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JUNE 1994 Business Process Re-engineering in tlie Federal Government INPUT Frankfurt • London • NewYork • Paris • SanFrancisco • Tokyo • Washington,D.C. BUSINESSPROCESSRE-ENGINEERINGINTHEFEDERALGOVERNMENT INPUT Abstract Manyagencieshavebeeninvolvedinre-engineeringtheirmajor programsandITsupportforseveralyears.WiththeNPRstudy initiatedin1993,allagenciesarechallengedtoreinventtheway theyoperate.Thechallengeistoworkbetterandcostless. ThegovernmentITbudgetshavebeensteadilyincreasingoverthe past10years.Thecurrentcompoundannualgrowthrate(CAGR)of thedollarscontractedoutis6.3%.Thisrepresentsandincreasein FY98to$24.3billionoverthe$19.0billionforFY94. BPRimplies majorsystemredesignwithafocusontechnologyinfusion.The currentplannedexpendituresdonotconsidertheBPRimpact. ThisreportdiscussesthestatusofBPRinthegovernment.It presentstheresultsofagencyinterviewsandotherpertinent studiesandsurveysdoneonthesubject.Italsosummarizesthe principleNPRrecommendationsandspecificagency recommendations. Thisreport,BusinessProcessRe-EngineeringintheFederal Government,offersinsighttovendorsandintegratorsastothe businesspotentialthatcandevelopfromthismajorgovernment initiative. MMA1 ©1994byINPUT.ReproductionProhibited. Publishedby INPUT 1953GallowsRoad,Suite560 Vienna,VA22182 UnitedStatesofAmerica FederalITMarketAnalysisProgram BusinessProcessRe-engineeringin theFederalGovernment Copyright©1994byINPUT.Allrightsreserved.Printed in the United States ofAmerica. No part of the publicationmaybereproducedordistributedinany fonn,orbyanymeans,orstoredinadatabaseor retrievalsystem,withoutthepriorwrittenpermissionof thepublisher. Theinformationprovidedinthisreportshallbeused only by the employees of and within the current corporatestructureofINPUT'Sclients,andwillnotbe disclosedtoanyotherorganisationorpersonincluding parent,subsidiary,oraffiliatedorganisationwithoutprior writtenconsentofINPUT. INPUTexercisesitsbesteffortsinpreparationofthe informationprovidedinthisreportand believesthe informationcontainedhereintobeaccurate.However, INPUTshallhavenoliabilityforanylossorexpense thatmayresultfromincompletenessorinaccuracyof theinformationprovided. MMA1-685-1994 5 BUSINESSPROCESSRE-ENGINEERINGINTHEFEDERALGOVERNMENT INPUT Table of Contents Introduction I-l A. Scope I-l B. Methodology 1-2 C. ReportOrganization 1-3 II ExecutiveOverview II-l A. ManagementPerspective II-l B. Findings II-4 C. Conclusions II-5 III SurveyandOtherFindings III-l A. BPRMotivation III-l B. INPUTSurveyResults III-2 1. HowDoesYourAgencyCharacterizeorDefineBPR? III-2 2. ToWhatDegreeIsYourAgencyFocusingonBPR? III-3 3. WhatArethePrimaryFocusAreas? 1II-3 4. HowLongHasYourAgencyBeenDoingBPR? III-4 5. AreYourAgencyObjectivesIncrementalor ComprehensiveChanges? III-4 6. WhatIsthePrimaryMotivationfor UndertakingBPR? III-5 7. HowLongfromtheTimeYourAgencyInitiated BPRBeforeYouAnticipateMeasurableResults? Ill- 8. HowWillYourAgencyMeasureSuccess? III-6 9. WhatIsYourLevelofConfidenceThatYour AgencyWillMeetItsObjectivesinBPR? 1II-7 10. WhatAretheMajorImpedimentsinAchieving StatedObjectives? III-7 11. IsYourAgencyCurrentlyUsingorPlanningto UseOutsideConsultantstoSupportBPR? III-8 12. WhichVendorsDoYouBelieveHaveExpertiseand ExperiencetoDoBPR? III-8 MMA1 ©1994byINPUT.ReproductionProhibited. 15 BUSINESSPROCESSRE-ENGINEERINGINTHEFEDERALGOVERNMENT INPUT 13. DoYouAnticipateSignificantSystemRedesign AsaResultofBPR? IsYourAgencyCurrently PerformingorPlanningSystemRedesignAsaResult ofBPR?(Questions13and14) III-9 14. IfYouareDoingorPlanningSystemRedesign,Will YouUseOutsideVendorsorSystemIntegrators? III-9 15. HowSignificantDoYouFeelHardware,Software, NetworksandProfessionalServicesWillBeinAny SystemDesign/RedesignResultingfromBPR? Ill-10 C. OtherSignificantInformationSources III-10 1. GSA'sDraftStudyPublishedFebruary1994— LessonsLearnedtoDatefromBusinessProcess Re-engineeringintheFederalGovernment III-10 2. NAPABPRConferenceMarch9-10,1994for AgencyExecutives III-12 3. NAPASponsoredSurvey III-12 D.Summary III-13 NPRPrinciplesandRecommendations IV- A. NPRPrinciples IV-1 1. CuttingRedTape IV-2 2. PuttingtheCustomerFirst IV-3 3. EmpoweringEmployeestoGetResults IV-3 4. CuttingBacktoBasics IV-4 B.AgencyNPRRecommendations IV- 1 DepartmentofAgriculture(USDA) IV-6 2 DepartmentofCommerce(DoC) IV-7 3. DepartmentofDefense(DoD) IV-8 4. DepartmentofEducation(ED) IV-8 5. DepartmentofEnergy(DoE) IV-9 6. EnvironmentalProtectionAgency(EPA) IV-9 7. FederalEmergencyManagementAgency(FEMA) IV-9 8. DepartmentofHealthandHumanServices(HHS) IV-9 9. HousingandUrbanDevelopment(HUD) IV-10 10. DepartmentoftheInterior(DOI) IV-10 11. DepartmentofJustice(DoJ) IV-11 12. DepartmentofLabor(DoL) IV-11 13. NationalAeronauticsandSpaceAdministration (NASA) IV-12 14. DepartmentofState(DoS) IV-12 1994byINPUT.ReproductionProhibited. MMA1