INSEAD The Business School for the World IN1376 Case Study Public Sector Service Design: Designing the Employment Pass Service Centre for the Ministry of Manpower, Singapore MINISTRY OF MANPOWER 02/2020-6145 This case study was written by Rajee Vissa, Research Associate, under the supervision of Michael Pich, Senior Affiliate Professor of Operations Management, and Manuel Sosa, Associate Professor of Technology and Operations Management at INSEAD. The development of this case received financial support from the INSEAD Creativity-Business Platform generously sponsored by Gary Wang (INSEAD MBA '02J). It is intended to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. INSEAD The Business School for the World* Chu Wei Ming heaved a sigh of relief as he entered the meeting room and closed the door behind him. The past few months had been pretty hectic, managing the latest project at the Work Pass Division (WPD) of the Ministry of Manpower (MOM). He was in charge of setting up the new Employment Pass Services Centre (EPSC) which would enrol high-skilled foreign professionals and their families for identity cards that incorporated biometrics (fingerprints and photos). It was a project that required total dedication as the centre would be one of the first interactions that Employment Pass (EP) holders would have with the Singapore government. As Deputy Director of Operations leading the project team, Wei Ming was quietly satisfied with its status thus far. His experience setting up the previous Work Pass Services Centre (WPSC) in 1999 had served him well. With more meticulous planning this time, the new EPSC promised to be more efficient and effective, with improved workflow, adequate counters and manpower, hence shorter waiting times for walk-in EP holders and their families. The early designs for the centre had been refined several times and the final outcome reflected lean design and high-quality furnishings, setting high standards of productivity and efficiency as the major service benchmarks. Now it was time to present the project plans to the MOM management for approval of the proposed designs, processes and centre set-up. Having arrived early, Chu Wei Ming leafed through his thick project file and recall how it all began... Foreign Manpower - A Crucial Resource The 716 square kilometer island city-state of Singapore is host to a foreign workforce that makes up about a third of its working population.1 Foreign workers encompass a wide range of skill levels from low, semi-skilled to highly skilled professionals - all essential to meet the needs of Singapore. Foreigners who intend to work in Singapore are issued different types of work passes based on their skill levels (Figure 1). In 1999, given the large pool of foreign workers and as a national security measure, the MOM started to take fingerprints and photos of work permit holders and issued them with secured identification cards. The system was extended to S-Pass holders in 2004. These measures allowed the MOM's enforcement agencies to identify work pass holders accurately and prevent foreigners from circumventing the work pass control framework. INSEAD The Business School for the World Low skilled Worker Semi-skilled Worker Skilled Professional Cadre Permit type Work Permit S-Pass Place of registration/issue of pass card Work Pass Service Centre Work Pass Service Centre (WPSC) (WPSC) T Employment Pass Proposed new Employment Pass Service Centre Figure 1. Categories of Work Passes issued by the MOM (EPSC) The registration procedure required Work Permit and S-Pass holders to visit the WPSC to have fingerprints and photos taken. About 5,000 foreigners visited the centre each day for registration, verification of documents and/or collection of cards. New applicants could collect their passes four working days after registration. For pass renewals, holders could have renewal documents checked and collect the pass the same day. With large crowds and limited space, waiting times were typically 30-45 minutes, but up to four hours on a bad day. A New Normal After 9/11, the heightened threat to security vindicated Singapore's decision to register Work Permit and S-Pass holders. The government had decided to make fingerprints and photos compulsory for all other foreigners working in Singapore, including Employment Pass (EP) holders and their families. However, the MOM recognised that the registration of personal data and biometrics of skilled professionals had to be carried out with care and discretion. This group comprised CEOs, company directors and executives, skilled professionals and managerial staff - who