The People Side of Re-Engineering

A companion document to the Blueprint for Renewing Government Services Using Information Technology

Table of Contents
PREFACE	1
INTRODUCTION	2
RE‑ENGINEERING:  WHAT IS IT AND WHERE IS IT GOING?	2
What Is Re‑Engineering?	2
Major Steps In Re‑Engineering	3
MAPPING THE JOURNEY: MANDATE FOR CHANGE	4
Vision and Guiding Principles	4
Leadership	4
Case for Action	5
Buy-In And Commitment From Employees	5
Emphasis on Communications and Culture	6
Quick Hits	6
Information Technology	6
Governance Structure	7
FROM VISION TO REALITY - THE PEOPLE SIDE	8
ARE YOUR PEOPLE READY?	9
Key HR Challenges & Questions:	11
PROFILING THE EXISTING ORGANIZATION	12
PROFILING THE FUTURE (RE-ENGINEERED) ORGANIZATION	13
What Does the New Organization Look Like?	13
ANALYZING THE GAP	15
MANAGING THE TRANSITION	16
Changing the Business Organization and Structure	16
Transition Challenges	16
Communications and Consultation	17
Human Resources Plan	17
Job Profiles	18
Redeploying Staff to the Re-Engineered Process	18
Rewards, Recognition and Appreciation	19
Specialised Support	20
EVALUATION & MONITORING	22
LESSONS LEARNED	22
APPENDIX A	26
APPENDIX B	27
END NOTES AND REFERENCES	28

PREFACE
The People Side of Re‑Engineering is intended to serve as a tool to help managers address the human resources implications of re-engineering activities. 
This guide was developed as a companion document to the Blueprint for Renewing Government Services Using Information Technology.  It articulates the human resources vision and guiding principles for people management that are contained in the "Blueprint".  It is intended to help managers:
•	develop a working definition of re‑engineering;
•	deal with the people aspects of undertaking re‑engineering initiatives;
•	guide employees in making a smooth transition to the new work environment;
•	identify the people impacts of re‑engineering through examples and techniques;
•	identify the important strategies to address the people issues;
•	learn from the lessons of others who have undertaken re‑engineering activities.
It is also useful for Human Resource specialists and employees who are either considering, or participating in the implementation of re-engineered processes. 
The guide is not designed to be used as a technical manual for re‑engineering activities.  It does, however, focus attention on major areas of concern.
The guide was sponsored by the Human Resources Policy Branch (HRPB). 
Organizations that have contributed their experience and insights to date include:  the Council of Administrative Renewal, Privy Council Office, Public Works and Government Services, Human Resources Development, Environment Canada, The Professional Institute of the Public Service of Canada, The Public Service Alliance of Canada, Public Service Commission, Natural Resources Canada, Transport Canada, Heritage Canada,Statistics Canada, Atlantic Canada Opportunities Agency, Radian, Farm Credit Corporation, Industry Canada, Revenue Canada Customs, Excise and Taxation, Department of Health, Manitoba Human Resources Regional Council, and all the Branches of TBS.
Special thanks to Jim Ewanovich, Conrad Thomas and Barbara Elias (who started it all).

INTRODUCTION
It is essential to modernize administrative operations.  Public servants, as well as those using the systems, suffer as a result of complex, iron-clad administrative rules and procedures.  It is high time to simplify them and promote greater flexibility.
Michel Rocard
former Prime Minister of France (1988-1991)
RE‑ENGINEERING:  WHAT IS IT AND WHERE IS IT GOING?
What Is Re‑Engineering?
•	Re‑engineering is the fundamental rethinking and radical redesign of the entire business system in order to achieve dramatic improvements in critical measures of performance:  cost, quality, capital, service and speed.  The business system is comprised of business processes; jobs and job profiles; organizational structures; management and measurement systems; and the values and beliefs of the employees and the organization. 
•	Re‑engineering is process oriented - it addresses problems of fragmentation and inconsistency.  By focusing on the core business processes (not on departments or functions), it transcends the traditional boundaries that exist between organizations and the people in them.  It challenges what we do and why we do it.
•	Re‑engineering is people oriented.  It changes people's jobs, careers, the way they relate to one another.  It also provides opportunities to change the culture and structure of the organization, thereby providing an atmosphere of continuous learning, empowerment and development.  If done well, it provides employees with further opportunities to link their competencies, development and career aspirations with the future direction of the organization. 
•	Re‑engineering activities focus on clients and on employees providing value-added services to clients.
Re‑engineering, as an emerging theme for the '90s, is a tool to address the growing gap between demand for services and continuing fiscal constraint.  Through the use of enabling technology, re‑engineering seeks to improve the service and administrative delivery processes while reducing costs. Re-engineering is not synonymous with downsizing! 
When properly introduced, technology not only improves service but inherently contributes to an improved working environment for the employees who must deliver those services. One constant to the success of re-engineered processes and organizations is the involvement and commitment of staff. 
A major challenge of re-engineering (and administrative renewal) is creating a positive work environment throughout the period of change.  This means being prepared for the inevitable staff and related "people" issues, including those associated with the introduction of new technology that accompany significant organizational change.
