Single Window for Foreign Trade, 6th Edition Module 5: Strategies for the implementation of a Single Window
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Single Window for Foreign Trade, 6th Edition
Module 5
Course author: Interamerican Development Bank (IDB) (www.iadb.org), through its Integration and Trade Sector (INT). Course coordinator: Interamerican Development Bank (IDB) (www.iadb.org), through its Integration and Trade Sector (INT), the Institute for the Integration of Latin America and the Caribbean (INTAL), the Inter-American Institute for Economic and Social Development (INDES) (www.indes.org), the World Customs Organization (WCO) (www.wcoomd.org) and the General Secretariat of Central American Integration (SG-SICA) (http://www.sica.int/) Module author: Salvador Furió Pruñonosa, Director of Logistics and Intermodality at the Valenciaport Foundation. Pedagogical and edition coordination The Inter-American Institute for Economic and Social Development (INDES) (www.indes.org) in collaboration with Fundación Centro de Educación a Distancia para el Desarrollo Económico y Tecnológico (CEDDET) (www.ceddet.org) and Caribbean Customs Law Enforcement Council (CCLEC) (www.cclec.net)
6th Edition 2017
This document cannot be reproduced, in whole or in part, by any electronic or mechanical means, including photocopy or any recording process. Its information cannot be stored or recovered by any systems whatsoever without the due written authorization from the IDB. Any request for partial or total reproduction must be informed to: BIDINDES@iadb.org These materials have been revised in light of the ministerial decisions taken in the framework of the 9th World Trade Organization Ministerial Conference held in Bali, Indonesia, in December 2013. The adjustments were made in order to reflect a higher alignment between the course topics and the priorities identified in Bali’s Ministerial Declaration and decisions, where all IDB members participated. Bali Ministerial Declaration and decisions
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Tablet of contents Index of Figures .......................................................................... 5 Index of Tables............................................................................ 6 Glossary ..................................................................................... 7 Introduction ................................................................................ 8 Aim of the Module ........................................................................ 9 Learning-oriented questions .......................................................... 9 Unit I. Steps to take for the development of a Single Window ......... 11 Learning objectives .................................................................. 11 I.1. Single Windows and the steps to follow for their development 11 I.2. Initial Steps for the Implementation of a Single Window ........ 14 I.3. Rolling Out the Single Window Project ................................. 24 I.4.
Other
methodologies
for
project
development
in
the
Information Technology field .................................................... 31 Unit summary ........................................................................... 36 Unit II. The importance of political will in the development of a Single Window .................................................................................... 37 Learning objectives .................................................................. 37 II.1. The Commitment of the Governments ................................ 37 II.2. How to place the Single Window project on the Government Agenda................................................................................... 39 II.3. How to maintain political commitment ................................ 47 Unit summary ........................................................................... 49 Unit III. Establishment of formal structures for developing a Single Window .................................................................................... 50 Learning objectives .................................................................. 50 3
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III.1. The creation of the political mandate................................. 50 III.2. The creation of an empowered organization ....................... 52 III.3. Structures of governance ................................................. 55 Unit summary ........................................................................... 59 Unit IV. Legal aspects to consider in developing a Single Window ... 60 Learning objectives .................................................................. 60 IV.1. Legal aspects .................................................................. 60 Unit summary ........................................................................... 66 Unit V. Human resources and change management in the process of implementing a Single Window .................................................... 67 Learning objectives .................................................................. 67 V.1. Human Resources ............................................................. 67 V.2. The Management of the Change ......................................... 70 Unit summary ........................................................................... 75 Bibliography .............................................................................. 76
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Index of Figures
Figure No. 1.1. Steps for the development of a Single Window. Figure No. 1.2. Project Management Plan. Figure No 1.3. Project Management Plan (2). Figure No.1.4. Process Map. Figure No. 1.5. Change Process Management. Figure No. 1.6. Three-stage process. Figure No. 1.7. Process of Continual Improvement. Figure No 1.8: Develop an Implementation Schedule and roll out a pilot project. Figure No. 1.9. SWIF methodology proposed by UNECE. Figure No. 2.1. How to bring about a Single Window project policy initiative. Figure No. 2.2. Logistics Performance Index. Figure No. 3.1. Options for the involvement of the private sector. Figure No. 3.2. Example of structure of governance. Figure No. 5.1. Module for the management of change. Figure No. 5.2. Kaizen philosophy.
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Index of Tables
Table 1. Example of matrix of responsibilities.
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Glossary
CCS: Community Cargo System. e-Governance: Electronic Governance Policies. LPI: Logistics Performance Index. MOUs: Establishment of interchange accords and Memoranda of Understanding. PPP: Public Private Partnerships. SW: Single Window. SWIF: Single Window Implementation Framework. SWOT:
Strengths,
Weaknesses/Limitations,
Opportunities,
and
Threats. UNECE: United Nations Economic Commission for Europe. VANs: Value Added Network Services.
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Introduction
Given the complexity of Single Window projects, the principal objective of the fifth module of the course is to give the student general knowledge of a set of tools, methodologies, keys and strategies to keep in mind in the process of developing and implementing a Single Window. The necessity of formal coordination, capacity to manage change, the importance
of
development
of
having pilot
the
corresponding
projects,
the
legal
necessary
support, step
by
the step
implementation and the fundamental role of training are some of the aspects that will be addressed throughout the module. The module has been structured in five principal blocks: •
Steps to follow in the development of a Single Window.
•
The importance of Political will in developing a Single Window.
•
The establishment of formal structures for the development of a Single Window.
•
Legal aspects to consider in the development of a Single Window.
•
Human resources and the management of change in the processes of implementing a Single Window.
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Aim of the Module
•
To provide general and comprehensive understanding of the concepts, tools, methodologies, keys and strategies to take into consideration
during
the
Single
Window
development
and
implementation processes in order to facilitate the agenda of both public and private international businesses.
Learning-oriented questions
•
What are the steps that must be taken to create a Single Window and what are the features of a SW implementation roadmap?
•
How should the roll-out process for the SW implementation project be understood?
•
Who are
the
main actors involved
in the
Single
Window
implementation process? •
How should the governance structures and their relationship with the processes of implementing a Single Window be understood?
•
How should the necessary change be managed in the processes of implementing a Single Window and what is the role played by Human Resources?
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Module 5. Strategies for the implementation of a Single Window Unit I. Steps to take for the development of a Single Window Unit II. The importance of political will in the development of a Single Window Unit III. Establishment of formal structures for developing a Single Window Unit IV. Legal aspects to consider in developing a Single Window Unit V. Human resources and change management in the process of implementing a Single Window
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Unit I. Steps to take for the development of a Single Window
Learning objectives
• To identify the action plan and steps to follow for developing Single Windows.
• To understand the framework of the project's needs and the potential of a Single Window.
• Distinguish the methodologies for developing projects in the field of IT.
I.1.
Single
Windows
and
the
steps
to
follow
for
their
development
The development processes of an Electronic Single Window are long and complex, requiring the participation and commitments of a large number of public and private actors. To successfully tackle a network with
such
characteristics
an
orderly,
systematic
approach
is
necessary, following a series of structured steps. We cannot say, however, that there are universal solutions, as it is necessary to analyze and approach each case in an individual manner as there are multiple approaches and methodologies that can be applied and taken as reference. The implementation of these approaches in each individual case will be strongly influenced by political, cultural and social conditions, as well as by tradition.
