Professional Documents
Culture Documents
KIN-L EE SEAH is a technical consultant with Reuters Asia Risk Systems. He has ten
years of IT experience in various organizations and positions. He received his M.Sc.
in Information Systems and B.Sc. (Hons.) in Computer Science from the National
University of Singapore. His research interest is in organizational change, with a
specific focus on the impact and enabling factor of IT.
Journal of Management Information Systems / Summer 2000, Vol. 17, No. 1, pp. 245–270.
© 2000 M.E. Sharpe, Inc.
0742–1222 / 2000 $9.50 + 0.00.
246 THONG, YAP, AND SEAH
BPR experience of a large public organization through an intensive case study. The
case analysis shows that while there are similarities in the BPR experiences of public
and private organizations, there are also notable differences. In this specific case,
there were social and political pressures to reengineer, press publicity to promote
BPR, a reengineering team comprised mainly of neutral staff, performance bench-
marks adapted from the private sector, high-level approval for redesigned processes,
and a pilot site implementation to secure further funding. It concludes with lessons
learned for implementing BPR in public organizations.
KEY WORDS AND PHRASES: business process reengineering, case study, information
technology, public sector
BPR methodologies, tools, and techniques (e.g., [22, 28, 29, 43, 46, 56]). Finally, the
fourth group examines the impact of BPR using mathematical modeling (e.g., [2, 11,
58, 66]). While the BPR literature is substantial, they have mainly documented the
BPR experiences of private sector organizations. In the few studies that did include
public organizations in their sample [36, 44], no details were provided on the specific
BPR experiences of the public organizations. In summary, we know very little about
the BPR experiences in public organizations.
The public administration literature recognizes that private and public organiza-
tions are not homogeneous. There are critical environmental and organizational dif-
ferences between private and public organizations [6, 7, 8, 9, 21, 63]. Unique
characteristics include the absence of market incentives; the existence of multiple,
conflicting goals; and a political context with a broader range of constituent groups,
higher levels of accountability, and more rules, regulations, and constraints [65]. As
such, the lessons learned from applying BPR methodologies, tools, and techniques in
the private sector may not be transferable without adaptation to the public sector. At
the very least, these differences should require modification of many managerial pre-
scriptions, typically based on results from the private sector [9, 60]. Hence, research
is needed to determine whether public organizations face similar or unique issues in
successful BPR implementation.
This paper examines the BPR experience of a large public organization through an
intensive case study. This study represents a first step in understanding how BPR may
be different in public organizations. In the next section, we examine the literature on
differences between public and private organizations and their implications for BPR.
Following that, we describe the methodological approach adopted for this study. The
case study is then presented, followed by a case analysis that identifies the character-
istics of BPR in public organizations. Finally, we conclude with lessons for BPR
implementation in public organizations.
Environmental Factors
1.1 Degree of market exposure 1.1.a. Less market exposure results in less incentive Increased reluctance to adopt massive
(reliance on appropriations) for cost reduction, operating efficiency, changes required for BPR.
249
250
THONG, YAP, AND SEAH
Table 1. Salient Characteristics of Public Organizations and their Implications for BPR† (Continued)
Organization–Environment Transactions
2.1 Coerciveness (“coercive,” 2.1.a. More likely that participation in consumption and Lower incentives to reengineer services.
“monopolistic,” unavoidable financing of services will be unavoidable or mandatory.
nature of many government (Government has unique sanctions and
activities) coercive powers.)
2.2 Breadth of impact 2.2.a. Broader impact, greater symbolic significance of Increased difficulties in evaluating impact and
actions of public administrators. (Wider scope of benefits of BPR.
concern, such as “public interest.”)
2.3 Public scrutiny 2.3.a. Greater public scrutiny of public officials and their Increased hesitance in adopting BPR.
actions.
2.4 Unique public expectations 2.4.a. Greater public expectations that public officials will Increased difficulties in setting BPR objectives,
act with more fairness, responsiveness, designing process alternatives, and selection of
accountability, and honesty. redesign alternatives.
