1 Module 3.0 Restructuring Your Agencys Administrative Services Organization.

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Module 3.0Restructuring Your Agency’s Administrative Services

Organization

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The objective of this module is to ...

• Introduce concepts and tools that can assist with designing an effective structure for administrative services regardless of the size of your agency

• Provide agencies with information to understand strengths and weaknesses of different structures for Simplified Administrative Services

• Discuss the timeline and transition issues related with changing the structure

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Our Agenda for the day….

8:30 Overview

8:45 Assessing your current organization’s infrastructure

9:15 Developing your “to-be” infrastructure

10:15 Break

10:30 Implementing your new Administrative Services infrastructure

11:00 Lessons Learned and Next Steps

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We are now at the agency Organizational Infrastructure process for Simplified Administrative

Services

Conceptual Design Framework• Develop organization vision themesto support overall vision•Define key relationships between processes•Identify areas for integration

Redesign Processes •Identify target process areas•Define processes and organizational responsibility•Identify initial skills needed

Directional Design•Align processes with current org. activities•Identify leadership responsibilities•Identify organization attributes•Assess alternative organization models•Select model and develop high-level organization chart for central admin services operations

Process Refinement• Align processes with system vendor •Detail redesigns to organizational and human resource levels•Integrate overlapping processes

Detailed Organizational DesignFinance and Administration•Develop job design, management, andaccountability structures•Develop competency requirements•Map employees to roles•Develop next layer of org. chart

Organizational Infrastructure for Agencies’ Administrative ServicesProcesses•Share with agency organizational teams•Identify organization attributes•Assess alternative organization models•Select model and develop high-level organization chart

We are here

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Specifically for the agencies we will...

Organizational Infrastructurefor Agencies’ Administrative ServicesProcesses•Share with agency organizational teams•Identify organization design criteria•Assess alternative organization choices•Propose models and help develop high-level organization charts and plans

We are here

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As part of our preparation for today, we met with many of you regarding your current structures

• We asked specific questions related to your structure, approval path, and processes for doing material and financial management activities

• We developed model as-is structures to identify common strengths and weaknesses of the structures across the Commonwealth

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However, organizational infrastructure is comprised of a number of building blocks

Staff Development

Recruitment/Deployment

Rewards/Incentives

OrganizationStructure

Leadership

Structure alone will not support the success you need...

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Today, we will discuss the important factors related to these characteristics of organizational design

• How involved does leadership need to be?

• What are potential hazards of changing the structure?

• Where are the critical points for decision making?

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Today’s session will be supported by a number of tools, templates, and examples

• Hard copies of tools and templates are located in your handouts

• Each participant will receive an electronic folder with the tools and templates

• They will be sent to your email address on Monday and Tuesday of next week

• Examples are imbedded within today’s module. Primary example will be the Finance and Administration Cabinet and organizations within

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Tools that you will receive:

asis_assess.doc

handouts.doc

orgdoc_out.doc

File Name Description

How to assess your organizational infrastructure

A case example of the Finance and Administration Cabinet that includes a number of templates and documents that you can modify to meet your agency’s needs

Outline for creating an integrated organizational briefing document to support desired organizational changes

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To improve your agency’s Administrative Services approach, ask the following questions:

�Does your agency lack a clearly defined set of vision and design criteria for your administrative services organization?

�Does your agency currently have a Central data entry organization that enters data from field or program areas?

�Does your agency have more than three approval paths?

�Does your agency currently store copies of forms, invoices and billsin more than one location for your agency’s transactions?

�Does your agency have redundant activities occurring in your administrative services area (e.g. duplicative data entry)?

�Does your agency receive complaints regarding the amount of time it takes to process documents, receive payments, get things approved?

�Does your agency strive to be recognized as having “Best Practices”

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If the answer was YES to ONE or more questions, consider the following process:

�Assess current organizational processes & characteristics

�Create design criteria

�Create to-be organizational processes & characteristics

�Develop a new organizational infrastructure

�IMPLEMENT!

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Assessing your agency’s current organizational infrastructure requires:

• Understanding the current administrative services activities that employees in your agency do

• A current organizational structure diagram with an understanding of reporting relationships and approvals

• Evaluating your administrative services organizations’ current approach to other Organizational Characteristics

– Description

– Strengths and weaknesses

STEP 1

STEP 2

STEP 3

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The first two steps are complete...

• In the fall of last year, many of you completed the as-is analysis. This data provides a good baseline for beginning the assessment process

• In January and February, a number of you worked with us to define as-is organizational structures

STEP 1

STEP 2

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Our initial analysis of current structures and approval approaches identified several findings….