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Module 1 of this course was an introduction to the basic steps for the implementation of a Single Window included in Recommendation No. 33 (Recommendation and Guidelines on establishing a Single Window to enhance the efficient exchange of information between trade and government). Figure No. 1.1. Steps for the development of a Single Window
Source: UN. Recommendation No. 33
This recommendation establishes bases on which other works and studies have been developed that offer more detail on the subject such as the December 2010 Inter-American Development Bank report titled “Electronic Single Window: Coordinated Border Management – Best Practices Studies” which presents the proposal of a series of steps for the implementation of Electronic Single Window projects. It is also appropriate to mention the Routing Sheet and Action Plan for the implementation of a Single Window that was included among the conclusions of the seminar “Electronic Single Window Models and Experiences” held in Guatemala in March 2011.
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The Routing Sheet and Action Plan identified a series of general steps to follow that can be taken as reference:
Routing Sheet to Implement a Single Window 1.
It is essential to establish a standards guideline, fix objectives and stages of implementation.
2.
Review procedures, simplify procedures. An analysis must be made of best practices, a study of standards and of human, economic and technological resources.
3.
Define the Single Window model and interconnection strategy and linkage of entities and systems.
4.
Create a working group and establish the government entities that will participate.
5.
Continual training of the public and private sector.
6.
Choice of technology available.
7.
Definition of the process, schedule, objectives.
8.
Analysis of risk management.
9.
Definition of inter-institutional and public controversies.
10. Analysis
of results (follow up).
Action Plan for the Implementation of a Single Window 1.
Define the scope of the Single Window and establish a schedule.
2.
Review tendencies, establish benchmarks.
3.
Define the processes to implement and the data.
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4.
Module 5
Define the business flow of and reorganizations that should be made. Re-engineering.
5.
Establish the business model.
6.
Find the source of political resources and support.
7.
Define the model to adopt.
8.
Develop the model.
9.
Implementation and putting in motion.
10. Cyclic 11. Follow
phase of adjustments and improvements. through.
The following paragraphs (I.1 and I.2) detail the steps for the development of a Single Window proposed by the previously mentioned December 2010 Inter-American Development Bank report titled “Electronic Single Window: Coordinated Border Management – Best Practices Studies” and are based principally on the 2008 USAID (United States Agency for International Development) publication for the establishment of a Single Window: Single Window Business Process Improvement Guidelines and Implementation Guide, as a complement to UN/CEFACT Recommendations Nos. 33, 34 and 35.
I.2. Initial Steps for the Implementation of a Single Window
The two steps prior to the opening of the Single Window project are the training of the Project Team and the development of the Project Management Plan and the implementation options.
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•
Module 5
The Establishment of a Project Team must include the presence
of the
technical
representatives and
executives
necessary to carry out the organization and implementation of the work necessary to the project. The Project Team has the task of developing a Project Management Plan, which must be formally approved by all the parties. Figure No.1.2. Project Management Plan
Source: Compiled by author. Adaptation of INDES design -2013
The Project Management Plan will assist the Project Team in the planning, execution, monitoring and evaluation and adjustments of the implementation of the project. There
are
various
methodologies
consolidated
for
project
management as well as software applications available to support the process. More concretely, the Project Management Plan should include:
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Figure No 1.3. Project Management Plan (2)
Source: Compiled by author. Adaptation of INDES design -2013
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Development of Implementation Options: •
Specify the operating models proposed.
•
Identify the government authorities and agencies that must be involved.
•
Suggest the government authority, agency or private organization to lead the project.
•
Identify the services that must be provided.
•
Analyze the potential costs and benefits.
•
Analyze possible finance routes.
•
Establish deadlines for implementation.
Prior to the Project Management Plan, it may be interesting to have performed a feasibility study which will determine: •
potential Single Window objectives,
•
the level and nature of demand,
•
possible
scenarios
for
implementation
(including
phases
of
implementation), •
the nature and potential for implementing pilot plans,
•
the cost of implementing each of the different scenarios,
•
other necessary resources (human, technical, etc.),
•
potential benefits,
•
risks,
•
time required for implementation and,
•
a management strategy.
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It is advisable to base this study on face-to-face interviews with key foreign trade actors, public as well as private. The objective of the feasibility study is to provide decision makers with a better understanding of the options available and the consequences of those options for different government authorities. The study should recommend what option is preferable and feasible for the country, the manner in which it should be carried out, its mode of implementation (i.e. total implementation or in phases), the possible steps for an implementation in phases, the nature and scope of an initial pilot, the collection potential (taxes, duties, etc.) the identification of key project “deliverables� and recommendation of a schedule or program for development and implementation. In the case of an electronic Single Window consideration of the technical requirement must be given due to the value and investment in existing legacy systems. Although on occasion it may be necessary to replace those systems, a practical proposal for sharing and exchanging information between agencies may be to establish a central portal or platform that can communicate
with
the
different
systems
and
centralize
the
information.
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EXTRA CONTENT Key Components of a feasibility study A feasibility study should cover the following areas: Necessities of the project and Potential Single Window •
Examine the existing requirements, procedures and processes for the delivery of information and the submission of import, export and transit documents to the authorities, in order to: o Identify the key government authorities and agencies that may potentially be involved in the system. o Determine to what extent it is possible to harmonize and simplify these requirements, procedures, and flows of information and documents. In particular, to explore the possibilities of ensuring one-time submission of documents and information.
•
Consider the potential of a Single Window to confront security matters in foreign trade.
•
Identify the necessities of the potential users, especially in relation to the design of possible services and associated interfaces (physical or electronic).
•
Consider the “best practices” of other existing Single Windows. This may require making visits to other Single Windows in operation. (Some sources: IDB “Electronic Single Window: Coordinated Border Management – Best Practices Studies”; WCO Compendium; Recommendation and Guidelines on establishing a Single Window-Annex A).
•
Consider the necessity of accord to attain the political support required for the project.
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EXTRA CONTENT Organizational •
Examine the general organizational aspect of the Single Window proposal to determine: o What authorities and government agencies should be involved in the project? o What authority, government agency or private organization should lead the Single Window project (government, private property under contract to the government or completely private property)? o If the Single decentralized.
Window
should
be
centralized
or
o If the program should be active or passive. o If the Single Window should include a payment system. o If participation should be voluntary or mandatory. o If the evaluation of compliance with common risk profiles should be a part of the system and if they should be developed and/or shared. o Who assumes the risk if/when something goes wrong? Human Resources and Training •
Review and document existing personnel resources among the authorities and government agencies that are relevant to the development of the project, its implementation and operation. Consider the requirements for training, for additional personnel and the necessities of management in relation to Single Window implementation.
Legal •
Review the legal aspects and legislation related to privacy and data protection associated with the implementation of a Single Window, including the submission of information by agents who participate in foreign trade, the interchange of information between various authorities and government agencies, and aspects related to electronic signatures.
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EXTRA CONTENT Technical Aspects of a Single Window •
Review existing technological systems for the reception, storage and exchange of information.
•
Determine the technological requirements, including the specific requirements for developing additional systems, interfaces, and the possible development of interface systems.
•
Determine the capacity of existing systems to manage increases in the volume and flow of data.
•
Examine the assumptions related to the verification and authentication of data.
Information and Documentation •
Review the existing conjunction of trade documents presently in use and determine if they require harmonization and/or simplification. Determine what data will be required, how it will be sent and in what format: electronic (EDI, XML, other) or paper.
•
Determine who should send the information or documents (Importers/Exporters, Brokers, etc.).
•
Determine how the information should be shared between the authorities and government agencies involved and where the information should be stored.
•
Consider how data can be interchanged with administrations in other countries.
•
Consider how the data can be utilized for risk analysis and for other purposes.