A common question for employees is, "what's in it for me?".  Re-engineering is an opportunity to automate  mundane and repetitive work and to eliminate steps in the business process that are redundant and of little value to clients. It allows employees to focus on what is important for clients and  to have input into deciding the best way to serve their clients. Employees can take pride in eliminating barriers and irritants and in shaping their work environment.  They will also be in a position to express their opinions, to question and to shape management practices during the change process.  By participating in the re-engineering process they can see and understand the business process changes early and place themselves in a position to learn and adapt.
Major Steps In Re‑Engineering
Building on a foundation of thoughtfully introduced change, re‑engineering methodology generally is divided into the following overlapping phases:
•	Envisioning
•	Project Initiation
•	Process Understanding
•	Redesign
•	Implementation
•	Evaluation
Successful completion of each stage depends on the people who must make it happen.  Accordingly, a comprehensive human resource strategy and plan are required to deal with the people issues that will arise along each step of the re‑engineering journey.
While the basic approach to re‑engineering is the same for both government and the private sector, there are differences that may make re‑engineering more difficult in government:
•	leadership turnover;
•	structures/processes to be changed may be embodied in legislation;
•	issue driven rather than a focus on the bottom line;
•	many stakeholders makes client relationships more complex;
•	performance measurement is more difficult;
•	control-oriented, risk averse organizations;
•	decision processes more open to scrutiny;
•	differences in revenue structures;
•	monopoly markets for government services;
•	work-force adjustment and a high level of employment security;
•	rewards are often personal - not organizational or monetary.
MAPPING THE JOURNEY: MANDATE FOR CHANGE
While you can't plan totally all the changes associated with re‑engineering, experience has taught that there are a number of prerequisites and recurring themes that are associated with organizations that have re-engineered successfully:
•	Vision and guiding principles
•	Leadership
•	Case for Action
•	Buy-In and Commitment from Employees
•	Emphasis on Communication and Culture
•	Quick Hits
•	Information Technology
•	Governance Structure
Vision and Guiding Principles
The challenge for leaders is to paint credible pictures of how the organization will work, and how the workplace would feel to the employees.  The goal(s) of a re‑engineering project must be clear and simple.  A compelling vision will articulate a sound rationale for the change, including benefits to clients and opportunities for employees.
Leadership
The most important factor in successful re‑engineering initiatives is strong executive commitment and leadership.  Deployment of key personnel to the re‑engineering team sends a strong signal that these changes are important.  With unswerving commitment to make things happen, the leader must be personally involved in managing the human dimension of re‑engineering.
Case for Action
This is a statement explaining the need for the re‑engineering effort.  It defines the business context, the pay-offs and the consequences of inaction.  It is based on a rigorous analysis of human resource implications, strategies and costs. 
Front-line staff have expert knowledge of customers as well as inefficiencies in the processes. They are able to make suggestions for improvement and should be involved in developing the case for action.  Their involvement will also help to win their support and reduce the inclination to maintain the status quo. 
Buy-In And Commitment From Employees
The key to assuring outstanding quality, service and productivity is the commitment of staff.  Buy-in is obtained during the initial stages by involving and consulting staff and their bargaining agents. Involvement and consultation with them must be meaningful. It demonstrates management commitment and support for employees trying to absorb the effects of change and sets the tone for the transition and the future working environment.
Mixed messages must be avoided. Re‑engineering that has been justified to senior management based on cost-savings, cost avoidance and job reduction has to be supported by a thorough and rigourous analysis of the human resources implications and actual costs and savings. The tendency to use  overly optimistic "guess-timates" and timeframes must be avoided.
Using overly optimistic numbers on potential savings, then advising employees that change is necessary and positive followed by communication that asks for their support and involvement sends mixed messages.  Anxiety is increased at the outset if employees view the exercise as one of "job cuts", especially when the first messages to them also outline the Workforce Adjustment Directives.
Getting employees and stakeholders (including bargaining agents), involved early and as much as possible in the process of change is one of the key tools to acquire the support which necessary for success. Without bottom-line support and  buy-in, the probability of failure is high and no amount of "after-the-fact" communication will rectify the situation.
Local and departmental labour management committees are the prime consultation and communication fora to discuss re-engineering activities and people related issues.   Early consultation is essential and can contribute to management's understanding and the resolution of concerns and issues that are important to employees and their bargaining agents. The committees should not be used simply as vehicles to communicate "cast in stone" decisions on re-engineering. 
Strategies to obtain buy-in and commitment
•	Joint planning meetings to recognise and address the needs and concerns of employees from the outset. (involving line management, selected front-line employees, HQ and regional HR representatives., union executives)..
•	Identification & consultation of stakeholders to ensure early "buy-in.
•	Communication from day one!..it is the key to success - regular, direct and honest exchange of information with employees, clients and other related organizations.
•	ADM and Sr. management visibility at local functions - Overt executive support is required to re-inforce commitment.
•	Self-managed workshops at all levels - to encourage frank discussion and resolution of issues.