• Size of agency was not a key determining factor for structure or number of approvals

• Differences in centralized and decentralized structures were fairly significant

• Agencies that had the same structure on paper, did not necessarily identify the same strengths and weaknesses

• As-is models are located in Appendix A by size of agency


STEP 2

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Small Agency Models

• Small Agencies included: – Agriculture

– Economic Development

– Military Affairs

– Arts & Humanities

• Small Agencies generally had 2 models:– Centralized

– Decentralized


STEP 2

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Medium Agency Models

• Medium agencies included:– Natural Resources and Environmental Protection

Cabinet

– Public Protection and Regulation Cabinet

• Medium sized agencies generally had 3 models:– Central approval and processing

– Central approval

– Decentralized


STEP 2

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Large Agency Models

• Large agencies included:– Cabinet for Families and Children

– Transportation

– Workforce Development

– Cabinet for Health Services

– Justice Cabinet

– Finance and Administration Cabinet

• Large agencies generally had 3 models:– Central approval and processing

– Central approval

– Decentralized

OrganizationStructureSTEP 2

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Sample of Financial Management (Centralized/functional)

Branch

Division

Departmentor Office

Departmentor Office

AdministrativeBranch

FinancialBranch

Division Division

Departmentor Office

Departmentor Office

Agency

Origin ofTransaction

Finance& Administration

Cabinet

Approval1

Approval2

Approval3 & 5

Approval4

OrganizationStructureSTEP 2

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• How do leadership actions support the development and direction setting for Administrative Services?

• How are they promoted and used? Is there an opportunity to use them better? Develop new ones?

• How is training viewed and communicated? Are staff proactive in identifying appropriate training? Are staff encouraged to develop a career plan? Is performance measured and managed effectively?

• How does your agency address recruitment and deployment of employees? Do you have a career path?

STEP 3 Assessing the Organizational Infrastructure

Staff Development


Rewards/Incentives

Leadership

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Beginning the assessment process

• Use the assessment in your handouts

• Work with your agency team members to review and begin the assessment

• We will reconvene in ten minutes to discuss

STEP 3

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This section will address how to...

Create agency-specific organizational design criteria and performance objectives

Identify influences and constraints

Conduct preliminary analysis

Create to-be organizational characteristics

Determine new model structures

Develop a briefing document for the new organization

STEP 1

STEP 5

STEP 6

STEP 2

STEP 3

STEP 4

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Create design criteria and performance objectives

• Design criteria define what the new organization should ideally be able to provide.

• Design criteria may conflict with one another• Performance objectives define what high level

outcomes you want to achieve as an organization and will help drive the design.

STEP 1

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Identify influences and constraints

• This step is the reality check and identifier of potential roadblocks

• Important to complete after establishing the design criteria and performance objectives

• Examples of influences and constraints include:

STEP 2

GeographicDispersion

Readiness for Change

Employee Skills

PoliticalInfluences

Legislation/Statutes

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Beginning the process

• With your agency team members, draft some design criteria and performance objectives

• Draft some influences and constraints• In ten minutes we will reconvene

STEP 2

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Conduct Preliminary Analyses:prioritize and assess gaps

• With leadership, identify which criteria and objectives are a priority. Use a rating scale of 1-5 with 1 being a priority

• Assess the current priority of that criteria within the organization today

STEP 3

Design Criteria Priority Future Priority Today GapImproveprocessing times 1 3 2

Reduce duplicative 2 5 3activities

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Conduct Preliminary Analyses: assess the effort to change and associated costs

• The gap analysis and the influences and constraints provide the data to assess the effort it will take to change

• Associated costs relate to areas where there may be funding or staffing required

STEP 3

Design Criteria Effort to Change Costs Issues AssociatedImprove Hardware KentuckyProcessing Times Medium Derby set-up Reconfigured may change Office Space timingReduce duplicative High Training Old activitiesefforts continue until

12/99

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Develop to-be organizational characteristicsSTEP 4

Staff Development


Rewards/Incentives


Leadership

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Develop criteria and leadership skill and competency needs

• Public sector environment makes this an important activity

• Guides executive leadership in making political decisions

• Create leadership action plans that detail necessary communications and actions

Leadership

STEP 4

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• Existing statutes and resource constraints somewhat limit ability to provide rewards and incentives

• With leadership support there are still many opportunities to recognize employees

• Well-defined performance measures will make assessment of who deserves rewards and recognition easier and fair

• Well-defined career path can also contribute

Identify and define the rewards and incentives that you can use

Rewards/Incentives

STEP 4

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Create staff development needs for the new organization

• What skills or competencies will be needed? Do they need to become part of class specifications requirements?

