oversight

Business Process Reengineering Assessment Guide--Version 3

Published by the Government Accountability Office on 1997-04-01.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

                   United States General Accounting Office
                   Accounting and Information
GAO                Management Division



May 1997
Version 3
                   Business Process
                   Reengineering
                   Assessment Guide




GAO/AIMD-10.1.15
                                    PREFACE

Business process reengineering (BPR) began as a private sector technique to help
organizations fundamentally rethink how they do their work in order to dramatically
improve customer service, cut operational costs, and become world-class competitors. A
key stimulus for reengineering has been the continuing development and deployment of
sophisticated information systems and networks. Leading organizations are becoming
bolder in using this technology to support innovative business processes, rather than
refining current ways of doing work. Not surprisingly, BPR has captured the interest of
federal agencies, which are faced with an urgent need to reduce costs and improve
service to the American public.1 This guide is designed to help auditors review business
process reengineering projects in a federal setting, determine the soundness of these
efforts, and identify actions needed to improve the prospects for their success.

The nine major assessment issues in this guide deal with elements considered by experts
to be stepping stones to successful business process reengineering. These issues cover a
wide range of activities, such as identifying customer needs and performance problems,
reassessing strategic goals, defining reengineering opportunities, managing reengineering
projects, controlling risks and maximizing benefits, managing organizational changes, and
successfully implementing new processes. Taken together, the issues in this guide
provide a general framework for assessing a reengineering project, from initial strategic
planning and goal-setting to post-implementation assessments.


COMMENTS ON THIS GUIDE

This guide was developed by the Information Resources Management Policies and Issues
Group, under the direction of Jack L. Brock, Jr. If you have questions or comments on it,
please contact John P. Finedore, Assistant Director, at (202) 512-6248
(finedorej.aimd@gao.gov) or Deborah A. Davis, Assistant Director, at (202) 512-6261
(davisd.aimd@gao.gov). We plan to periodically revise the guide based on comments from
users, private sector and government reengineering experiences, and our own
assessments. Other contributors to this guide are Mark Bird, John Christian, Mike
Alexander, Tom McDonald, Sharon Caudle, and Danny Latta.



1
See, for example, Reengineering for Results: Keys to Success From Government
Experience, Center for Information Management, National Academy of Public
Administration, 1994 (along with its 1995 update); Creating a Government That Works
Better & Costs Less: Reengineering Through Information Technology, National
Performance Review, 1993 (with annual update reports); and Reengineering Organizations:
Results of a GAO Symposium (GAO/NSIAD-95-34, December 1994).

                                            1
For information on how to access this guide on the INTERNET, send an e-mail message
with "info" in the body to:

info@www.gao.gov

or visit GAO's World Wide Web Home Page at:

http://www.gao.gov




Gene L. Dodaro                                     Brian P. Crowley
Assistant Comptroller General                      Assistant Comptroller General
Accounting and Information Management                 for Policy
   Division




                                         2
                       TABLE OF CONTENTS

                                                                               Page

Preface                                                                         1


Table Of Contents                                                               3


Introduction                                                                    5


Framework For Assessing                                                         13
  Reengineering

Part A: Assessing the Agency's Decision to Pursue Reengineering                 14

     Assessment Issue 1:    Has the Agency Reassessed Its Mission               15
                            and Strategic Goals?

     Assessment Issue 2:    Has the Agency Identified Performance Problems      20
                            and Set Improvement Goals?

     Assessment Issue 3:    Should the Agency Engage in Reengineering?          26

Part B: Assessing the New Process' Development                                  34

     Assessment Issue 4:    Is the Reengineering Project Appropriately          35
                            Managed?

     Assessment Issue 5:    Has the Project Team Analyzed the Target Process    40
                            and Developed Feasible Alternatives?

     Assessment Issue 6:    Has the Project Team Completed a Sound Business 47
                            Case for Implementing the New Process?

Part C: Assessing Project Implementation and Results                            51

     Assessment Issue 7:    Is the Agency Following a Comprehensive             52
                            Implementation Plan?



                                      3
     Assessment Issue 8:    Are Agency Executives Addressing Change   57
                            Management Issues?

     Assessment Issue 9:    Is the New Process Achieving the          61
                            Desired Results?

APPENDIX I:    Glossary                                               64

APPENDIX II: Bibliography                                             69

APPENDIX III: Acknowledgements                                        73




                                      4
                                   INTRODUCTION


Federal agencies are being challenged to reduce the cost of government while improving
their performance. As noted in GAO's executive guide on strategic information
management,2 achieving major levels of cost savings and performance improvement nearly
always requires that agencies redesign the business processes they use to accomplish
their work. Many of the largest federal agencies find themselves encumbered with
structures and processes rooted in the past, aimed at the demands of earlier times, and
designed before modern information and communications technology came into being.
These agencies are poorly positioned to fulfill their mission and meet their strategic goals.
They need to consider replacing outmoded work processes with streamlined ones that
more effectively serve the needs of the American public.

The need for agencies to reassess their business processes was recognized in the Clinger-
Cohen Act of 1996. Among the provisions of this landmark information management
reform, agencies are required to determine whether their administrative and mission-
related business processes should be improved before investing in major information
systems to support them. In addition, the Office of Management and Budget (OMB) has
reenforced this by requiring that investments in major information systems proposed for
funding in the President's budget should, among other things, support work processes
that have been simplified or otherwise redesigned to reduce costs and improve
performance.3 This recent legislation builds on other general management reforms. The
Government Performance and Results Act of 1993 provides the framework for defining
and measuring how well an agency is meeting its mission goals. And the Chief Financial
Officers Act of 1990 addresses the need for agencies to have accurate financial
information to understand and manage their operations.


BUSINESS PROCESS REENGINEERING: ONE MEANS TO PERFORMANCE
IMPROVEMENT

Business process reengineering is one approach for redesigning the way work is done to
better support the organization's mission and reduce costs. Reengineering starts with a
high-level assessment of the organization's mission, strategic goals, and customer needs.
Basic questions are asked, such as "Does our mission need to be redefined? Are our
strategic goals aligned with our mission? Who are our customers?" An organization may


2
Executive Guide: Improving Mission Performance Through Strategic Information
Management and Technology (GAO/AIMD-94-115, May 1994).
3
 OMB Memorandum of October 25, 1996, '"Funding Information Systems Investments,"
often referred to as the "Raines' Rules."

                                             5
find that it is operating on questionable assumptions, particularly in terms of the wants
and needs of its customers. Only after the organization rethinks what it should be doing,
does it go on to decide how best to do it.

Within the framework of this basic assessment of mission and goals, reengineering
focuses on the organization's business processes--the steps and procedures that govern
how resources are used to create products and services that meet the needs of particular
customers or markets. As a structured ordering of work steps across time and place, a
business process can be decomposed into specific activities, measured, modeled, and
improved. It can also be completely redesigned or eliminated altogether. Reengineering
identifies, analyzes, and redesigns an organization's core business processes with the aim
of achieving dramatic improvements in critical performance measures, such as cost,
quality, service, and speed.

Reengineering recognizes that an organization's business processes are usually fragmented
into subprocesses and tasks that are carried out by several specialized functional areas
within the organization. Often, no one is responsible for the overall performance of the
entire process. Reengineering maintains that optimizing the performance of subprocesses
can result in some benefits, but cannot yield dramatic improvements if the process itself
is fundamentally inefficient and outmoded. For that reason, reengineering focuses on
redesigning the process as a whole in order to achieve the greatest possible benefits to
the organization and their customers. This drive for realizing dramatic improvements by
fundamentally rethinking how the organization's work should be done distinguishes
reengineering from process improvement efforts that focus on functional or incremental
improvement.

As will be emphasized in this guide, reengineering is not a panacea. There are occasions
when functional or incremental improvements are the method of choice, as when a
process is basically sound or when the organization is not prepared to undergo dramatic
change. But given the need to achieve "order of magnitude" improvements in many areas
of government, agencies should consider whether they have areas where reengineering
might be appropriate. The first three assessment issues in this guide focus on this very
issue.


HOW THIS GUIDE WAS DEVELOPED

Our guide is a distillation of elements typically emphasized in process redesign and
reengineering methodologies. The assessment questions deal with issues and activities
that reengineering practitioners have found to be critical in defining reengineering
opportunities and goals, ensuring that reengineering projects are well managed,
maximizing the return on resources invested in reengineering (including information
systems), and managing the many changes needed to implement a redesigned work
process.

                                            6
To develop these assessment questions, we consulted with outside experts in the area of
public and private sector process redesign and reengineering to define the key concepts
and general approaches that were being taken to develop and implement new business
processes. We supplemented these discussions by reviewing the growing body of
literature and methodologies on process redesign and reengineering that have been
published by consulting firms and individual practitioners. Within GAO, we consulted
with staff having experience and expertise in areas germane to this subject, including
government results and performance issues, strategic information management,
performance measurement and benchmarking, and information systems design and
implementation. A draft of this guide was reviewed by reengineering practitioners, listed
in appendix III, from the private sector and state and federal agencies.


HOW THIS GUIDE IS ORGANIZED

The guide has nine assessment issues that are grouped into three major areas. The first
area, Part A: Assessing the Agency's Decision to Pursue Reengineering, focuses on
strategic and general management issues that need to be resolved before an agency4
embarks on a reengineering project. It includes the following assessment issues:

      Assessment Issue 1:        Has the Agency Reassessed Its Mission and Strategic
                                 Goals?

      Assessment Issue 2:        Has the Agency Identified Performance Problems and
                                 Set Improvement Goals?

      Assessment Issue 3:        Should the Agency Engage in Reengineering?

Part B: Assessing the New Process' Development picks up at the point where the
agency has decided to begin a reengineering project. The assessment issues focus on the
management of the reengineering team, the team's process redesign activities, and the
business case it develops to support a decision to begin implementing the new design:

      Assessment Issue 4:        Is the Reengineering Project Appropriately Managed?

      Assessment Issue 5:        Has the Project Team Analyzed the Target Process and
                                 Developed Feasible Alternatives?

      Assessment Issue 6:        Has the Project Team Completed a Sound Business Case
                                 for Implementing the New Process?


4
 We use the word "agency" throughout this guide to refer generically to any federal
department, agency, bureau, or office.

                                            7
The last section, Part C: Assessing Project Implementation and Results, deals with the
problems involved in piloting and deploying a new business process. Both the human and
technical issues surrounding implementation are touched on, along with the need to
evaluate the performance and results of the new process:

      Assessment Issue 7:         Is the Agency Following a Comprehensive
                                  Implementation Plan?

      Assessment Issue 8:         Are Agency Executives Addressing Change Management
                                  Issues?

      Assessment Issue 9:         Is the New Process Achieving the Desired Results?

Under each of the nine issues, we list several "key activities" that the agency typically
should do to develop the information, manage the risks, and make the decisions needed
at that point. For each of the key activities, we provide a short discussion highlighting its
significance, along with a list of "key assessment questions" that evaluators can use to
probe how well the organization has addressed the issue. Because reengineering is very
situational, these questions are framed at a high level, delineating the general line of
inquiry that evaluators should pursue. Evaluators will need to augment these high-level
questions with specific subquestions of their own that are designed to explore the
agency's specific circumstances.


RELATION OF THIS GUIDE TO GENERAL MANAGEMENT LEGISLATION

Many of the issues in this guide are reflected in recent management reform legislation,
particularly the Government Performance and Results Act of 1993 (GPRA), the Chief
Financial Officers Act of 1990 (CFO), the Paperwork Reduction Act of 1995 (PRA), and
the Clinger-Cohen Act of 1996.

Reengineering starts at the same place as GPRA, by calling for a careful reassessment and
(if necessary) a redefinition of an organization's mission, goals, customers, and
performance outcomes. GPRA requires agencies to anchor performance improvement in
sound strategic planning.5 Federal agencies are to develop a strategic plan that includes a
comprehensive mission statement, outcome-related strategic goals, and a description of
how the agency intends to achieve those goals. In doing this, agencies are to consult with
their customers and stakeholders, as well as the Congress, and take into account other


5
 The performance improvement approach specified by GPRA is consistent with how
successful public and private sector organizations pursued management reform initiatives
and became more results-oriented. See Executive Guide: Effectively Implementing the
Government Performance and Results Act (GAO/GGD-96-118, June 1996).

                                             8
factors in the general environment that affect their ability to accomplish their missions.
As mentioned earlier, agencies need to define their strategic direction (where they need to
go and what they need to accomplish) before expending time and resources on improving
how they do their work. Only then can an agency be in a position to assess whether its
activities, business processes, and resources are properly aligned to support its mission
and achieve desired outcomes.

The CFO Act focuses on the need to significantly improve the government's financial
management and reporting practices. Having appropriate financial systems with accurate
data is critical to measuring performance and reducing the costs of agency operations.

The PRA and the Clinger-Cohen Act emphasize achieving program benefits and meeting
agency goals through the effective use of information technology. For example, the
Clinger-Cohen Act explicitly requires agency heads to analyze the missions of their
organizations, benchmark and assess the performance of their business processes and,
based on this analysis, redesign their mission-related and administrative processes (as
appropriate) before making significant investments in information technology to support
those missions. In plain terms, agencies should maximize the potential of technology to
improve performance, rather than simply automating inefficient processes.


REENGINEERING AND INFORMATION TECHNOLOGY

Given this legislation, a key assessment issue for evaluators is determining whether major
agency investments in information technology will in fact support a redesigned business
process. The issues in this guide provide a framework for determining whether an agency
is, in fact, engaged in reengineering a process.

