REORGANIZING PUBLIC ADMINISTRATIONS – HOW TO MANAGE PROCESS ORIENTED EGOVERNMENT PROJECTS 1

REORGANIZING PUBLIC ADMINISTRATIONS – HOW TO MANAGE PROCESS ORIENTED EGOVERNMENT PROJECTS 1

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REORGANIZING PUBLIC ADMINISTRATIONS – HOW TO MANAGE PROCESS
ORIENTED EGOVERNMENT PROJECTS
Prof. Dr. Jörg Becker
European Research Center for Information Systems
University of Münster
Leonardo Campus 3
48149 Münster, Germany
Fon: +49 251 8338100
Fax: +49 251 8338109
[email protected]
Lars Algermissen
European Research Center for Information Systems
University of Münster
Leonardo Campus 3
48149 Münster, Germany
Fon: +49 251 8338080
Fax: +49 251 8328080
[email protected]
Patrick Delfmann
European Research Center for Information Systems
University of Münster
Leonardo Campus 3
48149 Münster, Germany
Fon: +49 251 8338083
Fax: +49 251 8328083
[email protected]
Thorsten Falk
European Research Center for Information Systems
University of Münster
Leonardo Campus 3
48149 Münster, Germany
Fon: +49 251 8338084
Fax: +49 251 8328084
[email protected]
Björn Niehaves
European Research Center for Information Systems
University of Münster
Leonardo Campus 3
48149 Münster, Germany
Fon: +49 251 8338087
Fax: +49 251 8328087
[email protected]
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REORGANIZING PUBLIC ADMINISTRATIONS – HOW TO MANAGE PROCESS
ORIENTED EGOVERNMENT PROJECTS
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Prof. Dr. Jörg Becker
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Professor Dr. Joerg Becker is full Professor for Information Systems and Information Management and head of
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the Department of Information Systems at the University of Muenster. Professor Dr. Becker holds a Master and a
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Ph.D. degree of Business Administration from University of Saarland, Germany. He obtained his Ph.D. in 1987
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under the supervision of Prof. Dr. A.-W. Scheer. He also studied Business Administration and Economics at the
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University of Michigan, Ann Arbor.
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Professor Dr. Becker’s research areas contain information management, management information systems,
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information modeling, e-business, e-business management, e-government, data management, logistics and
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industry information systems, workflow management and retail information systems.
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MScIS Lars Algermissen
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Lars Algermissen (born 1978) received a Bachelor of Science in Information Systems from the University of
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Muenster. After studying at the Queensland University of Technology in Brisbane/Australia he received the
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Master of Science in Information Systems from the University of Muenster. He is now working as a research
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assistant at the Department of Information Systems. His main research interests include process management,
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management information systems and information warehousing, information systems for public administrations
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and the retail sector. He also conducts lectures in the field of Electronic Government.
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MScIS Patrick Delfmann
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Patrick Delfmann studied Information Systems at the University of Münster, Department of Information
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Systems. He received his master’s degree in Information Systems (Dipl.-Wirt. Inform.) in May 2001 and works
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as a research assistant at the chair of Prof. Dr. Jörg Becker since July 2001. Patrick’s research areas are method
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development, information modelling, and reference modelling. Related to the project, he is teaching the courses
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“Information Modeling and Application Systems” and “Business Process Modelling and Workflow
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Management”.
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MScIS Thorsten Falk
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Thorsten Falk (born 1977) received a Bachelor of Science in Information Systems from the University of
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Muenster. After studying Information Systems with main focus on software engineering and conceptual
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modeling he received the Master of Science in Information Systems from the University of Muenster. He is now
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working as a research assistant at the Department of Information Systems. His main research interests include
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process management, process oriented software development and reference modeling. His lecture activities
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include teaching ERP systems (e. g. SAP R/3) and the course “Information Modeling and Application Systems”.
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Dipl.-Kfm. Björn Niehaves
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Bjoern Niehaves (born 1978) received a Master of Business Administration (Dipl.-Kfm.) from the University of
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Muenster. During his studies of Business Administration and Political Science, he was working as a consultant
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in the field of Electronic Government. He is now working as a research assistant at the Department of
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Information Systems of the University of Muenster and is enrolled in the doctoral course since 2002. His main
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research interests include information management, information modeling, process modeling, reference
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modeling, Electronic Government and Electronic Democracy. He also conducts lectures in the field of Electronic
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Government.reorganizing public administrations – how to manage process oriented eGovernment projects.
