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Reengineering Public Services Through ISO 9000

ZAKARIA AHMAD, Asian Pacific Development Centre
Malaysia
Introduction
THE PUBLIC SERVICE is obligated to deliver the best service to its customers and stakeholders
at whatever cost. The words administrative reforms have been commonly used by public
servants such that sometimes they have very little impact on the public service performance.
Change management too has become a popular jargon in the public sector. Changing the
mindsets is another approach to achieve high effectiveness and efficiencies in delivering the
service to the citizens. The paradigm shift too has been considered as an effective tool for
higher quality and productivity. Reinventing government has been said as a good choice for
the public sector to transform itself in order to meet the ever changing needs of the customers,
and as the means to manage the turbulent environments influencing the public sector. Last but
not least the hottest management concept since the quality movement has been introduced is
reengineering. Thus, whether the management concepts mentioned above is suitable in the
public sector or the private sector, these concepts have become attractive to scholars and
practitioners. Experiment after experiment have been carried out, and success as well as
failure stories have been quoted in management seminars in search of the best management
practice. Why organizations fail or succeed in implementing change have been discussed
intensively and extensively by scholars. Leadership commitments and management supports
have become a common factor which can determine the success as well as failure.
Whatever the concepts, whether they originated from the West or the East, or are
Northern or Southern ideas or whether they are originally designed for the private or public
sector, a total acceptance of an application may not be possible or practical. Culture has
become the most important factor to be considered when the concept is applied. Nations
have their own cultures which are unique and peculiar in their own ways. Organizations too,
private or public, have their own cultures. Even among public organizations, different
cultures, and subcultures exist for good or bad. Therefore, application through adaptation is
very vital in introducing change which affects the work culture.
The objective of this paper is to examine the applicability of the management concept
reengineering, in managing the public sector and to relate the experience of implementing
ISO 9000 in the civil service. It is not the intention of this paper to provide detailed
strategies for the readers to reengineer their organizations or implement ISO 9000. It is an
effort to demonstrate the relationship, if any, between ISO 9000 and reengineering.
Reengineering an Organization
Definition
Hammer and Champy in their book entitled Reengineering the Corporation: A Manifesto for
Business Revolution define reengineering as the fundamental rethinking and radical redesign

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109

of business processes to achieve dramatic improvements in critical contemporary measures

of performance, such as cost, quality, service and speed (emphasis added) (Hammer and
Champy, 1993: 32). Starting over and recreating the organization, seem to be the focus
of reengineering. A complete restructuring of the business process with the aim of creating
positive changes in current performance measures critical to the operations of an organization
is actually the basic point of reengineering. Therefore, true reengineering involves redesigning
systems and processes without undue consideration of the current organizational structures,
policies, methods and roles (Hammer and Champy, 1993).
Reengineering Steps
As defined above, reengineering requires radical changes that often involve fundamental
changes in the various components of a process such as jobs, structures, technology, people,
values and beliefs, management and measurement systems. Briefly, the steps in the process
of reengineering can be summarized as follows (Voris and Wertz, 1997; Hammer and Champy,
1993):
a)

Defining a vision for the organization. This vision must be clear and
precise and must reflect what is the future that needs to be created. It must
be communicated to all employees;

b)

Articulating and recording important assumptions. This involves

answers to questions such as why change is needed; what are the
consequences to remain with the status quo; who demanded the changes,
and what are the required changes;

c)

Plan development. This includes the establishment of the objectives,

who will reengineer, identifying the core business, development of strategies,
identifying the processes that need reengineering, and managing
communication and expectations;

d)

Business Analysis. This focuses on information gathering on capabilities

and competencies, and evaluating organizational issues, customer needs
and information technology capabilities;

e)

Business Redesign. Redesign involves designing new process towards

completeness and conformance which may lead to:
i)
ii)
iii)
iv)
v)
vi)

Several jobs being combined into one;

Workers making decisions;
Work being performed where it most make sense;
Controls and checks being reduced;
Reconciliation tending to be minimized; and
A case manager generally providing a single point of contact.