As indicated in figure 1, work processes, information needs, and technology are
interdependent. When a reengineering project leads to new information requirements, it
may be necessary to acquire new technology to support those requirements. It is
important to bear in mind, however, that acquiring new information technology does not
constitute reengineering. Technology is an enabler of process reengineering, not a
substitute for it. Acquiring technology in the belief that its mere presence will somehow
lead to process innovation is a root cause of bad investments in information systems.
The Clinger-Cohen Act seeks to remedy this by insisting that process redesign drive the
acquisition of information technology, and not the other way around.




                                            9
Figure 1: Relationship of Mission and Work Processes to Information Technology




                                        M ission

                              D e fin e s          A c c o m p lis h
                                  W o rk Processes

                              Execute              G u ide

                                       Decisions

                              C o n s ider        S u p p o r ts
                                    Inform ation

                             E m p loys           Processes

                                      Technology




Further guidance on the relationship between process reengineering and technology
investment decision-making can be found in Information Technology Investment: Agencies
Can Improve Performance, Reduce Costs, and Minimize Risks (GAO/AIMD-96-64,
September 30, 1996) and in Assessing Risks and Returns: A Guide for Evaluating Federal
Agencies' IT Investment Decision-Making, Version 1 (GAO/AIMD-10.1.13, February 1997).


CAVEATS TO THE USER

As illustrated in figure 2, reengineering a business process drives changes in other aspects
of the organization that support and control the process.




                                             10
Figure 2: Reengineering Drives Many Changes




    Reengineering                             Management and
                                              decision support
                                              structures




                                                 Core                 People and
                    Policies and                                      organizations
                                                 Processes
                    regulations




                                              Information
                                              and
                                              technology




Because so many issues are interconnected in reengineering, evaluators need to scope
their assessments broadly and take a holistic view of the effort. For example, an agency
that is in the midst of designing a new process should have previously laid a solid
foundation for change by clarifying its mission, identifying customer and stakeholder
needs, assessing performance problems, setting new performance goals, and determining
that reengineering is an appropriate approach to take. Even implementation issues need
to be considered in the early stages of the project, so that executives can begin preparing
the agency for changes in goals, values, and responsibilities.

Furthermore, although the nine issues in this guide are presented in a sequence, many of
them include activities that should be occurring throughout the reengineering effort. For
example, strong executive leadership in leading the effort and managing change (issue 3)
should be a constant force from start to finish. Without it, even the best process design
may fail to be accepted and implemented. Similarly, the business case for reengineering
(issues 3 and 6) should be a dynamic document that is periodically updated to reflect
changes in costs, benefits, risks, customer needs, agency priorities, and other key factors.




                                            11
One final caveat. Evaluators should keep in mind that this guide provides a general
framework for assessing key reengineering issues. It is not intended to be a compliance-
oriented checklist or to prescribe a specific, rigid set of steps for conducting a
reengineering project. Reengineering is far too situational for such a rigid approach.
Evaluators will need to use good judgment in applying this guide to an agency's specific
circumstances. The overall aim should be to help the agency understand the issues,
problems, and risks that are encountered in reengineering, so that the agency can manage
them effectively and bring its project to a successful conclusion.


OTHER SOURCES OF INFORMATION

The bibliography in appendix II provides sources for more information on reengineering.
Detailed information on any topic in this guide can be found in many of the books and
articles listed.

In addition, information on related topics, such as strategic information management,
systems development, information management, and financial management is available in
the following GAO guides and methodologies:

•     Strategic Information Management (SIM) Self-Assessment Toolkit (Exposure draft)
      October 28, 1994.

•     Assessing Risks and Returns: A Guide for Evaluating Federal Agencies' IT
      Investment Decision-making, Version 1 (GAO/AIMD-10.1.13, February 1997).

•     The System Assessment Framework, Version 1.0, A Guide for Reviewing
      Information Management and Technology Issues in the Federal Government
      (GAO/AIMD-10.1.12, August 1996).

•     Financial Audit Manual (GAO/AFMD-12.19.5A, June 1992).




                                          12
FRAMEWORK FOR ASSESSING REENGINEERING


    •   Part A: Assessing the Agency's Decision to Pursue Reengineering

    •   Part B: Assessing the New Process' Development

    •   Part C: Assessing Project Implementation and Results




                               13
                                       PART A

           ASSESSING THE AGENCY'S DECISION TO PURSUE
                        REENGINEERING



 Assessment Issue 1:       Has the Agency Reassessed Its Mission and Strategic Goals?

 Assessment Issue 2:       Has the Agency Identified Performance Problems and Set
                           Improvement Goals?

 Assessment Issue 3:       Should the Agency Engage in Reengineering?



Federal agencies are under increased pressure to perform better with fewer resources.
The impetus to improve comes from (1) recognition that agency budgets cannot continue
to grow like they have in the past and (2) legislation--specifically, GPRA and the Clinger-
Cohen Act. These laws focus on analyzing missions, assessing agencies' performance,
revising processes, and achieving results. Measuring how well the agency's core business
processes perform in terms of cost, quality, and timeliness in serving customers helps the
agency prioritize areas for improvement, decide whether reengineering is in order, and
make a compelling argument for investing time and resources in redesigning a process to
achieve better results. The issues, activities, and questions discussed in this section are
intended to help evaluators assess an agency's decision to pursue reengineering as a
means of bringing about major improvements in performance.




                                            14
                               ASSESSMENT ISSUE 1

              HAS THE AGENCY REASSESSED ITS MISSION
                      AND STRATEGIC GOALS?


  Key Activities for the Agency:

  •      Reassess the agency's mission and priorities.

  •      Reassess how well the agency's products, services, and delivery
         modes align with the needs of its customers and stakeholders.

  •      Identify and assess the impact of other change drivers, such as
         changing mission, demographic shifts, budget cuts, and downsizing.

  •      Define and map the business processes that are key to meeting
         customer and stakeholder needs.




Before a decision on whether to reengineer can ever be made, federal agencies must
clearly know their mission and have established strategic goals that explain the purposes
of the agency's programs and the results they are intended to achieve. Well-defined
missions and strategic goals form the foundation for the key business systems and
processes and thus help ensure the successful outcome of their operations. Leading
organizations strive to ensure that their day-to-day activities support their organizational
missions and move them closer to accomplishing their strategic goals. Such strategic
planning is also required by GPRA. Under GPRA, agencies must consult with both the
Congress and other stakeholders in developing missions and strategic goals. They must
also identify the external factors that could affect their ability to accomplish what they
set out to do.


1.1   Has the Agency Reassessed Its Mission, Outlook, and Priorities?

Unlike many private sector companies, a federal agency cannot independently make major
shifts in mission, lines of business, and customer base. However, there is pressure from
both executive and legislative branches--as evident in the passing of GPRA--for federal
agencies to take a hard look at their roles and responsibilities. Reassessing customer and
stakeholder needs and other change drivers helps the agency to reevaluate and clarify its



                                             15
strategic vision and goals. It also fosters an understanding of the source, nature, and
priority of demands on its resources.

This reassessment helps provide direction and focus for an agency's efforts to improve its
performance. For example, the reassessment could show that over time, goals, priorities,
and activities that were once key elements of its original mission are now much less
important. Similarly, new issues and mandates may have arisen that have become major
activities for the agency--perhaps even its main business--thereby calling for changes in
mission priorities. Further, some activities may no longer need to be done, or could be
better performed by other federal agencies, state and local governments, or the private
sector.

Key Assessment Questions

      Has the agency identified important changes that could result in a major
      redefinition of roles and restructuring of the agency?

      Is the agency's strategic planning focused on highest priority customer and
      stakeholder needs and mission goals?

      Has the agency developed explicit mission goals that involve tailoring products and
      services to the needs of key customer groups?

      Has the agency revised its strategic plan, as appropriate, and formed a consensus
      on the goals it is trying to accomplish, for whom, and by when?


1.2   Are the Agency's Products and Services Aligned with Customer and
      Stakeholder Needs?

Reengineering is customer-focused and outcome-oriented. Before an agency embarks on
a reengineering effort, it should have a comprehensive understanding of who its current
and future customers are and what their needs and expectations are as key input for
improving the type, cost, quality, and timeliness of the products and services provided. It
is also important to consider the business needs of the staff working within the agency
(internal customers) and third parties outside the formal boundaries of the agency who
are involved in delivering the services and products, such as state and local governments
which help administer a federal program.

Along with customers, stakeholders are another important source of requirements.
External stakeholders include the Congress, oversight bodies, key interest groups, and
others who oversee, fund, or are affected by the agency's activities. Internal stakeholders
include agency staff who would be directly and personally affected by changes in a
particular business process. Stakeholders have a great impact on any improvement effort

                                            16
and, when ignored, can jeopardize the success of the effort. While it is impractical to
satisfy the needs of all stakeholders, the agency should identify and prioritize key
stakeholders' needs and identify areas of consensus, where support for improvement is
naturally strong. It is also important to identify areas of fundamental disagreement that
may make process improvement much more difficult to achieve.

Key Assessment Questions

      Has the agency identified the external customer base for each of its major products
      and services?

      Has the agency identified the external customers' current and anticipated needs,
      expectations, and priorities for each major product and service? What are their
      relative importance in the customers' eyes? What means did the agency use to
      identify and validate the customers' needs, values, and priorities (interviews, focus
      groups, surveys)?

      Has the agency identified its internal customers and third party providers and their
      needs and expectations insofar as they affect the key processes that provide
      products and services to external customers? Has the agency analyzed how
      projected demographic changes may affect its customer base?

      Is the agency using external and internal customer requirements to make major
      decisions about strategic goals, budgeting, and resource allocations? Is the agency
      focusing more attention on satisfying the requirements of its internal customers
      rather than its external customers?

      Has the agency identified stakeholders for each major product and service? Has
      the agency identified and documented their needs, concerns, and priorities?

      Has the agency identified the key areas of agreement and disagreement among
      customer and stakeholder groups regarding mission, strategic goals, products and
      services, and performance? How serious are the differences? How well has the
      agency been able to broker trade-offs in these areas of disagreement?

      Has the agency analyzed whether its products and services are aligned with
      customer and stakeholder needs and business goals?

      Has the agency analyzed whether its products and services are being delivered in
      ways that best meet these needs?




                                            17
1.3   Has the Agency Identified Other Forces for Change?

Along with customer and stakeholder expectations and needs, other factors can be
powerful motivators for undertaking major performance improvements, such as cabinet-
level policy initiatives, budget and personnel reductions, pending reorganizations,
devolution of functions to the state and local level, widespread pressure for governmental
reform, and documented problems with fraud, waste, or abuse. The agency should
determine which of these factors must be considered in assessing the need to change.

Key Assessment Questions

      What other factors has the agency identified that are driving it to change business
      processes and achieve dramatic improvements in performance?

      Has the agency considered the impact of these change drivers in its strategic
      planning?


1.4   Has the Agency Defined and Mapped Its Mission-Critical Business
      Processes?

Agencies need to develop a common understanding of the processes they use to produce
their products and services before they can set about to improve them. Like large private
sector organizations, agencies can have a confusing web of interconnected processes and
subprocesses, many of which cut across several functional departments. It is important
to define what the components of each process are, as well as the process' boundaries,
dependencies, and interconnections with other processes.

As a start, the agency should map each of its core processes at a high level. High-level
process mapping typically results in a graphic representation depicting the inputs, outputs,
constraints, responsibilities, and interdependencies of the core processes. This high-level
map provides managers and staff with a common understanding of how the processes
work and how they are interconnected. This mapping should be done quickly. As
discussed in assessment issue 5, more detailed mapping is done after a process has been
selected for reengineering.

Key Assessment Questions

      Has the agency identified its core business processes for each major product and
      service? Have the processes been mapped at a high level?

      Do the agency's process maps show the connections and interrelationships
      between core processes?



                                            18
      Do the agency's process maps show the complete chain of related activities within
      the agency?


1.5   Criteria

      The Clinger-Cohen Act of 1996 (P. L. 104-106, Division E; February 10, 1996).
      Sections: 40 USC 1413(b)(2)(C)
                40 USC 1423(5)

      The Government Performance and Results Act of 1993 (P. L. 103-62,
      August 3, 1993).
      Section: 5 USC 306

      OMB Circular A-11, "Preparation and Submission of Budget Estimates,"
      June 13, 1996.
      Section: OMB A-11 43.2(b)

      OMB Circular A-130, "Management of Federal Information Resources,"
      February 8, 1996
      Sections: OMB A-130 App. IV 8b(1)
                OMB A-130 8b(3)(b)

      Executive Guide: Effectively Implementing the Government Performance and
      Results Act (GAO/GGD-96-118, June 1996). See practices under Step 1: Define
      mission and desired outcomes.

      Executive Guide: Improving Mission Performance Through Strategic Information
      Management and Technology (GAO/AIMD-94-115, May 1994). See Practice 4:
      Anchor strategic planning in customer needs and mission goals.




                                           19
                             ASSESSMENT ISSUE 2

      HAS THE AGENCY IDENTIFIED PERFORMANCE PROBLEMS
                AND SET IMPROVEMENT GOALS?


  Key Activities for the Agency:

  •      Measure performance and identify problems in meeting mission
         goals and the needs of customers and stakeholders.

  •      Benchmark against the goals and performance of leading
         organizations.

  •      Establish ambitious performance improvement goals that are
         mission-oriented and meaningful to customers and stakeholders.