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REORGANIZING PUBLIC ADMINISTRATIONS – HOW TO MANAGE PROCESS
ORIENTED EGOVERNMENT PROJECTS
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ABSTRACT
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The application of procedure models in project planning has evolved into a well-established
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tool not only in the field of software development but also regarding organizational design.
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Depending on the domain where such procedure models are applied, they have to be specified
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in detail and adapted to the business context. A common task in eGovernment projects for
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example is the selection of business processes for reorganization. A special characteristic in
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this domain is the existence of more than 1000 core processes. Hence it makes sense to use a
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structured procedure model for the pre-selection of processes for reorganization. Therefore
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this article provides such a procedure model and its application in a local government
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reorganization project located in the northern German region “Muensterland”. An empirical
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study was conducted in all 70 local governments in Muensterland. The results show the need
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for reorganization from an internal perspective and the potential for reorganization of about
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50 citizen services from an external perspective. These services with reorganization potential
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were then analyzed with the help of the presented procedure model. The goal of our article is
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to present the theoretical background of the procedure model and how to apply it in concrete
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practical projects.
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KEYWORDS
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eGovernment, Process Management, Re-engineering, Empirical Study
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THE POTENTIAL FOR REORGANISATION THROUGH ELECTRONIC
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GOVERNMENT
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Public administration has been confronted by a series of new demands on the one hand and
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has been forced to cost and staff cuttings on the other hand. There is a conspicuous trend
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towards growing individualization, whereby there are increasing demands by individuals on
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the state, to provide solutions to a variety of problems. Simultaneously, in the context of
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national and international competition, efficient and effective state activity and support for
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entrepreneurial activities in a region or country are becoming an increasingly decisive factor
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in location decisions. For some years, the term ‘eGovernment’ has been universally proposed
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as a way of closing the public administrations’ modernization and performance gap (Budäus
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and Schwiering, 1999).
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Hence many public administrations started with eGovernment initiatives. Most of them deal
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with an improvement of their websites to so called “Virtual Town Halls”. However, most of
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the administrations just focus on an enhanced information quality and do not take into account
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the reorganization potential of communication and transaction processes. Our approach is a
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process oriented one and hence we define the core of eGovernment as the execution of
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administrative processes (Langkabel, 2000): eGovernment entails the simplification and
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implementation of information, communication and transaction processes, in order to achieve,
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by means of information and communication technology, an administrative service, within
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and between authorities and, likewise, between authorities and private individuals or
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companies (Becker, Algermissen and Niehaves, 2003).
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To find out whether eGovernment already had a broad impact in restructuring public
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administrations we conducted an empirical study. The study takes into account two different
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perspectives to measure and benchmark the degree of utilization of eGovernment activities.
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To ensure a representative sample in terms of demographic and sociological structure all
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investigated public administrations are settled in the same region – the “Muensterland”.1
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On the one hand an external perspective was examined which deals with the citizen and
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industry perception of eGovernment activities. With a catalogue of criteria the internet portals
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of all 66 municipality and four county administrations were analyzed. The focus of this
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evaluation was the “Virtual Town Hall” which is the area of the portal where the regarded
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public services are offered. Beside the scope of these offered services the overall impression
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(e.g. graphical design and structured layout) of the website, the amount and quality of offered
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information and the navigation concepts to and within the public services were evaluated
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(Becker et al., 2004). The results show that the degree of interaction of most services does not
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reach the level of transaction. The majority of the municipalities only describes the services
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(information) or provides contact information (communication). However significant benefits
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can only be realized when a public service offers the chance for transactions and hence
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becomes an eService. Before classic public services can be offered as eServices it is advisable
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to reorganize the underlying processes and organizational structure in the back office. To
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evaluate the current state of reorganization activities the study includes the second
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perspective.
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The internal perspective deals with the self-assessment of the local public administrations.
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The data collection was made by the use of a questionnaire which was structured into five
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categories concerning the following thematic scopes:
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• Status-quo of eGovernment activities
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• Scope of the internet portal
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The “Muensterland” is a North-Rhine Westphalian region in Germany which comprises 1.5
million inhabitants spread out over 4 counties, one county-independent city, and 65
municipalities.
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• Used domain specific software applications
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• Perspective of future eGovernment activities
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• Organizational and technical environment concerning eGovernment activities
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The questionnaire was sent to all municipality and county administrations and after two
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weeks of process time 56 of 70 questionnaires had been answered which results in a
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representative 80 % rate of return. The evaluation indicated that the questionnaires were
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answered by the organizational units which are responsible for eGovernment activities in the
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regarded administration and therefore own the essential knowledge regarding the
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questionnaire. This concludes adequate data-quality of the self-assessment in this empirical
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study.
