Process Management in Public Sector :

a Case Driven approach

Joachim Vanden Brande, CEO, LoQutusMarch 19th, 2012

Warschau

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• Why process management in public sector ?

• Different patterns to support process management

• Solutions

• Case

• Q&A

Agenda

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Why processes?

• Traditional organization!

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4

Process driven organisation

Process is being monitored

Short lead times

Clear guidelines

Adaptability

Process responsability

Why processes?

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Why process management?• We need more staff because…

… there is too much work…

… nobody can be disengaged to perform additional tasks…

… we can no longer do our job properly…

… we are facing a backlog…

… we are not working at full capacity…

… ”

• “Can we define the need for additional resources

without analyzing the processes”

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Why process management?

• We can do it more efficient because… we feel that there is still time left…

… there is still a lot of waste in the processes…

… the way we organize things can be improved…

… we have to focus on the work that is important…

… ”

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Why process management?

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In an information-based services company:• 5% of the activities create an added value …• 50 % of the activities are necessary, but do not create any added value

for the citizens …• 45 % of the activities do not create any added value …

In an information-based services company:• 5% of the activities create an added value …• 50 % of the activities are necessary, but do not create any added value

for the citizens …• 45 % of the activities do not create any added value …

Answering telephone calls, emails,…that are not intended for the company …Defective or incorrect information leading to additional contacts ...

Unreliable process quality resulting in extra work ...

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Why Process Management in Public Sector ?

• Most services offered to citizens span more then one organization, a process oriented way of thinking solves this

• Accelerator for lean administration

• More efficiency in the interaction between citizens, organisations and government

• Supports basic principles of e-government– Authentic sources– Only once– Privacy

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Solutions Support Process Management from IT Viewpoint

• ‘Current’ IT Systems– Hard to maintain because process logic and GUI are

interwoven– Data driven, NOT process driven– Process and rules embedded in code

• Process & Event driven IT Systems– Business Process Management Systems– (Advanced) Case Management– Can be a bit confusion which direction to take

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Solutions

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SolutionsTayler versus Drucker

Business Process Management– Scientific management– Standardize processes to

increase efficiency

Case Management– Management by objectives– Participants choose actions

to meet goals

Routine work can be analyzed and a common pattern derived … it can be automated by traditional process automation means.

Knowledge work … does not have the level of repeatability found in routine work. When it comes to work automation, any advantage gained from similarities is overwhelmed by additional costs of having to accommodate the differences

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SolutionsExample

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SolutionsExample

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SolutionsExample

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SolutionsExample

BPM = A Transactional Thread Linking Activities Across Multiple Systems & Applications

State State State

Control Control Control

Activity Activity Activity Activity

SolutionsBPMS

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SolutionsDeterministic vs. Non-Deterministic

BPMN Processes Are Deterministic, Where All Possible Paths Are Pre-Determined or Known in Advance, No Matter How Complex the Pathways May Be.

The Direction of the Process is Determined by the Pre-Defined Path and Current State; State is Determined by the Preceding Activity, in Other Words, Where it is in the Process.

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SolutionsBusiness Proces Management Systems

Process layer : Built for change

Service La

yer :

Built to last

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SolutionsBusiness Process Management Systems

Human activity

Automated activity (external)

Long-running business process

Automated activity (internal)

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BPMS modeling example class Business Processes

Beheren ContractGunnen ContractKwalificeren Exploitant

Uitv oeren Contract Optimaliseren Contracten

BPMN 1. Beheren Contract

1.1 VoorbereidenOnderhandeling Met Exploitant

«Event»

Wijziging opdracht exploitant

(from Events)

«Event»

Nieuw overheidsopdracht

(from Events)

«Event»

Wijziging opdracht in regie

(from Events)

1.2 Onderhandelen MetExploitant

1.3 Communiceren Wijziging MetExploitant

«Product»Products::Aangepast

contract

«Event»

Exploitant haakt af

(from Events)

«Event»

Exploitant wil onderhandelen

(from Events)

«Generate»

«Generate»

«IsProcessedBy»

«Generate»

«Produce»

«IsProcessedBy»

«IsProcessedBy»

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BPMS modeling example BPMN Communiceren wijziging met exploitant

«L

an

e»

Pla

nn

er

«L

an

e»

Co

ntra

ctb

eh

ee

rde

r

«P

oo

l» E

xp

loita

nt

«P

oo

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e L

ijn

Goedgekeurd resultaat

Bevestigengeactualiseerd

contract

Parallel

Informeren Entiteit AfdelingshoofdExploitatie

Informeren Entiteit ExploitatiePlanning

Informeren Regio Exploitatie

Merge

Actualiseren van depraktische lopen

Aangepast ContractActualisatie ok?