  •      Select and prioritize processes to be improved.




Leading organizations recognize that improvement goals should flow from a fact-based
performance analysis and be directed at achieving organizational missions. These
organizations typically assess which of their processes are in greatest need of
improvement in terms of cost, quality, and timeliness. By analyzing the gap between
where they are and where they need to be to achieve desired outcomes, agencies can
target those processes that are in most need of improvement, set realistic improvement
goals, and select an appropriate process improvement technique. One method often used
is benchmarking. Benchmarking provides reference points for defining ambitious, yet
achievable, performance goals and also helps the agency learn methods that others have
used to improve their business processes.


2.1   Has the Agency Assessed the Gaps Between Current Performance and
      Customer/Stakeholder Needs?

Measuring the performance of its major processes helps an agency to determine how well
it is meeting its mission goals. Processes with gaps between desired and actual
performance are, by definition, candidates for improvement. Small gaps can often be
bridged with a narrowly focused improvement effort. Processes with very large gaps may
be so fundamentally inefficient that they need to be completely reengineered in order to
meet performance goals.


                                           20
Ideally, under GPRA, an agency should have measures for all its major processes to track
cost, quality, and timeliness. Cost covers the resources needed to produce and deliver the
products and services. Quality covers things such as reduction or elimination of errors or
rejects and rework, as well as the customers' satisfaction with the products and services.
Timeliness concerns not only the amount of time it takes to complete the process, but
also how long it takes to deliver the output to customers.

It is important that performance measures not be focused only on internal operations.
Measures also need to capture performance from the customers' point of view--cost to the
customers in terms of time or expense, the quality of the product or service as delivered,
and the speed with which the customers' needs are satisfied.

Key Assessment Questions

      Does the agency use performance measures consistent with the requirements of
      GPRA to determine how well it is meeting desired outcomes and to identify and
      assess any performance problems?

      What indicators (quality, cost, time, etc.) are used for each core process? Are
      these indicators adequate for measuring current and future performance
      requirements?

      Has the agency involved customers and stakeholders in developing the
      performance indicators?

      How well is the agency performing in relation to customer expectations?

      a. Has the agency identified any gaps between customer needs and current
         performance?
      b. How satisfied are customers and stakeholders with the current performance
         levels of the agency? How has the agency ascertained this?
      c. What, if any, performance information does the agency have for the past
         several years to show performance trends for each core process?
      d. What do the trends suggest as to the adequacy of the processes to meet future
         demands by customers and stakeholders?


2.2   Has Current Performance Been Benchmarked Against Leading
      Organizations?

Benchmarking is the comparison of core process performance with other components of
the agency (internal benchmarking) or with leading organizations (external
benchmarking). Benchmarking is a key tool for performance improvement because it
provides "real world" models and reference points for setting ambitious improvement

                                           21
goals. Benchmarking helps to (1) identify the gaps between the agency's process
performance and that of leading organizations and (2) understand how these leaders have
changed their structures, work processes, and lines of business to improve performance
dramatically. When used in conjunction with performance measurement, benchmarking
provides a powerful means of establishing a compelling business case for change.

Many processes that seem unique to the government actually have counterparts in the
private sector, especially in generic areas such as claims processing, loan management,
real property maintenance, logistics, inventory management, etc. Also, it is important to
note that the benchmarking partner does not have to be a similar organization, or even do
similar work. For example, Xerox used L.L. Bean to improve order fulfillment. Looking
at processes in dissimilar organizations can actually lead to the most fruitful
improvements because it stimulates new thinking about traditional approaches to doing
work.

Key Assessment Questions

      Has the agency benchmarked the performance of its core processes against
      internal or external benchmark partners?

      How did the agency select its benchmarking partners? Were dissimilar
      organizations included? Were state and local governments known for excellence in
      innovation included?

      Were the customer interfaces of the processes benchmarked?

      What were the benchmarking results and how is the agency using these results in
      establishing performance goals?


2.3   Are Improvement Goals Focused on Outcomes Important to Customers and
      Stakeholders?

Using customer and stakeholder performance requirements, performance measurement
data, benchmarking results, and an analysis of other change drivers, the agency should
identify and assess the performance gaps between its current performance and
customer/stakeholder requirements and then set improvement goals for bridging the gaps.
These improvement goals should be sharply focused on outcomes linked to the agency's
defined mission and what needs to be accomplished.

The goal-setting process requires careful consideration. Performance goals should be
realistically achievable to avoid negative consequences if they are not met, such as
employee disillusionment or customer dissatisfaction. Ambitious goals, for example, may
need to be broken into increments and staged in over time. On the other hand, setting

                                           22
goals that are too modest can be counterproductive. They may lead the agency to focus
on optimizing current work processes that are inherently inadequate, thereby further
entrenching them and making them more difficult to change. "Stretch" goals help
challenge and motivate an agency to fundamentally rethink how it does its work.

Key Assessment Questions

      Has the agency developed goals based on a careful, fact-based analysis of its
      performance and environment and has the agency linked the goals to mission,
      customer needs, and current performance?

      Has the agency stated its goals in measurable terms, such as cost, quality, and
      timeliness?

      Do the goals drive improvements that are valued by customers and stakeholders?

      Do the goals challenge the agency to achieve performance improvements
      comparable to those achieved by industry leaders?

      Has the agency established a sound performance measurement system that
      produces measures at each organizational level that demonstrate results, are
      limited to the vital few, respond to multiple priorities, and link to responsible
      programs?

      Has the agency systematically linked its improvement goals to the agency's
      strategic planning and budget decisions?


2.4   Has the Agency Selected and Prioritized Processes for Improvement?

As a first step, the agency should decide which process performance gaps must be
narrowed or closed, either because of current performance problems or gaps anticipated
for the future. The result should be a list of processes or major subprocesses that are
candidates for improvement.

The agency then should decide which processes or major subprocesses should have the
highest priority for agency action, based on formal selection criteria. The selection
criteria might emphasize:

•     processes with the strongest link to organizational mandate and mission, and the
      highest impact on customers;




                                            23
•     processes with the biggest potential return on the resources invested in improving
      them (e.g., processes that cut across several functional units where opportunities
      to reduce hand-offs, reviews, cycle time, and costs may be greatest);

•     processes where change management issues can be more easily resolved because
      there is strong consensus among the organization, stakeholders, and customers on
      the need for change;

•     processes that can be redesigned with currently available resources and
      infrastructure;

•     less complex processes where improvement goals can be achieved within a short
      period of time and experience can be gained in reengineering.

The selection criteria should be clearly articulated, since it will become an important
element in creating a convincing business case for change.

Key Assessment Questions

      Has the agency identified any performance gaps where dramatic improvements are
      needed, indicating candidates for business process reengineering?

      Which core processes and subprocesses have been targeted for improvement?
      What performance improvement goals have been set for them?

      Given the strategic vision and goals of the agency, the performance gaps, customer
      and stakeholder needs, and other change drivers, has the agency targeted the most
      critical products and services?

      What selection criteria were used to prioritize and target processes for
      improvement?

      Were customers' and stakeholders' viewpoints included in making the selections?


2.5   Criteria

      The Clinger-Cohen Act of 1996 (P.L. 104-106, Division E; February 10, 1996).
      Section: 40 USC 1423(4)

      The Paperwork Reduction Act of 1995, as amended (P.L.104-13, May 22, 1995).
      Section: 44 USC 3506(b)(3)(C)




                                            24
The Government Performance and Results Act of 1993 (P. L. 103-62,
August 3, 1993).
Sections: 5 USC 306
           31 USC 1115
           31 USC 1116

The Chief Financial Officers Act of 1990, as amended (P.L. 101-576,
November 15, 1990).
Section: 31 USC 902(a)(3)

OMB Circular A-11, "Preparation and Submission of Budget Estimates,"
June 13, 1996.
Sections: OMB A-11 15.6
           OMB A-11 34.1

OMB Circular A-130, "Management of Federal Information Resources,"
February 8, 1996.
Section: OMB A-130 App. IV 8b(1)

Executive Guide: Effectively Implementing the Government Performance and
Results Act (GAO/GGD-96-118, June 1996). See practices under Step 2, Measure
Performance.

Executive Guide: Improving Mission Performance Through Strategic Information
Management and Technology, (GAO/AIMD-94-115, May 1994). See Practice 1:
Recognize and communicate the urgency to change information management
practices; Practice 4: Anchor strategic planning in customer needs and mission
goals; and Practice 5: Measure the performance of key mission delivery processes.

Government Business Process Reengineering (BPR) Readiness Assessment
(General Services Administration, November 1996). See section on "Develop
Performance Measures."




                                     25
                              ASSESSMENT ISSUE 3

         SHOULD THE AGENCY ENGAGE IN REENGINEERING?

  Key Activities for the Agency:

  •      Decide whether any of the processes needing improvement should
         be reengineered.

  •      Assess the agency's readiness to engage in a reengineering project.

  •      Develop and communicate a compelling business case for initiating
         a reengineering project.

  •      Integrate the reengineering project into the agency's overall strategy
         for improving mission performance.

  •      Develop and begin implementing a change management plan.




After completing the previous activities, the agency should know which of its core
processes needs improvement in order to fulfill mission goals, satisfy customer and
stakeholder needs, reduce costs, and provide high-quality products and services. If the
gap between current performance and agency goals is large, business process
reengineering may be an appropriate course of action. However, before engaging in a
reengineering project, executives need to understand and accept their critical role in
managing the fundamental organizational and cultural changes involved in reengineering.
They must also determine whether the agency has the skills needed to pursue a
reengineering project successfully. Training, tools, and external support may be needed.

If the agency decides to initiate a reengineering project, it should begin to develop and
communicate a compelling business case to customers and stakeholders that supports
this decision. The business case is a critical step in change management because it helps
to build early support for reengineering both within the agency and among customers and
stakeholders. Initially, the business case will be a high-level definition of the performance
problem being addressed, the objective and scope of the reengineering effort, action
steps, responsible parties, and time frames. It establishes the conceptual foundation for
the reengineering effort. As the project team completes its process redesign work, the
business case will be enlarged and updated to present a full picture of the benefits, costs,
and risks involved in moving to a new process.



                                             26
3.1   Should Any of the Agency's Poorly Performing Processes Be Targeted for
      Reengineering?

As discussed in assessment issue 2, the agency should have identified and prioritized the
processes that need improvement. The agency now needs to choose appropriate
improvement approaches for improving them and integrate these efforts into a
comprehensive improvement program.

When should reengineering be considered? Several broad screening criteria could be
used, which build upon information gathered in the first two assessment questions.

•     Is the process of strategic importance to the agency's mission?

•     Does the process urgently need dramatic improvement in order to meet the
      agency's own performance goals?

•     Is there a high level of customer and/or stakeholder dissatisfaction with the
      process (quality, timeliness, cost)?

•     Does the process have a long cycle time with many sequential activities, multiple
      hand offs, checkpoints, and significant waiting time between work steps (e.g.,
      processing a benefits claim)?

•     Did benchmarking show that other organizations can do the same (or analogous)
      process much better?

•     Is the process highly dependent on information, so that information technology
      might be used to speed the work flow, collapse work steps, and improve realtime
      decision-making?

In addition to considering these generic criteria, the agency will need to define selection
criteria that are specific to its particular situation and goals.

Key Assessment Questions

      Did the agency consider a full range of improvement approaches in dealing with its
      performance problems (e.g., continuous process improvement, outsourcing,
      streamlining, and privatizing, as well as reengineering)?

      Is it apparent from the selection process that the agency understands the tradeoffs
      involved in choosing one improvement approach over the other in terms of
      resources, costs, risks, return on investment, and time to complete?




                                             27
      What decision criteria did the agency follow to select the process(es) targeted for a
      reengineering project? Did the criteria take into account the type of information
      that should have been developed under the first two assessment issues and the
      criteria listed in question 3.1 above?


3.2   Is the Agency Ready to Engage in Reengineering?

An agency can rush into reengineering without a good understanding of what it is getting
into. Although reengineering may be the preferred approach, success does not come
easily. Reengineering is fraught with political, organizational, process, and people issues
that must be well managed for the effort to succeed. Assuming that the agency has a
candidate process for reengineering, the agency head and top executives need to assess
readiness of themselves and the agency to pursue reengineering.

The first and, by far, the most critical readiness factor to consider is the need for strong
executive leadership. There is no substitute for the personal involvement and support of
the agency head and top executives in the reengineering effort. Before embarking on a
reengineering project, the agency's executives need to understand that the effort will
demand much of their personal attention and involvement. Executives must play major
roles in (1) continually communicating the purpose and goals of the reengineering effort
to customers and stakeholders, (2) demonstrating personal involvement and support at all
stages of the reengineering effort in order to maintain its momentum, and (3) managing
the potentially extensive changes to the agency's organizational structure and values that
may be needed to implement the new process. These roles cannot be delegated without
significant loss of credibility regarding the seriousness of the effort.

Executives must also assess whether the agency possesses all of the skills needed to
pursue reengineering. They may find that the agency needs to make a significant
investment in providing the training, tools, resources, and expert advice needed to carry
out a reengineering project. Also, if the agency has not engaged in reengineering before,
it may need to develop experience in reengineering on smaller-scale projects before
engaging in larger efforts. Consultants can help guide an agency's effort, especially by
providing a methodology for structuring the project and special skills for process analysis.
However, the agency should have enough of a skill base so that it can retain leadership
and control over the project and carry out most of the work.