• Define agency approach to training in administrative services area and required trainings

• Develop guidelines for management and staff

• Promote development of “career plan” that includes training plans and significant career milestones

• Define performance measures (e.g., reduce documentation preparation and approval time by one-third).

Staff Development

STEP 4

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Define future approach to recruiting and deploying new employees

• Create list for future administrative services recruitment needs

• Create agency specific selection guidelines that may include knowledge, skills, and abilities requirements

• Develop a career path using existing class specifications and new class specifications provided by the Finance and Administration & Personnel Cabinets


STEP 4

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Determine key organization model components

• Use the design criteria, performance objectives, and list of influences and constraints

• Review the common organizational design models• Assess criteria using Fit Model • Blank Fit Model is in your handouts and will be in

the folder sent to you next week

STEP 5


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There are some common organizational models that can help STEP 5


Process-Centered

Customer

Functional

GeographicService

Hybrid

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Example of Organizational Fit Charting

Functional Geographic Customer Process

High Medium

Service

Enhances Responsiveness

Encourages Innovation

Provides Streamlined Structure and Processes

Provides Flexibility to accommodate environmental change

Focuses on core competencies

Improves Cost efficiency/effectiveness of service

Enhances work environment

Design Criteria

Low

STEP 5


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Develop Organization Alternatives -- Create and select models that will work for your agencies

AgencyAgencyHeadHead

AgencyAgencyHeadHead

FunctionalFunctionalCOEsCOEs

FunctionalFunctionalCOEsCOEs

Process Process Owner 1Owner 1






Func 1Func 1Func 1Func 1 Func 2Func 2Func 2Func 2 Func 3Func 3Func 3Func 3 Func 4Func 4Func 4Func 4 Func 5Func 5Func 5Func 5

End to end processEnd to end process



Centers of Expertise

Process-CenteredHybrid

Agency HeadAgency HeadAgency HeadAgency Head

Customer Customer Owner 1Owner 1






FunctionFunctionOwner 1Owner 1






Customer FocusedHybrid

Agency HeadAgency HeadAgency HeadAgency Head

GeographyGeographyOwner 1Owner 1












Geographic FocusedHybrid


STEP 5

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To-be models to consider

•Models address the structure only

•Two agencies could have the same structure, but not be equally effective or efficient due to differences in their other processes & characteristics

•Goal is to reduce the number of approvals and the redundant activities

STEP 5


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• Using the organizational fit model, the design criteria, and the sample models, develop a directional design for your administrative services organization

• Hybrids of different types of models are common• Models need to support the business processes• Don’t need to get into the specific details of the

design yet

STEP 5


Create your model organization

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Then apply to your agency

To-Be Model “Centralized” and Geographic Primary/FunctionalSecondary

Branch

Division/Region

Departmentor Office

Departmentor Office

AdministrativeBranch

FinancialBranch

Division Division

Departmentor Office

Departmentor Office

Agency

Origin ofTransaction

Finance& Administration

Cabinet

Approval1

Approval2

Approval3


STEP 5

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Begin to define the new structure

• Each component of the new structure should have a purpose statement and a defined activities set

• Policies and procedures for the new structure will need to be developed

• Cross walk roles from the to-be roles for Administrative Services to the structure

• Reassess associated costs to change…the new structure may have introduced new needs


STEP 5

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Develop a briefing document for the new organization

• Becomes a roadmap for leadership and employees• Outline provided in handouts and in the

documents we will provide to you• Clarifies and integrates all of the Organizational

Infrastructure Processes and Characteristics• Creates the justification and need for change

STEP 6

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Key implementation factors your agency should consider

• Communications

• Workforce Transition

• Training Needs

• Organizational Readiness

• Number of Affected People

• Degree of Impact

• Geographic Dispersion

• Timing

• Executive Leadership Support

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Timing of implementing the structural changes can be as critical as the structure itself...

• Freeze on Executive Orders and Administrative Orders that will affect Chart of Accounts through August of 1999

• Capacity to change and achieve desired benefits given limited resources

• Uncertainty about the exact impact the system will have on an agency’s operations.

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Create an implementation plan that addresses each of these factors

Implementation PlanFactor:

Agency approach:

Timing:

Assigned responsibility:

Status:

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Ensure the effectiveness of the implementation

• Measuring the agency’s ability to meet the design criteria and performance objectives after implementation is critical

• Continuous improvement should become a part of the agency’s culture (maybe made formally)

• True effectiveness will take time. Make sure to measure and acknowledge the small successes.

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Questions????

1 Module 3.0 Restructuring Your Agencys Administrative Services Organization.

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