251
252 THONG, YAP, AND SEAH
results in increased reluctance to adopt the massive changes that come naturally with
BPR. Public organizations also have a monopoly in providing mandatory services,
which lowers their incentive to reengineer existing operations. Further, public offi-
cials are often characterized as being less innovative and exercising greater cautious-
ness and rigidity in their actions, presenting a barrier to achieving the breakthrough in
thinking required for BPR. Because public organizations are subject to multiple and
diverse formal checks by authorized institutions (e.g., courts, legislature, and hierar-
chy) and there is a greater need for political influences, it is likely there will be more
difficulties in obtaining approval for reengineering projects and redesigned processes.
In addition, due to the breadth of impact in public organizations, there are difficulties
in evaluating impact and benefits of BPR. In summary, adoption of BPR is likely to
be slower in the public sector.
Implementing BPR
Public organizations operate under legal and formal constraints, resulting in less au-
tonomy for the managers. This increases the difficulties in redesigning procedures to
support the redesigned processes. Due to the greater tendency toward proliferation of
formal specifications and controls, a longer time frame is required for specification and
approval of redesigned procedures. Public administrators have less decision-making
autonomy and flexibility, resulting in reduced autonomy to lead a BPR project, which
could result in an unsuccessful BPR. Public administrators also have weaker and more
fragmented authority over subordinates. As a result, there is greater reluctance to del-
egate, there are more levels of review, and there is greater use of formal regulations.
Hence an insufficient level of empowerment is given to staff to support the redesigned
process. Because public managers have a more political and expository role, there may
be insufficient devotion of top management’s time and effort to the BPR project. More
frequent turnover of top managers due to elections and political appointments will re-
sult in greater disruption to implementation of plans. This suggests that there will be
difficulties in sustaining a BPR effort if there is a change in the top manager. Further,
BUSINESS PROCESS REENGINEERING IN THE PUBLIC SECTOR 253
the rigid incentive structure in public organizations will present difficulties in rede-
signing the human resource management system to support the redesigned processes.
Methodology
AN IN-DEPTH CASE STUDY OF A BPR PROJECT at the Housing and Development
Board (HDB), the public housing authority of Singapore, was conducted to explore
and identify the unique characteristics of BPR in public organizations. The HDB
presents a unique case, as it is a key public organization that affects the lives of
almost all Singaporeans. While the single case study has limited generalizability, it is
useful at the initial or exploration stage of research [5, 70]. The case study method
was used in this study, as it allows examination of the BPR phenomenon in a natural
setting, generation of theories from practice, and understanding the nature and com-
plexity of the phenomenon, and because it is appropriate when few previous studies
have been carried out [4].
The data collection involved site visits and multiple interviews with the parties
involved in the reengineering. The reengineering of the HDB was led by the in-house
Management Services (MS) Department, with the Information Services Department
(ISD) delivering the computer solutions. Officers from these two departments and
staff from the Model Branch Office were interviewed for this study.1 The interviewees
had a high degree of involvement with the reengineering project. Each interview,
using a list of open-ended questions, lasted for one to three hours. The interview
questions were designed based on the interviewee’s department (which reflects the
type of involvement), the level of responsibility (managerial versus operational), and
inputs from document reviews and previous interviews. Two main groups of ques-
tions were developed. The first group of questions solicited factual information. The
second group of questions asked the respondents for their insights or opinions on
various aspects of the reengineering project. Interview notes were transcribed within
24 hours. The interview notes were then reviewed for consistency with other docu-
ments in the case study database. Inconsistencies were clarified with the relevant
officers. The data collection also involved establishing a case study database consist-
ing of archival records, including reengineering project documentation, internal
memos, annual reports, press releases, in-house bulletins, internal surveys, and news-
paper articles. This multimethod data collection strategy allowed for triangulation of
findings, which increased the reliability and validity of the results [70]. As recom-
mended by Duchessi and O’Keefe [30], a final case write-up documenting the
reengineering events and lessons learned was verified with the HDB.