Key Assessment Questions

      Do the agency head and the top executives have a basic understanding of the
      principles of reengineering, through training or experience?

      Do the agency head and the top executives actively demonstrate their commitment
      to the reengineering effort (participation in planning, making presentations,

                                            28
      engaging in worksite discussions, meeting with customers and stakeholder groups,
      etc.)?

      Has the agency assessed what reengineering skills and tools it has available
      internally? Are staff skills, tools, and experience adequate for carrying out a major
      reengineering project?

      What plan does the agency have to develop needed reengineering skills?

      To what extent must the agency rely on help from other sources (consultants,
      federal agencies) to fill shortcomings in skills? Does the agency have enough of a
      skill base so that it can lead the reengineering project itself, rather than turning it
      over to an outside source?


3.3   Has the Agency Developed an Initial Business Case for Starting a
      Reengineering Project?

If the agency decides reengineering a process is the appropriate course of action, it
should create an initial business case for going forward with a reengineering project. The
initial business case should include a discussion of legislative mandates and mission
goals, customer and stakeholder expectations, performance problems with target process,
opportunities to improve based on benchmark organizations, and other factors for change.
It also should cover the consequences of not achieving dramatic improvements in the
target process and how this failure to act would impair the capability of the agency to
carry out its mission. The business case should also touch on the potential political
ramifications of making fundamental changes to the current process, both positive and
negative.

This initial business case is essentially a high-level document aimed at convincing
customers and stakeholders that reengineering the selected process is the appropriate
means for achieving performance and cost-savings goals. It is a key tool for agency
executives to use in communicating the rationale and objectives of the reengineering
effort and for managing expectations, particularly with the agency's own staff. Updated
versions of the business case should be developed as the reengineering project proceeds
and as additional information is developed by the project team. After the project team
has defined an alternative process design, the business case should be fully fleshed out
with specific details on the proposed new process and make a rigorous, fact-based case
for proceeding with implementation. This more detailed version of the business case is
discussed later under assessment issue 6, "Has the Project Team Developed a Sound
Business Case for Implementing the New Process?"




                                             29
Key Assessment Questions

      Has the agency developed an initial business case for reengineering the target
      process that builds on the assessment issues discussed earlier in this guide?

      Does the initial business case present a credible outline of the potential cost
      savings and other benefits to be derived from reengineering the target process?
      How did the agency make a preliminary determination of the potential costs,
      benefits, and risks of reengineering the target process? Did it use benchmark data
      and best practices from leading organizations?

      Has the agency communicated its initial business case to customers and
      stakeholders? Do they understand the case and agree with it? Where are the
      points of disagreement?

      If the agency decides to pursue reengineering, how will it address any unresolved
      issues/concerns that were identified as a result of its assessment of internal and
      external barriers to change?


3.4   Is the Proposed Reengineering Project Integrated Into the Agency's Overall
      Improvement Strategy?

The reengineering project should not only support the overall strategic vision and goals of
the agency, but should also be compatible with other process improvement projects that
may be underway. The agency should have an overall improvement strategy that provides
a means to coordinate and integrate the various improvement projects, set priorities, and
make appropriate budget decisions. This is especially important if multiple improvement
projects are to be pursued at the same time. The strategy should include a discussion of
what improvement projects are necessary, how they are interrelated, the order in which
they will be pursued, and their goals, time frames, resource requirements, and key
participants.

Key Assessment Questions

      Does the agency have an overall strategy to guide its improvement efforts,
      prioritize them, and allocate resources to support them?

      Is the agency using the strategy as a means to coordinate and integrate all of its
      improvement projects?

      Has the linkage of the proposed reengineering project to this overall strategy been
      clearly spelled out?



                                            30
3.5   Have Agency Executives Begun a Program to Manage Expectations and
      Facilitate Change?

Agency executives must begin early to build support for reengineering within the
organization and with its external customers and stakeholders, mobilize the agency's
talent and resources for a reengineering project team, and authorize the substantial
actions necessary to change operations and policies. Senior executives are best
positioned to explain the agency's situation and goals, and define credible standards for
success. The sustained, conspicuous personal involvement of executives sends a strong
signal that the agency is determined to improve performance. Since reengineering
involves major changes to the way an agency does business, agency executives need to
identify and manage the key internal and external barriers to change.

Within the agency, executives should start involving managers and employees in the
reengineering project as early as possible. Executives need to continuously communicate
to the staff that large-scale problems exist and need substantive corrective action.
Executives should begin to develop and carry out a formal change management plan to
bring the agency's values into line with the goals of reengineering. As with the business
case, the change management plan will grow and become more specific as the
requirements of the redesigned process are developed. Training and career enhancement
may be needed, as well as counseling and outplacement assistance for any downsizing
that may result.

Outside the agency, executives should be working hard to achieve a broad-based
consensus that a major process change is needed to meet agency goals. Reaching such
consensus in a political environment is often difficult to achieve, since interested parties
may have conflicting opinions about what needs to be done. For this reason, executives
should reach out early to the customers and stakeholders of the process being
reengineered and involve them, where possible, in the effort. Ongoing communication
about the goals and progress of the reengineering effort is crucial, since negative
perceptions could be formed and harden at an early stage, making the implementation of
the new process more difficult to achieve. Agency executives need to work with
customers and stakeholders to negotiate their viewpoints and develop mutually acceptable
solutions.

As discussed in assessment issue 8, this change management plan needs to be well
underway by the time the new process is ready to be implemented. If change
management is delayed, it will be very difficult to build support and momentum among
the staff for implementing the new process, however good it might be.

Key Assessment Questions

      Are agency executives devising and implementing a formal change management
      plan to provide a comprehensive and coherent framework for their efforts?

                                            31
      What specific actions have top agency executives taken to implement this plan and
      communicate to managers and staff their clear commitment to the reengineering
      effort and the urgency to improve agency operations? Is this communication
      ongoing to build and maintain momentum for change?

      Have executives identified areas within the agency that might be barriers to
      reengineering the target process (organizational values, entrenched interests,
      narrow headquarters authority over field operations, etc.)? What is the plan for
      dealing with them?

      Are executives realigning agency values, incentives, and reward systems to focus
      sharply on achieving outcomes important to customers?

      Have executives identified potential external barriers to reengineering the target
      process in terms of legislation, regulation, policy issues, and political interests?
      What is the plan for dealing with them?

      What steps have executives included in the change management plan to identify
      and address customers' and stakeholders' concerns about the specific process to
      be reengineered? How well are executives addressing these concerns?


3.6   Criteria

      The Clinger-Cohen Act of 1996 (P. L. 104-106, Division E; February 10, 1996).
      Sections: 40 USC 1413(b)(2)(C)
                40 USC 1423(5)

      The Government Performance and Results Act of 1993, (P. L. 103-62,
      August 3, 1993).
      Sections: 5 USC 306
                 31 USC 1115

      OMB Circular A-11, "Preparation and Submission of Budget Estimates,"
      June 13, 1996.
      Section: OMB A-11 15.2(3)

      OMB Circular A-130, "Management of Federal Information Resources,"
      February 8, 1996.
      Sections: OMB A-130 8b(1)
                OMB A-130 7o

      Executive Guide: Improving Mission Performance Through Strategic Information
      Management and Technology (GAO/AIMD-94-115, May 1994). See Practice 1:

                                            32
Recognize and communicate the urgency to change information management
practices; Practice 2: Get line management involved and create ownership;
Practice 3: Take action and maintain momentum; Practice 6: Focus on process
improvement on the context of an architecture; and Practice 11: Upgrade the skills
and knowledge of line and information management professionals.

Executive Guide: Effectively Implementing the Government Performance and
Results Act (GAO/GGD-96-118, June 1966). See Practice 10: Create incentives; and
Practice 12, Integrate management reforms.

Government Business Process Reengineering (BPR) Readiness Assessment
(General Services Administration, November 1996). See sections on "Gain
Leadership Commitment," "Plan for Action and Communicate," "Anticipate Risks,"
and "Identify Resources and Roles."




                                    33
                                        PART B

            ASSESSING THE NEW PROCESS' DEVELOPMENT


Assessment Issue 4:        Is the Reengineering Project Appropriately Managed?

Assessment Issue 5:        Has the Project Team Analyzed the Target Process and
                           Developed Feasible Alternatives?

Assessment Issue 6:        Has the Project Team Completed a Sound Business Case for
                           Implementing the New Process?



The previous sections focused on the agency's decision to embark on a reengineering
project. The following sections highlight the activities involved in designing a new
process. These focus on establishing a well-managed team to analyze the existing
process, design possible alternatives, and determine the benefits, costs, and risks of each.
After completing these activities, agency executives and the reengineering team should
have a solid basis for selecting an alternative process and preparing a well-documented
business case for implementing it.




                                            34
                              ASSESSMENT ISSUE 4

                     IS THE REENGINEERING PROJECT
                        APPROPRIATELY MANAGED?


  Key Activities for the Agency

  •      Establish an executive steering committee and project sponsor to
         support the reengineering project.

  •      Establish an owner for the process to be reengineered.

  •      Form a qualified, trained, well-led team to reengineer the target
         process and its supporting structures.

  •      Establish a clear team charter that defines project goals, resources,
         constraints, and deliverables.

  •      Select and follow a reengineering methodology to guide the project.




Each reengineering effort should be structured and managed as a formally chartered
project with clear objectives, tasks, and time frames. Once agency executives have
selected a reengineering project, the management structure for the effort is defined,
including scope and expectations, human and technical resources, and the reengineering
methodology that will be followed.


4.1   Does the Reengineering Effort Have Ongoing Executive Support?

Agencies should have the equivalent of an executive steering committee, headed by the
agency leader, to support and oversee the reengineering effort from start to finish. Only
the top executives can build credible support among customers and stakeholders,
mobilize the talent and resources for a reengineering project, and authorize the actions
necessary to change agencywide operations. The executive committee defines the scope
of the reengineering project, allocates resources, ensures that project goals align with the
agency's strategic goals and objectives, integrates the project with other improvement
efforts, monitors the project's progress, and approves the reengineering team's
recommendations. In carrying out these responsibilities, the executive committee keeps
stakeholders apprised of the reengineering team's efforts.


                                             35
The committee should designate one of its members as the sponsor for the reengineering
project. Often, the executive sponsor is from one of the functions in the process that is
being reengineered. The sponsor serves as the liaison between the reengineering team
and the executive steering committee, and works with the team to resolve policy issues,
overcome internal roadblocks, and keep the project on track.

Key Assessment Questions

      How does the agency provide executive-level oversight and support to the
      reengineering effort? Does the agency have an executive steering committee (or its
      equivalent) to initiate, oversee, and support its reengineering projects?

      What are the steering committee's roles and responsibilities? What is its
      membership? Does it include executives from the process being reengineered?
      How often does it meet and what have been its major discussion items and
      decisions?

      Does the executive steering committee coordinate the work of the various agency
      improvement efforts (including reengineering projects) to prevent duplication or
      the development of solutions that work at cross-purposes?

      Have agency executives communicated frequently and consistently with customers,
      stakeholders, and staff about the reengineering project?

      Does the reengineering project team have a member of the executive steering
      committee who acts as its sponsor to help:

      a.   facilitate communications with the executive steering committee?
      b.   obtain and allocate the necessary resources (e.g., funds, tools, people)?
      c.   remove internal barriers for the process owner and project team?
      d.   manage relationships with internal and external stakeholders?
      e.   provide guidance on policy issues?

      Does the sponsor have a high level of personal involvement in the reengineering
      project?


4.2   Has a Process Owner Been Designated?

The process owner is the person who will ultimately be responsible for managing the
performance of the newly designed process. In some cases, the process owner may be
someone currently associated with the existing process, but not necessarily. The process
owner should be closely involved--if not actually leading--the reengineering team.



                                            36
Key Assessment Questions

      Has the agency assigned a process owner for the process to be reengineered?

      Is the process owner closely involved in the reengineering project? What is his/her
      role on the reengineering team?


4.3   Is the Reengineering Project Being Carried Out by a Skilled Team?

Reengineering should be carried out by a formally chartered team which, under the aegis
of an executive steering committee, has the responsibility for performing the day-to-day
activities of the reengineering effort. The team normally maps in more detail the current
process to be reengineered, creates alternatives for a new process (including the
possibility of eliminating it altogether), defines process measures for the newly designed
process, and develops and facilitates an implementation plan.

Team members should include people who work within the process being reengineered
and represent several organizational levels. The team may also include outside suppliers,
employee unions, consultants, and others who bring different skills and perspectives to
the team and are able to think "out of the box." Because of the variety of skills needed at
different phases of the reengineering project, the composition of the team may change
over the course of the project, but a core of team members should participate throughout
the entire reengineering process for continuity.

Key Assessment Questions

      Do the project team members represent all of the functional disciplines affected by
      the project and can they represent the viewpoints of their respective areas?

      Does the team include members who are outside the target process, even outside
      the agency, who can stimulate innovative thinking about how to change the current
      process?

      Have the team members been trained in process analysis and reengineering
      techniques? Do they have access to tools useful in supporting their work
      (groupware, process modeling software, etc.)? Does the team have access to
      technical/expert support both inside and outside the agency?

      Are team members primarily dedicated to working on the project (i.e., more than
      50 percent of their time)?




                                            37
4.4   Is There a Reengineering Team Charter and Project Plan?

