1. KPI  Management and Policy Consultants Business Progess Reeingineering – The Internal Dimension 17 May 2007 1 Videoconference Presentation Business Process Re-Engineering in Public Sector Projects Moscow, May 17, 2007 Dr Axel G Koetz This document is complete only together with the oral presentation and the subsequent discussion. Methodology is intellectual property of KPI Cologne and only for use with permission of KPI Isolated use of individual exhibits might cause misunderstandings. Questions: Dr Axel G Koetz, KPI, axel.koetz@koetz-ag.com; Tel +962 777 6 2992 or +49(0)221 94 11801

2. KPI  Management and Policy Consultants Business Progess Reeingineering – The Internal Dimension 17 May 2007 2 The Masterplan for Design of Business Processes... One Example of Many Preliminary Task Definition Preliminary Process Model Process (Structure) Description Resource Utilization Analysis Service (Product) Strategy and Optimization Guidelines Process Requirements Definition IT-Implementation Government Goals Customer Needs SWOT of actual SituationBest International Practice Non-Strategic Quality CriteriaLocal Situation and Practice Cost / Burden RestrictionsLegal Restrictions Process Design

3. KPI  Management and Policy Consultants Business Progess Reeingineering – The Internal Dimension 17 May 2007 3 Different Views on BPR Focus on Customers Needs Focus on IT Systems Focus on Internal Capacities BPR Projects Involvement Ownership Motivation Prerequisites

4. KPI  Management and Policy Consultants Business Progess Reeingineering – The Internal Dimension 17 May 2007 4 Internal Capacities: Questions Behind the Technical Process Revealing of Hidden Agendas Consequences for Political and Senior Mangement Consequences for Employees (real and imagined) Process Ownership and Acceptance of Changes Prerequisites for Implementation Need for Early and Consequent Involvement of Management and Staff Need for Training Need to create „Win- Win-Situations

5. KPI  Management and Policy Consultants Business Progess Reeingineering – The Internal Dimension 17 May 2007 5 Involving Staff and Clients: Participation in Project Structures I Steering Group Core Project Team (Internal / External) Task Group Local Group Info Group Client Panel Staff Panel All Staff PC

6. KPI  Management and Policy Consultants Business Progess Reeingineering – The Internal Dimension 17 May 2007 6 Project Structures: Steering Group Steering Group sample (Germany) Chairperson – Head of the respective unit Managers of the unit Managers from other involved / related units and/or customers Representatives of Unit Employees Representative of the Governmental office responsible for BPR Task: Elaborate TOR for the Re-Engineering Process, ensure a smooth implementation, make key project decisions

7. KPI  Management and Policy Consultants Business Progess Reeingineering – The Internal Dimension 17 May 2007 7 Project Structures: Core Project Team / Project Coordinator Core Project Team (Germany) If Project team is „external“: Project Coordinator Project Manager BPR Experts Internal Manager Counterpart to Project Manager Task Core Project Team: Do the project work; integrate workgroup results, do the work that is too technical for work groups Task Project Coordinator: Coordinate project team with internal structures; Give internal view, give early warnings

8. KPI  Management and Policy Consultants Business Progess Reeingineering – The Internal Dimension 17 May 2007 8 Project Structures: Task /... /- Groups Work Group sample (Germany) BPR Expert as Work Group „Moderator“ Employees / Specialists from the respective unit, representing –Special functions –Special local / regional offices –Special „interests “ Specialists from other related units / stakeholders Partly: Employees representatives Task: Ensure Information Transfer and Process Ownership; develop realistic solutions

9. KPI  Management and Policy Consultants Business Progess Reeingineering – The Internal Dimension 17 May 2007 9 Project Structures: Panels Customers Panel Staff Panel: Representatives of Customers –Individual Customers –Customers Organizations External Experts Employees which will be involved in the changes –All Sub-Units –All Levels Task: Check TOR, Interim Results and Draft final results for realism, propose changes, help to optimize proposals

10. KPI  Management and Policy Consultants Business Progess Reeingineering – The Internal Dimension 17 May 2007 10 Involving Staff: Participation in the Process Project Start Information (1, 2) Selection of Workgroup participants (2, 3) Startup workshop and Methodology training (1a, 2, 3) Comments + Proposals (1) Analytical work (2, 3) Feedback on Analysis Results: Workshops (1a, 2, 3), General (1) Design Workshops, Requirements Catalogue (1a, 3) Process design (3) Prototype Presentation (1a, 2, 3) Group 1: All Employees Group 1a: Lower/middle management and specialists in pilot units Group 2: Employees Representatives (formal information) Group 3: Employees involved in Workgroups

11. KPI  Management and Policy Consultants Business Progess Reeingineering – The Internal Dimension 17 May 2007 11 Business Processes and Permanent Improvement IT Solution Business Process Cost per Unit Fees User / Client Experience Government Goals Achievement