Case Description
affordable housing of a high quality and to help build communities. Back then, only
9 percent of Singapore’s population lived in public housing, and many people lived in
overcrowded and unsanitary conditions. In response to the limited land and increas-
ing population in Singapore, the HDB concentrated on a massive building program
involving high-rise flats to overcome the housing shortage. By 1998, 86 percent of
Singapore’s three million people lived in HDB flats. The HDB now focuses on im-
proving the quality of public housing through better planning and design, efficient
estate management, and the upgrading of older HDB estates.
The HDB builds 30,000 flats a year and manages more than 730,000 units of resi-
dential properties, about 50,000 commercial and industrial properties, and over 500,000
parking lots. Services provided to the residents of HDB flats include: (1) financial
services, such as administration of mortgage loans and collection of rent, monthly
parking charges, and conservancy charges; (2) lease and tenancy services, such as
transfer of ownership, surrender of flats, and renewal of tenancy; and (3) mainte-
nance services, such as rectification of defects and approval of renovation works.
Service points in the form of 21 branch offices are strategically located around the
island-nation for convenient delivery of these services.
Before BPR
Before reengineering, the branch offices had a matrix organization structure with
multiple layers of authority. Sections within a branch office had to report to their
respective headquarters (HQ) departments. The Head of the Branch Office reported
to the Housing Administration Department. The Finance Section reported to the Fi-
nance Department, while the Car Parks, Hawkers, and Maintenance Sections reported
to the Estate Management Department. Within the constraints of the various line re-
sponsibilities to the HQ departments, the Head of Branch Office had a fair degree of
autonomy in the running of the branch office. In each branch office, the Housing
Maintenance Inspectors (HMIs) reported to the estate officers for housing adminis-
BUSINESS PROCESS REENGINEERING IN THE PUBLIC SECTOR 255
tration work assignment and the Senior Housing Maintenance Inspector (SHMI) for
maintenance work assignment. Hence a housing block could be under one HMI for
housing administration and another HMI for maintenance work. Further, clerks were
grouped by functions and reported to multiple estate officers. For example, some
clerks specialized in transfer of flat ownership, while others specialized in arrears
management.
The branch offices provided services to residents through five types of special-
ized counters, viz., finance, car parks, renovation, maintenance, and lease and ten-
ancy. Residents were served by specialized counters on different floors and had to
shuttle from counter to counter to obtain the relevant services. For example, resi-
dents applied for renovation permits at the renovation counter, then queued at the
finance counters to pay related fees, and finally returned to the renovation counter
to collect the permits. Average waiting time at the finance counters reached 40 min-
utes. Some services, such as the transfer of flat ownership, took almost nine months
to process, with huge backlogs at some branch offices. Having to work overtime
constantly, staff morale was at an all-time low. A quarter of incoming telephone
calls went unanswered, and callers were passed from officer to officer. The local
press reported that there were as many as 200 people in each queue, with some
residents queuing for as long as four to five hours. At the same time, political change
was in the air, with the formation of town councils for all constituencies to be headed
by members of parliament. The town councils were given responsibility for their
own estate maintenance.
After BPR
In order to achieve clear ownership for the performance of branch offices and estab-
lish clear lines of command and control, the CEO approved the reorganization of the
HDB branch offices and HQ departments. All aspects of branch office operations—
including car parks, maintenance, hawkers, and finance—were placed under the pur-
view of the Head of Branch Office. To reflect the increased responsibility, the post of
Head of Branch Office was upgraded to superscale grade, which is the elite govern-
ment service grade. A reorganization of the various sections within the branch office
was also carried out. Maintenance work was divided according to the same geographi-
cal areas as lease and tenancy work. Hence, estate officers took charge of every aspect
of estate management work for a specific neighborhood. Clerks and HMIs became
generalists or caseworkers [25] and were assigned to specific estates. Various sections
that were concerned with fund collection, such as car park charges and mortgage
loans, were placed under the charge of the Finance Section.