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f)

The implementation phase which addresses the following issues:

i)

The parts of the structures that will not be changed but will be affected
by the change;
ii) Identifing the changes that will be made in future rounds;
iii) Testing the new design to evaluate the initial performance;
iv) Making initial refinement and initiating a continuous review process.
g)

Measuring the performance gains. This is an important stage of the

reengineering process which evaluates results, identifies further opportunities
to be addressed, improves processes, and shares learning and to communicate
results.1

Figures 1, 2 and 3 as mapped out by M. Badran (1998) clearly explains the above steps,
a-g.
From the previous discussions, to reengineer means to reorganize or restructure the
whole organization Reengineering is the search for new models of organizing work. Tradition
counts for nothing. Reengineering is a new beginning (Hammer and Champy, 1993: 49).
What about efforts and programs introduced in the public sector aimed at increasing
effectiveness and efficiencies? Can administrative reforms be categorized as an effort to
reengineer the organization? Strictly speaking, by definition, they are not reengineering in
the true sense unless it involves all the steps of the reengineering process as described in the
earlier paragraphs. On the other hand, objectives-wise, reengineering or reforms share
similar aims, i.e., to increase effectiveness and efficiencies to fulfill customers needs and
satisfactions. In the following discussions, the writer will try to demonstrate the relationship
between reengineering and ISO 9000. To what extent ISO 9000 can be regarded as an effort
to reengineer the public service? If the total reengineering concept is to be applied in the
public service, very few public organizations would be interested to introduce the concept.
Consequently this hottest management concept would be ignored and will experience the
same fate as other management concepts such as management by objectives (MBO) and
management by results (MBR). The following discussions will cite the Malaysian Civil
Service experience of implementing the ISO 9000.
ISO 9000 Concept
ISO 9000 is a written standard that defines the basic elements of a quality system that
organizations should use to ensure that their products and services meet or exceed customer
expectations (DAC No. 2 of 1996: B1). In ISO 9000, quality is defined as the totality of
features and characteristics of a product or service that bears on its ability to satisfy the
stated and implied needs (DAC, No. 2 of 1996: A2). Timeliness, accuracy, politeness,
reliability, informativeness, availability, honesty, security, responsiveness, efficiency and
effectiveness are some of the quality characteristics the public service must possess. The
principal goal of the ISO 9000 Standard is quality assurance and the fundamental principle
in quality assurance is prevention and not remedial action after the defects have occurred
(DAC, No. 2 of 1996: B2). Sensitive to the needs and requirements of the customers and

REENGINEERING THROUGH ISO 9000

Source: Badran, 1998.

Figure 1. The Process of Reengineering

111

112

Source: Badran, 1998.

Source: Badran, 1998.

ASIAN REVIEW OF PUBLIC ADMINISTRATION

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ability to satisfy these needs, the public service is said to have achieved the standard of a
quality management. The ISO 9000 concept emphasizes the customers need for quality
which is assured by the organizational Quality Assurance through the Quality System reflected
in the written Documents which ensure that the input and the process to produce output will
be controlled and the output is verified. The relationships between these variables are shown
in Figure 4.

The important principles of ISO 9000 can be summarized as follows: (1) ISO 9000 is a
standard for a quality system; (2) it is based on documentation: document what you do, do
what you document and prove it; (3) it emphasizes prevention; and (4) it is a universal
standard which focuses on what needs to be done and not how it is to be carried out (DAC
No. 2 of 1996: B4).
The Malaysian Government has decided that by end of the year 2000, all government
agencies must have implemented MS ISO 9000. Currently, there are 781 government
agencies. Since the quality culture has been institutionalized in the civil service, implementing
MS ISO 9000 will further develop efficiency and effectiveness in quality management
system of the public service. To achieve this, the twenty elements of MS ISO 9000 must be
fulfilled and implemented. Each of the elements (see Figure 5) spells out requirements in
order for an organization to operate efficiently and effectively to meet the customers needs.
Through quality auditing process, quality system can be maintained and sustained.
Attaining the above objectives, the benefits that the public service will receive are as
follows:

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No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

Elements of ISO 9001

Management Responsibility
Quality System
Contract Review
Design Control
Document and Data Control
Purchasing
Control of Customer-Supplied Product
Product Identification and Traceability
Process Control
Inspection and testing
Control of Inspection, Measuring and Test Equipment
Inspection and Test Status
Control of Nonconforming Product
Corrective and Preventive Action
Handling, Storage, Packaging, Preservation and Delivery
Control of Quality Records
Internal Quality Audits
Training
Servicing
Statistical Techniques

Source: Buletin Tribulanan MAMPU No.1/96, November 1996: 5.