•
Quantify the potential benefits of making better use of the data available in commercial systems and registries to meet government requirements, helping to reduce the expenses private enterprises incur in the transmission of information.
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EXTRA CONTENT Evaluation of Impact •
Examine the potential impact of the project on existing systems, procedures, jobs, job descriptions, etc.
•
Consider the social and cultural aspects that may eventually emerge with the establishment of a Single Window.
•
Consider the potential responses of groups or organizations that may perceive the Single Window as a threat.
•
Consider the possible impact of a Single Window on reducing corruption and the consequences that might bring about.
•
Recommend an appropriate strategy to manage change due to the project.
Implementation Options •
Develop implementation options, specifying proposed operational models, authorities and government agencies that would be involved, suggesting the lead authority, government agency or private organization, the services that should be offered, the costs and potential benefits and schedules for implementation.
•
Suggest whether total or partial implementation process should be undertaken. Analyze the factors that must be considered in relation to the availability of the resources necessary for total implementation (financial, human, technical, etc.). Analyze the different levels of necessity of the authorities and government agencies and the difference in resources and time required by the different agencies to: o Make the legal changes required to operate a Single Window. o Develop or modify existing necessary.
legal systems as/when
o Generate the level of commitment required to implement the project. •
Make recommendations implementation.
in
relation
to
a
pilot
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EXTRA CONTENT Business Model •
Develop a business case for the establishment of a Single Window in each of the scenarios proposed, including and estimating the initial and operating costs, the benefits, sustainability, possible collection mechanisms and financing sources for the project.
•
Determine the resources required for the project (from the investigation to implementation).
•
Evaluate the resources that would be required on behalf of the authorities and government agencies to develop the entire project, and the times required for development of the plan and implementation of the project.
•
Examine the potential of focusing on a public-private partnership (PPP) to implement the project.
•
Identify the key risks that the Single Window project must confront, particularly with respect to operational, legal and infrastructural aspects that may make it very difficult to develop the solution at a reasonable cost with an adequate level of service.
Promotion and Communication •
Recommend a promotion and communication strategy for the development and operation of the Single Window.
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I.3. Rolling Out the Single Window Project
The steps to be followed in unfolding the Single Window project implementation are detailed below: •
Step 1: To be centered on Business Processes and not on Functions. It is necessary to identify border functions that are essential to compliance with the agencies’ responsibilities. Once identified, attention should move to the processes required to develop those functions, because those processes are the means by which the organizations interact with other agencies and organizations.
•
Step 2: Develop a Process Profile. Occasionally, many of an organization’s processes are not documented, which makes it difficult to identify opportunities for improvement. To the extent possible, some of the accepted continual process improvement practices should be utilized. In the documentation of their processes agencies should utilize the Pareto principle, also known as the 80–20 rule. The application is obvious when applied to improvement initiatives because: o 20% of processes utilize 80% of the resources. o 80% of the results are generated by 20% of the activities. o 20% of the problems represent 80% of the opportunities to improve.
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•
Module 5
Step 3: Process Mapping. Are the processes well designed or have they evolved? In many administration agencies, the business processes were designed years ago. The majority of the personnel follow procedures they were taught long ago and often, with the passage of time, no one has stopped to review how things are done and why. As a result, many employees have never seen a visual representation of their work and do not know what came before or what happens after, so they have no complete vision of where and how their activity fits into the overall process. A process map is a visual image of the manner in which the job is done, showing: Figure No.1.4. Process Map
Source: Compiled by author. Adaptation of INDES design -2013
•
Step 4. Measure the Processes. Measuring the processes allows the agencies to determine performance levels and establish quantifiable improvement objectives. There are at least seven quantitative measures that can be utilized to determine
the
effectiveness
of the
majority
of
business
processes: 25
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o Cost: Total cost of each of the activities in a process. o Unit cost of results or outcomes: The cross-functional cost of producing tangible results (outcomes). o First pass performance: Percentage of the transactions that pass through the process without the necessity to be reprocessed revised or rejected. o Reprocessing cost: The cost of arranging or managing an erroneous result (revision, reprocessing rejection). o The time cycle of the process: The time required to perform the process (minutes, days, weeks or months), o The real or theoretic time cycle: The time required by the process if no waiting or reprocessing is required. o Handoffs: The number of hands through which the process passes and the activities carried out in each (i.e. the number of signatures required on each document). •
Step 5. Study of other Administrative Processes. Ideas or processes tested in other agencies of the administration can provide valid information, help save time and prevent possible errors. Examine case studies and better practices.
•
Step
6.
Redesign
processes.
Utilizing
the
information
collected in the five previous steps, the project team can now map
the
new
processes,
eliminating
redundancies
and
duplications of the activities.
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•
Module 5
Step 7. Balance Processes and Technologies. In many organizations the information systems are strongly tied to the manner in which the work is carried out. Technology should be seen as a tool, not as a mechanism for change in it of itself. It is necessary to note that the computerization of a manual process does not necessarily make the administration between agencies more productive, and the computerization of an ineffective process simply allows it to attain poor results more rapidly. In improving processes and implementing technology, the project team should ensure that process review takes place first, so that technological recommendations can be based on the results of that review.
•
Step 8. Manage the Change Process. The project team should manage change by first identifying and evaluating associated risks. There are many possible effects that derive from change and the project team should concentrate on those that are: Figure No. 1.5. Change Process Management
Source: Compiled by author. Adaptation of INDES design -2013
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Step 9. Preparation of Employees and Clients for Change. Most employees reject change because of fear of the unknown, more than attachment to positive elements that tie them to present procedures. The role of leaders who impose change is difficult and thankless. Specific training to undertake these leadership roles is not usually available and there are few models or guidelines that can be used as a reference. Ideally, a formal Change Management course should be provided that follows a three-stage process designed to achieve acceptance of an initiative of change: Figure No. 1.6. Three-stage process
ENRED: Source: Compiled by author. Adaptation of INDES design -2013
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Step 10. Process of Continual Improvement. The reengineering of business processes costs time and money. Although change is sometimes obligatory, the implementation of a culture of continual improvement guarantees that small improvements occur continually, so that the introduction of large changes is therefore less frequent. To implement this philosophy, the work tasks of all the employees ought to include: Figure No. 1.7. Process of Continual Improvement
Source: Compiled by author. Adaptation of INDES design -2013
•
Step 11. Identify Financing Options. There are multiple models for financing
an Electronic Single
Window:
Self-
financing, subsidies and loans from development banks (ex. IDB, tariffs for service, and combinations of these). 29
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Step 12. Identify Technological Specifications. The project team should create detailed specifications, determine the resources available and define the scope.
•
Step
13.
Interview
and/or
attract
Technological
Providers. The vendors wish to make presentations and discuss their systems and products in detail. Take advantage of this service to request various providers to make an analysis of necessities based on the specifications provided. •
Step 14. Acquire Technology. o Define specifications clearly. o Consider delivery time restraints. o Resist the desire to acquire more functions than those really needed for the new business processes.
•
Step 15. Develop an Implementation Schedule and roll out a pilot project (in a port, for example).
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Figure No. 1.8: Develop an Implementation Schedule and roll out a pilot project
Source: Compiled by author. Adaptation of INDES design -2013
•
Step 16. Unfold various stages at other border points or crossings as the government agencies and the rest of the actors involved develop their capacities.
