# Presentation: 326716

## Rental Housing AssistanceBusiness Process Improvement / Reengineering ProjectPresentation to the TRACS Industry Meeting

**October 21, 2004**

**Please forward comments/questions to:  *****Kadix systems*****   **
**4245 N. Fairfax Drive,  Arlington, VA 22203    (703) 236-0901**

## Why are we having this session today ?
Why is HUD doing this project ?
What are HUD’s objectives for this project?
What’s in it for you ?

- Why is HUD doing this project ?
- What are HUD’s objectives for this project?
- What’s in it for you ?

**Introduction by Lanier Hylton**

## Introduction by Mr. Hylton
Meet the Contractor Team
Key Objectives of Business Process Improvement / Business Process Reengineering (BPI / BPR)
HUD’s BPI Methodology
Next Steps
Your Opportunity for Involvement 
Questions and Answers

- Meet the Contractor Team
- Key Objectives of Business Process Improvement / Business Process Reengineering (BPI / BPR)
- HUD’s BPI Methodology
- Next Steps
- Your Opportunity for Involvement
- Questions and Answers

**Agenda**

## Kadix Systems (Prime):
Mort Glassberg, Project Manager
Doug Layman, Project Oversight and Methodology
Gayle Berkeley,  BPR Business Systems Specialist
Kristie Barrett. BPR Business Systems Analyst
Sheena Taylor, BPR Business Systems Analyst (Junior)
Quadel Consulting (Subcontractor)
Stephanie Cosgrove, BPR Business Systems Analyst
Housing Subject Matter Experts

- Mort Glassberg, Project Manager
- Doug Layman, Project Oversight and Methodology
- Gayle Berkeley,  BPR Business Systems Specialist
- Kristie Barrett. BPR Business Systems Analyst
- Sheena Taylor, BPR Business Systems Analyst (Junior)
**Quadel Consulting (Subcontractor)**
- Stephanie Cosgrove, BPR Business Systems Analyst
- Housing Subject Matter Experts

**Meet the Contractor Team**

**Notes:**
Mort Glassberg has more than 29 years of experience in Information Technology with an emphasis on business process reengineering. Mr. Glassberg has more than 10 years experience in management positions. He worked with the Office of Multifamily Housing Programs in the mid 1990s, helping the office to completely reengineer the way the Office used information technology for risk assessment and management, mortgage insurance application processing, development application processing, and processing annual financial statements submitted by project owners.

Doug Layman is the leader of Kadix’s business process reengineering practice area. He has successfully designed and implemented complex BPR efforts at Kadix, Verizon, and Accenture.

Gayle Berkeley brings over 14 years of experience in BPR and organizational change management to this effort. She has been responsible for BPR at Sallie Mae, Thompson Consulting, and MicroStrategy.

Kristie Barrett has participated in several business process reengineering projects while at Kadix. The most recent effort by a BPR of the Asian Longhorned Beetle public outreach and volunteer survey program for USDA.

Sheena Taylor has just completed a BPR of the TSA’s Office of Real Estate Services

Stephanie Gibbs has extensive experience in HUD’s Housing Choice Voucher programs, HUD organizational structures and programs, and program management. She has managed housing and utility studies, mass tenant file quality control projects, design and implementation of housing staff training activities, and correction of MTCS/PIC reporting errors and improvement of reporting accuracy.

Housing Subject Matter Experts. Kadix will also have access to Quadel Consulting’s subject matter experts. Quadel is a leading national expert in the public housing, housing choice voucher, HUD-subsidized multifamily, and tax credit programs. 