After reengineering, a one-stop service was provided, with the merging of the five
types of specialized counters to form the Housing Finance counters and the Hous-
ing Services counters. Seven new information systems were developed, and exist-
ing information systems were enhanced to support the new work processes. Drastic
improvements in performance were observed after reengineering. The waiting time
at the Housing Finance counters was reduced by 97 percent, while the number of
256 THONG, YAP, AND SEAH
Case Analysis
IN ORDER TO UNDERSTAND HOW BPR IS DIFFERENT in a specific public organization,
we need to examine the changes during the different phases of the BPR implementa-
tion. Hence the case analysis is organized chronologically around the five phases of
the BPR. This is commonly used in the historical tradition of case studies [31, 53, 54].
The five phases are (1) business vision development, (2) process diagnosis, (3) pro-
cess redesign, (4) implementation, and (5) performance monitoring.
Before After
Activities BPR BPR Improvement
Customer Service
Average waiting time
Finance Counter 40 minutes 1.1 minutes 97%
Estates Counter 17.2 minutes 3.6 minutes 79%
Percentage of unanswered calls 26% 4% 85%
Financial Services
Average processing time
Loan redemption 4.2 months 0.8 months 81%
Loan extension 14 days 5 days 64%
Lump sum payment 2.4 months 1.4 months 42%
Accounts requiring manual adjustments
GIRO accounts 518/month 105/month 80%
Sales accounts 787/month 66/month 92%
Rental accounts 51/month 30/month 41%
Vouchers prepared
Journal vouchers 85/month 13/month 85%
Payment vouchers 39/month 22/month 44%
Maintenance/Renovation Services
Average processing time
Renovation permit 1.4 months 0.5 month 57%
Electrical upgrading (mains) 8.0 months 4.0 months 50%
Average time to attend to
maintenance requests 2.3 months 0.5 month 78%
General Administration
File retrieval time 10 minutes 5.4 minutes 46%
Daily volume of file movement 923 files 603 files 35%
Number of forms/standard letters 369 291 21%
Once the decision to undertake a BPR was made, the broad scope and boundary for
the reengineering study needed to be defined [26]. In the absence of a crisis, formal
assessment and prioritization of needs are essential steps for reengineering. However,
in the case of the HDB, there were clearly urgent problems to be resolved. The dis-
tinct nature of the service quality problem made it easy to define the business vision.
258 THONG, YAP, AND SEAH
The development of a clear business vision was also aided by the appointment of a
new CEO of the HDB by the Minister of National Development. The service-oriented
CEO set a clear performance goal to “provide faster and friendlier service” at the
branch offices. The BPR project was overseen by a steering committee consisting of
the CEO and the heads of the various departments. The CEO was the leader of the
reengineering effort, while the process owner was the Head of Housing and Adminis-
tration Department (HAD). The reengineering team consisted of Management Ser-
vices (MS) officers, with the IS Department (ISD) in charge of providing IT support.
During the course of the project, due to the need to communicate with the various HQ
departments, an officer from HAD was assigned permanently to the team to help
liaison with the various HQ departments. According to the leader of the MS depart-
ment, “all departments gave the BPR top priority due to top management commit-
ment to improve the services.”
The HDB staff were informed of the business vision and the need for BPR through
various channels of communication. An announcement was made in the in-house
HDB newsletter. A briefing was conducted by the leader of the reengineering team
for all staff in the Model Branch Office. The briefing emphasized the importance of
the BPR and participation by branch office staff. The Head of the Model Branch
Office also instructed staff to give full cooperation to the reengineering team. These
were key actions that helped to gain initial support for the BPR, which was then
nurtured by the reengineering team through a close working relationship with the
Model Branch Office staff. But most importantly, at an early stage of the study the
CEO made a press announcement on the HDB’s objective to deliver fast, friendly,
and efficient services and its plans to revamp its branch offices. This delivered a clear
and powerful message to all the HDB staff of the strong resolution of top manage-
ment to change the existing system. According to an estate officer in the Model Branch
Office, “Morale is good knowing that someone is serious about improving the sys-
tem.” The Head of IS Department further explained that there was “unity in purpose.”