The executive steering committee and/or the project sponsor generally work with the
team to develop a team charter and project plan. A team charter and project plan provide
objectives and direction to the project team. The charter outlines the scope and goals of
the project, the team's authority and interactions with the executive committee and
sponsor, and any special considerations that may put constraints on the project's potential
solutions. The project plan lays out the activities, deliverables, and time frames for the
effort and serves as the baseline for managing activities and measuring progress. It is
important that the plan allow the team some flexibility to set direction of their work.
Along the way, the team may encounter problems or new opportunities that require some
adjustments or revisions to specific tasks.

Key Assessment Questions

      What is the reengineering team's charter? Does the team have the authority to
      negotiate with people within the agency, as well as those outside who may be
      affected by reengineering, such as suppliers or third-party providers?

      What has the agency defined as "sacred cows," if any, for each reengineering
      project? Are these constraints based on assumptions or have they been freshly
      reviewed and discussed with stakeholders and customers? Can they be overcome,
      if necessary?

      Is there a formal project plan for each reengineering effort?

      a.   Are the goals and objectives clear and measurable?
      b.   Have all assumptions been explicitly stated?
      c.   Have all tasks, responsibilities, and deliverables been identified?
      d.   Have schedules and deadlines been clearly stated?
      e.   Have needed skills and resources been identified?


4.5   Is the Team Following a Reengineering Methodology?

Successful reengineering hinges on following a proven methodology for managing the
project. A sound reengineering methodology provides a structured framework that
defines in detail the activities that the team needs to complete and alerts the team to key
issues that it must address. It provides a basis for establishing project milestones and
lends discipline to the whole effort. A methodology also facilitates communication by
having a common language in place with which to discuss reengineering across the
agency.




                                             38
Several methodologies have been published (see the bibliography in appendix II).
Methodologies can also be brought in by consulting firms that have established
reengineering practices, though the agency needs to be sure that the firm has a track
record of reengineering successes with a field-tested methodology.

As noted in assessment issue 3, consultants can help a reengineering effort by bringing
specialized knowledge, skills, and experience. For example, they can help train the
reengineering team in skills such as process mapping and simulation. It is important,
however, that the agency retain ownership of the reengineering effort and actually carry it
out with its own reengineering team.

Key Assessment Questions

      Is the team using a reengineering methodology to guide its work? Has the
      methodology been tailored to the agency? Is the methodology consistent with the
      issues in this assessment guide?

      Is the team actually using the methodology to plan and carry out the reengineering
      project?

      Is the team working with an outside consultant? What is the consultant's role?


4.6   Criteria

      Executive Guide: Improving Mission Performance Through Strategic Information
      Management and Technology (GAO/AIMD-94-115). See Practice 1: Recognize and
      communicate the urgency to change information management practices; Practice 2:
      Get line management involved and create ownership.

      Government Business Process Reengineering (BPR) Readiness Guide, (General
      Services Administration, November 1996). See the section entitled "Structure
      Reengineering Teams."




                                            39
                              ASSESSMENT ISSUE 5

      HAS THE PROJECT TEAM ANALYZED THE TARGET PROCESS
            AND DEVELOPED FEASIBLE ALTERNATIVES?


  Key Activities for the Agency

  •      Map and analyze the target process in enough detail to identify the
         costs and causes of performance breakdowns.

  •      Design alternative processes and test their effectiveness through
         simulations and/or limited pilots.

  •      Assess the impact of potential barriers to implementing the
         alternative processes.

  •      Develop a performance-based and risk-adjusted benefit-cost analysis
         of each alternative process.




Reengineering a process depends heavily on the expertise of the team and its ability to
create innovative, yet practical, alternatives. The team must focus not only on designing a
new workflow, but also on thinking through the broader changes to the agency's support
structures and systems to implement the new process. Ideally, the project team should
develop more than one alternative process and assess the risks, costs, and benefits of
each. The team should identify internal or external barriers to implementation and what
actions might be effective in overcoming them. Once the team and the executive steering
committee select a preferred alternative, they should secure commitment and support
from key stakeholders and customers before proceeding with implementation.


5.1    Has the Team Analyzed the Target Process?

After the reengineering project is selected and resources and responsibilities are assigned,
the project team needs to develop a deeper understanding of the target process'
workflow, problem areas, and improvement opportunities. This is largely done through
more detailed process modeling. The current process should be modeled in enough detail
to (1) provide the agency with a common understanding of the process, (2) establish a
performance baseline at the process' activity level from which to measure improvements,



                                            40
(3) identify problem areas and non value-added activities that need to be changed or
eliminated, such as excessive hand-offs, reviews, rework, and queuing time, and
(4) understand exactly what will be changed and who will be affected when moving from
the current process to a new process. This last point is particularly important for
successful implementation.

Normally, the team will build on any high-level process mapping done earlier (see
assessment issue 1). The detailed modeling should identify all of the current process'
activities and tasks, staff roles and responsibilities, and links and dependencies with other
processes. Modeling tools and other analysis techniques include flowcharting, tree
diagrams, fishbone diagrams, and business activity maps. Speed in completing this
modeling is important; the team should not get bogged down in elaborate analysis.

Key Assessment Questions

      Has the project team developed a model of the existing process to be
      reengineered?

      a. Has the process workflow been mapped down to the activity or task level, so
         that all the key elements that drive the performance of the process have been
         identified and understood?
      b. Are there performance data (e.g., costs, time, throughput) for the activities
         within the process?
      c. Has the mapping been validated by the people who actually do the work as
         well as the process owner?

      Has the process' information flow been mapped? Have the supporting information
      systems and other key enablers been identified?

      Has the team used a disciplined process to quantitatively measure the cost and
      performance of activities and resources for the process?

      Have the jobs, skills, and specialized knowledge of the people performing the work
      been identified?

      Have the organizational components involved in the process as internal suppliers or
      customers been identified?

      Have all external customer and supplier interfaces been identified?

      Have the regulations, policies, laws, and assumptions underlying the process been
      identified?




                                             41
5.2   Has the Team Developed Feasible Alternatives to the Current Process?

Based on what it learns in analyzing the existing process, the team begins its redesign
effort--the creative part of reengineering. The first step is to develop candidate alternative
work processes and consider the tangible and intangible costs and benefits of each. The
team should explore each alternative thoroughly enough to convincingly demonstrate the
potential of each option to achieve the desired performance goals and fully describe the
types of technical and organizational changes necessary to support each goal, and, if
possible, test key assumptions. For each alternative, the team should also consider
opportunities for information technology to support the proposed process.

The team should use a cost-effective method for conducting its preliminary assessment of
alternative processes. Such methods include prototyping, limited pilot testing, and
modeling and/or computer simulation. These methods vary in terms of cost and
effectiveness. As process reengineering alternatives evolve, the team should continue to
discuss them with customers and stakeholders. This not only helps to promote buy-in,
but can also provide additional insights into issues that the team may have missed. Also,
the team should continually update its process models based on changes to the new
process, analysis of barriers and risks, and results from pilot tests.

Key Assessment Questions

      For each proposed process alternative, did the team include a detailed workflow
      and a thorough description of impacts on other processes and the overall work
      environment?

      a. Has the team documented the new workflow, with all of the interfaces and
         dependencies noted?
      b. Has the team documented the new information flow?
      c. Has the team identified and documented the impact of the proposed process
         on the agency's information and system architectures, along with any needed
         changes?
      d. Has the team identified changes needed to:
            • organizational structures,
            • management systems,
            • job descriptions and skill requirements,
            • personnel compensation and reward systems,
            • human resources policies (training, hiring, incentives), and
            • facilities?
      e. Has the team identified any changes to legislation, regulations, policies, and
         rules that would be required to implement the alternative process?




                                             42
      Has the team identified the constraints and assumptions that may affect the cost
      and benefits of alternative solutions? Did they estimate the impact of constraints
      and assumptions on the alternative process?

      Has the team conducted a preliminary feasibility test of the alternatives through
      simulation or other means? Have they clearly and accurately documented the
      results of the feasibility test?

      Has the team clearly expressed the quantitative and qualitative benefits in mission
      or program improvement terms (e.g., changes in quality, cost, speed, accuracy, or
      productivity)?

      Has the team developed performance indicators for the newly designed process?
      Are these measures aligned with the agency's strategic measures?

      Has the team assessed how information technology could best be used to support
      the alternative work processes?

      a. Did the team have access to expertise to explore information technology
         opportunities?
      b. Did the team develop results-oriented information technology performance
         measures--both quantitative and qualitative--which can form the basis for
         measuring the impact of the proposed information technology investment?

      Has the team aligned its new process alternatives with key stakeholders' and
      customers' expectations and performance requirements?

      a.   For any significant deviations from key stakeholder performance requirements,
           did the team assess the impact of these deviations on the stakeholder and the
           agency's performance goals?


5.3   Has the Agency Identified and Assessed Potential Implementation Barriers?

The team should identify potential barriers to implementing alternative processes. The
purpose of barrier identification is to find unusual or major obstacles that will need to be
overcome in order to implement a new process. Political issues should be a key concern.
Other concerns include entrenched workplace attitudes or values, an insufficient number
of employees with the skills required for the redesigned roles, collective bargaining
agreements, incompatible organizational or physical infrastructure, current laws and
regulations, and funding constraints. The impact of these barriers and the costs of
addressing them (such as staff training, hiring, and relocation) need to be factored into
the benefit-cost analysis.



                                            43
Barriers that arise from internal skepticism and resistance to change are to be expected
and can often be overcome through the use of employee education, change management
activities, and successful pilot testing of the new process. Perceived regulatory barriers
may actually be within the agency's authority to change, though rule-making should be
built upon consultation with stakeholders. Other barriers may require ongoing negotiation
with stakeholders throughout the implementation of the new process. If the
reengineering team determines that the risks and costs of implementing a preferred new
process appear too great, they may need to pursue one of the less ideal, but more
feasible, alternatives that they developed.

Key Assessment Questions

      Has the team identified potential barriers to implementing the process alternatives?

      Has the team obtained and analyzed the concerns of stakeholders to help identify
      and define potential barriers? Is there a feedback mechanism to discuss how
      concerns are being met?

      Has the team used "lessons learned" from its own improvement efforts, as well as
      other organizations' reengineering efforts, in assessing and overcoming potential
      barriers?

      Has the team categorized/ranked barriers based on their potential impact on
      implementing the alternative process?

      a. Did the team attempt to quantify the potential impact of key barriers and their
         relative risk (i.e., probability of the barrier being actualized)?
      b. Was the impact of key barriers considered in modeling and the risk adjusted
         benefit-cost analysis?

      Has the team identified ways to overcome the identified barriers?

      a. Has the team determined the level of effort and resources required to mitigate
         the barriers?
      b. Has the team considered the resources required to address barriers in its
         benefit-cost estimates?
      c. Has the team identified a contingency or risk mitigation strategy for critical
         barriers should they persist as a new process is being implemented?

      Has the team ensured that key cultural barriers (e.g., training and skills required
      for new jobs, entrenched culture, incompatible support structures, fear of
      downsizing) are addressed in its change management strategy?




                                            44
      Has the team accurately incorporated information on key barriers (including
      potential impact, probability of occurrence, risk mitigation strategy, and resources
      estimated to address barriers) into its design of process alternatives?


5.4   Has the Team Developed a Performance-Based, Risk-Adjusted Analysis of
      Benefits and Costs for Each Design Alternative?

The team should develop a performance-based benefit-cost analysis for each alternative to
provide (1) the foundation for comparing the baseline benefits and costs with proposed
alternative processes and (2) a basis for decisionmakers to use in selecting a feasible
alternative process that meets performance goals. Performing a benefit-cost analysis is
consistent with the GPRA's requirement for agencies to develop annual performance plans
with annual performance goals and indicators to measure performance.

The team should factor into the analysis the results from its analyses of barriers and risks
in implementing the process alternatives. The analysis should also include quantitative
and/or qualitative estimates of the expected benefits and costs (to the agency and others)
based on established definitions and practices for the program. Both tangible and
intangible benefits and costs should be identified, assessed, and reported. The team
should also recognize that the benefit and cost estimates of alternative processes are
often uncertain because of the imprecision in both underlying data and modeling
assumptions. According to OMB Circular A-94 "Guidelines and Discount Rates for
Benefit-Cost Analysis of Federal Programs", useful information in a report about
uncertainties would include the key sources of uncertainty; expected value estimates of
outcomes; the sensitivity of results to important sources of uncertainty; and, where
possible, the probability distributions of benefits, costs, and net benefits.

Key Assessment Questions

      Has the team identified risk factors associated with implementing each alternative?

      a. Did the team quantify and rank risks?
      b. Did the team perform a sensitivity analysis on key process variables and
         assumptions?
      c. Did the team document how specific risk factors will be continually monitored
         to minimize exposure?

      Has a risk-adjusted benefit-cost analysis been prepared for each alternative that:

      a. Relies on systematic measures of mission performance?
      b. Is consistent with OMB Circular A-94 "Guidelines and Discount Rates for
         Benefit-Cost Analysis of Federal Programs?"
      c. Is at a level of detail appropriate to its size?

                                            45
      d. Considered non-monetary benefits and costs?

      Has the team assessed how well each alternative meets the goals of the project?

      Has the team established a structure for achieving benefits?

      a. What are the expected ongoing benefits and costs of the reengineering effort?
      b. How will benefits will be recovered and managed during the new process'
         lifecycle?
      c. How long before a "break-even" point is reached?
      d. How long before full benefits are realized?