## BPR is: 
A method for achieving Cross-Cutting Strategic Goals
Such as HUD 2020 goals like: “...redesign contract procurement” or,  “...(streamline) rental housing certificate/voucher programs”

BPR is used at HUD to: 
Create better measures to assess performance and productivity
Increase effectiveness and efficiency of HUD’s resources
Leverage technology to enhance processes 
Apply technology to support HUD’s workforce, its citizen customers, and to enhance its business partner relationships

- A **method** for achieving ***Cross-Cutting Strategic Goals***
- Such as HUD 2020 goals like: **“...redesign contract procurement” or,  “...(streamline) rental housing certificate/voucher programs”**
- BPR is used at HUD to:
- Create better measures to assess performance and productivity
- Increase effectiveness and efficiency of HUD’s resources
- Leverage technology to enhance processes
- Apply technology to support HUD’s workforce, its citizen customers, and to enhance its business partner relationships

**Key Objectives of BPI / BPR**

**Notes:**
BPI is a management approach to rethinking and redesigning business processes to achieve dramatic improvements in performance. Business Process Improvement will achieve and sustain quantum leaps in performance by aligning and integrating HUD’s people, business processes and technology with its strategic imperatives. Technology is an enabler of BPI, not a substitute for examining and improving business processes. BPI does not use technology to automate existing tasks, instead it uses the latest advances in technology to assist in the improved business. In essence, BPI examines the business processes rather than systems.

Specific benefits of BPI include the development of processes that are:
1. Customer-driven
2. Results-oriented
3. Streamlined
4. Automated/less paper dependent
5. Innovative
6. Flexible
7. Owned by a committed and responsible leader
8. Integrated across organizational boundaries
9. Supportive of HUD’s core mission and values
10. End-to-End in nature
11. Continuously reviewed and improved
12. Value-adding activities
13. Cost-Efficient
14. Timely
15. Productive
16. High Quality
17. Measurable
18. Easily Learned
19. Utilizing the latest improvements in technology
20. Relevant in the new Internet economy

Process improvement identifies processes and redesigns them from the ground up. BPI will enable HUD to eliminate redundant paper shuffling, grant its employees the opportunity to have more influence on and to become more efficient in their work, and engage in results-oriented processes that provide value to the customer.

**HUD’s BPI Methodology**

- Each project is a **well-managed** effort, **conforming** to:
-  structured reporting and progress requirements
-  standard methods and range of documentation
-  appropriate definition of scope and objectives
-  measurable execution/performance oversight

**Notes:**
The above diagram is a comprehensive summary of HUD’s BPI Initiative. It provides a visual explanation of the high-level activities that will occur during each Business Process Improvement project. The diagram highlights the activities that precede and follow the actual project, the Phases of BPI itself, and the elements that will be considered throughout the entire project.

Integrated Business (People / Processes / Technology / Strategy). The BPI at HUD strives to account for the integrated business of an organization. The people, processes, technology, and strategy of an organization must all be addressed when improving any aspect of their business. These areas, as they exist currently, will be thoroughly reviewed. They will also be addressed in any recommended solution, as all four are interrelated and integral to the success of any organization.

Change Management. Managing change is one of the most critical elements to each BPI effort, and it must take place throughout the entire BPI effort. There will always be resistance to change, regardless of whether it is positively or negatively perceived. Stakeholders, when confronted with change, will move through various levels of commitment. They begin indifferent, maintaining the status quo, then move to reject/denial, prior to turning towards acceptance and a higher level of performance.

Change Management, in the context of BPI, will focus on four key areas. Leadership will establish the vision, mission and agenda for change, and will then make executive commitment visible, constant and contagious. Ownership will create the environment for motivation and commitment throughout the change journey. Enablement will provide personnel with appropriate resources to accept new roles. Navigation will control the environment to manage, integrate, and coordinate multiple change efforts. Focusing on these areas throughout the process will help minimize any resistance to change.

IT Assessment. The available IT resources within the organization will be revisited throughout the BPI effort. The BPI Team will bring its expertise in technology to examine the IT resources that are currently utilized within the organization, as well as to recommend modifications in technology for the future improvement of processes. However, processes are not designed around technological improvement. The idea of technology for its own sake will not be considered during a BPI effort. Rather, the redesigned business processes will be supported by the most effective use of technology. Where appropriate, the most exciting and innovative technology will be recommended, however, eGovernment and automation are not a panacea for process problems. Instead, the role of Information Technology is assessed throughout the BPI project, leveraging technology to support processes in the most efficient and effective way possible.