•	Education workshops for team members - to re-inforce the human resource strategy and values.
•	Revised and expanded reward and recognition system to support new values will foster strong employee motivation and improvement in morale
•	Establishment of project HR function - to co-ordinate the implementation of the human resource strategy and to deal with day to day HR issues.
•	Early participation by Treasury Board, PSC and other central agencies to ensure early understanding of the human resource issues that underlie the support request
Emphasis on Communications and Culture
Re‑engineering provides a vehicle to open up communication and  improve management practices. It changes the way people work and can create an environment that encourages innovation and change. It provides opportunities for employees to develop and improve their client-oriented approach.  Middle managers will be impacted as the role of coach and facilitator takes on greater importance. This will in turn will improve client service.
Quick Hits
Speed of execution and quick progress are key tools to mobilize support. Implementing tangible elements with immediate returns or payoffs can be used to sustain commitment and support for longer-term changes.  Employees can be encouraged to identify irritants and quick-hit possibilities.
Information Technology
In general, technology should be viewed as an enabler in re‑engineering projects rather than the key driver of change.  Technology must be viewed as a means of improving clients' dealings with the public service and a vehicle for improving the work and work-environment of those who deliver the service. There must be clear line management ownership with access to the best possible advice and counsel of specialists. It is the line manager who must face the employees and deal with the people issues associated with technology.
Governance Structure 
Innovative business processes rarely occur if their planning, design and testing are totally managed within the existing organizational structure.  To succeed, a separate governance structure outside the organization's existing processes and management hierarchy is recommended.
There are a number of critical roles that must be addressed to carry-out a re‑engineering program successfully.  Selection of the right people to perform the respective roles in the governance structure is critical to a successful project.
•	Executive Leader/Sponsor:  The sponsor of the re‑engineering initiative should be the most senior executive in the organization, the executive spokesperson and driver of the effort with primary responsibility and authority for dealing with major issues and making major decisions.
•	Champion/Process Owner:  The champion is responsible for empowering the re‑engineering team to make radical changes in processes that cross functional lines.  It is his/her responsibility to determine customer requirements, benchmark the performance of others, select people to work on re‑engineering teams, and provide them with the required resources. 
•	Project Steering Committee:  This is a senior management group made up of the most important stakeholders in the re‑engineering activities.  They will be expected to champion and actively promote the initiative, and to provide leadership in removing barriers. Bargaining agent representatives, as a stakeholder, should be a participant during discussions about the people implications. 
•	Re‑Engineering Team(s):  This is the group that really makes it happen.  Managers, specialists and  front-line employees with expert knowledge of the business process  should be part of the team.  Cross-functional (and possibly cross-departmental) representation from Human Resources, Communications, Finance, Information Technology and other relevant disciplines is essential.  Clients, as well as bargaining agent representatives as part of  the project teams are essential to represent their own interests and their members.
Education in re‑engineering and team building are essential in developing the re‑engineering team and in fostering buy-in and collaborative work styles for the design and implementation of new processes.  Re‑engineering workshops for all managers and information sessions for employees and their representatives are recommended.

Following is an example of a governance structure.

FROM VISION TO REALITY - THE PEOPLE SIDE
What we are doing is 5% technology and 95% change in culture
Chief Informatics Officer
The vision of client-centred service that puts people - clients, stakeholders and employees -at the centre must be paramount.  "Where you are now" must also be quite clear.  The vision must be supported by people principles that guide the human resource aspects of the re‑engineering activities.

Example 1:	Extract from the Blueprint for Renewing Government Services Using Information Technology. 
People Management  Principles
People Management
Employees, their involvement, development and commitment, will be critical to successful business renewal.
Rationale
•	Securing employee participation and commitment and resolving people management issues are key to successfully transforming business.  Employees, with their knowledge, are well-positioned to know what the client requires and are vital for implementing re-engineered processes and improving service delivery.
•	Employee participation during business renewal provides the opportunity for employees to link their competencies, development and career aspirations with the direction of the organization.
IMPLICATIONS
•	Need active employee consultation, involvement and participation on the team throughout the renewal process, i.e. from design to implementation.
•	Need open, honest and timely communication with all employees and consultation with their bargaining agents.
•	Need a rigorous and thorough analysis of the human resources implications, strategies and costs as a prerequisite to project approval.  Human resources specialists must be involved in all projects from the initial phase to help identify the full range of human resource issues arising from the re‑engineering. and to contribute actively to their resolution.
•	Departmental management must commit to providing an atmosphere of continuous learning and development in a flexible and responsive work environment.
•	Resolving the full range of human resource management issues will take time and money.
ARE YOUR PEOPLE READY?
Change Readiness Assessment
During the initial stages of the re-engineering initiative, an environmental scan or conscious assessment of the ability of the organization and its employees to accept change should be undertaken. 
It is important to evaluate the internal climate, i.e. take the organizational pulse, identify organizational barriers to change and create a change management strategy to minimize their effects. Employee climate surveys are a useful tool, regardless of the format, but should be supported by face-to-face discussion.