5.5   Criteria

      Clinger-Cohen Act of 1996 (P.L. 104-106, Division E; February 10, 1996).
      Sections: 40 USC 1423(5)
                40 USC 1423(3)

      The Paperwork Reduction Act of 1995, as amended (P.L. 104-13, May 22, 1995).
      Section: 44 USC 3506(b)(3)(C)

      The Federal Acquisition Streamlining Act of 1994 (P.L. 103-355, October 13, 1994).
      Section: 41 USC 263

      OMB Circular A-130, "Management of Federal Information Resources,"
      February 8, 1996.
      Sections: OMB A-130 7o
                OMB A-130 8b(1)
                OMB A-130 App. IV 8b(1)
                OMB A-130 8b(1)(b)
                OMB A-130 8b(1)(c)

      OMB Circular A-11, "Preparation and Submission of Budget Estimates,"
      June 13, 1966.
      Section: OMB A-11 15.6

      OMB Circular A-94, "Guidelines and Discount Rates for Benefit-Cost Analysis of
      Federal Programs," October 29, 1992.




                                           46
                               ASSESSMENT ISSUE 6

       HAS THE PROJECT TEAM COMPLETED A SOUND BUSINESS
            CASE FOR IMPLEMENTING THE NEW PROCESS?


   Key Activities for the Agency

   •      Select a feasible process alternative with a high return on
          investment.

   •      Develop a formal business case for implementing the new process
          that describes benefits, costs, and risks.

   •      Use the agency's capital investment review process to evaluate the
          business case and decide whether to proceed with implementation.




Given several possible process design alternatives, the reengineering team and the
executive steering committee need to settle on one. The new design must be feasible to
implement, given the various constraints and barriers that face the agency. There must
also be a high return on investment in the project, in terms of improved performance
and/or reduced costs. The initial business case for the reengineering project (see
assessment issue 3) should now be updated and enlarged to present detailed qualitative
and quantitative analyses in support of selecting and implementing the new process in
terms of benefits, costs, and risks. It should also lay out--at least at a high level--the plan
for implementing the new process. The completed business case becomes a key
document for agency executives to use in deciding whether or not to go ahead with
implementation.


6.1    Has the Agency Selected a Feasible Process Alternative with a High Return
       on Investment?

As previously discussed in assessment issue 5, the reengineering team should consider
and analyze alternative processes that will allow the agency to meet or exceed its
performance goals. The team's analysis of alternative processes should have considered
benefits, costs, and risks. The team should also have determined the performance results
that each could be expected to achieve through such techniques as computerized process
simulation and/or limited pilot testing. However, consideration still needs to be given to
several other factors relating to general feasibility, including agency-level budgetary,


                                              47
management, and political issues. Because these factors relate to agency-level
considerations, the executive steering committee should be involved in comparing the
alternatives in the context of these additional factors and selecting one of them.
The executive steering committee and the reengineering team should work together to
establish criteria for selecting the most value-added alternative to implement. This often
involves setting up a selection matrix and scoring system by which alternatives are
ranked against each other in various categories, such as benefits, implementation time,
costs, payback time, risk, amount of change needed in various areas to support the
process, etc.

Key Assessment Questions

      Did the agency establish a relative ranking of the process alternatives that took
      into consideration the various pluses and minuses of each one?

      Have all the major change management issues associated with the preferred
      alternative been identified and discussed? Do there appear to be any
      insurmountable barriers?

      Does the preferred alternative represent the best balance of feasibility versus
      return on investment for the agency?

      Did the executive steering committee make its final selection in consultation with
      its other executives and line managers as well as stakeholders and customers?


6.2   Has the Agency Updated Its Initial Business Case for the New Process?

Once the agency selects the process alternative that it wishes to implement, it should
revise and enlarge its initial business case for the reengineering project (see assessment
issue 3). The updated business case becomes a key document for justifying the funds and
other resources needed to implement the new process.

The initial business case should be expanded to include up-to-date information on
customer and stakeholder expectations, how current processes are failing to meet those
expectations, and opportunities to improve based on benchmark agencies. The new
process being proposed should be fully described, along with the performance measures
that will be used to assess how well it is meeting improvement goals and achieving
promised benefits. Not only the "end state" of the process should be described, but also
the intermediate steps that will be taken to get to full implementation. In addition, the
business case should contain information on any options for implementation that need to
be considered.




                                            48
Key Assessment Questions

      Does the updated business case include a performance-based and risk-adjusted
      benefit-cost analysis for implementation alternatives? Does it appear that
      reengineering the process will yield a large return on investment?

      Does the updated business case identify resources, responsibilities, and a schedule
      for implementing the new process?

      Have the agency's top executives communicated the business case to key
      congressional committees, OMB, and other stakeholder and customer groups to
      secure their support for full implementation?

      How does the agency intend to address any unresolved concerns expressed by
      these groups? Are any of their concerns serious enough to prevent the project
      from going forward?


6.3   Has the Agency Used Its Capital Investment Review Process to Assess the
      Business Case?

The agency's capital investment review process should be used to review the completed
business case and decide on whether the new process should be funded and
implemented. Because reengineering typically includes investment in new information
technology, provisions of the PRA and the Clinger-Cohen Act calling for an information
technology investment review process may apply. Specifically, agency heads are to
(1) design and implement a process for maximizing the value and assessing and managing
the risks of information technology acquisitions, (2) integrate budgetary, financial, and
program management decisions in this process, and (3) use this process to select, control,
and evaluate the results of information technology initiatives.

Key Assessment Questions

      Does the agency have a sound capital investment review process?

      Has the proposed reengineering project gone though the agency's capital
      investment review process?

      Has the agency used quantitative as well as qualitative decision criteria for
      comparing the expected benefits, costs, risks, and returns associated with
      implementing the reengineering project?




                                            49
      Have any information technology acquisitions needed to support the new process
      been reviewed and approved by the agency's information technology review
      process?

      Has the agency established a management process for controlling and evaluating
      the reengineering project once implementation has begun?

      Has the agency defined performance measures--derived from annual performance
      targets, long-term goals, and the agency's mission--for the prospective new process,
      and does the agency's capital investment review process assess the prospective
      reengineering project in the context of meeting performance goals?


6.4   Criteria

      The Clinger-Cohen Act of 1996 (P. L. 104-106, Division E; February 10, 1996).
      Sections: 40 USC 1425(c)(2)
                40 USC 1412(c)

      The Federal Acquisition Streamlining Act of 1994 (P.L. 103-355, October 13, 1994).
      Section: 41 USC 263

      OMB A-11, "Preparation and Submission of Budget Estimates," June 13, 1996.
      Section: OMB A-11 43.2(b)

      OMB A-130, "Management of Federal Information Resources," February 8, 1996.
      Section: OMB A-130 8b(3)(b)

      Executive Guide: Improving Mission Performance Through Strategic Information
      Management and Technology (GAO/AIMD-94-115, May 1994). See Practice 1:
      Recognize and communicate the urgency to change information management
      practices; Practice 4: Anchor strategic planning in customer needs and mission
      goals; Practice 6: Focus on process improvement in the context on an architecture

      Evaluating Information Technology Investments: A Practical Guide, Version 1.0,
      Office of Information and Regulatory Affairs, Information Policy and Technology
      Branch, November 1995.

      Assessing Risks and Returns: A Guide for Evaluating Federal Agencies' IT
      Investment Decision-making, Version 1 (GAO/AIMD-10.1.3, February 1997).




                                           50
                                        PART C

       ASSESSING PROJECT IMPLEMENTATION AND RESULTS


 Assessment Issue 7:       Is the Agency Following a Comprehensive Implementation
                           Plan?

 Assessment Issue 8:       Are Agency Executives Addressing Change Management
                           Issues?

 Assessment Issue 9:       Is the New Process Achieving the Desired Results?



Implementation is the most difficult phase of the reengineering project. Ideas are turned
into actions, and the agency's natural resistance to change must be overcome. The
following sections highlight the kinds of activities that the agency should pursue to ensure
a reasonable transition to the new process; manage the human and technical issues
surrounding implementation of the new process; and assess the results of its
reengineering effort. This section also stresses the importance of ongoing performance
measurement and feedback to continually improve the new process once it is in place.




                                            51
                             ASSESSMENT ISSUE 7

           IS THE AGENCY FOLLOWING A COMPREHENSIVE
                     IMPLEMENTATION PLAN?


  Key Activities for the Agency

  •      Establish a transition team and develop a comprehensive plan to
         manage implementation.

  •      Manage training and workforce redeployment issues.

  •      Conduct pilot tests of the new process prior to full implementation.




Having decided to implement the new process, the agency now faces the formidable
challenge of turning concepts into reality. An implementation plan should be developed
that spells out the work that needs to be done, with time frames, milestones, decision
points, and resource allocations. Training and workforce issues are important elements
of an effective implementation plan. Pilot testing provides a method for refining the
process and building support for full implementation of the new process across the
agency.


7.1   Has the Agency Established a Transition Team and Developed a
      Comprehensive Implementation Plan?

The agency needs to establish a transition team to manage the implementation process.
This team should include the project sponsor, the process owner, members of the
reengineering team, and key executives, managers, and staff from the areas directly
affected by changeover from the old process to the new.

Agency executives and the transition team should develop a detailed implementation plan
that lays out the road to the new process. Critical elements and milestones should be
identified and their progress closely monitored by the executive steering committee.
Timetables for all actions should be specified, and the individuals responsible for
overseeing and performing tasks should be assigned. Highly visible executive-level
leadership and encouragement is especially important at this stage. Agency leaders must
show that they are personally committed to seeing the new process put in place.



                                           52
Key Assessment Questions

      Has the agency prepared a written plan for pilot testing and agencywide
      implementation of the new process that:

      a. Identifies all tasks, timeframes, and needed resources for an orderly transition?
      b. Structures the roll out of the new process in a way reasonably suited to the
         nature of the process and the work and structure of the agency?
      c. Assigns roles and responsibilities for implementation to the individuals who
         will do the work of the new process?
      d. Provides a means for collecting and sharing implementation problems and
         solutions?
      e. Provides for close monitoring during implementation?

      Has a transition team been established to guide the reengineering effort? Is the
      team made up of the project sponsor, the process owner, members of the
      reengineering team, and key executives, managers, and staff from the areas directly
      affected by the implementation of the new process?

      Has the transition team made necessary arrangements with the agency's
      administrative offices to transition smoothly from the old process to the new (e.g,.
      budgeting, accounting, purchasing, maintenance, and legal counsel)?

      Are executives and managers affected by the process change actively promoting
      and facilitating the implementation of the new process?


7.2   Has the Transition Team Addressed Workforce Training and Redeployment
      Issues?

Training and redeploying the workforce is often a major challenge and generally requires
substantial preparation time. When a process is redesigned and new information systems
are introduced, many of the tasks workers perform are radically changed or redistributed.
Some positions may be eliminated or cut back, while others are created or modified.
Workers may need to handle a broader range of responsibilities, rely less on direct
supervision, and develop new skills.

Key Assessment Questions

      Has the transition team identified the new tasks, roles, responsibilities, reporting
      relationships, and training needs required by the new process? Have position
      descriptions and classifications been revised to reflect the new skills and
      responsibilities of staff in the new process?



                                            53
      Has the transition team identified how many employees, and which employees,
      would be affected by redeployment, retraining, or reductions-in-force? Has the
      agency developed training programs?

      Has the transition team met with other governmental agencies and private
      businesses to learn about the successful ways to plan workforce redeployment,
      retraining, and reductions?

      Are agency executives working closely with employee unions to minimize the
      potential for adverse effects of the implementation on its members, and to make
      use of union suggestions where feasible?

      Has the agency provided career counselors and outplacement assistance as needed
      to help employees plan new career paths or seek new employment?


7.3   Are Pilot Tests Being Used to Evaluate and Refine the New Process Design?

Pilot testing is an effective--and usually necessary--tool for moving the agency successfully
to full implementation. Pilot testing allows the agency to (1) evaluate the soundness of
the proposed process in actual practice, (2) identify and correct problems with the new
design, and (3) refine performance measures. Also, successful pilot testing will help
strengthen support for full-scale implementation from employees, outside stakeholders,
the Congress, and the public, and help secure the funding needed for a smooth rollout.

The length and extent of pilot testing will vary depending on the complexity of the
changes being driven by the new process. For example, a complex process that affects
regional offices across the nation may require a series of pilot tests. Agencies should be
careful, however, not to test beyond the point of diminishing returns. No matter how
much testing is done, only full implementation can reveal all of the potential problems
with the new process.

The transition team should develop a formal evaluation process to determine the
efficiency and effectiveness of the new process, both during pilot tests and full
implementation, in meeting the agency's performance goals. The process should also
allow the agency to pinpoint trouble spots, so that corrective actions can be developed
quickly.

Key Assessment Questions

      Has the transition team selected a pilot testing strategy that is suited to the new
      process and considers the concerns of stakeholders?




                                             54
      Has the transition team ensured that the testing unit fully understands the pilot and
      that employees are sufficiently trained and understand their roles?

      Has the transition team developed performance measures and data gathering
      procedures to be used during the pilot? Do the measures reflect project goals?

      Has the transition team defined success criteria for the pilot test?

      Has the transition team carefully measured the performance of the pilot test and
      identified any corrective actions required?

      Has the agency gathered customer, stakeholder, and employee feedback about the
      pilot test? Were any needed corrective actions identified?

      Has the transition team made changes to the design of the new process as a result
      of cost or performance problems uncovered during the pilot? Has the revised
      process design been pilot tested with satisfactory results before proceeding to full
      implementation?