were highly educated, well-informed and often widely travelled. In addition to the inconvenience of making a trip to the centre, fingerprinting was sensitive and might be seen as an infringement of privacy. Subjecting them to the crowded conditions and long waiting times at the WPSC was unthinkable (Figure 2). A new centre was required for registration of EP holders and their families. INSEAD The Business School for the World WORK PASS SERVICES CENTRE RECUPTION Figure 2. The WPSC at Tanjong Pagar The series of events and where they took place is depicted along with the key decisions of the case in Figure 3. MOM WPSC EPSC 1998: MOM decides to register Work Permit holders and issue secured identification cards to them Workers must appear in person for fingerprinting 9/11 triggers heightened national security measures 1999: WPSC set up for this purpose and registration extended to S Pass holders also Govt decides to fingerprint skilled professionals as well, so a new centre is needed The EPSC is proposed and planned Figure 3. Schematic of entities, main events, and decisions related to the EPSC project INSEAD The Business School for the World The Employment Pass Services Centre The first internal hurdle was for the MOM to secure the necessary funding from the Ministry of Finance (MOF). Eager to demonstrate the need for a new facility, Wei Ming arranged for MOF officers to visit the existing WPSC. Seeing the centre first hand convinced them that it was not suitable for EP holders and funding of a new EPSC was approved. The project team's tasks involved formulating policy, working out new processes and requirements, enhancing pass processing, fingerprinting and card printing systems, preparing tender exercises to procure necessary services, equipment and card-engraving machines, setting up the new ESPC, conducting off-site registration exercises, managing public relations, and planning the pilot and launch. Working closely with various internal departments, extemal agencies and multiple vendors, the project was expected to take 15 months, with a launch target during the first quarter of 2009. A major task the team faced was calling for an open tender to appoint a vendor to set up and manage the EPSC. The new centre had to be easily accessible, consider the different needs of visitors, and provide efficient service. The vendor would also have to recruit staff to manage the EPSC, with MOM officers supervising the operations. JEC, a vendor with an established track record and familiar with running a similar centre, won the bid. Project Planning Given the large scope of the project, Wei Ming and his team planned to implement the EPSC project in three phases. While the vendor was preparing the design and set-up of the centre, the project team would implement other phases concurrently. The plan was to complete the design and set-up of the centre together with phases (a) and (b), as below: (a) Offsite registration - To test the new registration system and familiarise staff with the new processes (including fingerprinting routines), the team started an offsite registration exercise for EP holders and their families. Twenty large employers were selected and their foreign executives were registered by a mobile registration team (from MOM/JEC) at the employers' premises at no cost to the company (the passes would be printed and issued later). In total, the team registered 20,000 EP seekers and their family members. The exercise was a success - it got buy-in from employers and lessened concerns of pass- holders about fingerprinting. (b) System enhancement - The team worked concurrently with IT vendors to enhance the pass processing, fingerprint registration and card printing systems. Extensive tests were carried out to ensure the integrity and robustness of the systems and that they catered to varied case scenarios. (c) Card printing - To ease the daily load of printing additional EP cards (600 to 800), the team announced an open tender to procure an additional high-tech laser engraver for secured card personalisation. They also established a single card type - for WP, S-Pass and EP - for easier identification and card management. Priority was given to the EPSC launch and the new laser engraver was to be installed 2-3 months thereafter. INSEAD The Business School for the World Ready Reference Based on past experience in setting up and managing the WPSC, JEC designed the EPSC with a better workflow, improved design and layout, quality furnishings, and adequate space and manpower. From observed patterns, the number of walk-in visitors surged during peak hours such as