I.4. Other methodologies for project development in the Information Technology field
There are multiple methodologies for the development of projects in the field of information technologies. The United Nations Economic Commission for Europe (UNECE) in collaboration with academia and in the framework of the ITRADE investigation project, developed a Single Window Implementation Framework (SWIF) that captures a detailed methodology that may also be applied or used as a reference in a Single Window project. SWIF combines the latest standards and best practices for the design of efficient business architecture for large-scale collaborative inter31
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agency systems, beginning with the knowledge and lessons learned in implementation experiences. The following figure represents the phases of the SWIF methodology proposed by UNECE. Figure No. 1.9. SWIF methodology proposed by UNECE
Source: UNECE
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The principal objectives of each of the SWIF methodology phases are: 0. Preliminary Study •
Identify the rationality for implementing a Single Window.
•
Justify the implementation.
A. – Vision of the Architecture •
Create a joint vision, strategy, objectives and goals.
•
Establish the necessary environment for the coordination and collaboration of all the agents involved in the project.
•
Ensure that the greater part of the agents involved is committed to the project.
•
Develop the Master Plan.
B. – Business Architecture •
Analyze existing processes.
•
Identify bottlenecks.
•
Redesign and simplify processes.
C. – Information System Architecture •
Architecture of the data.
•
Simplification, harmonization and standardization of the data of the processes.
•
Development of the data model.
•
Development of electronic message structures.
•
Application of the architecture.
•
Definition of the applications necessary to process the data and support the processes.
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Single Window for Foreign Trade, 6th Edition
•
Module 5
Estimation of the resources necessary to the implementation, development and operation of the Information System.
•
Definition of the legislative architecture.
•
Creation of the legal environment necessary to the operation of the System.
D. – Technology Architecture Design the software and hardware necessary to the system. E. – Opportunities and Solutions Plan the necessary resources for the implementation, development and operation of the System. F. – Migration Plan Preparation of the implementation: ensure that the management and implementation of the individual sub-systems will be coordinated. G. – Governance in the implementation Establish a strategy for the monitoring of the implementation, development and operation of the sub-systems so that each one complies with the defined specifications, planning, policies and recommendations. H.-Architecture for Change Management Identify those areas where changes are going to be introduced in a way that ensures: a)
The maximization of the value of the processes by the
implementation of the system. b)
Alignment of the implementation with the emerging
technologies and commercial requirements.
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In addition to this methodology, all the involved organizations in this type of project will have to be aware of the necessity to develop a specific plan to manage the change.
EXTRA CONTENTS The 2011 United Nations report A Single Window Implementation Framework presented the proposed methodology in great detail and specified the activities to develop in each of the phases. http://www.unece.org
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Unit summary
The development processes of Electronic Single Windows are long and complex, requiring the participation and commitment of a large number of public and private actors. To successfully tackle a challenge of this kind, an orderly, systematic approach is necessary, following a series of structured steps. A general outline of the steps to follow at the start and during the roll-out of an Electronic Single Window project is presented in this unit, which can be taken as a reference. The project team, management plan, feasibility study. specific focus
of
each
process,
change
management,
technical
specifications or the pilot projects are some of the key aspects to bear in mind at the beginning and during the roll-out of a Single Window project. In addition to the specific methodology for Single Window projects, this Unit also includes references to other methodologies applicable to the development of IT projects.
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Single Window for Foreign Trade, 6th Edition
Unit
II.
The
importance
Module 5
of
political
will
in
the
development of a Single Window
Learning objectives
• To identify key actors and necessary conditions for the implementation of a Single Window system. • To understand the importance of the commitment of the Governments and the main difficulties to overcome. • To recognise the organisational nature of both the private and public sectors and the most suitable type of communication for the implementation of Single Windows in both cases.
II.1. The Commitment of the Governments
We are not saying anything new when we caution that a project to develop a national Single Window environment is very complex. The commitment of the Governments (high level political will), is one of the fundamental pillars for success in such projects. The complexity of attaining it is rooted in the difficulty governments themselves have in establishing an adequate organizational structure and culture.
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Although it seems natural for governments to encourage and support the development of projects such as one to develop a Single Window environment, which would contribute rapid, reliable and efficient procedures to the facilitation of foreign trade and to the configuration of cross border management systems, the reality is that it is very difficult
for
the
majority
of
political
leaders
to
configure
a
committed organizational structure with that objective. Such a task requires exerting political pressure on various areas of the government and depends on the commitment of other agents and actors as well. In addition, it involves long-term processes, which require persistence over time. It is necessary to establish adequate policies, mechanisms and dynamics that guarantee the effort and the commitment of all the parties. In general, governments are faced with the following barriers: •
The involvement of different Ministries, departments and agencies Interdepartmental actions are always very complex.
•
The leadership challenges of the project. The different departments and agencies have an ingrained fear of losing their traditional areas of responsibility and control. Established systems generally encourage agencies to protect their turf and do not sufficiently encourage sharing and coordination with other areas.
•
Ties to existing programs and projects in the different departments and agencies. The Single Window program must be established within the framework of a general customs modernization
program,
improvement
of
infrastructure,
development of human resources, the management of integrity and development of trade regulations. When a Single Window project is proposed it is necessary to review programs in the various departments and agencies involved. 38
Single Window for Foreign Trade, 6th Edition
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Generally, the directors are under the pressures of having to explain and defend their own raison d'être. The programs must be adapted to the new Single Window concept, which has implications for the corresponding budgetary assignments. •
Long
gestation
periods.
Single
Window
programs
are
complex and consume a great deal of time. Related activities such as developing or improving cross border infrastructures, the realization of legislative changes or the analysis and harmonization of business process are all activities that require long collaborative and consultative processes. In addition Single Window projects generally require significant budgeting, which requires elaborate monitoring and control process. The various aspects mentioned above often invite the leaders of the different regulatory departments and agencies to find reasons to dedicate their time to other more pressing problems before deciding to face the challenge of a Single Window project with all its implications. These are the principal problems from the political point of view and it is necessary to create adequate conditions to provide project support in the form of a model of governance capable of committing all the parties involved and creating adequate political structures and routines.
II.2.
How
to
place
the
Single
Window
project
on
the
world
are
Government Agenda
More
and
more,
customs
Authorities
around
the
undertaking Single Window projects, mobilized by growing demands from the public and private sector to improve efficiency and facilitate trade. 39
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It has therefore become necessary to understand why and how an initiative to create a Single Window Environment gets on Government Agendas. Experts suggest that, in the majority of cases, it is necessary to have the convergence of three different currents to satisfy political initiatives: Figure No. 2.1. How to bring about a Single Window project policy initiative
Source: In-house preparation
A. Problems: Identification and recognition of a series of problems that emerge either as the result of the publication of certain indicators, from the analysis of different types of events (forums, conferences, seminars, etc.) or from information issued by the private sector from the field, from the bottom up, utilizing formal and informal channels. In the concrete case affecting Single Window projects, with the participation of national and international organisms, there are numerous events in the area of foreign trade facilitation that emphasize the bottlenecks and the barriers to the smooth development of foreign trade.
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At the same time a great number of macroeconomics indicators are published by different international organizations that outline the countries’ principal problems. The following are examples of some of the reports that publish this sort of indicator: •
The “Doing Business” report published annually by the World Bank Group has a specific section titled “Trading across borders.”
•
The “Global Competitiveness” report published by the World Economic Forum presents the global index of competitiveness defined
by
factors
that
take
free
trade
barriers
into
consideration. •
The “Logistics Performance Index” published by the World Bank helps countries identify the opportunities and challenges facing them to improve their logistics performance.