7.4   Criteria

      Clinger-Cohen Act of 1996 (P.L. 104-106, Division E; February 10, 1996).
      Sections: 40 USC 1423(3)
                40 USC 1412(c)
                40 USC 1426

      The Government Performance and Results Act of 1993 (P.L. 103-62,
      August 3, 1993).
      Section: GPRA 31 USC 1115

      The Chief Financial Officers Act of 1990, as amended (P.L. 101-576,
      November 15, 1990).
      Section: 13 USC 902(a)(3)

      OMB A-11, "Preparation and Submission of Budget Estimates," June 13, 1996.
      Sections: OMB A-11 34.1
                OMB A-11 15.2(3)

      The System Assessment Framework: A Guide for Reviewing Information
      Management and Technology Issues in the Federal Government, Version 1
      (GAO/AIMD-10.1.12, August 1996).




                                            55
Executive Guide: Improving Mission Performance Through Strategic Information
Management and Technology (GAO/AIMD-94-115, May 1994). See Practice 11:
Upgrade skills and knowledge of line and information management professionals.




                                   56
                              ASSESSMENT ISSUE 8

           ARE AGENCY EXECUTIVES ADDRESSING CHANGE
                     MANAGEMENT ISSUES?


  Key Activities for the Agency

  •      Prepare and follow a change management strategy.

  •      Encourage staff to accept new ideas and adopt the new process.

  •      Prepare staff, managers, and executives for changes in their roles
         and career expectations.




The implementation of a new process is typically the most failure-prone phase of the
reengineering project because of an organization's natural resistance to change.
Frequently, the greatest challenges lie not in managing the technical or operational
aspects of change, but in managing the human dimensions of change. Widely shared
agency perceptions, based on assumptions deeply rooted in the agency’s culture, can
translate into a belief that reengineering is unnecessary, unworkable, or unfair. As
indicated in assessment issue 3, agency executives need to begin managing change early
in the reengineering effort.

Some experts caution that unless planning and accountability for change management is
given a separate focus, the effort will not be managed well. During the implementation
phase especially, agency executives must be in the forefront in dealing with the social,
psychological, and political resistance to changing the way work is done. Executives
must also recognize that their own roles and responsibilities may need to undergo change
as well.


8.1   Are Agency Executives and the Transition Team Refining and Implementing
      the Change Management Plan?

As noted earlier in assessment issue 3, agency executives should begin building a change
management plan from the very beginning of the project. Executives and the transition
team should revise this plan to (1) present the goals and objectives of the new process in
concrete, "nuts-and-bolts" language and (2) link the new process to specific issues,
questions, and challenges involved in implementation (e.g., work roles, relationships,


                                            57
performance expectations, supervisory methods, and career path). The plan should
include periodic checkpoints for assessing and responding to the opinions and attitudes of
staff about the perceived consequences of the new process.

Key Assessment Questions:

      Has the agency refined its plan for facilitating needed cultural changes across the
      agency? Does the plan:

      a. Identify specific change management tasks?
      b. Align the change management tasks with the project and implementation
         timetables?
      c. Assign responsibilities to specific individuals for carrying out change
         management tasks?
      d. Provide for periodic assessments of employee needs, concerns, and reactions?

      Did the agency use outside experts to help its executives and the transition team
      to:

      a. Become more aware of underlying organizational and cultural issues that can
         pose obstacles to reengineering?
      b. Incorporate proven techniques for managing these obstacles and achieving
         change objectives?


8.2   Are Senior Executives Encouraging Acceptance of the New Process?

Breaking down cultural assumptions can be uncomfortable for both staff and
management. Senior executives will need to reiterate the performance problems,
customer dissatisfactions, budgetary pressures facing the agency, and opportunities to
achieve agency goals by finding better ways to do work. By their own example,
executives should encourage staff to question current assumptions about how the
agency's work should be done. This creates a more open atmosphere to admit
frustrations, offer suggestions, and support something new and better. By taking these
steps, executives introduce three important new ideas to the agency's culture--a process-
centered view of the agency; the possibility that "things really can change around here;'"
and the idea that groups and individuals can get credit for implementing solutions. The
agency's culture will gradually change as staff come to share their perceptions of the new
situation and collectively subscribe to new norms, expectations, and responsibilities.




                                           58
Key Assessment Questions

      Have senior executives clearly identified and explained the agency's concerns
      regarding customer service issues and other change drivers, and emphasized that
      major improvements are imperative?

      Has the communications effort directly addressed the common objections to
      change, and explained why change is necessary, workable, and beneficial? Was the
      communications effort begun early in the process (once customer service issues
      and performance improvement goals have been identified)?

      What formal and informal opportunities have senior executives provided for
      employees to provide feedback about the operational and personal problems they
      face during implementation?

      Have senior executives made a commitment to assist employees to make the
      transition to the new process? How was this commitment communicated and
      reinforced to the employees?

      Have executives called attention to the efforts, contributions, and innovations of
      employees during the reengineering project, and widely shared the credit for
      success with everyone?


8.3   Has the Agency Assisted Staff and Managers to Take on New Roles and
      Responsibilities?

Staff may lack confidence in their ability to do their new jobs in the reengineered process.
For example, workers may feel uncomfortable with a new role of having to deal directly
with the public. Similarly, those who previously followed well-defined procedures, and
were rewarded for doing so, may now have to make judgments and select procedures
appropriate to a new situation: they are rated not only on compliance, but also on
problem-solving abilities. The change management plan should include provisions for
helping employees to overcome concerns about the new ways of doing business.

Executives and managers often speak of resistance to change from employees or outside
groups. But management itself can resist the full implications of changing a work
process. As a result of reengineering, staff often have a broader range of responsibilities
and are empowered to make decisions and take actions with less direct supervision than
before. Executives and managers must establish new working relationships with
employees, placing more emphasis on their role as facilitators, teachers, or coaches, and
less as directors and controllers. This transition can be difficult. Executives and
managers who fail to change with their staff put the reengineering effort at great risk.



                                            59
Key Assessment Questions

      Has the agency provided training to its staff, managers, and executives to prepare
      them for the new roles and responsibilities called for by the new process?

      Have executives and managers negotiated new, clear understandings about how
      authority and responsibility for the new process will be allocated?

      Have executives included managers in making any needed changes to the agency's
      managerial structure?

      Has the agency reoriented its performance appraisal and reward process to the
      implementation of the new process and the fulfillment of performance
      improvement goals?

      Have executives involved managers in defining the agency's policies and
      procedures for using agency performance indicators to assess managerial and staff
      performance?

      Has the agency provided career counseling or outplacement assistance to
      individuals at all ranks who have lost their positions, who must develop new career
      plans, or who chose to resign?


8.4   Criteria

      Executive Guide: Effectively Implementing the Government Performance and
      Results Act (GAO/GGD-96-118, June 1996). Step 1, Define mission and desired
      outcomes; Practice 10, Create incentives.

      Executive Guide: Improving Mission Performance Through Strategic Information
      Management and Technology (GAO/AIMD-94-115, May 1994). See Practice 1:
      Recognize and communicate the urgency to change information management
      practices; Practice 2: Get line management involved and create ownership;
      Practice 3: Take action and maintain momentum; and Practice 11: Upgrade skills
      and knowledge of line and information management and professionals.




                                           60
                             ASSESSMENT ISSUE 9

                     IS THE NEW PROCESS ACHIEVING
                          THE DESIRED RESULTS?


  Key Activities for the Agency

  •      Measure the performance of the new process.

  •      Determine if the new process is achieving the desired results.

  •      Use performance measurement as a feedback loop for continuously
         improving the new process.




An agency has no way of knowing if the new process has produced the desired results
unless it has meaningful performance measures. Good performance measures generally
include a mix of outcome, output, and efficiency measures. Outcome measures assess
whether the process has actually achieved the intended results. Output measures
examine the products and/or services produced by the process, such as the number of
claims processed. Efficiency measures evaluate such things as the cost of the process
and the time it takes to deliver the output of the process (a product or service) to the
customer. Ongoing performance measurement provides the feedback which is so critical
for continual improvement and future successes.


9.1   Does the Agency Have Performance Measures in Place for the New Process?

The agency should be gathering performance data on the new process--just as it should be
doing for its other processes, as called for by GPRA. The data should be complete,
accurate, and consistent enough to determine how well the process is meeting its
performance goals and whether further improvements are needed.

Key Assessment Questions

      Did the transition team identify the necessary data for routinely assessing the
      performance of the reengineered process on a long-term basis? Do the
      performance measures include a mixture of outcome, output, and efficiency
      measures? Are the measures linked to the agency's strategic goals?



                                           61
      What measures for the new process did the agency actually decide to put in place?
      Do they differ from the team's recommendations? If so, why?

      Are the measures integrated into the agencywide performance measurement
      system?


9.2   Is the New Process Achieving Its Planned Performance Goals?

As part of its business case for implementing the new process, the agency should have
established specific performance goals for the reengineered process. These goals should
include a mixture of intermediate goals to be met at various stages during the
implementation phase, as well as ultimate performance goals for the process after it has
been fully implemented and institutionalized. The intermediate goals are particularly
important because the agency should be able to start showing a return on investment in
the early stages of implementation.

Key Assessment Questions

      Are agency executives, managers, and staff actually using the measurement data
      being gathered to assess the new process' performance?

      Do the measures show that performance goals are being met and that the project is
      on track for achieving its expected return on investment?

      What action is the agency taking to correct any shortfalls in expected
      performance?


9.3   Is the Agency Using Performance Information to Continually Improve the
      New Process?

The gains achieved by the new process can erode unless the agency continually monitors
its performance and makes further refinements. Managers should use performance
information to continually improve work processes, identify performance gaps, and set
additional improvement goals, as needed.

Key Assessment Questions

      Does the agency encourage managers and staff to use performance data to find
      ways of further improving the new process?

      Does the agency periodically assess process performance goals in order to
      determine the potential for achieving higher levels of performance?

                                           62
9.4   Criteria

      Clinger-Cohen Act of 1996 (P.L. 104-106, Division E; February 10, 1996).
      Sections: 40 USC 1423(3)
                40 USC 1425(c)(2)
                40 USC 1426

      The Government Performance and Results Act of 1993 (P.L. 103-62,
      August 3, 1993).
      Sections: 31 USC 1115
                 31 USC 1116

      The Chief Financial Officers Act of 1990, as amended (P.L. 101-576,
      November 15, 1990).
      Section: 13 USC 902(a)(3)

      OMB Circular A-130, "Management of Federal Information Resources,"
      February 8, 1996.
      Section: OMB A-130 8b(3)(b)

      OMB Circular A-11, "Preparation and Submission of Budget Estimates,"
      June 13, 1966.
      Sections: OMB A-11 15.6
                 OMB A-11 34.1

      Executive Guide: Effectively Implementing the Government Performance and
      Results Act (GAO/GGD-96-118, June 1996). See Step 3: Use performance
      information.

      Executive Guide: Improving Mission Performance Through Strategic Information
      Management and Technology (GAO/AIMD-94-115, May 1994). See Practice 5:
      Measure the performance of key mission delivery processes.




                                           63
                                     APPENDIX I

                                       Glossary


Activity Analysis: the analysis and measurement (in terms of time, cost, and
throughput) of distinct units of work (activities) that make up a process.

Activity-Based Costing: a set of accounting methods used to identify and describe
costs and required resources for activities within processes.

Alignment: the degree of agreement, conformance, and consistency among
organizational purpose, vision, and values; structures, systems, and processes; and
individual skills and behaviors.

"As Is" Process Model: a model that portrays how a business process is currently
structured. In process improvement efforts, it is used to establish a baseline for
measuring subsequent business improvement actions and progress.

Baselining: obtaining data on the current process that provide the metrics against which
to compare improvements and to use in benchmarking.

Benchmark: a measurement or standard that serves as a point of reference by which
process performance is measured.

Benchmarking: a structured approach for identifying the best practices from industry
and government, and comparing and adapting them to the organization's operations. Such
an approach is aimed at identifying more efficient and effective processes for achieving
intended results, and suggesting ambitious goals for program output, product/service
quality, and process improvement.

Benefit-Cost Analysis: a technique to compare the various costs associated with an
investment with the benefits that it proposes to return. Both tangible and intangible
factors should be addressed and accounted for.

Best Practices: the processes, practices, and systems identified in public and private
organizations that performed exceptionally well and are widely recognized as improving
an organization's performance and efficiency in specific areas. Successfully identifying
and applying best practices can reduce business expenses and improve organizational
efficiency.

Business Case: a structured proposal for business improvement that functions as a
decision package for organizational decisionmakers. A business case includes an analysis


                                            64
of business process performance and associated needs or problems, proposed alternative
solutions, assumptions, constraints, and risk-adjusted cost/benefit analysis.

Business Process Reengineering: a systematic, disciplined improvement approach that
critically examines, rethinks, and redesigns mission-delivery processes in order to achieve
dramatic improvements in performance in areas important to customers and stakeholders.

Change Management: activities involved in (1) defining and instilling new values,
attitudes, norms, and behaviors within an organization that support new ways of doing
work and overcome resistance to change; (2) building consensus among customers and
stakeholders on specific changes designed to better meet their needs; and (3) planning,
testing, and implementing all aspects of the transition from one organizational structure
or business process to another.

Continuous Process Improvement: an ongoing effort to incrementally improve how
products and services are provided and internal operations are conducted.

Core or Key Process: business processes that are vital to the organization's success and
survival.