Key objectives are to understand the organization's environment, including its strengths and weaknesses, communicate the need for change and start the managers and employees thinking about its current performance and alternatives.
The most-often-cited barriers to change are employee resistance and a "dysfunctional corporate culture".  The failure to anticipate and deal with resistance may hinder the re‑engineering effort.
Questions to help assess readiness:
•	Is there a clear vision of the future?
•	Do employees understand, share and support the vision?
•	Does the organization have a culture that already emphasizes employee involvement and continuous improvement? 
•	How does the re‑engineering effort connect to other major initiatives in the organization.
•	Where the business process re‑engineering cuts across functions, are functional managers very turf conscious and are there different categories of employees involved?
•	What is the current level of employee technical sophistication vs. the required level?
•	Is there a history of prior success(es) or failures with change initiatives in the organization?
•	Are there symptoms of unreadiness, e.g. low team spirit, mistrust - between employees and management and between departments?
•	Can support be easily mobilised, i.e. are there pockets of resistance?
•	Is there an effective communications strategy in place?
•	Have I complied with the terms and conditions of  the applicable collective agreements and the Workforce Adjustment Directives?
Answers to these and similar preliminary questions will help to anticipate problems before they arise
Key HR Challenges & Questions:
Where:
Which specific areas of the department or other departments will be impacted by the changes?
How Many:
What numbers and types of employees will be needed in the future to deliver the anticipated new or revised services?
Profiles:
What are the current composition and skills of employees in the affected areas and in the department as a whole?
Training:
Will the current employees be able to fit the future profile with or without training? What kind of training will be required?
Work Force Management:
Will the changes result in a reduction of the workforce, if so, to what extent? Are time frames optimistic? Will attrition and careful replacement be a solution?
Of those that cannot be retrained to fit the future profile or are declared surplus, what are the options with realistic estimates of numbers and costs:
•	early retirements
•	WFA or relocation within the department or other departments.
Are preparations in place to support affected employees?
note: the Workforce Adjustment Directive must be complied with.
Retaining Key Personnel:
What key personnel will be needed during the transition period and what incentives can be used to retain them?
To what extent will you need to recruit new employees with special skills?  From where and how?
Communications Strategy:
How and when should planned changes and anticipated human resource impacts be communicated to employees? How will consultation be undertaken?
Unions:
Have unions been involved from the beginning?
Support Systems:
What special programs will be needed to help employees adjust to changes (counselling and advisory services)?
Costs:
What will all of this cost?
To what extent will transition funding be required and where will it be obtained?
Will the new organization be less expensive than the current organization?
PROFILING THE EXISTING ORGANIZATION
It is important, first of all, to identify the key characteristics of the current organization and existing workforce that will be affected by changes to the processes.  Information systems, organisation charts and special studies or surveys will be useful sources of data.  This data should include  tombstone, demographic and mobility data such as:
•	job titles and numbers
•	classification, groups and levels
•	indeterminate, determinate, assignments, secondments or on leave
•	personal services contracts
•	number and types of special and flexible work arrangements
•	target group member numbers and related data
•	geographic location (local, regional, HQ, other)
•	organizational units, etc.
•	competencies, skills and knowledge
•	language profiles
•	age and gender
•	length of service
•	earliest retirement dates
•	attrition rates, turnover, mobility
•	salary, overtime and other HR costs such as training
The current state of management processes, values and culture of the organization should also be recorded during this stage, for example, management practices, career paths, performance measures, rewards and recognition.
This information will form the basis of the assessment of the human resources impacts of the re‑engineering processes on the existing workforce.  Human resource strategies and plans will be developed from this information.
PROFILING THE FUTURE (RE-ENGINEERED) ORGANIZATION
A similar exercise is required to identify the shape and characteristics of the emerging organization and workforce. This is a more difficult exercise and will have to be based on the vision of the new organization in terms of its shape, size and skills requirements, and the re-engineered processes.  Refinements will have to be made as the project progresses. It will project the future state in terms of people in the organization, competencies, structure and geographic locations (regional, HQ and other), etc.
What Does the New Organization Look Like?
Questions to be addressed include:
•	What will the new organization look like in terms of people and how they will work together?
•	How do we want to manage our staff?
•	What infrastructure and support is required to move the business forward?
Factors that should be considered when visualising the re-engineered organization, include:
Organization Structure
•	more integrated and cross functional
•	increasing role of technology
•	levels of management, i.e. a flatter, less hierarchical structure
•	number of managers, i.e. fewer managers with greater autonomy
•	number and location of offices
•	renewed and improved service delivery points
•	job profiles
•	re-engineered processes (elimination of numerous hand-offs)
•	work changes through enabling technology
•	new tools and equipment to do work
Staff
•	composition of workforce:  anticipated number/percentage of indeterminate, part-time, terms
•	job sharing, assignments (in and out), flexible working arrangements
•	career paths 
•	types and levels of employees (by location), target group members
•	new skills, competencies, knowledge and language requirements
•	empowered front-line workers, client and quality focused
•	accessibility of workers to clients
•	focus on self-managed teams 
•	improved access to information through technology
•	salary and related HR costs
Culture and Values
•	practical and pragmatic business approach
•	management style of openness and consultation
•	continuous learning organization
•	employee participation and consultation
•	client and quality service oriented employees
•	continuous performance measurement
•	value-added service and results orientation
•	cross-functional integration
ANALYZING THE GAP
Gap analysis highlights the HR issues and challenges that require management strategies to implement the business solution.  By mapping the data from the current workforce and organizational profiles against the future state, analysis will identify  the "gaps" between existing employee skills, knowledge and competencies, and the new organizational requirements.  It will also allow managers to perform impact analyses to ascertain the organizational and HR implications including costing of various future states scenarios. 