Press announcements by public organizations are not publicity stunts. They typically
demonstrate strong and firm commitment to some plan and action by the public orga-
nizations. Publicity in the press is a powerful way for public organizations to draw
the full attention of staff to the BPR effort and to convince them of the importance of
the project.
Process Diagnosis
All the officers in the MS Department were assigned on a full-time basis to the
reengineering team. This emphasized the commitment of top management, right
from the start of the project, to the provision of adequate resources for the BPR. The
reengineering team was relocated to the Model Branch Office for the one-year dura-
tion of the study. By stationing the reengineering team as close as possible to the
processes that were to be reengineered, it increased the opportunities for them to
observe and understand the work processes. It also allowed the reengineering team
to build up rapport with the staff whose work processes were to be reengineered.
BUSINESS PROCESS REENGINEERING IN THE PUBLIC SECTOR 259
According to an MS officer, “by the middle of the project, MS officers and Branch
Office staff were very friendly and on [a] first name basis.” According to an estate
officer, “there was informal feedback during day-to-day work.” This proved very
useful and was critical in overcoming user resistance during the implementation of
the redesigned processes. Initially, the Model Branch Office staff had reservations
about participating actively in the reengineering project, as they always had a back-
log of cases which frequently required them to work overtime. To overcome their
reservations, the MS officers explained to each of them individually how the BPR
could help them to resolve the backlog of cases. Further, according to the leader of
the reengineering team, “the MS officers set good examples by working closely
with them on the existing processes and in designing new processes.” According to
an estate officer, “openness and sympathetic ears overcame any staff resistance.”
Public organizations locating the reengineering team at the pilot site for the dura-
tion of the project can develop close working relationships to overcome user resis-
tance to change.
There were three reasons why the MS officers were chosen to constitute the
reengineering team. First, MS officers had prior education and training in manage-
ment science and operations research. Second, as the provider of in-house manage-
ment services, the MS officers had conducted workflow and procedure reviews of
the various departments. Hence they were very familiar with work procedure review
methods and the functions of other departments. Third, the MS officers were famil-
iar with IT, as they had spearheaded the HDB office automation projects and the
setting up of the HDB document archiving system. Public organizations should bear
in mind that staff who are familiar with the functions of various departments and are
trained in management science and operations research are very useful resources
for BPR.
While the reengineering team was comprised mainly of MS officers, in reality there
was a “virtual reengineering team” which included the staff from the Model Branch
Office and officers from the various HQ departments. Staff from the Model Branch
Office worked with the MS officers every day. Feedback from the HQ departments
was sought frequently and proposed redesigns were put up for their review and com-
ments. In addition, an estate officer from HQ was attached permanently to the MS
team to liaise with the various HQ departments. The use of MS officers to form the
core of the reengineering team and drive the bulk of the work was useful in situations
where top functional expertise could not be fully devoted to the project and where
there were political conflicts among the different groups and departments in the orga-
nization. The group of MS officers was perceived to be neutral. According to an
estate officer, “it is good to have a third party as they can see things objectively.”
Hence the use of a group of neutral staff officers to form the core reengineering team
that draws on the expertise of other departments is an attractive arrangement for
structuring a reengineering team in public organizations.
The reengineering team made use of observation, hands-on experience, interviews,
and document analysis to understand the work processes. The work processes were
documented using flowcharts with timing information. The reengineering team then
260 THONG, YAP, AND SEAH
validated the documented work processes through walkthroughs with section heads
or work coordinators who were in charge of the relevant workflow. According to an
MS officer, “we must understand the existing processes before we can improve on
them.” Public organizations should note that it is critical to validate the documented
work process with operational staff to ensure its accuracy.
The reengineering team examined and documented the work processes at the Model
Branch Office. The use of a particular branch office site has the potential problem of
being unrepresentative of other sites. A “superset” criteria was adopted in selecting
the Model Branch Office to study and pilot the reengineered processes. The selected
Model Branch Office was the largest branch office and was experiencing the most
operational problems. This ensured that the majority of problems were present at the
pilot site and hence were addressed in the reengineering. The reengineering team also
took into consideration the remaining problems affecting the current processes at the
other branch offices in designing the new processes. Public organizations that adopt
a one-site pilot study method must exercise sufficient care in site selection to ensure
that the site is representative of other sites.