Starten beheren contract

ja

nee

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The problem with BPMS

Case Management Focuses on Events and Outcomes

An Event Occurs

The Case is CompletedA Case File

is Opened

Activities and Work Create Content & Context Added to the Case

Pragmatic Definition : ACM is a strategy to support ad-hoc, unpredictable, human centric processes

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Event-Driven? Yes.Agile? Maybe.

ACM Processes Are Goal-Driven and Non-Deterministic,The End Point is Known at the Start, the Pathway for Reaching it is Determined by the Outcome at Each Stage as well as Rules and Policies Applicable to the Case. The State of the Case is determined by the Content and Context Within the Case, Not Where the Case is at Any Time.

Issue Resolved & Recorded

Customer Reports Problem

A Case is Opened

Issue is Investigated

Solution Applied,

Unsuccessfully

Alternatives Researched &

Applied

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Goal-Driven = Non-Linear

Cases Evolve Over Time in the Direction of Achieving a Goal, Often in Unpredictable Directions, Requiring the Ability to Jump Forward, Jump Back, Re-do or Otherwise Perform Work in a Sequence That Can’t be Determined in Advance.

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Adaptable, Not Ad-Hoc

Business Rules, Business Analytics, Context-Sensitive ‘Help’ and Knowledge Management Functions Help Guide Knowledge Workers to Make Decisions About Cases as They Evolved.

The Case Management System Adapts to the Context of the Case, Guiding the Outcome Based on the Combination of Rules/Policies, Data, and Application of Knowledge Worker Know-How.

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Concept Coordination through case folder

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Claim case – High level Claims management

Technical services

Driver(or police,

dispatching, ...)

Finance/Litigation Insurance/Personnel Finance

Phas

e

1. Register claim

2. Make estimate

3. Handle claim

4. Settle payment

5. Close claim

act Handle claim

Under procedure

«L

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Ch

ief p

ers

on

ne

l«

La

ne

» In

su

ran

ce

«P

oo

l» P

ub

lic T

ran

sp

ort

Receive claim

Add extradocumentation

Perform "Vulnerableroad user" procedure

Perform "Owndamage" procedure

Perform settlementprocedure

Deny

«Pre-condition»{No other running procedure}

«Post-condition»{[Procedure succesfully handled] OR [Denied]}

Request advice

Approve claimhandling

«Post-condition»{[Procure finished]}

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Handle claim - detail

No structure, but pre- & post-conditions

stm States

Registered

Initial

Final

Under estimate

Handling claim

Under procedure

Under inv estigation

Entry

Exit

Settling payment

Closed

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Claim case – states

• Event-driven!

• Events determine state(= summary of history)

• State determines available events

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Claim case – High level Claims management

Technical services

Driver(or police,

dispatching, ...)

Finance/Litigation Insurance/Personnel Finance

Phas

e

1. Register claim

2. Make estimate

3. Handle claim

4. Settle payment

5. Close claim

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Case

Manage end-to-end process : Subsidies for school infrastructure

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• Agion – Project ALPHA

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Business process (simplified)

• Maximum configurability (business users)– Letter templates

– Calculations (rules)

– Checklists++

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Key succes factors (IT)

• Key characteristics (AGIOn)

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Why is this ACM?

Case is centralSubsidy request

Multiple input stimuliE-mail, printed mail,

phone

Knowledge workerSpecially trained AGIOn employee

Goal-based workingEvaluate and grant

the subsidy

Every case is differentUnpredictable flow,

different forms, procedures, …

Robust regarding to changeSubject to

changing legislation,procedures, forms, …

CollaborationDifferent teamswork together:

accountancy, legal, …

• Identifying cases and subcases

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Challenges

Case

Multiple request forms need to be evaluated individually (subcases)

Different subcontractors require different handling

and approval of the specifications (subcases)

Many-to-many relationship

Monthly invoices from subcontractors

(subcases)

Mutual financial statement

• Checklist to letter concept (“autotext”)

• Case states– Case states drive the underlying process fragments– Explicit process fragment rules needed– Subcase states vs case states

• Stakeholders can be dynamic, e.g. Identification of external experts– In some cases, external experts are needed to evaluate a request– Not known beforehand if this expert is needed

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Challenges (2)

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AGIOn ACM Architecture

• Process Management is necessary when we want to optimize the way organizations in Public Sector work

• Process modeling and discovery should focus on both structured and unstructured processes in order to realize IT systems that support process management

• State-of-the-art IT systems (BPMS & ACM) each have advantages, combine them

Summary

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Q & ALiterature

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