Finally, different types of works are carried out in the field, as well, by formal and informal consultations in the private sector that allow first hand identification of problems. On occasion, there may be systematic efforts such as release time studies that make indicators available of the time required by different agencies involved in foreign trade and cross border control. All these studies and indicators focus attention on specific problems, make them public and attract the attention of the media. That is the way pressure is generated on the authorities involved, who have to offer explanations of the problems and the low levels of efficiency associated with them.
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EXTRA CONTENT The Logistics Performance Index (LPI) consists of a series of quantitative and qualitative measures that help define the logistics performance of countries. The Logistics Performance Index measures the performance of the supply chain in international trade and offers the possibility of establishing a reference point for the countries’ logistics necessities, contributing information to the national authorities responsible for preparing policies and developing entities that attempt to find solutions to problems affecting the nation’s capacity to connect with world markets and promote economic growth. The LPI measures a country’s supply chain performance and offers two different perspectives: International and domestic. The International LPI (available for 155 countries) provides a qualitative evaluation of a country by its trading partners and logistics professionals working outside the country. The evaluation is realized in six principal areas: •
Efficiency of customs and the dispatch process.
•
Quality of Transportation and Logistics Infrastructures.
•
The facility to organize competitively priced shipments.
•
Quality and competence of the logistics services.
•
Possibility of tracing shipments (tracking and tracing).
•
Punctuality of the shipments.
The domestic LPI (available for close to 130 countries) provides a quantitative and qualitative evaluation of a country by the logistics professionals working inside the country. This evaluation includes more detailed information on the logistics environment, on key logistics processes, the institutions and information on performance, costs and time.
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Figure No. 2.2. Logistics Performance Index
1 <= LPI <= 2.48
2.48 <= LPI <= 2.75
2.75 <= LPI <= 3.23
3.23 <= LPI <= 5
No data Source: The World Bank
B. Policies: Governments establish policy programs. The different departments of the governments have the task of formulating and proposing distinct alternative policies in their areas. Ideas for the definition of these proposals are also generated in external research and opinion generation centers. The most relevant polices in the Single Window processes
are
those
developed
around
the
general
policy
of
Modernization of Customs. But there are other policies not found under the control of the General Directorate of Customs that are also directly related to a Single Window like: â&#x20AC;˘
Trade Policies often include acts to facilitate trade, that being one of the objectives of the Trade Ministries. A Single Window is a tool that facilitates trade and may therefore be considered a Trade matter. 43
Single Window for Foreign Trade, 6th Edition
•
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Logistics and Industrialization Policies. The planning of transportation corridors and the network of transportation and logistics infrastructures (lines and nodes) depend as much on demand
as
on
the
efficiency
the
operations.
The
implementation of a Single Window environment in combination with other technologies and actions should contribute to the improvement of the efficiency of operations in logistics nodes such as ports and border passage points, and affect the design of the network. •
Human Resource Policies and Public Services Reform: The rationalization of the size of public services and restructuring of the public service structure and associated decrease of public expenditures economies
is and
achievement
in
restructurings,
one
of
the
present
governments the
middle
which
imply
objectives
developing and
long
in
many
policies range.
consolidations
for These
and
the
reassignment of functions and business between the different organizational units, may be an opportunity to introduce Single Window
projects
that
involve
different
departments
and
agencies. •
Electronic Governance Policies (e-Governance): Electronic governance has as much to do with the services offered by the government as it have to do with the definition of standards that ensure the interoperability and the development of a common
infrastructure
to
optimize
the
Administration’s
resources. Single Windows are undoubtedly one of the areas where those responsible for electronic governance policies have a role to play.
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C. Politics: The third current has to do with the actual formulation of the government agenda and decision making. On the one hand, economic and industrial regulation matters have always been on government agendas. On the other, the growth in the variety and volume of foreign trade has changed cross border regulations and the security of the supply chains into extremely complex tasks. Thus it does not seem difficult for political leaders to be able to put the creation of a Single Window environment on the Agenda for the purpose of finding the most efficient route through this complexity. However, the horizontal nature of Single Window projects and their implications to different departments and agencies that must act in coordination make it necessary to establish negotiation mechanisms and search for consensus situations where everyone gains with the changes carried out, even when those changes imply changes in responsibilities and resources. Comprehension and recognition by the political leaders of that horizontal nature and of the distribution of tasks and responsibilities is part of resolving the problem. Occasionally the construction of a matrix like the one below may be useful for the analysis. It identifies the role (executor, responsible agency, consulted agency, etc.) of the different departments or agencies in the different dimensions or areas of leadership of Single Window projects (policies, project, technical, operational in relation to business
processes
and
operational
in
relation
to
information
technologies).
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Single Window for Foreign Trade, 6th Edition
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Table 1. Example of matrix of responsibilities.
Strategic role in the Single Window Environment Leadership Area Customs
Trade M.
Transportation
Policies
executes
responsible
executes
Project
executes
responsible
consulted
Technical
responsible
executes
not involved
responsible
consulted
executes
consulted
responsible
consulted
Operational â&#x20AC;&#x201C; business Operational - technology
Otherâ&#x20AC;Ś
Impact of the change Coordination Mechanisms
Source: WCO
The complexity of Single Window projects and the necessity of joint action by the different areas involved should not frighten and discourage the political class from facing the challenge. To the contrary, the lack of efficiency in foreign trade and border crossing management is a situation that can attract criticism, especially when a
lack
of
transparency
is
detected
by
the
individual
and
uncoordinated acts of the different agencies.
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II.3. How to maintain political commitment
Once the political decision of the government has been taken to establish a Single Window Environment, and as a consequence to the time that may lapse between the taking of that decision and the identification and implementation of the Single Window project, it is necessary to keep the impulse given by the government decision alive. During that period of time it is important to get the support of all the actors involved and maintain the support of the political leaders. To that end a series of actions or steps can be taken: â&#x20AC;˘
Creation of a trademark. Single Window projects are often known by an abbreviation or acronym that tends to be treated like a trademark and which ought to be consolidated, along with a set of key messages, images and ideas, by means of a real communications plan. The
creation
of a
good
project
trademark can help attract and maintain the attention of the actors involved. â&#x20AC;˘
Identify and involve experts in the matter. Another relevant action is the creation of mechanisms that allow collecting the points of view and recommendations of experts in the different areas involved (trade, transportation and logistics, reorganization
and
restructuring
of
forms,
customs
modernization, electronic governance, etc.). â&#x20AC;˘
Maintain visibility. To maintain the visibility of the Single Window
concept
among
the
communities
involved,
it
is
necessary to develop a formal communications plan that includes internal and external actors. Such a plan should include holding periodic seminars, workshops, dissemination conferences, participation in international events, pamphlets, 47
Single Window for Foreign Trade, 6th Edition
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bulletins and other means of communication that help maintain the presence of the project among the parties involved. â&#x20AC;˘
Participation
in
existing
networks,
groups
and
associations. Other actions necessary to maintain the logistics impulse are keeping up the formal processes of communication with the different actors involved and seeking new routes of communication such as participation in existing networks and groups (for example: electronic data interchange [EDI ] working groups or port operations facilitation groups). The different actors have different problems and seek different objectives with a Single Window project. The manner in which those problems are understood and recognized by governments will determine how they are met in the Single Window project.
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Unit summary
The commitment of the Governments (high-level political will), is one of the fundamental pillars for success in Single Window (SW) projects. It is very difficult for the majority of political leaders to configure a committed organisational structure with this objective. Such a task requires
exerting
political
pressure
on
various
areas
of
the
government and is also dependent on the commitment of other agents and actors. In this unit we have seen various strategies for placing the SW project on the Government Agenda and for maintaining political commitment. Communication, maintaining visibility and involving experts are some of the most important aspects to consider. Long gestation periods and the involvement of different entities, areas and department in SW projects complicate the process, creating the need for high-level, firm-willed support.