Public organizations provide unique services and hence have less market indica-
tors. International benchmarking that compares similar public organizations across
different countries can assist public organizations in setting benchmarks, but this is
usually not available. An alternative strategy is to benchmark against private organi-
zations with similar processes. The reengineering team decided to study the branches
of some of the more successful banks. They observed the work processes in the banks’
branches, including authority structure, office workspace, service counter setup, and
service quality benchmarks. The HDB business vision of improving customer service
was translated into “reduce queuing time, service time, and turnaround to as low as
possible” and final quantifiable performance objectives were set for the redesigned
work processes. Based on the redesigned workflow, the optimized turnaround time
was selected as a performance measure. In the absence of traditional market indica-
tors, public organizations need to adapt performance indicators from the private sec-
tor to set benchmarks for improving the current processes.
Process Redesign
In a public organization there are many levels of authority and multiple departments
involved in each of the processes. Because process reengineering affected all the
levels of authority and various departments, resistance to change by the affected indi-
viduals and departments presented problems. There was a need for some mechanisms
to reduce resistance to change and gain the approval of the individuals and depart-
ments for the revised procedures. One mechanism found to be indispensable in the
case of the HDB was the use of a steering committee consisting of all the Heads of
Departments and chaired by the CEO. All redesigned processes were documented
and submitted to the steering committee for review and approval. A mechanism such
as the steering committee is essential in gaining approval of redesigned procedures in
public organizations.
BUSINESS PROCESS REENGINEERING IN THE PUBLIC SECTOR 261
and telephone service officers. In response to the added responsibility of the new
procedures, the estate officers were “happy with the additional hourly allowance for
counter officers.” Hence a revised incentive structure to support the redesigned pro-
cesses is critical to the public organization’s success in reengineering.
The reengineering team piloted the redesigned systems and processes at the Model
Branch Office. The new IS applications were developed and implemented in phases.
After implementing the new processes, the reengineering team surveyed the queuing
time and turnaround time at the Model Branch Office. A customer satisfaction survey
was also conducted. The performance measurements allowed the reengineering team
to determine how well the redesigned processes functioned in a realistic operational
environment and their ability to meet the performance objectives. The redesigned
processes were then fine-tuned till they met the performance standards before full-
scale implementation in the remaining branch offices. The pilot implementation helped
to refine the redesigned processes.
Differences between public and private organizations suggested that the HDB would
face greater difficulties in justifying IT infrastructure changes and human resource
changes—two critical steps in this phase. Private organizations can translate improved
service and reduced waiting time into an estimated increase in sales and revenue.
However, such quantifiable benefits were much more difficult to achieve in public
organizations due to the compulsory and subsidized nature of their services. In this
case, the HDB adopted a simple two-step strategy that eased the justification for new
funding. Pilot site funding was secured first. After demonstrating the effectiveness of
the redesigned Model Branch Office, they applied for additional funds to reengineer
the remaining branch offices. Results from a successful pilot implementation helped
to obtain approval for the main funding.
Implementation
The training given to staff at the Model Branch Office was formalized into a set of
basic core courses. Prior to the implementation of the redesigned processes at the
remaining branch offices, staff were sent for training on the new procedures and op-
eration of the new information systems. The first phase of training for six branch
offices was conducted by members of the reengineering team before HAD, the pro-
cess owner, took over the training needs of the remaining branch offices. Members of
the reengineering team were most familiar with the redesigned processes and proce-
dures. Hence they were best suited to conduct the training. However, they must pro-
vide for a smooth transition for future training to be undertaken by the appropriate
department, as exemplified by the HDB experience. The investment in time and re-
sources to retrain the staff in branch offices was crucial in ensuring successful opera-
tions in the reengineered branch offices. Public organizations undertaking BPR should
commit sufficient time and resources to retraining of staff.