Figure 5. Elements of ISO 9001

i.
ii.
iii.

iv.
v.
vi.

vii

Reduces firefighting and frees managers from constant intervention in the

operation of the business.
Provides the means for enabling the right tasks to be identified and specified
in a way that will yield the right results.
Provides a means for documenting the organizations experience in a
structured manner that will provide a basis for education and training of
staff and the systematic improvement of performance.
Provides the means for identifying and resolving problems and preventing
their recurrence.
Provides the means for enabling people to perform tasks right the first
time.
Provides objective evidence that can be used to demonstrate the quality of
the organizations products and services and to demonstrate to any external
evaluators that the various operations are under control.
Provides data that can be used to determine the performance of operating
processes, products and services and for improving organizational
performance and customer satisfaction (DAC, No. 2 of 1996: B3, B5).

Implementation Strategy
The Malaysian Government has spelled out the strategy and implementation plan for
implementing MS ISO 9000 as follows: Promotion of MS ISO 9000; Training for government

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115

agencies; developing and upgrading skills in consultancy and auditing; and implementation
in government agencies (Government of Malaysia, 1996: 25-28).
The Malaysian Administrative Modernization and Management Planning Unit (MAMPU)
and the National Institute of Public Administration Malaysia (INTAN) were assigned as lead
agencies in the implementation of the program. MAMPU had designed a Road Map for
MS ISO 9000 implementation which will end on the 31 May 2000. (See Figure 6.)

Source: Karim, 1997.

Figure 6. Road Map for MS ISO 9000 Implementation

The awareness and commitment building phase of MS ISO 9000 implementation was
completed on January 1997. As of 30 January 1998, 13 Malaysian government agencies
have been certified to ISO 9000, 18 agencies have applied for compliance audits on their
respective quality systems, and several other agencies have established their respective
implementation teams, identified the core process for certification and have been trained in
documentation. More than one hundred agencies have indicated that they have already
reviewed the core processes that can be included for certification and will be ready for
documentation skills training (Government of Malaysia, 1998: 68).
From 3 July 1996 to 25 March 1997, 97 one-day seminars for senior civil servants were
conducted by MAMPU and INTAN. More than 5,000 attended the seminars. From March

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1997 to July 1997, 17 agencies had undergone the five-day Implementation Workshop of
MS ISO 9000.
Implementation Issues
MAMPU and INTAN have identified several implementation issues which can be summarized
as follows:
(1)

There is a lack of literature regarding ISO 9000 in service organizations.

This problem was overcome through the issuance of DAC No. 2 of 1996
which has adapted ISO 9000 for the public service. Training of key
personnel of MAMPU and INTAN have helped in upgrading their skill
and knowledge.

(2)

Management commitment is very vital. Promotion of ISO MS 9000 through

seminars and workshops helped to promote and develop the commitment
of all levels of management.

(3)

Since the number of government agencies is large with more than 800,000
employees, with the present capacity of MAMPU and INTAN, it is
impossible to fulfill the training, consultancy and auditing requirements.
To overcome these constraints, training packages are prepared, training of
trainers are conducted, and selected private consultants can be engaged
with the approval of MAMPU.

(4)

Implementation of DACs has resulted in the production of many documents.

Documentation skills are required to avoid duplication.

(5)

To avoid resistance, awareness must be created among the civil servants

that MS ISO 9000 will bring benefits to them, their organizations and the
nation.
ISO 9000 and Reengineering of the Public Service

A number of personal interviews were conducted with the experts of ISO 9000 in the
Malaysian Civil Service, who are familiar with the concept of reengineering. The following
questions have been discussed:
a)

Is the process of reengineering involved when an organization decided to

implement ISO 9000?

b)

Can ISO 9000 be considered as a strategy of reengineering the organization?

c)

What is the future of the reengineering concept in the Public Service?

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117

Generally, it is felt that the total concept of reengineering as suggested by Hammer and
Champy could not be applied in the public service due to the following reasons:
a)

Unlike the private sector, the public sector organizations are very much
interdependent with each other. Even though ministries and departments
are independent in performing their functions, sometimes they are subjected
to others especially on matters of policies, finance, personnel, etc. For
example, INTAN is one of the divisions under the Public Service Department
(PSD) while the PSD is one of the departments in the Prime Ministers
(PM) Department. There are constant interactions between divisions of the
PSD and departments under the PMs Office. Financially, all ministries
and departments are subject to the rules and regulations of the Treasury
(the Ministry of Finance).

b)

To start over means to disregard the present set-up which may affect
services for the public. Ministries and departments that have a direct
dealing with the public could not afford to stop rendering services to the
customers while the reengineering processes are taking place. The concept
of reengineering may be applied in newly created ministries or departments
by taking into serious consideration the basic principles of reengineering,
but this is not what Hammer and Champy have suggested.

