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Ministry of Finance and Industry ISO

INTRODUCTION

The Ministry of Finance and Industry has been given the task to implement reforms within the Federal Government. UNDP has appointed Mohd Emir to undertake this task together with the staff form the Ministry. These improvements are in line with the efforts to implement ISO 9000 and improve the human resource capacity within the government.

This document is organised in four sections :

The proposed framework for re-engineering and ISO 9000
The overall objective, scope and ingredient for success.
A generic understanding on major issues to be addressed.
A proposed approach to implement initiatives for re-engineering.

PROPOSED FRAMEWORK FOR RE-ENGINEERING

The diagram below explains the general mechanism of how the re-engineering in THE ORGANISATION will be structured.
It is imperative that all individuals within THE ORGANISATION perform their task through a well defined process and competencies of employees. This will ensure a smooth flow of information and clear outputs. These flows will be documented in line with the ISO 9000 requirements. These outputs will be linked to the strategic dimension of the organisation that will eventually place THE ORGANISATION in a competitive position. A structure will be design to manage individual distinctive outputs.

From the above diagram it is clear that for the organisation to be successful, THE ORGANISATION has to look into three different performance level, that is the organisation level, process level and individual level. They are briefly describe below:

The organisation level performance includes strategic planning, organisation wide goals and measures, value chain and deployment of resources. This level will dictate the basic skeletal structure of THE ORGANISATION.

The process level looks into the workflow - how the work gets done. THE ORGANISATION produces outputs through cross-functional work processes. These processes will follow the framework of ISO 9000:2000. This level will allow us to decide the body of the organisation structure. It is in this level that most of our improvements activities will take place and align the structure to meet strategic goals of THE ORGANISATION. All processes that are installed will have measurable outputs which are driven by THE Organisation's customer and strategic goals.

The last performance level deals with individuals or employees that perform and manage task within a process. Here THE ORGANISATION will be able the answer the questions below:

Is the manning level adequate?
Are the current employees competent to perform their activities? (processes)
Are the employees rewarded for achieving the job goals?
Do the employees have the necessary knowledge and skills to achieve the job goals?
Are the employees current “behaviour” suitable for to achieve the job goals?

To design an organisation structure that an eventually support THE ORGANISATION strategic needs, there are three other factors that must be addressed:

Goals
Design
Management

All individuals within a process must work within a specific standard or goals and the organisation structure , process and job must be design to meet these standards. Both of this requires management practices to ensure these goals are achievable.

For any improvement in THE ORGANISATION, we need to manage all nine factors effectively (combining three level of performance and three factors of efficiency). These nine factors are shown on the diagram below:

Each of the nine factors need to address by the re-engineering and their requirements are briefly describe below:

Organisation Goals	Clear THE ORGANISATION wide goals that are link to business strategy and market demand. These goals should be stated of how well they will perform in the market. THE Organisation's goals should be derived through competitive and environmental scanning, benchmarking information, market study and be based on critical success factors of the company.
Organisation Design	Define THE Organisation's value chain and supplier-customer relationship. Identify inputs and outputs that need be managed. Identify initial alternative way to group people based on the common output and customer needs. Identify a broad organisation structure that focus on processes and well as reporting hierarchy.
Organisation Management	To define how interfaces within functions will be managed. To formulate functional goals that is link to business goals. To identify resource allocation in terms of human resource and hardware. To provide a mechanism on how performance will be measured. To define management style.
Process Goals	To identify process goals (performance indicators) for all processes within THE ORGANISATION and align them to THE Organisation's organisation’s goals.
Process Design	To review and design processes that will achieve the stated process goals in an efficient manner.
Process Management	To identify critical parameters that need to be measured and managed within a process. To identify resource allocation to manage these process.
Key Results Areas	THE Organisation's Key Result Areas need to reflect process contribution.
Job Analysis and Design	Each individual job responsibility must be design to meet these Key Results Areas.
Job Management	Identify a set of skills and behaviours that can support the organisation structure.

The framework proposed can be used in any level of THE Organisation's organisation. The factors above can be dealt from the process level but to be effective the top down approach is favoured. The above framework can also be used for the purpose below:

Diagnostic tool for elimination of deficient performance.
Guidance for organisation into a new direction.
A “master” to develop a new entity.

PROJECT OBJECTIVES

Proactively transform the organisation to be prepared for the current and future challenges that is facing THE ORGANISATION by improving the organisation structure, processes and people.
To move from a hierarchical and functional based organisation to a process base organisation that is more effective, efficient and customer focus.
Identify any resource gap in terms of human resource skills and technology that could hinder the smooth running of the business. (This will be done through core competencies modelling)
Provide the mechanism to handle the changes that resulted from re-designing or the organisation.
Obtain ISO 9000 certification.
Transfer latest concepts and tools to a selected staff of THE ORGANISATION so sustain and maintain re-engineering's efforts.

SCOPE

Conduct workshops on organisation design and competencies modelling.
Review, analyse existing organisation structure in THE ORGANISATION.
Improve processes.
Document procedures in accordance to ISO 9000.
Review resource requirements and conduct gap analysis.
Improve current organisation structure to meet THE ORGANISATION strategic goals.
To design behaviour indicators for different function in the organisation.
To conduct job analysis and profiling for management function within THE ORGANISATION.
To manage all interfaces between functions and ensure smooth flow of information.
To facilitate change management programs in THE ORGANISATION.
To manage roll-out plans for implementing new organisation structure in THE ORGANISATION.
Train a selected group of THE Organisation's staff to facilitate this transformation.

INGREDIENT FOR SUCCESS

In ensuring a long-term success of this project, several conditions must be met.