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Single Window for Foreign Trade, 6th Edition
Unit
III.
Module 5
Establishment
of
formal
structures
for
developing a Single Window
Learning objectives
•
To understand the scope of the political mandate of a Single Window.
•
To recognise the central aspects and targets of the Single Window mandate.
•
To identify the governance structures, how they work and their relationship with the Single Window system.
III.1. The creation of the political mandate
The political mandate of a Single Window gives it the official support and directives to proceed with its development. The mandate gives clear legitimacy to the adoption of specific policies and definite objectives, the establishment of new organizational structures and the assignment and/or reassignment of authority and responsibilities from a technical, financial and regulatory point of view in order to reach those objectives. The political mandate can be established through a decree or a resolution by the appropriate legislative body. It is necessary for that mandate
to
be
valid
from
the
legal
point
of
view
of
the
Administration. In a general manner, a mandate for a Single Window initiative includes: 50
Single Window for Foreign Trade, 6th Edition
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•
Establishment of objectives
•
Definition of the terminology utilized
•
Activities and services covered by the Single Window concept
•
Concept
of
the
organization
of
the
Lead
Agency
and
identification of associated agencies and organizations •
Legal definition of the entity of the Lead Agency
•
Financing and philosophy of operation of the Lead Agency
•
Organization of the Lead Agency and its consultative structures
•
Capacity of each of the organizations identified (including the Lead Agency) to: o Approve projects o Recommend changes in legislation o Establish standards of service o Adopt changes in business processes o Adopt interoperability standards o Evaluate and review project implementation o Manage differences and disputes
•
Date of applicability
•
Schedules for implementing the Single Window initiative
The level of detail and explicitness of the mandate will depend on the country’s administrative and political culture, but it should always be as clear as possible to avoid the risk of the prior organization prevailing in lack of definition.
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III.2. The creation of an empowered organization
The Single Window environment needs a Lead Agency to coordinate decision taking and capable of orchestrating the cross border management activities of multiple agencies. The Lead Agency, should be directed by a consultative process. While the precise result of this process will be seen in the governance structures created during the mandate, it is initially necessary to keep in mind a series of aspects in relation to the proposed structure:
The definition of the type of leader in function of whether it seeks to be a Single Window operator or director (“orchestrator”). In the case of a Lead Agency that acts as a Single Window operator, the responsibility is that of operating the information systems, and it requires the creation of common centralized systems for the different regulatory agencies.
In the case of a director or “orchestrator” of the Single Window, the responsibility is to establish the standards and specifications of interfaces, assuming the existence of computer systems distributed among the regulatory agencies and interconnected with each other. There are multiple intermediate possibilities between these two situations.
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Single Window for Foreign Trade, 6th Edition
â&#x20AC;˘
Module 5
Reorganization of border regulatory agencies. The Single Window represents a unique opportunity for the governments to reorganize regulatory functions. The level of authority
given
to
the
Lead
Agency
in
cross
border
management to act, examine, intervene and release will either define a more centralized model in which a large part of the competence falls to that same authority or agency, or a more decentralized model in which the Lead Agency plays a mere coordinating role, with the different agencies keeping their areas of jurisdiction and authority. â&#x20AC;˘
Legal personality of the entity. From the legal point of view, one type of entity or another will be better suited for a chosen model, in accordance with the functional role of the Lead Agency. (The following paragraph, which analyzes the legal aspects to keep in mind in the development of a Single Window, points out the different options for the creation of this Entity).
â&#x20AC;˘
Public Private Partnerships (PPP). Participation of the private sector can take many forms and influence the financial and operational governance of the Single Window environment. The form of PPP will determine the level of involvement of the governments in the financing of the capital, the spending of the income and the entry and exit of funds attributed to the Single Window initiative.
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Single Window for Foreign Trade, 6th Edition
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PPP types generally vary in regard to two dimensions: o The degree of private sector risk. o The
involvement
of
the
private
sector
from
the
operational point of view (always keeping in mind that the authority regulations
and
responsibility
always
remains
for with
compliance the
with
government,
independent of the type of PPP). Basic PPP types are the following: o Operation and Management Contracts o Acquisition of assets or leasing. o Design-Building-Financing-Operation (DBFO). o Building-Ownership-Operation (BOO). o Building-Ownership-Operation-Transfer (BOOT). o Joint Venture. There is extensive literature with respect to PPP. Nonetheless, the following graphic summarizes the possible options: Figure No. 3.1. Options for the involvement of the private sector
Source: WCO
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Single Window for Foreign Trade, 6th Edition
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III.3. Structures of governance
Governance
has
to
do
with
the
assignment
of
roles
and
responsibilities in regard to clarity and transparency, in regard to how risks are managed and in regard to who is responsible for what. The mandate that creates empowered organizations must also specify the structure of governance in some form or another. The organizational structure for a Single Window environment will be different in different countries. The structures of communication, the configuration of the Lead Agency and the distribution of executive power in the organization will differ from one country to another. In general, three levels or layers can be discerned:
â&#x20AC;˘
The consultative level, in which representatives of the private sector, the regulatory agencies and experts in the matter participate.
â&#x20AC;˘
The decision level, in which a Governing Body participates with the executive responsibility of approving standards and putting projects
into
motion.
They
have
their
support
at
the
consultative level. â&#x20AC;˘
The execution level, responsible for the execution of the project.
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Single Window for Foreign Trade, 6th Edition
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Example of structure of governance The following diagram shows an example of a governance structure where the political mandate creates a Governing Body, such as a Lead Agency, as a legal entity directed by an Executive Director who reports formally to a Ministry (to the Ministry of Finance, for example). The Governing Body, which has representatives of the principal actors involved, has been empowered by a Single Window Mandate to make all policy decisions, including the approval of projects, the management of standards and interfaces, Information Interchange Accords, Memoranda of Understanding between the regulatory agencies, levels of service, etc. Financial capacities have been defined with assignments in the public budget. It also has the support of an Executive Secretariat that provides administrative and technical support.
Projects, part of the Single Widow environment, are governed by the Executive Secretariat either directly in its role as Single Window Operator or as Single Window director/â&#x20AC;&#x153;Orchestrator.â&#x20AC;? The reduced set of projects that constitute the center of the general Single Window project are controlled by the Executive Secretariat, while other projects are submitted directly from their respective Regulatory Agencies under its indirect supervision.
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Figure No. 3.2. Example of structure of governance
Source: WCO
As we have seen, the development of a Single Window environment can include multiple projects; some may be controlled directly by the Single Window authority, while in others, the authority merely exercises a role of “orchestration” and supervision. Below is included, by way of example, a list of a series of projects that could be included in a country’s Single Window initiative, showing the agency that could be responsible for its development.
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Single Window for Foreign Trade, 6th Edition
•
Module 5
Construction of the blocks of electronic governance that support the infrastructure managing identities and authentication for information technology projects in the various government departments (responsible Agency: Directorate of Government Systems).
•
Support portal for transportation transaction data between government
agencies
(responsible
Agency:
Directorate
of
Government Systems). •
Value Added Network Services (VANs) for the management of data between the government and private agents (responsible Agency: VAN Operator – private sector).
•
Automated Dispatch System operated by the Customs Authority (responsible Agency: Customs).
•
Community Cargo System (CCS) of each port/airport operated by a private consortium (responsible Agency: CCS - PPP Operator).