Typically, public sector mistakes loom large. Failure in reengineering the branch
offices could have resulted in bad publicity and inconveniences to all residents. In
light of the impact of the BPR exercise, the public accountability for the expenses
BUSINESS PROCESS REENGINEERING IN THE PUBLIC SECTOR 263
incurred, and the visibility of public programs, a one-year schedule and master plan
to replicate the redesigned processes in the Model Branch Office at the remaining
branch offices was drawn up. Sufficient time must be permitted for the rollout to
avoid a sudden surge in resource usage that could lead to poor support at each newly
reengineered branch office and possibly implementation failure. Conversely, a long
drawn out schedule can result in an outdated process being implemented due to
environmental changes or new business developments. According to an MS officer,
“At each branch office’s rollout, checklists were used extensively to ensure that the
reengineered processes were implemented correctly.” Public organizations need to
plan the rollout of redesigned processes throughout the organization carefully.
During rollout to the branch offices, top management commitment to the BPR was
constantly reinforced through regular articles in the in-house HDB newsletters. The
pilot implementation and the rollout program were also widely publicized in the in-
house HDB newsletters and the local press. Visits to the pilot site were conducted for
staff from the other branch offices. Public organizations undertaking BPR need to
educate and prepare all staff for the forthcoming changes through an intensive com-
munication program, possibly including news articles and site visits.
Process Monitoring
After the rollout, the HDB continued to monitor the performance of the branch of-
fices. The Heads of Branch Offices were required to submit monthly measurements
of the 34 performance indicators. The implementation of the new processes and pro-
cedures was not viewed as the end of reengineering. The HDB envisioned the need
for continuous monitoring of the performance of the reengineered processes. They
adopted an integrated strategy to improve the existing processes. The leader of the
reengineering team and the Head of the IS Department were appointed members of
the Productivity Steering Committee and Quality Improvement Committee in the HDB.
Figure 1 presents the HDB’s key strategies for achieving its quality, service, and pro-
ductivity goals. Review of policies, systems, and procedures, together with comput-
erization, were two of the key strategies identified that would help the HDB to achieve
its goal of being an effective organization in providing a high standard of affordable
housing and quality services. Public organizations should view reengineering and IT
as an integrated strategy.
Conclusion
THIS STUDY HAS EXAMINED THE BPR EXPERIENCE of a large public organization.
The case analysis supports the general proposition that the special characteristics of
public organizations necessitate some unique responses in implementing BPR. Con-
sistent with previous research [17, 49], while there were some similarities between
the public and private sectors’ BPR experiences, there were also notable differences.
In any case, public organizations should be aware of all the lessons learned—whether
264 THONG, YAP, AND SEAH
HDB CORPORATE
MISSION & OBJECTIVES
PRODUCTIVITY GOALS
KEY STRATEGIES
L1: Public organizations are highly resistant to change. Social and political changes are
the main pressures on them to reengineer their processes.
L2: Publicity in the press is a powerful way for public organizations to draw the full
attention of staff to the BPR effort and to convince them of its importance.
L3: Public organizations locating the reengineering team at the pilot site for the duration
of the project can develop close working relationships to overcome user resistance
to change.
L4: Public organizations should bear in mind that staff who are familiar with the
functions of various departments and are trained in management science and
operations research are very useful resources for BPR.
L5: The use of a group of neutral staff officers to form the core reengineering team that
draws on the expertise of other departments is an attractive arrangement for
structuring a reengineering team in public organizations.
L6: Public organizations should note that it is critical to validate the documented work
process with operational staff to ensure its accuracy.
L7: Public organizations that adopt a one-site pilot study method must exercise
sufficient care in site selection to ensure that the site is representative of other
sites.
L8: In the absence of traditional market indicators, public organizations need to adapt
performance indicators from the private sector to set benchmarks for improving the
current processes.
L9: The steering committee is an essential mechanism in gaining approval of rede-
signed procedures in public organizations.
L10: The primary criterion in selecting a new IT architecture in public organizations is the
ability to support the redesigned processes without undue risks.