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The most important question in the described context we asked was: What impact had
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eGovernment initiatives on your organizational structure and your processes to date?
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Fig. 1: Impact of eGovernment initiatives on organizational structure (n=56)
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The results validate our thesis as in 84 % of the public administrations eGovernment has lead
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to none or only marginal changes in the processes and the organizational structure.
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To enforce a structured approach towards process oriented reorganization and hence to
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improve the diffusion of transaction enabled eServices in virtual town halls we propose a
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procedure model for process-oriented reorganization projects.
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PROCEDURE MODEL FOR PROCESS-ORIENTED REORGANIZATION
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Business process orientation is a paradigm of organizational design that has been established
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as a dictum in the praxis of organizational design since the early 90s (Davenport, 1993;
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Davenport, 1990; Hammer, 1990; Hammer, 1993). Business process management (process
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management) provides methods for the realization of business process orientation. The
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following procedure model partitions the life cycle of a process management project and
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enunciate target recommendations concerning stages for the project implementation (Becker,
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Berning and Kahn, 2003). It consists of seven consecutive phases as well as the task of project
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management that covers the entire project (cp. fig. 2).
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Phase I: Project management is the foundation for the successful realization of any
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project. Subtasks as well as the use of personnel and resources have to be organized,
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planned, managed and controlled in a target-oriented manner (Becker, Berning and Kahn,
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2003). Project goals must be defined regarding to content as well as formally (with respect
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to cost, time and quality). Their attainment has to be backed up by an appropriate project
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controlling.
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Phase II: Preparation of process modeling is necessary due to the high complexity of
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process management projects within which usually numerous process models have to be
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produced. Thus, the modeling purpose (“why” shall we model), the model receiver (“for
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whom” shall we model) and modeling methods and tools (“how” shall we model) must be
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determined beforehand (cp. for the following Rosemann, Schwegmann and Delfmann,
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2003).
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Phase III: The development of a strategy and an organizational framework helps to
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reduce the complexity which results from the fact that models are located on several
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hierarchy levels and linked among each other in different ways. This framework contains
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the company’s essential tasks on the highest level and serves as a super ordinate model. It
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puts existing sub models into over-all coherence and allows for navigation through the
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different processes.
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Phase IV: In the course of actual modeling and analysis, the current state of the processes
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is recorded, analyzed and evaluated with regard to the accomplishment of the business
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objectives (Schwegmann and Laske, 2003). This helps to create transparency within the
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company that facilitates the comprehension of technical interrelations and problems and to
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identify existing weak points.
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Phase V: Process optimization aims at developing new processes. The weak spots pointed
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out by actual modeling have to be analyzed and eliminated if possible.
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Phase VI: The development of process-oriented organizational structure is the
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consequential and necessary continuation of the business process redesign (Kugeler, 2000;
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Kugeler and Vieting, 2003). Thereby, the process-oriented organizational structure aims at
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enabling the adequate implementation of the optimized processes.
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Phase VII: The introduction of the new organization deals with the implementation of the
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compiled process improvements (Hansmann, Laske and Luxem, 2003). There is not just
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one possible way of implementation. In fact, appropriate measures have to be chosen and
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combined wisely considering factual, political and cultural factors as well as the existing
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organization and the extent of the reorganization project.
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For different reasons (e. g. new products, new staff, and changes in law) some processes turn
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out to be inefficient or ineffective after having been introduced. This requires a continuous
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adjustment of the processes of a company. Therefore, in addition to the monitoring of process
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implementation, the major task of a continuous process management is the constant,
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incremental improvement of the process organization. This process can be broken down into
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the four phases accomplishment, analysis, objective-redefinition and modeling (Neumann,
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Probst and Wernsmann, 2003). These phases compose a cycle that helps to ensure a
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continuous alignment of the processes to changing business objectives and environmental
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conditions.
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PRIORITIZATION OF PROCESSES WITH A POTENTIAL FOR
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REORGANIZATION
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The application of the presented procedure model in eGovernment projects requires its
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concretion, especially in the phase of actual modeling (Phase IV). Common product
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catalogues of municipal administrations prove that the range of services offered by public
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administrations presently comprises more than 1000 individual services, which are all
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represented by unique business processes. The number of processes implies that their
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reorganization will not bring about a significant rationalization for every single one of them.