Cultural Assumptions: beliefs about the internal workings and external environment of
an organization which, having worked well in the past, have gradually come to be taken
for granted, and which provide the basis for group consensus about common events and
circumstances. Cultural assumptions function as the unifying themes of organizational
culture.

Customer: groups or individuals who have a business relationship with the organization;
those who receive and use or are directly affected by the products and services of the
organization. Customers include direct recipients of products and services, internal
customers who produce services and products for final recipients, and other organizations
and entities that interact with an organization to produce products and services.

Cycle Time: the time that elapses from the beginning to the end of a process.

Decomposition: breaking down a process into subprocesses and activities.

Executive Steering Committee: the top management team responsible for developing
and sustaining the process management approach in the organization, including selecting
and evaluating reengineering projects.

Fishbone Diagram: a graphic technique for identifying cause-and-effect relationships
among factors in a given situation or problem. Also called Ishikawa Diagramming.




                                            65
Function: a set of related activities that is part of a process, often known as a
subprocess within a process. Organizations often divide themselves into functional units,
such as purchasing, product development, order fulfillment, etc.

Input: the financial and nonfinancial resources the organization obtained or received to
produce its outputs.

Information Engineering: an approach to planning, analyzing, designing, and
developing an information system with an enterprisewide perspective and an emphasis on
data and architectures.

Information Technology Investment Review Process: an analytical framework for
linking information technology investment decisions to strategic objectives and business
plans in organizations. The investment process consists of three phases: selection,
control, and evaluation. This process requires discipline, executive management
involvement, accountability, and focus on risks and returns using quantifiable measures.
Guidance on the investment review process can be found in the Office of Information and
Regulatory Affairs' guide, entitled Evaluating Information Technology Investments: A
Practical Guide, Version 1.0 and GAO's guide, entitled Assessing Risks and Returns: A
Guide for Evaluating Federal Agencies' IT Investment Decision-making, Version 1,
(GAO/AIMD-10.1.3, February 1997).

Integrated Definition for Function Modeling (IDEF): modeling techniques designed
to capture the processes and structure of information in an organization. IDEF0 is a
process modeling technique; IDEF1X is a rule or data modeling technique.

Model: a representation of a set of components of a process, system, or subject area. A
model is generally developed for understanding, analysis, improvement, and/or
replacement of the process.

Modeling or Flowcharting: a graphic representation of the activities and subprocesses
within a process and their interrelationships.

Outcome: the ultimate, long-term, resulting effects--both expected and unexpected--of
the customer's use or application of the organization's outputs.

Performance Gap: the gap between what customers and stakeholders expect and what
each process and related subprocesses produces in terms of quality, quantity, time, and
cost of services and products.

Performance Measurement: the process of developing measurable indicators that can
be systematically tracked to assess progress made in achieving predetermined goals and
using such indicators to assess progress in achieving these goals.



                                           66
Process Management Approach: approaches, such as continuous process improvement,
business process redesign, and reengineering, which can be used together or separately to
improve processes and subprocesses.

Process: a set of activities that produce products and services for customers.

Process Owner: an individual held accountable and responsible for the workings and
improvement of one of the organization's defined processes and its related subprocesses.

Risk Analysis: a technique to identify and assess factors that may jeopardize the success
of a project or achievement of a goal. This technique also helps define preventive
measures to reduce the probability of these factors from occurring and identify
countermeasures to successfully deal with these constraints when they develop.

Root Cause Analysis: a technique used to identify the conditions that initiate the
occurrence of an undesired activity or state.

Sensitivity Analysis: analysis of how sensitive outcomes are to changes in the
assumptions. The assumptions that deserve the most attention should depend largely on
the dominant benefit and cost elements and the areas of greatest uncertainty of the
program or process being analyzed.

Simulation Modeling: a simulation model is a computer program that replicates the
operations of a business process and estimates rates at which outputs are produced and
resources are consumed. Models test the consistency of the facts, logic, and assumptions
used by planners to design a proposed business process, to compare alternative business
processes, or to test the sensitivity of a process to changes in selected assumptions.
Models help decisionmakers to assess the potential benefits, costs, and risks of alternative
processes and strategies.

Stakeholder: an individual or group with an interest in the success of an organization in
delivering intended results and maintaining the viability of the organization's products and
services. Stakeholders influence programs, products, and services. Examples include
congressional members and staff of relevant appropriations, authorizing, and oversight
committees; representatives of central management and oversight entities such as OMB
and GAO; and representatives of key interest groups, including those groups that
represent the organization's customers and interested members of the public.

"Stretch" Goal: a goal that requires a significant change in the performance (quality,
quantity, time, cost) of a process.

Subprocess: a collection of related activities and tasks within a process.




                                            67
"To Be" Process Model: a process model that results from a business process
redesign/reengineering action. The "to be" model shows how the business process will
function after the improvement action is implemented.

Total Quality Management: an approach that motivates, supports, and enables quality
management in all activities of the organization, focusing on the needs and expectations
of internal and external customers.

Value-Added: those activities or steps which add to or change a product or service as it
goes through a process; these are the activities or steps that customers view as important
and necessary.

World Class ("Leading") Organizations: organizations that are recognized as the best
for at least one critical business process and are held as models for other organizations.

Workflow: a graphic representation of the flow of work in a process and its related
subprocesses; including specific activities, information dependencies, and the sequence of
decisions and activities.




                                            68
                                   APPENDIX II

                                   Bibliography


Adair, C. B. and B. A. Murray. Breakthrough Process Redesign. New York: AMACOM,
1994.

Andrews, Dorline C. and Susan K. Stalick. Business Reengineering: The Survival Guide.
Englewook Cliffs, NJ: Yourdon Press, 1994.

Appleton, D. S. PROBE: Principles of Business Engineering. Manhattan Beach, CA:
Talon Press, 1994.

Appleton, D.S. Corporate Information Management: Process Improvement Methodology
For DOD Functional Managers. Fairfax, VA: D. Appleton Co., Inc., 1993.

Barzelay, M. Breaking Through Bureaucracy. Berkeley: University of California Press,
1992.

Carr, D. K. and others. BreakPoint: Business Process Redesign. Arlington, VA.: Coopers
& Lybrand, 1992.

Caudle, Sharon L. Government Business Process Reengineering: Agency Survey Results.
Washington, D.C.: National Academy of Public Administration, 1994.

Caudle, Sharon L. Reengineering for Results. Washington, D.C.: National Academy of
Public Administration, 1994.

Caudle, Sharon L. Reengineering for Results: Update, Washington, D.C.: Alliance for
Reinventing Government, National Academy of Public Administration Foundation, 1995.

Champy, J. Reengineering Management: The Mandate for New Leadership. New York:
Harper Business, 1995.

Connor, P.E. and L. K. Lake, Managing Organizational Change. New York: Praeger, 1988.

Corbin, L. "Reengineering: The Next Management Revolution." Government Executive,
1993, 25 (9), pp. 26-32.

Cross, Kelvin F., John J. Fletcher, and Richard Lynch. Corporate Renaissance: The Art of
Reengineering. Cambridge, MA.: Blackwell Business, 1994.



                                          69
Currid, Cheryl. Computing Strategies for Reengineering Your Organization. Rocklin, CA:
Prima Publishing, 1994.

Davenport, Thomas H. "Managing in the New World of Process." Public Productivity &
Management Review, 1994, 18 (2), pp. 133-147.

Davenport, Thomas H. "Need Radical Innovation and Continuous Improvement?
Integrate Process Reengineering and TQM." Planning Review, 1993, 22 (3), reprint.

Davenport, Thomas H. Process Innovation, Boston: Harvard Business School Press, 1993.

Davenport, Thomas H. and D.B. Stoddard. "Reengineering: Business Change of Mythic
Proportions?" MIS Quarterly, 1994, 18 (2), pp. 121-127.

Davenport, Thomas H. and J. E. Short. "The New Industrial Engineering: Information
Technology and Business Process Redesign," Sloan Management Review, 1990, 31 (4), pp.
11-27.

Department of Defense, Framework for Managing Process Improvement. December 15,
1994.

Dixon, J. R. and others. "Business Process Reengineering: Improving in New Strategic
Directions." California Management Review, 1994, 36 (4), pp. 93-108.

Forsythe, D. W. "The Role of Budget Offices in the Productivity Agenda." Public
Productivity & Management Review, 1991, 15 (2), pp. 169-174.

Gore, A. From Red Tape to Results: Creating a Government That Works Better and Costs
Less. Report of the National Performance Review and Accompanying Reports.
Washington, D. C.: Government Printing Office, 1993.

Goss, T., R. Pascale, and A. Athos. "The Reinvention Roller Coaster: Risking the Present
for a Powerful Future." Harvard Business Review, 1993, 71 (6), pp. 97-108.

Hall, G., J. Rosenthal, J., J. Wade, J. "How to Make Reengineering Really Work." Harvard
Business Review, 1993, 71 (6), pp. 119-131.

Hammer, Michael and James Champy. Reengineering the Corporation. New York:
Harper Collins Publishers, 1993.

Hammer, Michael. and Steven A. Stanton. The Reengineering Revolution: A Handbook.
New York: Harper Collins Publishers, 1995.

Harrington, H. J. Business Process Improvement. New York: McGraw-Hill, Inc., 1991.

                                           70
Harrington, H.J. and James S. Harrington. Total Improvement Management. New York:
McGraw-Hill, Inc., 1995.

Kaplan, R. S. and L. Murdock, "Core Process Redesign." The McKinsey Quarterly, 1991,
(2), pp. 27-43.

Keen, Peter.   Shaping the Future, Boston: Harvard Business School Press, 1991.

Kehoe, J. and others. Activity-Based Management in Government. Washington, D.C.:
Coopers & Lybrand, 1995.

Kettl, D. F. "Toward New Governance: Making Process A Priority." The LaFollette
Policy Report, 1993, 5 (2), 1-2, pp. 18-19.

Linden, R. M. Seamless Government: A Practical Guide to Re-Engineering in the Public
Sector. San Francisco: Jossey Bass Publishers, 1994.

Lewin, K. "Group Decision and Social Change," in G. E. Swanson, T. N. Newcomb, and E.
L. Hartley (eds.), Readings in Social Psychology (rev. ed.). New York: Holt, Rinehart, and
Winston, 1952.

Manganelli, Raymond L. and Mark M. Klein. The Reengineering Handbook. New York:
American Management Association, 1994.

McNair, C. J. and K. Leibfried. Benchmarking: A Tool for Continuous Improvement. New
York: Harper Business, 1992.

Miller, B. "Reengineering Government." Government Technology, 1994, 7 (5), 1, pp. 46-47.

Moe, R. C. "The 'Reinventing Government' Exercise: Misinterpreting the Problem,
Misjudging the Consequences." Public Administration Review, 1994, 54 (2), pp. 111-122.

Morris, D. and J. Brandon. Reengineering Your Business. New York: McGraw Hill, 1993.

Osborne, D. and T. Gaebler. Reinventing Government. Reading, Mass.: Addison-Wesley
Publishing Company, 1992.

Ott, J. S. The Organizational Culture Perspective. Chicago: The Dorsey Press, 1989.

Pagoda Associates. Process Management. London: Pagoda Associates, Ltd., 1993.

Posner, B. G. and L. R. Rothstein. "Reinventing the Business of Government: An
Interview with Change Catalyst David Osborne." Harvard Business Review, 1994, 72 (3),
pp. 133-141.

                                           71
Schein, E. H.   Organizational Culture and Leadership. San Francisco: Jossey-Bass Inc.,
1985.

Selznick, P. Leadership in Administration: A Sociological Interpretation. New York:
Harper and Row Publishers, Inc., 1957.

Turney, P. B. Common Cents: The ABC Performance Breakthrough. Hillsboro, Oregon:
Cost Technology, 1993.

Venkatraman, N. "IT-Enabled Business Transformation: From Automation to Business
Scope Redefinition." Sloan Management Review, 1994, 35 (2), pp. 73-87.




                                           72
                                   APPENDIX III

                                  Acknowledgements

We asked a number of BPR practitioners to comment on the exposure draft of this guide.
They provided us with a wide range of insights and ideas for improvement, and we have
sought to include as many of these as possible. We wish to thank the reviewers for their
encouragement, and for sharing their time and expertise with us.



Jim Barber                                     Sandra J. Hale
North Carolina Department                      Enterprise Management, International
   of Public Instruction

Profesor Tim Bergin                            Mary M. Harlow
Department of Computer Science                 The MITRE Corporation
American University

Dr. Phillip Bodrock                            Dr. Jerome B. Hilmes
Hammer & Company                               Computer Sciences Corporation

David A. Brigham                               Al Hyde
Department of Veterans Affairs                 Brookings Institution

Mark Britton                                   John A. Koskinen
ANDRULIS Research Corporation                  Office of Management and Budget

Carolyn Burstein                               Brain Lawrence
U.S. Patent and Trademark Office               Royal Mail

Harry Carnes                                   Russ Linden
U.S. Customs Service                           Russ Linden & Associates

Judith B. Douglas                              Jerry Russemano
General Services Administration                U.S. Patent and Trademark Office

Vaughn Frick                                   Peter Robustelli
Gartner Group                                  Juran Institute

Geoff Gardner                                  Peggy Trout
The Geoff Gardner Group, Inc.                  James Martin Consulting



                                          73
Steve Wasko
U.S. Internal Revenue Service

Michael S. Yeomans
Department of Defense




(511005)

                                74