Board

Agenda Item 6.8

Organisational Excellence – Business Process Improvement Project

Meeting: 6 December 2017

UNCLASSIFIED – For Public Release

RECOMMENDATION

That the Membersnotethe update on the Business Process Improvementproject.

Purpose

The purpose of this paper is to provide members with an update on the Business Process Improvement (BPI) project.

BACKGROUND

As an outcome of ourhigh impact risk assessment, numerous processes across the organisation were identified as immature in their stage of development. To reduce organisational risk and provide certainty of repeatable processes across the Agency, theBPI project formally commenced in early August 2017 to develop the Agency’s Business Process Framework.

The purpose of the project is to identify and assess the maturity and impact of the Agency’sbusiness processes and support the process owners, typically General Managers and Directors, to develop or improve business processes that have a material impact on the whole of the Agency.

The BPI project has a clear focus on reducing systemic risk and improve effectiveness. Efficiency may become a by-product of developing and improving business processes.

A small team of three BPI consultants have been working part time on the project in conjunction with the process managers/owners across all Divisions.

SUMMARY OF ISSUES

The BPI team, in conjunction with the business, has identified and captured approximately 130 business processes across the whole of ADHA (refer to Attachment A). These 130 business processes are grouped under eight business process categories and these eight categories may form one perspective of an effective operating model.

The business process managers/owners are currently assessing the maturity and business impact of their own business processes. The result of this maturity and impact assessment will be completed in December2017. The assessment will:

1help prioritise our BPI effort across the whole Agency by targeting business processes with high impact and low maturity;

2support the process managers/owners in understanding the basic aspects of a mature business process;

3reveal any systemic issues (risks) in the business processes; and

4pull together the disparate knowledge assets from across the business which can be leveraged to improve business processes, policies and practices.

Competing priorities for business owners is proving difficult for sufficient resourcing to be applied to the development and improvement of business processes in consultation with key stakeholders.

FINANCIAL IMPLICATION

The BPI project has a total budget of $250,000 for FY 2017-18 and is currently operating within budget.

There is no reliable way of estimating how much time may be saved across the whole agency if all 130 business processes were fully developed and mature. However, it would be reasonable to assume that many hundreds of days are wasted due to the lack of, or immature, business processes.

LEVEL OF RISK

Moderate Risk

Creating the time and space for the process managers andowners to fully engage in the BPI project and have time to review and improve their business processes, particularly those process owners that have many business processes.

Mitigation strategies include the BPI team:

  • continuing to emphasise the importance of developing and improving business processes and that the process owners must take control of their processes whilst the BPI team is providing support where required;
  • encouraging and supporting the process owners to define (map) their business processes to a level where they can control risk – this will reduce the time it will take to develop new business processes;
  • making engagement in the project as easy as possible and are avoiding time consuming activities and complex software solutions;
  • providing BPI tools and methodologies (building up the Agency’s capability); and
  • supporting the business owners with process improvement activities or BPI advice when they have the capacity.

PRIORITY AREA ORSTRATEGIC INITIATIVE

Organisational Excellence

ACTION OFFICER / Name / Terence Seymour
Position / Executive General Manager
Organisational Capability and Change Management
CLEARED BY / Name / Tim Kelsey
Position / Chief Executive Officer

ATTACHMENT

Attachment A: Business Process Improvement Project presentation