan

Pre-Construction Meeting

Scheduling & Planning

Building Approval

Finalize project specification for marketing and update website

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Project Analysis & Development Flow Chart�RE-ENGINEERED

HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

Construction

Construction Monitoring

Sub-division Approval

Close Out & Handover (Practical Completion)

Homeowner Handover Process

Final Completion

Handover to Parish Council

End.

Marketing & Sales Process

KEY

Original Flow Chart

Revised Flow Chart

R Revised

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Human Resources Processes

HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

________________________ ______________

Mrs. Claudette Gordon-McFarlane Date

Snr. Manager

Human Resources Department

_______________________ ______________

Mr. Ray Wong Date

Project Co-ordinator

________________________ ______________

Mr. Desmond Young Date

Project Manager

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HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

RECRUITMENT & SELECTION

Start

Acknowledge request from Departmental Manager to fill vacancy within 48 hrs of receipt

Confirm status of vacancy within 48 hrs of receipt

Draft, finalize & post internal advertisement

Within 48 hrs of confirmation

Shortlist candidates for Manager’s approval within 5 days of receipt of apps./set up interview within 48 hrs of receipt of list of candidates

Send regrets to Internal candidate within 5 days of successful candidate’s acceptance

advertise externally within 4 days of notice

Shortlist external candidates within 2 – 5 days of receipt of apps.

Interview, assess & select candidate within 5-10 days/2^nd interview

Request documents from selected candidate within 2 days of selection

Prepare offer letter to candidate within 2 days of receipt of documents/write regret letter to unsuccessful candidates within 5 days of successful candidates’ acceptance

Advise relevant Manager when the successful

candidate accepts offer within 24 hrs of acceptance

End

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HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

Training & Development Process

Start

Departmental Managers develop Budget based on needs established &

HR develops Budget for Company-wide development programmes determined by annual strategic plan

Approved by Board in January of each year

Managers submit requests to HR for processing

HR Specialist prepares Purchase Requisition within one day

Yes

Head of HR approves Purchase Requisition within one day

HR Specialist submits Purchase Requisition to General Administration for processing within one day

HR Specialist writes individuals to be trained and provides the relevant details no later than one week prior to course

Participants attend training

Participants, on return, publishes training material in their Department’s Knowledge Management System within 5days

End

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HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

START

Date stamp and record request memo to prepare Sale Agreement and Transfer from the Sales Revenue Unit.

Check whether Sale Agreement and Transfer were previously prepared.

Agreement prepared?

Prepare Sale Agreement and Transfer

Yes

Request Surveyor Identification from Project Development Department

Prepare letter, dispatching documents to the purchaser.

Sign letter and deliver documents to Sales Revenue Unit for delivery to customer.

Record date of dispatch and update database.

END

PREPARATION OF SALE AGREEMENTS AND INSTRUMENTS OF TRANSFER

Project Development

Page - 7

Sales

Page 4

Sales

Page 4

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CASH SALES�

HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

START

Follow procedure at Section 1(Preparation of Sale Agreements and Transfer) and Section 2(Execution of Legal documents)

Receive letter from Purchaser advising, that he/she intends to pay cash to close the sale.

Receive memorandum from Sales Revenue Unit advising that purchaser has paid in full

Request statement of account from Finance Unit

Receive statement . �

Send Title to Registrar of Titles for registration.

Receive Title from Registrar of Titles with purchaser’s name endorsed.

Prepare letters of possession, dispatch letter and advise purchaser to collect.

Deliver Title to purchaser .

Forward finalized file to Documentation Center for storage.

END

Documentation – Page 3

Finance – Page 49 - 50

Sales - Page 3

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Delivery of Titles

HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

Start

When Title with Discharge noted thereon is in hand, send letter to mortgagor to collect title.

Person attend to collect Title, request identification and relevant documentation if all the parties are not present..

If the mortgagor(s) is collecting in person check information on Title against mortgagor(s) file.

If someone other than the mortgagor(s) is collecting, check identification presented against person collecting.

If discrepancies are discovered, give mortgagor the relevant form to be completed and witnessed.

If female mortgagor has wed obtain certified copy of the Marriage Certificate

All the above requirements are met ?

Deliver title and let person sign on the Title Delivery sheet.

End

Yes

Mortgagor

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STANDARD FOR CORE PROCESSES

HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

NO.	CORE PROCESS/DEVLIVERABLE	STANDARD (working days)	COMMENTS
1.	Monthly Reports	3 days	After month end
2.	Complete Certificates	3 day	Completion
3.	Approval for Variations	42 days	No later than
4.	Evaluation of Variation Claim	14 days	No later than
5.	Cost to Complete Report	2 days	After month end
6.	Project phasing for Handover	14 days	After handover meeting
7	Contract duration		As per project
8.	Bill of Quantities preparation	20 days
9	Tender report	10 days
10	Tender Evaluation	3 days after	After
11	Extension of Time
12	Certificate submission	3 days
13.	Certificate Evaluation	14 days
14.	Certificate Payment	14 days
15.	Final Accounts	10 days
16.	Site visit for Bill of Quantities	5 days	After handover
17.	Practical Completion Inspection	5 days	After receipt of letter from Contractor
18.	Project Handover for Design	5 days	After planning Completed
19.	Handover of Housing Unit	5 days	After planning Completed
20.	Handover Project to Quantity Surveyor	5 days	After engineer design completed

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Why Change Management Fail

Allowing too much complexity
Failing to build a substantial coalition
Understanding the need for a clear vision
Failing to clearly communicate the vision
Permitting roadblocks against the vision
Not planning and getting short-term wins
Declaring victory too soon
Not anchoring changes in corporate culture
John Kotter

HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

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HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

20%Supportive & positive�towards change	60%On the fence – need leadership in the context of change	20%Negative towards change

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Changes Required

Conventional Processes

Departments
Division of labour
Controlled People
Training of Employees
Compensation Time Spent
Pay Raise Based on Promotion & Seniority
Advancement on Ability
Protective ORG Culture

Reengineered Processes

Teams
Empowered Employees
Multidimensional Work
Education of Employees
Compensation for Result
Low Pay + High Performance Related Bonus
Advancement on Performance
Productive ORG Structure

HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

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Changes Required

Conventional Processes

Managers Supervise & Control
Hierarchical ORG Structure
Executives as Scorekeeper
Separation of Duties & Functions
Linear & Sequential Processes
Mass Production

Reengineered Processes

Managers Coach & Advise

Flat ORG Structure
Executives as Leaders
Cross Functional Teams

Parallel Processes

Mass Customization

HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

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Team Work

T – Together
E – Each
A – Achieve
M - More

HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

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Change Management Strategy

Establish a sense of urgency.
Create the guiding coalition.
Develop a vision and strategy.
Communicate the change vision.
Empower employees for broad-based action.
Generate short-term wins.
Consolidate gains and produce more change.
Anchor new approaches in the culture.
John Kotter

HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)

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THE END

Questions

HRMAJ Conference 31 - "Innovating Through the Downturn...Creating Value for the Upturn" (November 16-18, 2011)