Results of the gap analysis should include the...
•	gap between current and future organization structure
•	gap between current and future geographic locations
•	gap between current and future staff levels
•	staffing and deployment requirements
•	potential workforce adjustment impacts
•	organizational and employment adjustment costs
•	training and re-training requirements
•	career development requirements
•	backfill requirements and replacement costs
•	target groups and language requirements
The results of the analysis in context with the anticipated time frame for re‑engineering will permit managers and HR specialists to...
•	understand the complexity of the transition
•	assess options for managing the impacts of the change on employees
•	collaborate with TBS and other central agencies and departments on issues that the department does not have the authority to deal with directly (especially when contracting out and utilizing alternate delivery mechanisms, e.g. Special Operating Agencies)
•	monitor results during implementation
The results will form the basis of the transition strategies, implementation, and ultimately the TB submission.  They should also be used for making decisions with respect to employee support activities, for example, counselling, job search training and marketing of employees.
MANAGING THE TRANSITION
Changing the Business Organization and Structure
Transition is a time of "passage", when people are apt to carry around some of the baggage of their past, as well as feel the first stirrings of their future. It is also a time when employees have to face a number of challenges as old processes and ways of doing business make way for the new.
Very often, this may mean parallel processes and organizations and their attendant problems such as:  who do we train first?..who do we move to the new work first and how?... will there be a pilot?...how will appointments be made to the new structure?...is a shadow organization needed until the new processes are up and running?...initially, do I need more people and investment? 
Transition Challenges
Transition challenges include:
•	moving people to a leaner, less hierarchical organization structure;
•	helping managers and employees adapt to new jobs, roles and responsibilities, processes and procedures;
•	on-time training and re-training of employees 
•	operating the old process(es) in parallel with the new;
•	continuing to provide quality service to clients;
•	establishing support mechanisms and strategies for employees adversely affected;
•	sustaining motivation and commitment of staff;
•	reducing the risk of losing the best employees who currently operate the legacy systems by developing incentives and guarantees;
•	backfill and replacement strategies (vacancy management).
Strategies are required to meet the above challenges, to ensure a smooth transition and to realise the benefits of re‑engineering.  A well-picked transition team will be critical at this stage to "make it happen". Competencies and individuals that should be included on the team are: business-oriented instead of systems-oriented, quantitative, results-oriented, process modellers, technology experts, HR specialists, communications specialists, detail planners, financial specialists, specialists from the private sector, and bargaining agent representatives.
While it was important initially to establish high visibility for the project by forming high profile teams and roles, the actual changes to the organization should be more subtle.  The formal structures, job titles or classification levels can be changed over the duration of the re-engineering initiative. An effective method is to overlay processes onto existing functions which will help employees to adjust. Initially, the new process owner will wear two hats:  one as the head of the original function and one as the owner of the new process.
Communications and Consultation
Get the truth to people before the rumours take over.  Tell them what happened, what's happening and what will be done.
The only thing that is worse than bad news is uncertainty.  Effective internal communications from DAY ONE is critical for successful re‑engineering.  A corporate communications and consultation strategy is required to ensure that employees are kept fully informed.  Elements of the strategy:
•	Communications must be timely, open, sensitive and honest even to the extent of telling employees when management does not have answers to their questions.  At the same time, it is important not to create panic by presenting information that is not supported by rigorous analysis.
•	People must have a clear sense of where the organization will be at the end of the day.  Staff need a clear idea of what to expect in order to handle the changes.
•	Long-range and short-range goals must relate to something within the realm of their control, and objectives should be set with their input.
•	It is crucial to have a process in place whereby information can flow quickly so as to be timely when it reaches its target audiences.
•	Above all, communications must no longer be considered a separate nor solely a support function.  Communications personnel must be involved in change at the strategic level and foster close alliances within the organization's human resources division and operations.
Human Resources Plan
At this point in the re-engineering project, attention should be focused on developing a detailed human resources implementation plan.  The costs and limitations associated with the plan should be clearly articulated.  It should address the issues that were identified in the gap analysis exercise.  
Formal, co-ordinated consultation with central agencies regarding potential impacts of planned activities and strategies should be initiated as part of a draft planning process to ensure that potential impacts are factored into government plans, policies and negotiations with unions.   