The ability to conduct organisation design in accordance to a systematic methodology.
Full commitment obtains from relevant senior management before embarking into improving the organisation. (This is a disruptive process, commitment must be sought before we start).
Be able to recognise individual commitment as an important factor for the success of this improvement.
Linking the improve organisation to THE Organisation's business strategies.
Clear defined process goals.
Co-ordinated management of change for all of the affected business functions.
Provide a clear communication channel to review improvements for senior management’s approval.
Top management must lead the process of change by implementing a few visible work habits in championing the change.

MAJOR ISSUES TO BE ADDRESSED

As we conduit the business improvements efforts within THE ORGANISATION, a very focused and issue orientated approach will be adopted. Appended below are our views on the issues that will prove critical in the life cycle of these improvements efforts. During the initial stage of any project we hope to refine and crystallise these issues through involved discussions with various levels of people in THE ORGANISATION.

These discussions will initiate and sustain decision making on the issues below:

Has the organisation’s strategy/direction been articulated and communicated?
Given the strategy, have the required outputs of the organisation and level of performance expected from each output been determined and communicated?
Are all relevant functions in place and are they necessary?
Is the current flow of input and output between functions appropriate?
Does the formal organisation structure support the strategy and enhance the efficiency of the system?
Has the appropriate function goals being set?
Are goals for key processes linked to customer and organisation requirements?
Is the current process effective and efficient to achieve the stated goals?
Are sufficient resource allocated to each process?
Are individuals Job goals link to process goals?
Are process requirements links to the required individual job responsibility?
Have supportive policies developed?
Do the individual understand their job and Key Result Areas?
Is the individual rewarded according to process goals?
Do individual have the necessary skills and knowledge to achieve Key Results Areas.

PROPOSED APPROACH TO IMPLEMENT RE-ENGINEERING'S INITIATIVES.

The diagram below identifies the phases of the project and the approach of each phase.

Explain below are the activities and deliverables of each phase.

Phase 0 - Project Definition

Objective

To identify the need to re-engineer within THE ORGANISATION.
To identify critical business issues.
To prepare project plan

Activities

Deliverables

Interviews with top management.

The need for re-engineering defined.

Critical business issues identified.

Prepare project plan

Project plan developed.

Phase 1 - Diagnostic.

Step One – To define clear strategy.

Objective

To understand the direction and goals of THE ORGANISATION.
To define the value chain that will link the macro structure with the organisation strategy.

Activities	Deliverables
Reviews organisational strategy.	Clear, defined and communicated organisational strategy that defines service definition, customer and market definition. Competitive advantage identification and resource allocation.
Identify issues	Opportunity for improvement.
Asses business critical success factors.	Organisation Competence
Identify Value Chain	Macro Organisation Chart that is process focus

Step Two – Document and Analyse the Current Organisation System.

Objective

To identify any disconnects that will affect the organisational ability to achieve the strategy.
To review all processes against ISO 9000 requirements.

Activities	Deliverables
To conduct a relationship map.	Displays inputs and outputs of the organisation.
Matching of macro process with strategies and current structure.	Opportunity for improvement and defining the critical function to support THE ORGANISATION strategy.
Identify disconnects.	Missing or redundant structure.

Step Three- Document and Analyse the current process

Objective

To identify the primary, support and management process that have the greatest impact on the current strategy.
To review opportunities for improvements.

Activities	Deliverables
To map current process.	Macro process of THE ORGANISATION.
Analysis of the current process.	Re-grouping of outputs and inputs.
Identify outputs and inputs grouping.	Missing or redundant structure. Removal of redundant process.

Phase Two- Planning

Step One – Develop Should process Flows and Measures

Objective

To document new processes in accordance to ISO 9000.
To define the new organisation structure.

Activities

Deliverables

To map new processes for common outputs and inputs.

Framework for new organisation structure.

New documented systems.

Mapping of new structure with organisation strategies.

Ensuring that structure supports strategies.

Step Two – Design the Organisation Structure

Objective

To design the new organisation structure.

Activities	Deliverables
To determine the most logical department groupings and reporting relationship.	New organisation structure.
To define the working culture of THE ORGANISATION.	Ensuring that structure supports THE ORGANISATION culture.

Step Three- develop Function Models for each department.

Objective

To define each function’s role in the organisation.
To ensure the output do not overlaps.
To ensure all function have clear define goals and link to the strategy.

Activities	Deliverables
To perform “Role/Responsibility Matrix”.	Translate the process map into a set of responsibilities for each contributing department.
To define resource allocation for each job function.	Broad manpower requirements.

Step Four – Develop Job Models For each Job.

Objective

To define skills and behaviour requirement to manage each job function define by its process.
To ensure the right resource is allocated in term of numbers and skills for each job function.

Activities	Deliverables
To conduct core competency modelling for each job function.	Skills gap analysis and job design for each function. Behaviour indicator for all job function.
Matching of current resource with competency model.	Right Sizing.

Phase 3 - Implementation

Step One- Structure the Human Performance System For Each Job

Objective

To integrate and de-centralise human resource function to line managers.

Activities	Deliverables
To review and proposed a human resource system that will support the structure and THE ORGANISATION strategy.	Integrated human resource system. That links all aspects of managing people such as rewards, career management, training, recruitment and employee relation.

Step Two- To Establish The Management Process.

Objective

To define a mechanism to manage all processes within THE ORGANISATION and to ensure it supports the structure define by THE ORGANISATION.

Activities	Deliverables
To integrate goal setting, resource allocation and the human resource performance functions with the organisation design.	A system to evaluate the effectiveness of THE ORGANISATION structure.