Program Management, like Change Management and IT Assessment, is common to all project phases and is ongoing throughout BPI. It is the approach used to organize and administer individual efforts, and integrate those efforts into a closely monitored and cohesive program. The Program Management Framework incorporates a variety of goals, including planning and controlling the BPI Initiative, obtaining management commitment to BPI, developing and executing the team building process, developing and executing a reporting and communication strategy, ensuring integrity across individual projects, and preparing the organization for change through the development of leadership attributes. Not only is Program Management in effect throughout the BPI project itself, but monitoring and oversight will also take place throughout the implementation of recommended solutions. 

## Evaluation Period
Phase 1: Project Mobilization
Phase 2: Business Diagnosis – “As-Is” Model
Phase 3: Process Direction
Phase 4: Recommended Solution
Implement BPR Recommendations
Follow-Up

- Phase 1: Project Mobilization
- Phase 2: Business Diagnosis – “As-Is” Model
- Phase 3: Process Direction
- Phase 4: Recommended Solution
- Implement BPR Recommendations
- Follow-Up

**Steps in the Process**

**Notes:**
There are four formal steps to the HUD BPI Methodology. IN addition there is one predecessor step (Evaluation Period) and two successor steps (Implement BPR Recommendations and Follow Up) that ensure the successful implementation of BPI efforts.

## Each potential project is assessed & scored
BPI opportunities show high ROI potential:
Redefining/streamlining processes & workflow
Organizing & empowering HUD’s people
Capitalizing on advances in technology
Alignment of people/process/technology with Department strategic goals
Score determines “green light” or “no go”

- BPI opportunities show high ROI potential:
- Redefining/streamlining processes & workflow
- Organizing & empowering HUD’s people
- Capitalizing on advances in technology
- Alignment of people/process/technology with Department strategic goals
- Score determines “green light” or “no go”

**Evaluation Period**

**Notes:**
This slide is intended to touch on how we got chartered to go forward in the first place. Not every project that’s proposed is allowed to go forward. In making the best use of limited budget funds for this type of work, HUD has established a comprehensive process for comparing BPR opportunities, to ensure that the best possible return is obtained on funds allocated to the Depart.

Evaluation Period. Potential projects for BPI are first evaluated to determine whether or not the project is a feasible BPI and has the opportunity to be a success. The OCIO BPI Team will partner with the Program Area to complete a high-level cost/benefit analysis of the business environment, an evaluation interview, and an analysis of the results of the interview to create a score for the potential project. The score will be based on criteria that will evaluate the scope and framework of the project itself, as well as the organization’s general readiness for change. All of the potential opportunities and their scores, if not acted upon immediately, will be collected and stored for future use.

## Vendor selection & contracting
Forming the project team(s)
Project planning, scheduling, & preparation
Statement of goals & priorities
Stakeholder analysis
SWOT analysis
Identification of Critical Success Factors

- Forming the project team(s)
- Project planning, scheduling, & preparation
- Statement of goals & priorities
- Stakeholder analysis
- SWOT analysis
- Identification of Critical Success Factors

**Phase 1: Project Mobilization**

**Notes:**
The Project Mobilization Phase encompasses the activities necessary for moving the project forward. It includes concrete planning and preparation tasks, such as establishing and providing orientation to the Project Team, as well as creating Work and Communication Plans. To launch this Phase, the Team will present the BPI effort to the Technology Investment Board Executive Committee (TIBEC) for executive level support. Within this Phase, the Project Team revisits or creates the organization’s guiding principles (including strategy), and establishes critical success factors, priorities, and goals for the BPI effort. Finally, the Phase begins preliminary analysis of the existing process by documenting the various stakeholders, including employees, customers, business partners, etc., that would be affected by process change, and brainstorming about potential Strengths, Weaknesses, Opportunities and Threats (SWOT) to the organization in a SWOT Analysis.

We’re currently in the early part of this phase now. HUD awarded the contact to Kadix Systems in October and much of the work on this slide will be completed by the end of he year. This purpose of these activities in mobilization to be sure the project is appropriately teed-up for success.