Job Profiles
Job profiles identify the knowledge, skills, abilities and competencies required for various types and levels of positions throughout the organization.  Training curricula can be developed from these profiles.  Job profiles will also highlight career opportunities and paths for employees and can be useful to managers in identifying potential candidates for new positions. The content of new jobs and profiles should be carefully written to avoid the perception of  "winners and losers" in the new organization.  
Education and Training
A comprehensive education and training program is critical to successful project implementation.  It is a key component in providing employees with the knowledge and skills for their new roles.  It will also be the vehicle through which fundamental changes in attitudes and orientation can be conveyed.
Training needs may be unique to each re‑engineering effort.  Thus, there are no "off-the-shelf" solutions.  The degree of cultural change sought as well as the process changes that will be required demands a unique and individual solution. Issues that usually require attention are:
•	training in the management of change must be a priority to help bring about a successful re-engineering effort;
•	the training strategy should be based on the needs identified in the "gap analysis" exercise and will make allowances for continuous upgrading after implementation;
•	non-technical skills training (i.e., communication and negotiation skills) will be as important as process and procedure training;
•	the training strategy should be integrated with the existing training.
•	competency based models may be employed to assist managers in identifying training, 
•	managing the new skills sets will include keeping employees current as technology and the organization evolve.
Redeploying Staff to the Re-Engineered Process
The normal processes such as deployment, assignment, secondment and competition should be used. Seldom are all employees moved at the same time. During the period of migration and training of employees, openness and fairness are essential. Employees must have the opportunity to question movement and training activities since it will be natural for those working on the legacy process or system to wonder about their future when they see others moving and learning.
Candidates for redeployment to the new jobs created by the process should be evaluated on their total abilities, for example, ability to work collaboratively with others, creativity, diagnostic and problem-solving ability, rather than just their existing knowledge base.
The tendency to start immediately to use workforce adjustment to move employees out of the old process by declaring them vulnerable and then using internal priority systems to move them into jobs should be avoided. WFA activities and support systems should be reserved for those that truly will be disadvantaged. WFA should be a manager's tool of last resort.
When the paradigm shifts, substantial knowledge of the job can go back to zero.  While there will be areas where specialized expertise is required, more often, employees will need the ability to learn quickly. Planned training and developmental assignments and secondments have proven to be effective for interim periods. 
Vacancy management is an effective way to transform the organization incrementally over time during the re-engineering processes. Use the opportunity to change the organization each time an employee leaves through normal attrition or mobility. Analyze carefully each job as it becomes vacant to decide how the resources for that job can best be used towards the new organization. Can it be used to move towards the composition of staff and to provide the skills required in the new organization? If the job is still needed, as is, while undergoing re-engineering then consider a staffing decision which will minimize any future impact on WFA, for instance, hire a term employee.  
Organizations that re-engineer successfully don't just set new directions and fill positions.  They also identify their core competencies, i.e., the collective learning and skills they have to maintain on a continuing basis.  The core competencies need to be protected and further developed during the migration to the new process.
Whenever possible, employees should be deployed and then returned to be the trainers and coaches of other employees to reinforce ease of learning and success.
Rewards, Recognition and Appreciation
Positive reinforcement is a powerful technique to induce changes in beliefs and behaviours.  Rewards and incentives encourage desired behaviours while disincentives can deter undesired ones.  A variety of positive reinforcements can be applied including formal and informal recognition of contributions.  It may be necessary to revise the performance measurement systems and the complementary rewards and recognition process to reflect the new values such as teamwork and empowerment. Simple appreciation for a job well done is often a strong motivator.
Specialised Support
The Guide to the People Side of Organizational Transitions deals comprehensively with management of downsizing that may result from streamlining and simplification of processes.  It outlines a number of principles and strategies that can be employed to cope with transition challenges.  A brief summary of these related principles and strategies follows.
By definition, jobs change when processes are re-engineered.  With support and education the majority of employees should be able to make the transition.  However, there will be some who are displaced. 
Successful organizations take a pro-active approach to providing cost‑efficient and appropriate support programs before implementing major change.  Such programs must be planned and cannot be developed overnight nor during the frantic atmosphere of a major restructuring or downsizing. 
Key Principles:
Pay attention to the human factor. 
•	Recognize the contributions made by employees in the current organization; validating previous contributions will provide the basis for confidence that employees can succeed in the re-engineered environment.
•	Ensure that adequate support networks are in place.
•	Deal openly with downsizing.
•	You, your organization, as well as other government departments have a responsibility to work for and support affected employees.
•	Use proactive approaches to minimise layoffs, e.g. freeze hiring early in the process to maximize the benefits of attrition, limit the use of term employees and overtime, support leave without pay or education leave or interchange assignments.
•	Ensure that employees who leave can do so with dignity, self-respect and a sense of  worthwhile contribution.
Strategies:
Support and Strengthen the Corporate Management Team
Organizational transitions put a heavy burden on managers and supervisors who share the same anxieties as their employees but must contribute enormous amounts of time and energy to corporate initiatives.  From a people perspective, immediate supervisors bear the brunt of employee reactions,  yet have little control themselves in many cases over the actual choices that are made.