•
Maritime Single Window developed by Port/Naval Authorities. (Responsible Agency: Operator of the Maritime Single Window – Port Authority).
•
Inspection and licensing Systems managed by the Veterinary Authority (responsible Agency: Ministry of Agriculture).
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Single Window for Foreign Trade, 6th Edition
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Unit summary
Once the Governments' commitment has been secured, a political mandate must be established. This mandate will provide official project support through the creation of an organisational (or governance) structure that is appropriate at consultative, decisionmaking and execution levels, and will include a clear definition of a Lead Agency capable of orchestrating and/or operating the Single Window. In this unit alternatives are presented for establishing this political mandate. When creating the Lead Agency, the following aspects must be analysed and evaluated: the legal personality required for this role, the possibility of benefiting from the process in order to reorganise the regulatory agencies and the different possibilities of publicprivate partnerships.
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Unit IV. Legal aspects to consider in developing a Single Window
Learning objectives
â&#x20AC;˘
To understand the various legal agreements associated with developing a Single Window.
â&#x20AC;˘
To identify the operator of a Single Window and their impact on the implementation process.
IV.1. Legal aspects
One of the complexities of Single Window projects is the necessity of addressing
various
legal
aspects
to
guarantee
the
necessary
legislative support. Some of the basic aspects necessary are listed below: â&#x20AC;˘
Definition of a legal authority and the establishment of a formally qualified legal entity For the effective development of a Single Window it is necessary to have its legal authority correctly defined and supported in the legislation. As a Single Window handles the information of different foreign trade actors it is necessary to have legal authority to compile, possess, process and share data for legitimate ends.
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Single Window for Foreign Trade, 6th Edition
A
Single
Window
should
Module 5
therefore
be
a
legal
entity
distinguished by a capacity to assume the responsibility for closing
contracts,
principle
among
which are
information
interchange agreements that legally define and govern acts of information interchange. These agreements are necessary to delimit the responsibilities of the different parties. Generally, two types of accords can be distinguished: o Agreements between the operator (or director) of the Single Window and a Regulatory Agency that includes obligations related to performance, declarations and guarantees,
usually
supported
by
Service
Level
Agreements (SLAs), Interconnection Security Agreements (ISAs), etc. o Agreements between the operator (or director) of the Single Window and the different foreign trade actors, users of its services (terms of use agreements, use licenses, etc.) that define levels of service, use tariffs, penalties, reimbursement policies, etc. Although the possibility exists that one of the departments or agencies involved would assume this new responsibility, the creation of a new entity, distinct and separate from the rest is more likely. The possibilities for creating such an entity are various: o The creation of a government department defined in the legislation or regulations with specified executive capacity and responsibilities. o The creation of an autonomous entity authorized by legislation or decree. 61
Single Window for Foreign Trade, 6th Edition
o The
creation
Module 5
of
an
entity
in
accordance
with
the
legislation that regulates public or private enterprises. o The creation of some type of association between entities covered by national legislation. o The creation of a joint venture with commercial entities. At the present time it is more usual for the entities that operate a Single Window to be a government department or an organization the government controls. The Single Window operator should maintain neutrality between the different agencies involved and their systems, which may have their own differentiated legal personality. â&#x20AC;˘
Establishment of interchange accords and Memoranda of Understanding (MOUs) The relationship between the different Regulatory Agencies within the framework of a Single Window environment can be described as a set of rules, responsibilities and obligations they share. These relationships may be based on MOUs subject to Administrative supervision. In the context of the private sector, agreements of interchange are generally established that must have juridical support and they should specify the applicable law and the clauses of jurisdiction. This type of accord (with regulatory agencies as well as with private
users),
standards
and
must the
contain
definition
data of
standards,
services
that
message must
be
harmonized among multiple agencies. An exercise of this type requires taking into account the original legislation of the regulatory agencies involved.
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Single Window for Foreign Trade, 6th Edition
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In an international interchange scenario, these accords can be signed as independent bilateral accords or as separate customs amendments to other existing mutual assistance accords. UN/CEFACT Recommendation No. 26 (Commercial Use of Interchange Accords for Electronic Data Interchange - EDI) includes a large part of the various legal aspects the parties can consider and may be utilized
as a
starting point. This
recommendation is principally oriented to the commercial environment, more than a public model. However, it is still useful
for
the
identification
of
key
areas
that
require
consideration in MOUs or Interchange Accords. â&#x20AC;˘
Guarantee of responsibility, privacy and protection of information Generally all government information systems have to meet certain standards of privacy and data protection. In a Single Window project that is especially important due to the fact that the different agencies involved are interconnected with each other through the Single Window. Information privacy must be safeguarded and access to data restricted. Interchange accords imply the sharing of information and the possibility of eventual revelations of private, confidential and protected information. The principal points to bear in mind are: o Identification of databases o Ownership of databases o Creation of databases o Classification of the information ď ˇ Classification by confidentiality
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Single Window for Foreign Trade, 6th Edition
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ď ˇ Classification by different privacy categories (nominal data and non-nominal) o Authorization and access control o Purpose and legal basis for compiling processing and use of data o Method and legal basis for compiling data. Interface specifications o Data management life cycle policy o Insurance coverage of the revelation of data â&#x20AC;˘
Adoption
of
the
principles
of
identification,
authentication and authorization, and legal support for the use of identity management systems On-line services accessible to users through a Single Window portal must be supported by a solid solution from the point of view of security and legality. UN/CEFACT Recommendation No. 35, in relation to a legal framework for a Single Window directed to international trade, suggests the adoption of an identities management solution. A Single Window needs to provide access based on rules and roles for different systems. The
identities management solution, based
on open
standards, can facilitate interoperability through the association and management of user identities between different organizations, and the isolation and disassociation of access control mechanisms under essential applications and databases that can be lodged in different platforms.
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Single Window for Foreign Trade, 6th Edition
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Privacy and data protection legislation applies to the data contained in identity management systems. There is concern with respect to the capacity of identity management systems to relate to personal date available in other systems. That type of relationship can be useful for legitimate purposes like the analysis of an economic operatorâ&#x20AC;&#x2122;s risk profile. Therefore, in contracts with single window users it is necessary to take into account the necessity of reconciling individual privacy rights with necessities that derive from the legitimate interests of different business processes. Identifiers related to individual users must be related in some manner to their civil identity, duly managed by the State. In an analogous manner, economic operators must be identified on the basis of their legally assigned IDs such as the registration number of an enterprise or business. Authentication
and
authorization
are
mechanisms
managed
automatically by the system. Authentication is the mechanism by which the system can identify the user in a secure manner and verify whether the user really is the person he purports to be. Authorization has to do with the userâ&#x20AC;&#x2122;s access level and with the capacity to answer the question of whether a user is authorized to undertake a specific operation. The systematic and consistent application of identification and authentication procedures is a determining factor in ensuring that the information system is secure and provides a consistent, auditable service. A Single Window service grows with the confidence of their users, which is consolidated with the secure management
of
operations over the years. The legal validity of the various actions performed by the users would be very difficult, practically impossible, without a solid legal identification, authentication and authorization mechanism. 65
Single Window for Foreign Trade, 6th Edition
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Unit summary
One
of the complexities of SW projects
is the
necessity of
guaranteeing solid legislative support. The establishment of a formally empowered legal entity, information interchange agreements and the guaranteed ownership, privacy and protection of such information are some of the vital legal aspects to consider. Guidelines for tackling these issues are presented in this unit. One of the key aspects that must be addressed in Electronic Single Window solutions is safeguarding during information processing through the creation of a solid identification, authentication and authorisation system.
