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Process Improvement Center of Excellence Service Proposal Recommendation

Operational Oversight Committee Report Submission

Template name: 4.0 Service Proposal Recommendation Template.docx Template Rev. Date: 3/17/2011 File name: 4 0 Service Proposal Recommendation Process Reengineering.CLEAN edit.docx Document Rev. Date: 3/17/2011

INTRODUCTION

This Proposal provides initial information regarding a possible addition to a service. This process is being initiated as the proposal likely will require: :

1. New budgetary allotments and commitments; initially non-recurring resources in support of a pilot project

2. Increase, or re-focus, in personnel;

Service Proposal Overview

Sponsor/Owner IT Operational Oversight Committee (Process Reengineering Subcommittee)

• David Carmichael • Mary Catherine Gaisbauer • Pamela Horne • Julie Kercher-Updike

Description of Service

Process Improvement Center of Excellence

Customer Impact Propose using the LEAN methodology to perform business process redesign to assist our customers with their goal of accomplishing business process redesign in an efficient, successful and repeatable manner

Impact on IT Staff (Increase/Reduction)

No direct impact

Major Stakeholders • Business process owners • Business process customers • IT • University governance committees

Partners:

• VP – IT • Other VP • ITOOC Business Process Redesign Committee

Completion Date Estimate

9 months




Relationship to strategic plan or initiatives

One of the key principles in the Campus Information Technology Plan is to identify “opportunities for increasing our operational efficiency”.

Both the Business Services and Student Services Strategic Plans further commit to this principle by establishing goals to improve service delivery.

Our proposed service, Process Improvement Center of Excellence, will position these administrative units – Business Services, Student Services, and Information Technology – to collaboratively work together to achieve these strategic goals while adhering to the following additional principles in the Campus Information Technology Plan:

• Units have unique attributes and characteristics, so the approach should be responsive to those differences;

• Contributions to operational efficiencies should be recognized (no disincentives for positive contributions);

• Units will share responsibility for enterprise effectiveness and local effectiveness;

• There will be a clear link to the strategic plan;

Service Objectives Our proposal is to hire Purdue University’s Technical Assistance Program (TAP) to teach key representatives from Business Services, Student Services, and Information Technology the LEAN methodology and facilitate the redesign of 3 processes – 2 quick wins and 1 large project. The following processes are possible opportunities with the final selection to be confirmed with affected areas:

1. Student Services Quick Win

a. Non degree undergraduate admissions application

b. Change of Degree Objective process

c. Private Scholarship Award

2. Business Services Quick Win

a. Personal Payments

b. Property Forms

3. Large Project

a. Travel

b. PARs




Key Requirements (for new or changed service) or Service Usage Metrics (for discontinuance)

1. The Business Process Redesign Committee will oversee the pilot and at its conclusion determine whether the pilot was successful

2. The committee will work with the affected areas to identify the final selected projects

a. Will identify and engage a combination of current staff to provide the project experts (knowledge transfer)

b. Will engage the TAP consultants

c. Will identify the complete project team and other participants for the TAP workshops

i. The affected areas will provide the other project team members (subject matter experts)

d. Will outline the timeline for each project

3. The committee will touch base and evaluate the progress of the pilot on a regular basis

4. At the end of the 2 small projects, the committee will decide if the large project should be launched using the measurement criteria detailed in the following step (#5)

5. At the end of 9 months, the committee will conduct a final analysis of the pilot’s success, including:

a. Capturing the cost of the process redesign

b. Conducting the following customer satisfaction survey:

i. Better redesign process

ii. Appropriateness of people involved

iii. Whether they have the knowledge to do again

1. Would it require continuing support from the TAP or other consultants

iv. Realization of business case supporting business redesign

v. Timely completion of project

vi. No communication errors/ unhandled change management snafus

6. If the pilot is successful, then the Committee will propose a model for on-going service; the long-term model will address:

a. Dedicated office staff or committee who are experts in process redesign to act as consultants

b. Continuing use of TAP or other consultants

c. Process to identify and prioritize future projects




Justification

(If proposing discontinuance, describe alternatives to service.)

The University has multiple examples where we do not have efficient and value-added business processes as well as multiple examples where we have failed to efficiently redesign processes. One of the contributing factors to the business process redesign failures is that staff do not have the required skill set. In addition, we believe further justification for this new service include:

o More likely not to automate current processes (where ineffective) but encourage and empower business areas to create better processes

• Including questioning policies

• Identifying values of people being involved

• Balancing internal control with best practices

o Both Student and Business Services have an immediate sense of urgency - Biennial FY11-13 proposed budget reductions are dependent on the redesign & automation of certain business processes

o Continuing growth of business transactions (e.g., student enrollment/aid, sponsored research) without available additional resources to continue to support business using the existing process

o Overall resource constraints and limitations makes it necessary to ensure that staff are focused on the most value-added activities however certain administrative tasks are necessary to the University's existence

o Compliance and regulatory environment is expanding University's obligations

o More peers have been successful with a defined methodology and dedicated support staff for process redesign – key characteristics of peer methodology include:

• Consistent methodology

• Organizational change management

• Consistent communication

• Ensures stakeholder involvement

• Consistent ROIs

• Creative solutions




• Holistic balance of benefits, costs & risks

Implementation Timetable

9 month to redesign the 3 projects:

• Student small project – 1 to 3 month in duration • Business small project – 1 to 3 month in duration • Business large project – the project planning and business process redesign 3 to 6 month

in duration; the actual implementation of the new process will be approximately 1 year but the new service will be deployed to key users before the end of the 9th month

Once the pilot is improved, the committee will need no more than 1 month to finalize the project selection and engage the TAP consultants and other project team members.

Initial Risk Assessments

There is a risk that the LEAN methodology does not prove effective for all process redesign needed by the University and that the University should deploy another type of methodology, such as Six Sigma, in addition to or instead of LEAN.

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