In the Malaysian Civil Service when an organization decides to implement ISO 9000 as
discussed above, basically, it has gone through the process of reforms. The management
support is guaranteed and the quality culture has been institutionalized. The organization is
assumed to have its long-term strategic plans as DAC, No. 2 stated:
Notwithstanding the encouraging performance of Civil Service agencies, it is felt that much more can be
achieved in improving the quality of their service delivery. In this direction the Government has decided that
the time is right for agencies to implement a quality management system that is universal and based on a
standard that is internally recognised , to conform to MS ISO 9000 standard. The adoption of this standard
will further strengthen the quality management system that already exists in Government agencies (DAC, No. 2
of 1996: I).

Thirteen agencies received the MS ISO 9000 Quality System Certification, e.g., the
National Institute of Public Administration, Drainage and Irrigation Department, Pilgrimage
Fund Board, MARA Institute of Technology, Kuantan Municipal Council, Chemistry
Department, Derma National Secondary School, and Perlis. These departments in fact have
a long history of implementing reforms in their respective organizations. They had
implemented most of the 21 Development Administration Circulars (1991-1996) issued by
the Government. They have a dynamic long-term strategic planning and very committed
leaders and employees. Performance-wise, they have already met the minimum standard of
fulfilling of customers satisfaction. Then why change? And why implement ISO 9000 in
their organizations? What and how do these changes take place?
Analyzing the 20 elements of ISO 9001 as listed in Figure 5, some of the elements/
principles forwarded by Hammer and Champy on reengineering exist. It is very clear that
every public service organization has its own visions, missions, objectives, strategies,

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structures, procedures, work processes, cultures, values and beliefs systems. Services rendered
to the citizens are based on all these variables. Pledges through the Clients Charter make
the public servants even more conscious of their duties/responsibilities to the public. These
are similar to the reengineering process which emphasizes leadership commitment. For
instance, Element 4.1: Management Responsibility of ISO 9000, requires the top management
support and leadership commitment; Element 4.2: Quality System emphasizes the
development of a quality system which the organization needs to determine the necessary
processes that will produce products and services to meet customers requirements, and there
must exist an appropriate organizational structure and adequate resources which will efficiently
manage these processes. An organization must formulate its mission and translate it into
goals and objectives. To attain these goals, the necessary plans and strategies have to be
developed. The next step is to break it down in programs/projects which the quality objectives
much be defined. Based on the quality objectives, the core processes are developed to
produce the required outputs. To ensure that the outputs satisfy the customer needs, an
effective performance system must also be instituted. The focus of the quality system of
ISO 9000 is on the core processes which may result in redesigning the processes that may
lead to the new structures and job designs. These are quite similar to that of reengineering.
For example the core process of the National Institute of Public Administration (INTAN) is
training. Certification of ISO 9000 for INTAN is based on its core process, but not on other
supporting activities such as the administration, domestic functions, library, documentation
etc. But it must be borne in mind that training cannot stand on its own without other
supporting services. Therefore, other services too must be improved. To get a certification
for all activities may take time but the quality of these activities cannot be ignored. Unlike
the process of reengineering which emphasizes on starting over, the development of the
core processes of ISO 9000 are based on review and revision of the existing processes and
procedures.
It is not possible in this paper to analyze one by one the 20 elements of ISO 9000, but it
is fair to conclude that to fulfill the requirements of the specified 20 elements for the quality
management system is an exhaustive process of organizational improvement. In such cases
new processes were created while in others, value-added approach took place to improve the
present process. Even though, the processes of reengineering as suggested by Hammer and
Champy are not applied, to establish the quality system of ISO 9000 requires proper planning
and documentation. The output is effectiveness and higher efficiency which increase customer
service and satisfaction. This is very similar to the objective of the reengineering process.
Conclusion
Although implementing ISO 9000 in the public service cannot be equated to the process of
reengineering organizations, to some extent, some of its principles can be adapted and
adopted. It is more beneficial for the public sector to be aware of the requirements of the
reengineering process when implementing ISO 9000 in the public organization. Value
added information and techniques will create the best management practices.

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NOTES

Some parts of steps a-g discussed above are reproduced from M. Badran, 1998: 5-6.

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