## Documentation of the current environment
People – Processes - Technology
Identification of constraints
Legislative – Financial – Business Partner – Etc
Definition of Key Business Requirements
“As-Is” Process Maps and Model

- People – Processes - Technology
- Identification of constraints
- Legislative – Financial – Business Partner – Etc
- Definition of Key Business Requirements
- “As-Is” Process Maps and Model

**Phase 2:  Business Diagnosis (“As-Is” Model)**

**Notes:**
The Business Diagnosis (“As-Is” Model) Phase creates a comprehensive picture of the existing process to be improved, documenting the process itself as well as the people and technology that support the process. The Phase will outline any legislative, financial, business partner, and resource constraints that affect the process, and any other relevant business requirements.

The “As-Is” phase can be very painstaking work. In assessing the current environment, it’s critical to take nothing for granted. Attention to detail is so important in diagnosis. A small but critical nuance of a project or a system’s impact on the environment can make a huge difference when you try to introduce change at a later time. For instance, if we assume we can pursue a specific course of action to make an improvement, and that action is highly regulated by legislative mandate, we need to change the law before we can change the process, or we may determine o work around that issue instead. 

## Assess value of defined processes
Define measurements to check progress
Define ideal future state for the environment
Document a Gap Analysis
How processes, people, technology can improve
Documentation of transition needed to get there
Major risks and challenges 

- Define measurements to check progress
- Define ideal future state for the environment
- Document a Gap Analysis
- How processes, people, technology can improve
- Documentation of transition needed to get there
- Major risks and challenges

**Phase 3:  Process Direction (“To-Be” Model)**

**Notes:**
The Process Direction Phase lays the foundations upon which the final BPI recommendations are based. This Phase outlines the heights to which the Program Area aspires regarding the future process, as well as defines the gaps that exist between where the process is currently and where it should be. The idealized process will be outlined in the “To-Be” Document. It will map the process in its perfect state. The Document will describe the process as it would take shape with unlimited resources and no constraints. The Gap Analysis will be the most labor intensive deliverable, transitioning the process from the “As-Is” to the “To-Be”. The Gap Analysis requires an in-depth analysis of the process and its areas for improvement. It utilizes a variety of tools that are accepted BPI best practices. The tools will continually question each step of the process, to determine its value or lack thereof, and how the process might operate with greater efficiency and effectiveness. 

The “To-Be” phase ties innovation and creativity with old-fashioned engineering to propose what the “best case” future could be if no constraints existed. We start with this view to ensure we don’t settle for less than we can achieve. 

## “Reality” view of what should be done
Makes the business case for changes
Defines road map/plan for implementation
Cost estimates & cost/benefit analysis
Data entry to I-TIPS for budget planning
Knowledge transfer activities 
Business Area sign-off at conclusion

- Makes the business case for changes
- Defines road map/plan for implementation
- Cost estimates & cost/benefit analysis
- Data entry to I-TIPS for budget planning
- Knowledge transfer activities
- Business Area sign-off at conclusion

**Phase 4: Recommended Solution**

**Notes:**
The: Recommended Solution Phase presents a realistic solution for improving the targeted process. The solution takes into account the business requirements for the process, scaling the ideal “To-Be” solution to create “implementable” improvements for the organization. This solution will address people, process, and technology, as in the Business Diagnosis Phase. The solution will align with the organization’s strategy and other guiding principles. The solution is defended by a Business Case and a Cost/Benefit Analysis, both of which provide the rationale for implementing the OCIO BPI Team’s recommendations. The implementation plan will detail how the recommended solution should be implemented and will require that the recommended solution be submitted into the Information Technology Investment Portfolio System (I-TIPS) for budget review. The BPI Project will conclude the BPI effort with a formal transfer of knowledge and Program Area Sign-Off, to ensure that the appropriate parties have the information relevant to implementing the solution. 

In the recommended solution, we start with best-case and work into a more realistic view of what the future could be/should be given the realities of constraints that can’t be moved or worked around. At the end of the recommendation phase, findings are presented to show how the recommendations came to be. And the details of the proposed implementation are entered into the budget review process for consideration in the next budget cycle.