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Therefore, it is advisable to pass through a stage of selection before beginning with the
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detailed cost and time extensive modeling of the present situation to select only those
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processes where the expected results of streamlining measures will exceed the modeling costs
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by far (Schwegmann and Laske, 2003; Meffert and Bruhn, 2000). An efficient way to select
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the processes with the highest potential for reorganization is by dividing the process of
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prioritization into different steps, which reduce the number of candidates for reorganization
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measures amongst the total number of processes (Schwegmann and Laske, 2003). This
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method allows for the usage of straightforward assessment criteria to accelerate the selection
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in the early steps, whereas a more detailed analysis of the processes will further diminish the
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number of processes in the later steps. Only after applying this method the necessary
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modeling activities for the purpose of reorganization should be started.
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Fig. 2: Process-Prioritization-Phases in the context of the procedure model for process-oriented
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Reorganization
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We introduced a reference procedure model for process-oriented reorganization (cp. section 2). The phase of
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selecting high-potential processes for rationalization can be substantiated as shown in fig. 2. The phase of actual
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modeling can be divided into three steps; the first and second being responsible for the selection of the processes
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that ought to be modeled in the third step.
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Step A: Portfolio Method. After the identification of services provided by administrations,
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the expected number of related processes is comparatively high. Therefore, there is an
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obvious need for a tool that can provide a basic overview of the most important qualitative
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features of a service at minimal cost whilst conveying its potential for a modelling project.
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We have chosen a portfolio method, based on two pairs of criteria (cp. fig. 3; Gisler, 2001;
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Isselhorst, 2001; Boller and Beuchat, 2001).
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The pair of criteria technical development determines the processes’ penetration by
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information technology. It is specified by the technically feasible degree of interaction with
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the customer/citizen, and by the integration of information technology. For example, a mainly
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paper-based internal processing of information combined with missing online transaction
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facilities for the citizen is a strong indicator for a need for reorganizing measures. The
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criterion interaction intensity can have the values:
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• Information: The value Information describes the mere unilateral technical provision of
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information like opening hours of the city hall on a website.
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• Communication: The exchange of information between citizen and administration can be
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performed in a bidirectional manner. Besides, there is a possibility of interactive
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information retrieval (e. g. communication via email)
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• Transaction: The citizen is given the possibility to handle entire administrative transactions,
e. g. tax declaration, vehicle registration etc. via the internet.
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Fig. 3: Portfolio method for prioritization of processes with a potential for reorganization
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The criterion integration intensity can adopt the following values:
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• Media break: The execution of a service can be supported by means of modern information
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technology, but its fulfilment includes at least one discontinuity in the use of media (e. g.
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the manual submission of an order form).
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• Without media breaks: The performance of the service is almost entirely supported by
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information technology, i. e. the fulfilment is realized without media discontinuities. Still,
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individual decisions, which impede the automated workflows, mark the action of the
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institution.
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• Automated: Services are supplied by an information system without any need for further
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human action. This automation is particularly suitable for procedures, which do not require
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any scope of discretion or individual consideration.
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After having clustered the processes by the pair of criteria technical development, a first
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impression of the processes’ need for reorganization can be obtained and a first prioritization
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can be established. Additionally, services that do not require reorganization can be identified
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and implemented immediately. This applies especially in those cases, where services are
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comprehensively supported by information technology, but the online access for the citizen is
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still missing.
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The second pair of criteria (intensity of execution) sheds light on the cost intensity of the
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inspected processes (Hagen, 2000). As a result, the potential for rationalization measures
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becomes obvious. This portfolio focuses on the following two criteria:
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• Number of cases: The number of cases of a process indicates the number of instances of
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one process within a certain period of time, i. e. how many times a process is executed in
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that period.
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• Share of power users: Customers, who trigger the instances of service processes with an
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above-average frequency, are called power users. For example car dealers usually register a
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certain number of vehicles on behalf of their customers.
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Having clustered the processes by the criteria number of cases and share of power users,
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further decisions on the prioritization can be made. A process with just a small number of
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executions for instance does not cause an immense effort and should therefore be put on hold.
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Step B: Profile Method. The portfolio of the processes has been reduced by the preceding
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analysis. In a second step it is now possible to assess the remaining processes on a more
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detailed level. To enable the evaluation of the processes’ potential for reorganization, we
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propose to determine their organizational as well as technical complexity. Additionally, the
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degree of citizen integration into the provision of a service and the existence of formalities
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have to be taken into consideration (Eifert, 2000). Especially the latter aspect determines the
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feasibility of a mere electronically processing of public administration services. The
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application for identification documents for instance requires the physical presence of the
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applicant, which makes the process unsuitable for online handling.