lunchtime. Long waiting times would be unacceptable for time-pressed professionals. To ensure efficiency and productivity, the selected vendor was expected to meet daily performance targets in the management of the centre, such as: To accommodate 600-800 visitors daily and the anticipated peak load (given the uncertainty of walk-in arrivals) At least 90% of visitors should wait no more than 30 minutes; the duration of the interaction should be 10 to 15 minutes Ensure privacy of individuals and their families during the registration process. To ensure adequate provision of counters, the maximum numbers of customers expected daily was used in the following formula: maximum number of customers Number of counters = transaction per hour x operating hours Given an estimated peak load of 800 customers, four transactions an hour, and eight operating hours per day, the above formula equated to 25 counters. An additional five counters were added as a buffer and to handle pass renewals (where registration was not required) even though such cases would be rare during the initial years of the EPSC as all new and existing pass holders had to be registered once every five years. In this manner, the layout and planning of the EPSC took shape, making improvements on the old design at the WPSC, targeted at efficiency, workflow and keeping waiting and transaction time short. New and Improved The new EPSC design centred around three broad areas: improving management of the visitor flow, the registration process, and the office interior design. Upon arrival, applicants would proceed to the reception counter for a queue tickets and be directed to the waiting area. An e-lobby space was created for visitors who needed to access MOM website or online systems. Several rounds of redesigns for the waiting area were done to ensure that there were adequate seating capacity and registration counters within the available area. Digital display boards were placed prominently to announce the calling queue numbers and available counters. Secondly, the registration process was streamlined and integrated by combining document verification and fingerprinting/photo registration at one counter. The process would be fast and efficient. Passes could be collected four working days later. INSEAD The Business School for the World In order to refresh the typically dull look of government offices, a vibrant colour scheme was applied to the interiors, with colour-coded zones for registration and non-registration, and a card collection area. An open, barrier-free layout gave the interior a spacious feel and clustered counters allowed family groups to stay together and afforded them some privacy. As a finishing touch, the wide windows looked out on the Singapore skyline - a view of nearby landmarks for pass-seekers to enjoy while waiting. The working team presented detailed progress reports at regular Project Steering Committee meetings throughout the project. Progress was not without hurdles: for example, some employers declined to participate in the offsite fingerprinting exercise due to the additional work involved. New policies needed to be formulated on issues such as the age requirement for fingerprinting, use of a common card for pass holders, and handling dubious fingerprinting cases. The team also had to manage multiple IT vendors to work on various systems and ensure system integration and continuity. The EPSC floor plans went through several rounds of refinement and redesign. At least three detailed layouts proposed by the vendor (Figure 4A, 4B & 4C) were altered until an agreed-upon version was presented to the Steering Committee meeting by August 2008. By September, the offsite fingerprint exercise had begun. Both tenders for the set-up/ management of the EPSC and the procurement of the laser engraver had been awarded. The vendor submitted the proposed EPSC floor plans (Figures 5A & 5B) for approval by the MOM before the renovation could proceed. This was a major decision, and Chu Wei Ming had to seek MOM management's approval as he updated them on the progress of the final stage of the project Decision Time With the presentation to Management concluded, Wei Ming emerged concerned from the meeting room and took the lift down to the Kopitiam (a popular local dining chain) to reflect on what had just happened. In a surprising turn of events, the management was not entirely satisfied with EPSC design despite the improvements. One comment at the meeting was that the design looked like a clinic. A number of questions had been raised on the basic design concepts: Why do they need a visitor queue at the