L11: Public organizations that apply the casework concept should review staff training
needs for the reengineered jobs.
L12: Performance measures in public organizations should be simple and highly focused
on the end result.
L13: A revised incentive structure to support the redesigned processes is critical to the
public organization’s success in reengineering.
L14: A pilot implementation will help to refine the redesigned processes.
L15: Results from a successful pilot implementation will help to obtain approval for the
main funding.
L16: Public organizations undertaking BPR should commit sufficient time and resources
to retraining of staff.
L17: Public organizations need to plan the rollout of redesigned processes throughout
the organization carefully.
L18: Public organizations undertaking BPR need to educate and prepare all staff for the
forthcoming changes through an intensive communication program, possibly
including news articles and site visits.
L19: Public organizations should view reengineering and IT as an integrated strategy.
social and political changes, public organizations would have implemented BPR
much later than sooner. Second, publicity in the press, besides informing the public
of action taken in response to public pressure, is a useful avenue for public organiza-
tions to emphasize the importance of the BPR project to their staff. Public organiza-
tion staff are made aware of the commitment of top management to improving their
quality of services. It also increased the morale of the public organization staff know-
266 THONG, YAP, AND SEAH
ing that top management was interested in improving the system, resulting in unity
in purpose by all staff.
Third, staffing the reengineering team with neutral staff officers that draw upon
the expertise of other departments is an attractive arrangement. The composition of
such a team can be helpful in overcoming resistance from those affected by the
reengineering. Neutral officers are able to provide an unbiased view in reengineering
the processes. At the same time, the reengineering team is not confined to the neu-
tral officers, as there exists a “virtual reengineering team” consisting of officers
from other departments who can contribute to the BPR. Fourth, public organiza-
tions lack available performance benchmarks. Instead, they have to adapt service
quality indicators from the private sector for their purposes. By benchmarking
against the best private organizations, it will raise the performance of the public
organizations.
Fifth, approval of redesigned procedures is essential for public organizations. In
more bureaucratic organizations, having a supportive CEO and steering committee is
even more important to facilitate the approval process. Top management support was
identified by the interviewees as the main success factor of the BPR in the HDB. A
supportive top management can facilitate changes to the organization, human resource,
and incentive structures. Finally, it is difficult to quantify improvement in the public
service. A pilot site implementation can be useful in demonstrating the improved
services to the public and the Minister to justify subsequent funding for the main
implementation.
performance measures can then be built into the application systems to allow ease of
monitoring. This case also provides further support for the casework method, with its
increased job variety and improved staff morale. However, it is important to ensure
that staff are adequately trained for the reengineered jobs, as they will have additional
responsibilities under the casework method. In order to support the redesigned pro-
cesses, the incentive structure will also need to be revised. Finally, changes to the IT
infrastructure are required to support the redesigned processes. The primary criterion
here should be the ability of IT to support the redesigned processes without undue
risks. A strategy of utilizing familiar software development tools with hardware up-
grades to support the new processes is adequate.
After making the necessary organizational changes, the reengineering team must
manage the rollout implementation carefully. They need to prepare a master plan for
rolling out the redesigned processes to the various branches. Sufficient time must be
allowed for the rollout to avoid a sudden surge in resource usage. A checklist of all the
required changes can be used to facilitate the rollout. In preparation for the rollout,
there is a need to develop comprehensive programs for staff training. Training is
crucial in ensuring that staff can perform their new duties under the redesigned pro-
cesses. There is also a need to educate and prepare all staff for the impending changes
through an intensive communication program. News articles publicizing the success-
ful BPR at the pilot site and organizing visits to the pilot site are some ways to prepare
the staff. Finally, organizations should view reengineering and IT as an integrated
strategy. The implementation of the reengineered processes is not an end in itself.
Instead, there needs to be continuous monitoring of the performance of the reengineered
processes and one should be constantly on the lookout for ways to improve organiza-
tional processes with the support of IT.
NOTES
1. The Model Branch Office was the first branch office that was reengineered. It was also the
biggest branch office and experiencing the most operational problems.
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