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Unit V. Human resources and change management in the process of implementing a Single Window
Learning objectives
•
To understand the importance and the strategic role of Human Resources in the development of Single Windows.
•
To recognise the culture of change within the framework of continual
improvement
based
on
the
concept
of
shared
responsibility.
V.1. Human Resources
Human resources are undoubtedly one of the keys to the success of a Single Window project. Due to the strategic nature of a Single Window, as noted previously, its development usually results in changes to the organizational structure of the regulatory agencies involved. The management of human resources is one of the “hidden” resources for achieving improvement and changes. Public employees in the various government agencies, secure in their positions, are often characterized as permanent, which a priori could be positive for introducing changes, since the employees are not threatened with loss of their jobs, whether or not changes occur in job content. At the same time, however, job security can also result in applying the brakes to changes, increasing employee negotiation capacity.
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In some countries, the personnel of customs and other regulatory agencies are vulnerable to bribes and irregular payments. In such cases it is also frequent to find contrary positions openly opposing any sort of change and interagency cooperation that could make continuity of such irregular practices more difficult. In these cases, the development of a Single Window environment can be utilized as one more tool to end such situations of corruption and abuse of power. Changes in organizational structure may require the creation of new roles or the modernization of existing roles. In order to guarantee the possibility of covering these new roles it is necessary to have a long term vision and create an action plan. The development of an inventory of abilities can be a useful tool to identify deficiencies among the capacities of present human resources and human resource
requirements
when a
Single
Window environment
is
implemented. To that end, a starting point could be the development of a matrix of responsibilities such as the one suggested in paragraph 3.1 of this Module, which determines the roles of different functions in such a way as to evaluate the abilities of the participants to perform such roles, for example by the realization of individualized SWOT analyses (Strengths, Weaknesses/Limitations, Opportunities, and Threats). In a Single Window environment, management and employee posts require specific competency profiles that must be identified. The desire to assume specific strategic roles should be accompanied by the requirement to possess or develop specific competencies.
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For example, in the case in which customs must manage the operations aspects of a Single Window environment, its executives will
require
additional
competency
in
the
management
of
interdepartmental or interagency processes and the internal and external integration of information systems. Training will therefore be a key aspect in developing these abilities and
achieving
the
organizational
changes
required
by
the
implementation of a Single Window. In any change based on information technologies, the training of users is always one of the main activities. Employees require time to become familiar with the new working procedures and user interfaces (screens) of the new systems. Training should be centered on interpersonal communication as well as on technological aspects. Training necessities must be determined on the basis of a formal evaluation of needs. Career development plans may serve as a basis for the definition of training packets agreed to and aligned with the general human resources plan. One of the greatest challenges to training plans is the changing of employee culture and attitudes toward a greater orientation to customer service, getting them to participate in the vision of the users of the services. It is a good idea to plan training activates in conjunction with the planning of start-up operations so that the two activities can be synchronized. On-line training is a useful tool to achieve the objectives.
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V.2. The Management of the Change
As commented previously, the introduction of A Single Window initiative obliges the necessity to introduce changes in organizations and in business procedures. Adequate management of these changes can become one of the greatest difficulties and challenges. The methodology for developing Single Window projects presented in paragraph 2.2
of the
Module
includes the
ten basic change
management steps proposed by the World Customs Organization, summarized in the following graphic: Figure No. 5.1. Module for the management of change
Source: World Customs Organization
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Another methodology or model for the management of change is the eight-step process for leading change proposed by Dr. John Kotter: 1.
Establishing a Sense of Urgency •
Examine market and competitive realities
•
Identify
and
discuss
crises,
potential
crises
or
major
opportunities. 2.
Creating the Guiding Coalition •
Assemble a group with enough power to lead the change effort
• 3.
4.
Encourage the group to work as a team
Developing a Change Vision •
Create a vision to help direct the change effort
•
Develop strategies for achieving that vision
Communicating the Vision for Buy-in •
Use every vehicle possible to communicate the new vision and strategies
• 5.
Teach new behaviors by the example of the Guiding Coalition
Empowering Broad-based Action •
Remove obstacles to change
•
Change systems or structures that seriously undermine the vision
•
Encourage risk-taking and non-traditional ideas, activities and actions
6.
Generating Short-term Wins •
Plan for visible performance improvements
•
Create those improvements 71
Single Window for Foreign Trade, 6th Edition
•
Recognize
and
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reward
employees
involved
in
the
improvement 7.
Never Letting Up •
Use increased credibility to change systems, structures and polities that don’t fit the vision
•
Hire, promote, and develop employees who can implement the vision
•
Reinvigorate the process with new projects, themes and change agents
8.
Incorporating Changes into the Culture •
Articulate the connections between the new behaviours and organizational success
•
Develop the means to ensure leadership development and succession
Finally, the KAIZEN or Lean model can also be mentioned. It is based on a continual improvement philosophy primarily implemented in the automation sector based structures
oriented
to
on the a
process
design of organizations and of
change
and
continual
improvement over time. Organizations with this culture of change are continually introducing small changes and improvements so as to require large reengineering processes less often.
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Figure No. 5.2. Kaizen philosophy
Source: Kaizen Institute
The KAIZEN model identifies the five principles of the change in which similarities are found with the methodologies or proposals presented above: 1.
There are two types of Change: Physical change and behavioral change. That means that we can make technical changes (new machines, computer systems, processes, layouts, etc.) and that we can also make changes in behaviour (the way people involved in the processes act). Physical change always implies a change in behaviour, while the inverse relationship does not always exist.
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Single Window for Foreign Trade, 6th Edition
2.
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The best way to learn is to do. It is not enough to talk, it is necessary to improve, it is necessary to practice new methods. One learns doing, so that it is necessary to practice and repeat until new habits develop. Therefore classroom training alone gets no results. Without practice there is no change.
3.
Establish important objectives for the organization. Without objectives, it is not possible to center energies on attaining important goals for the individual and the organization. The objective forces us to measure. Measurement forces us to define, beginning a virtuous cycle of improvement.
4.
Small repeated steps are the best way to change behaviour. We can
make
large
physical
changes
but
the
most
solid
improvement is at the behaviour level. 5.
Recurring to “Viral Change” and to “Excellence Models” allows the velocity of change to accelerate. Viral change means that opinion leaders must be the first to give the example, in such a way that the rest quickly follow. Excellence Models are limited pilot areas where people can see the results of change and, taking that as their point of departure, make it possible with more effort.
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Unit summary
In this Unit of the Module strategies are presented for establishing the change management processes, which are always a part of SW projects, focusing on human resources. Training and communication are the key elements of appropriate change management. A culture open to change and shared by the participating agents can be extremely important to the development of SW projects. There are various methodologies for managing the change that can be useful in Single Window projects; participation of the agents involved in the change and the pursuit for short-term gains that allow the benefits of the change to be seen in advance are strategies that can help in these often long and complex processes.
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Bibliography
The
following
is
the
bibliography
and
support
documentation
consulted in the preparation of this Module: •
Inter-American Development Bank. IDB. (2010). Electronic Single
Window.
Coordinated
Border
Management
–
Best
Practices Studies. •
Kaizen Institute. (2011). The Kaizen Change Management Model.
•
United Nations Economic Commission for Europe. (2005). UN Recommendation No. 33. Guidelines on Establishing a Single Window.
•
United Nations Economic Commission for Europe. (2011). Single Window Implementation Framework.
•
World Customs Organization. WCO. (2011). How to Build a Single Window Environment, WCO Compendium. Chapter 1.
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