Use every opportunity to acknowledge the difficult task these managers face -- where possible in front of a broad range of employees. Tell transition managers where they can get assistance and that they are expected to use this assistance.
Expect transition team members to show the same range of reactions as affected employees, e.g. increased feelings of anger, discouragement or physical and emotional signs of stress.  Allow them to vent these feelings and to grieve their losses (loss of colleagues and loss of familiar organizational structures).
Encourage use of informal networks for cross‑branch contacts. A sense of connection -- of being in the same boat as other managers -- can be a tremendous motivator for managers in times of change.  Managers should be in touch and sharing experiences with others who are undertaking re‑engineering activities.
Help Employees Assess Options
Affected employees have major personal decisions to take under both the Work Force Adjustment policy and the new Executive Employment Transition policy (EET).  They may have to choose between early retirement, a job at a lower level, moving to the private sector or, for executives, accepting an individually‑negotiated severance package under EET.
Because of significant financial implications which are not particularly easy to calculate individuals should be provided with complete information on the impacts on their financial situation.  As employees understand the parameters of their financial situation (salary, benefits, salary protection, separation from employment, settlement) they become more receptive to job search activities. Employees should always be encouraged to seek the best possible advice including the advice of their bargaining agent representative before making any decisions.
Provide Access to Counselling Services
Counselling and support to individuals is important in a re‑engineering project,  The focus of counselling and support activities should be small groups with similar needs.  The sessions should help people recognize and express their feelings, legitimize them and develop individualized action plans to cope with the adjustment problems. All employees should have access to counselling.
Support Personal Career Planning
The requirement for pre‑retirement seminars, skills assessment, career planning, résumé preparation assistance, job search techniques, and counselling services should be identified and a framework for implementation should be put in place as soon as possible after the announcement of change.  
Logistical Support
Logistical support for employees could include providing access to closed offices and telephones for confidential discussions, as well as, facilities from which  job searches, counselling and meetings can be conducted.
Support Outplacement
The need for specialized outplacement assistance for certain types of employees -- or employees in particular regions -- should be identified early in the process.  Where organizations have highly specialized employees, such as scientists, engineers, or senior executives, management may wish to consider using an outplacement organization to help identify alternative employment outside government.
Market Affected Employees:
Distributing an overview of the affected employees' skills can help potential employers decide who is ready immediately for redeployment -- and where they could placed -- and who could be ready with some training. If assignments are sought, they should be meaningful and at an appropriate level.
EVALUATION & MONITORING
The final stage of the re‑engineering effort focuses on the measurement of performance and quality improvement.  Continuous feedback is required to evaluate the results of the implementation, to determine the effectiveness of the training, communication and other transition strategies, and to identify the need for additional training or re-training of managers and employees.
Monitoring of behaviour and performance provides a good indication of the need for mid-course correction.  Employee morale and client satisfaction are good measures for monitoring.  In the long term, combined people and process changes should produce an organization better able to change and learn, and an organization that contributes to the development and well-being of its employees.
A useful tool to measure success and the performance of management is the TBS document entitled, "The Human resources Management Accountability Framework".
LESSONS LEARNED
LESSONS LEARNED FROM THE 1993 HR IMPACT STUDY 
During the research, a question was posed to interviewees asking for their input and advice for the federal government based on their experience in such initiatives.
•	Have a clear vision of the future state ‑ where you are going.
•	Involve all levels of employees in the planning and implementation.
•	Give authority and responsibility to teams or committees.
•	Over communicate and do it early ‑ even if you do not have all the answers.
•	Remember that middle management and first line supervisors are often the most affected group.
•	Each situation and organization is different and requires a slightly different approach.
•	It is essential that all employees understand and believe in the need for change.
•	Cultural changes in the organization are inevitable ‑ recognize what the changes will be and manage them.
•	Do not downplay the negative realities of the situation faced ‑ be honest about the possibility of downsizing if that is the case.  People deal better with what they know than with what they do not know.
•	Focus on improving the process not on the performance of individuals in your re‑engineering efforts.
•	The most common barriers to overcome in the short term are low morale, fear of change and fear of accepting new responsibilities.
•	The focus of re‑engineering initiatives should be on removing costs of non-value added activities, not on cutting labour costs.
•	The "survivor syndrome" is an often overlooked problem that must be recognised and dealt with.  Common characteristics include guilt over not being terminated, apprehension over the organization's future and confusion over work responsibilities and reporting relationships. 
LESSONS LEARNED ABOUT IMPLEMENTATION
•	Senior managers are generally enthusiastic supporters.
•	Middle managers are generally lukewarm to change.
•	Senior managers need to be prepared for the difficulty...to get the changes to stick takes a lot of time and effort -- re‑engineering is not a turnkey operation.
•	Most often heard arguments when describing a new process:  "We already do that."  "We have tried that and it didn't work."  "Have you done a cost-benefit analysis on that?  I think some of what you have will work, but other parts are not cost effective."
•	lots of people want to get a jump on the program (e.g.:  influence the outcome, recognition, more fun).
•	Detail is the enemy of change.
•	Start getting your people ready now.