## If the project is funded:
Technology is reengineered or replaced
Processes are redesigned or eliminated
People are supported through the changes
Performance improvements are measured
Progress is measured and communicated

- Technology is reengineered or replaced
- Processes are redesigned or eliminated
- People are supported through the changes
- Performance improvements are measured
- Progress is measured and communicated

**Implement BPR Recommendations**

**Notes:**
A new efficient and effective process can be designed, but the process is meaningless unless it is put into practice. The BPI Project Team will keep this goal in mind from the inception of the BPI effort to its conclusion. The likelihood of implementation is one of the criteria upon which the potential BPI Project is evaluated before beginning the effort. The BPI Team and the Program Area will work together to ensure that a realistic solution is derived so that the chances of implementation are optimal.

When projects make sense, they get funding. And when that happens, improvements can be implemented. In general, change management and program management are leveraged to ensure successful outcomes.

## If the improvements are implemented:
Post-implementation review
What improvements have been achieved?

- Post-implementation review
- What improvements have been achieved?

**Follow-Up**

**Notes:**
All BPI efforts are followed up on. This post-implementation review ensures that HUD maintains a Department-wide understanding of how BPI has affected its processes. It will track the improvements that have been incurred as well as function as a resource for potential future BPI projects.

## We’re early in Phase 1: Project Mobilization Phase
Still need to determine HUD team members
Core Reengineering Team
Steering Team
Business Process Action Teams
HUD Kick Off
Series of workshops and meetings coming soon

- Still need to determine HUD team members
- Core Reengineering Team
- Steering Team
- Business Process Action Teams
- HUD Kick Off
- Series of workshops and meetings coming soon

**Next Steps**

**Notes:**
As indicated earlier, we are very early (two weeks) into the Project Mobilization Phase.

We are still in the process of determining who the Sponsor or Sponsors is or are, who from HUD will be involved in the project on a day-to-day basis, and who should be on the Executive Steering Team that helps us to break down barriers and overcome issues. In addition, we cannot determine who is on the Business Process Actions Teams until we know what business processes we’re improving or reengineering. As we’ll discuss in a second, being part of a Business Process Action Team is one way you might want to be involved in this project.

We’re so early in the process that this is the first formal presentation of the project to any group – we have yet to kick off the project to the HUD community.

The contractor project team is still involved in doing the detailed planning work of this project. When we’re finished, we will begin having a series of workshops and meetings to gather the information required to reengineer HUD’s Rental Housing Assistance business.

## Members of Business Process Action Teams
Participants in Focus Groups
Stakeholder Subject Matter Experts

- Participants in Focus Groups
- Stakeholder Subject Matter Experts

**Your Opportunity for Involvement**

**Notes:**
How do we see some of you being involved?

As I just said, one way we may ask you to become involved in this effort is as a member of one of the Business Process Action Teams. Business Process Actions Teams consist of system owners, stakeholders, users, and customers who provide their points of view to assist the Core Reengineering Team  redefine and streamline HUD’s Rental Housing Assistance processes on an ongoing basis as a process is being analyzed.

Another possibility is that you may be asked to participate as a focus group participant. A focus group usually meets just once, and in it, the users of a product or service to try to plan how to improve it. 

Finally, you may be asked to participate as a Subject Matter Expert. A Subject Matter Expert is an individual who exhibits the highest level of expertise in performing a specialized job, task, or has a specialized skill within the organization. We use Subject Matter Experts to get our facts straight and to make sure that our interpretation of information matches an experts’.

If you are interested in being on a Business Process Action Team, being part of a focus group, or if you consider yourself a Subject Matter Expert, please give me a call. My contact information is on the last slide.

## Questions?

**Notes:**
What questions do you have about the Rental Housing Assistance Business Process Improvement / Reengineering project?

## Call Mort Glassberg – (703) 236-0939
Send an e-mail to mglassberg@kadix.com
Talk with your HUD associates

- Send an e-mail to _[mglassberg@kadix.com](mailto:mglassberg@kadix.com)_
- Talk with your HUD associates

**Need More Information or Want to Volunteer?**

**Notes:**
Thanks for begin so attentive. If you need more information about this project, or if you’d like to volunteer to be a Business Process Area Team member, a Focus Group Participant, or a Subject Matter Expert, please contact me via phone or e-mail. Or you can talk with one of your HUD associates.

Thanks, again, for your time and attention.