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Organizational and technical complexity, degree of citizen integration and formalities add up
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to a profile which allows to further reduce the amount of candidates for reorganization. The
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processes have to be analyzed according to the defined criteria and their possible values.
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Those values should be defined explicitly in advance to permit the comparison of the results.
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Table 1 shows some of the criteria and their possible values. Based on the obtained results,
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the final choice of processes, which will be modeled in the next stage, can be achieved by
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using selection methods such as the Value Benefit Analysis (Zangemeister, 1970). At the end
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of this phase the number of candidates should have reduced to a level where a detailed
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modeling of the current situation seems economical.
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Table 1: Criteria and values of the profile
y
Criterion
Organizational Complexity
Number of involved
employees
Person in charge to approve
the results of a service
Number of involved entities
Cooperation with other
institutions of public
administration
Number of changes of
responsibility
Average processing time
Degree of complexity
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5 Both
Values
5 One
5 Two
5 More than two: ______ (Number)
5 Nobody
5 Officials
5 Head of department
5 Mayor / District chief executive
5 One
5 Two
5 More than two: ______ (Number)
5 None
5 One
5 Several: ______ (Number)
5 None
5 One
5 Several: ______ (Number)
5 Hours
5 Days
5 Weeks
5 Months
5 Mainly routine processes
5 Mainly individual cases
5 Both
Technical complexity
Number and type of used
applications
Number of proprietary
developments involved
Further usage of service data
Hosting of procedures
Formalities
Existence of rules for the
execution of processes
Form of usage
Scope of discretion in the
supply of a service
5 None
5 One: ______ (Producer)
5 Several: ______ (Number, producer)
5 None
5 One
5 More than one
5 Data is treated confidentially
5 Data is used internally
5 Data is forwarded to external institutions
5 Desktop PC
5 Internal server
5 External server
5 Internal and external servers
5 No
5 Instruction
5 Law
5 Informal
5 Written form is required
5 Physical presence of applicant is required
5 No scope of discretion
5 Small scope of discretion
5 Ample scope of discretion
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Step C: Modelling of current situation and analysis of weaknesses. The application of the
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portfolio and profile method has resulted in the identification of the processes with the highest
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potential for reorganization. Those processes will be modeled in detail in this step in order to
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discover weak spots, which in return will form the basis for the creation of nominal processes.
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The decision concerning the modeling technique for this phase has already been made in the
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preparation of the activities. By means of interviews not only with officials, but also with
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managerial staff members, the “state of play” can be captured and transferred into process
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models.
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The presented prioritization procedure does not only select processes with high reorganization
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potential but does also rank all other processes with respect to their potential. The results can
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be used for future projects to select the next processes to be reorganized and offered as
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transactional eServices within the “Virtual Town Hall”. Further the fine granular separation of
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selection phases will result in a well and easy to understand documentation of the selection
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process to justify the selections made with respect to the project goals set by the project
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management.
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SUMMARY AND FUTURE WORK
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The term ‘eGovernment’ has been proposed as a way of closing the public administrations’
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modernization and performance gap. To measure the status-quo of eGovernment activities
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and their impact in restructuring public administrations an empirical study containing two
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perspectives was conducted. The external perspective examined the status-quo of
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eGovernment activities by analyzing the offered public services within the “Virtual Town
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Hall” of the administrations’ internet portals. The results show that most of the
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administrations just focus on an enhanced information quality and that most of them don’t
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offer fully transactional eServices. The second perspective which represents the internal
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perception of public administrations examined the made efforts to reorganize internal
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processes and organizational structures to enable classic public services to become fully
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transactional eServices. The results validate our thesis as in 84 % of the public
1
administrations eGovernment has lead to none or only marginal changes in the processes and
2
the organizational structure. To structure the process of reorganization activities and to
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prioritize adequate processes to be reorganized an established procedure model has been
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presented and has been extended by a prioritization schema.
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The presented procedure models have proven their usability in a real world projects however
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three fields of activity can be identified.
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• Advancement of the 3-step-model for selecting business processes with a potential for
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reorganization: e.g., the selection criteria could be adopted with regards to the national
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specifics of the context of application.
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• Application of the phase model in other administrations and further domains: especially the
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3-step-model for prioritizing business processes was developed for the domain of public
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administration. Thus, it should be evaluated, for example, in other service oriented
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domains, e.g. insurance.
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• The gained knowledge from modeled classic public service processes and reorganized
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processes sould be used for formulation of reference models for administrational processes.
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These reference process models should be usable by a broad range of other adminstrations
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to fasten and enhance their reorganization projects within eGovernment activites.
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