reception counter? Why were there so many rows of seats? Most importantly, why do visitors have to wait at all? Isn't it more of the same? The Management's queries were perplexing. Throughout the planning phase, the project team and vendors had made every effort to improve upon existing systems and centre designs by trimming away outdated features and streamlining the processes with an improved model and reduced waiting and processing times (compared to the old WPSC). Indeed the time taken from entry to exit would be one of the most efficient public services in the country - better even than in many parts of the developed world. Wei Ming sat deep in thought over a bowl of hot laksa noodle soup - there was no question that addressing these concerns would have to be a priority for the project to proceed. He had two options. One would be to go back to the vendor's drawing board for a complete redraft. But with two major holidays approaching-Christmas followed by Chinese New Year - there was little time INSEAD The Business School for the World to make such major changes before most of the staff went on annual leave and it would delay the entire project by months. The alternative would be to make incremental changes to the design issues highlighted without tampering with the extensive groundwork already done. This seemed like an easier option but was unlikely to meet the expectations of the MOM's management. Wei Ming was in a quandary about the next step. How, he wondered, after all the efforts made, had they inadvertently ended up with a design that resembled the waiting room of a clinic? As the steam from the soup rose in swirls, management's comments echoed in his mind: Why was there a queue at the reception counter? Why did they need to wait at all? LIFT LOBBY Reception MOM Photo Shop Store EXISTING AHU BO DET 00000 MOM S Reporting Counters Reporting Counters Woling Area Card Collection Counters Non Reporting Counters! Card Collection Control 0000 0000 CARPARK 00,00,00,00 Store Layout A FEMALE Server poolab Waiting Are HILE BSPL Office CARPARK RAMP DOOOOD Seating Capacity at Waiting Area Card Collection: 36 pax Reporting: 98 pax Non Reporting: 33 pax MOM: 32 pax : 100 Card Collection Counters: position Non-reporting Counters: 7 positions Reporting Counters: 24 positions MOM Counters: 5 positions Cashier: 2 positions Figure 4A. First proposed floor plan for the EPSC with a capacity of 199 applicants INSEAD The Business School for the World LIFT LOBBY Photo Shop CFD COD COD Reception Reporting Count BB EXISTING AHU MOM B Card Collection Counters Non Reporting Counters! Card Collection Control 0000 0000 CARPARK Reporting Counters CARPARK RAMP Layout B bd REMALE SPLO Seating Capacity at Waiting Area Card Collection: 33 px Reporting: 115 pax Non Reporting: 33 pax MOM: 30 pax Total Capacity: 211 pax Card Collection Counters: position Non-reporting Counters: 7 positions Reporting Counters: 25 positions MOM Counters: 5 positions Cashier: 2 positions Figure 4B. Second proposed floor plan for the EPSC with a capacity of 211 applicants 88 88 8 0000 0000 0000 Family Waiting Area LIFT LOBBY Reception 0000 0000 0000 0000 00000000 0000 0000 000000000000 000000000000 Layout C Seating Capacity:- -MOM area: 32 -Card Collection: 39 -Reporting Area: 140 -Non-reporting Area: 32 -Reception: 17 Total Capacity: 260 Counters:- MOM counters: 5 Reporting counters: 24 Non-reporting counters: 6 Card Collection counters: 8 EXISTING AHU Reporting Counters DADE GOOD GOOD GOOD ase 00000000 0000 000000000000 00000000 GOOG GOOD GODE GOOD GOOD IT Staff 0000 0000 0000 0000 0000 0000 0000 0000 Room 00.00.00.00.00.0 Room FIHALE Area BSPL Office 0,0 Photo Shop Card Collection Counters Non-reporting Counters Store Card Collection Control Carpark Ramp 0000 Strong Room 000000 Figure 4C. Third proposed floor plan for the EPSC with a capacity of 260 applicants INSEAD The Business School for the World B LIFT LOBBY EXSTING AMU cala MOM S MOM Photo Shop Card Collection Counters --- Card Collection Control Good CARPARK Reporting Counters Reporting Counters Non Reporting Counters 81 Seating Capacity at Waiting Area CARPARK SAMP 000000 000000 Card Collection: 32 p Total Capacity: 242 p Card Collection Counters: 9 position HOM Counters: 5 Cashier: 2 positions Scale 1:200 Figure 5A. Final pre-approval floor plan for the proposed EPSC INSEAD The Business School for the World ENTRANCE FROM LIFT LOBBY WAITING AREA REPORTING AND NON-REPORTING AREA Figure 5B. Final pre-approval simulated interiors of the proposed EPSC Source of Figures 4 & 5: MOM Work Pass Division Steering Committee Meeting presentation, 30 June 2008