•	Innovation is difficult, but the alternative is often worse.
•	Everyone has a "solution/product" to meet your business objective; it's a "buyer's market".
•	End users/customers must make technology selection decision based on their own research and business needs.
•	Everyone involved in a major project must buy-in to long-term "care and feeding"..
•	Organizational structure needs to change to accommodate technology, -- re-engineered business processes, training, support, job requirements, communication networks, decision making routines.
•	Users must devote/assign full-time effort into planning and implementation -- with responsibility for the results.
•	Success is dependent on a strong user-information systems partnership -- select and nurture your partner!
•	Make investments in technology for the long term; address issues of evolution versus solution.
•	Over communicate!
•	Unions are concerned about their members and want to help.
•	Reserve WFA for those who really need it.  It's not the best tool  to move people "in" or "out".
•	Make the transition natural and part of growth and development, not something to fear and stone-wall.
LESSONS LEARNED ABOUT INTERNAL COMMUNICATIONS
The following practices are characteristic of organizations and industries with successful internal communications programs:
•	beginning organizational change with a clear vision;
•	involving communications personnel as a strategic component of change management rather than as a support function;
•	demonstrating senior management commitment, support and involvement through the active participation of a "champion";
•	conducting awareness sessions prior to and during any change process, led by senior managers with hands-on involvement in the changes;
•	including front-line management in the planning for change and utilizing them as "ambassadors" or "change agents";
•	emphasizing face-to-face communications;
•	integrating the communications of organizational goals into ongoing training curricula;
•	translating Quality Management into action items for staff;
•	recognizing that every employee has a role to play in internal communications;
•	use re‑engineering teams to meet and communicate with employees
•	encouraging front-line staff to communicate laterally between offices through the use of in-house video technology;
•	equipping front-line management with communications skills training and usable materials to support them in face-to-face activities with their staff; 
•	incorporating measurement for effective communications into management performance appraisals; 
•	integrating communications with training activities; 
•	identifying all activities as having a communications effect and co-ordinating both direct and indirect messages being sent;
•	ensuring that messages meet employee requirements by 	focusing on information they need to do their job;
•	measuring the effectiveness of communications vehicles and products before and after introduction.
•	communicate successes and individual achievements through employees deployed to the new processes.

APPENDIX A
CHECK-LIST FOR RE‑ENGINEERING
•	Do you have leadership for this initiative?
•	Establish the re‑engineering team
•	Develop the Vision for where you need to get to
•	Understand or develop the Case for Action
•	Benchmark processes with other organizations in both public and private sectors
•	Understand the customer needs that your business processes address
•	Identify and understand existing core processes -- what are the products and why do we provide them.  
•	Understand technological environment that currently exists as well as opportunities that new investments could create.
•	Determine if your organization is ready to re-engineer. Can you achieve productivity improvements through other means, such as, quality management? 
•	Develop profiles, including skill sets, for employees that may be impacted by re‑engineering
•	Identify Quick Hits for improvement
•	Design new business process
•	Define the changes that are necessary to support the re-engineered process
•	Define and develop new requirements for technology and architecture
•	Define the core competencies that you need.  Define the gap between the current skill set and the skill set you need for the future
•	Define the changes to organization structure, management and measurement systems, and values and beliefs that will be necessary to support the new business process.
•	Plan the scope and scale for implementation of changes necessary 
•	to support the re-engineered process.
•	Implement the new process

APPENDIX B
Example 2: 	Extract from the Income Security Program Redesign project:
The success of ISP Redesign depends on the active participation of management, human resource specialists, and employees, in an environment characterised by collective support and recognition of respective responsibilities.  The following principles will guide us throughout the process:
•	Senior management commitment and leadership demonstrated through action.
•	Open, honest and timely communication with employees and other stakeholders.
•	Fairness and equity.
•	Active employee involvement throughout the redesign process.
•	On-going and meaningful consultation with the bargaining agents.
•	Human resource plans, with employee needs as a basic component, developed and implemented in partnership with the Human Resources Program.
•	Maximum employment security for indeterminate employees of the existing organization with minimum negative impact.
•	Optimum placement of employees at their current group and level, and in their current geographic location.
•	Personalised action plans for all affected employees.
•	Commitment to provide appropriate equipment as well as training and development of staff.
•	Recognition of Employment Equity and Official Languages responsibilities.

END NOTES AND REFERENCES
1.	Abridged from RE‑ENGINEERING THE CORPORATION: A MANIFESTO FOR BUSINESS REVOLUTION, Dr. Michael Hammer and James Champy, Harper Business, May 1993
2.	1992 update to Strategies for People, Carmelita Boivin-Cole, Treasury Board Secretariat
3.	Guide to Managing the People Side of Transitions, Treasury Board Secretariat, June 1993.
4.	Human Resources Management Accountability Framework, Treasury Board Secretariat, draft 1994 
Comments and suggestions are most welcome! Please contact Jim Ewanovich, Human Resources Policy Branch, Treasury Board Secretariat...tel. (613) 952-3113 fax (613) 957‑0425