OGGO – Binder Executive Summary – February 15, 2023

Key Messages

• Leading up to 2018, volumes across IRCC’s programs were rapidly growing, client expectations for fast and simple digital services were increasing, and IRCC’s technology infrastructure and operating model were unable to cope.
• These pressures resulted in longer processing times and decreased client satisfaction, limiting IRCC’s ability to support economic growth for Canada and remain competitive on the world stage.
• Between 2018 and 2021, two contracts were awarded to McKinsey & Co., both competitive against an existing GC (PSPC) supply arrangement to help design and execute a service transformation strategy and roadmap:
  • Contract one ($2.9M, 2018-2019) was awarded within IRCC’s authority for McKinsey & Co. to conduct an outside-in assessment of IRCC’s performance client service and organizational agility, and to provide a strategy, operating model and roadmap for operational and digital transformation.
  • Contract two ($24.8M, 2019-2021) was awarded within PSPC’s authority for McKinsey & Co. to help mobilize, implement and scale IRCC’s service transformation with a focus on operational improvements (i.e., lean), to initiate digital transformation (i.e., digital journey labs), and supporting functions (i.e., transformation office and digital talent engine).
• Strategic advice from McKinsey & Co. was focused solely on operational performance and digital delivery to transform IRCC’s operating model and client service improvements.
• The engagements with McKinsey & Co. provided IRCC with the expertise to execute digital transformation, helped IRCC deliver digital solutions and improved processes, and most importantly, mobilize new operating models and iterative ways of working, all of which has laid a foundation for IRCC’s full-scale modernization efforts in DPM3.
• Had IRCC not engaged the services of the private sector, improvements to service delivery would have continued, but at a significantly slower pace. Without IRCC’s new in-house transformation skillset and culture that enables continuous digital delivery, crucial work like bringing citizenship applications online at the outset of the pandemic or automating certain temporary residence visa application activities, improving bulk processing, would have been delayed. This would have further exacerbated backlogs, ultimately resulting in longer wait times and decreased client satisfaction.

Background

• Even prior to the pandemic, demands on Canada’s immigration system were growing rapidly, client expectations for fast and simpler digital services were increasing, and the Department’s legacy systems and operating models were unable to cope. This resulted in higher processing times (e.g., visitor visa processing times grew by 50% from 14 days in 2014 to 21 days in 2018) and a deteriorated client experience (e.g., from 2013 to 2017 overall application process ease dropped 14% and satisfaction with contacting staff regarding application dropped 43%).
• In the past, while IRCC had met increased pressures with additional labour, the department still struggled to fulfill its service commitments. In its 2017 Plan, the Department committed to several initiatives to increase efficiencies and reduce processing times, including changes to how work was distributed and handled across its service delivery network.
• With volume growth outpacing capacity, this model was no longer sustainable and there was a need to align the innovations and structure of the Department through an integrated service transformation strategy.
• In August 2018, IRCC sought the expertise and support of a third party firm through a competitive process, using an existing Supply Arrangement. An RFP was issued within IRCC’s authority, and two bids were received with the winning bid going to McKinsey & Co., a global management consulting firm with expertise in organizational and digital transformation. IRCC issued an initial contract with a value of $1.6M to McKinsey & Co. to provide an independent, third-party perspective and assess the Department’s operational performance, customer service levels, and current transformation plans, as well as provide a service transformation strategy and roadmap.
• The initial contract was subsequently amended to exercise planned options on December 5 2018 and January 29 2019 by an aggregate amount of $1.3M. The additional work was managed with Task authorizations and further supported IRCC efforts by refining the prioritization of initiatives and developing a detailed transformation execution model in order to prepare IRCC for the eventual implementation of its service transformation strategy and roadmap. The work under this contract concluded in April 2019 with the establishment of IRCC’s transformation strategy and identification of opportunities and recommendations for its implementation.
• In June 2019, after considering the recommendations by McKinsey & Co., IRCC implemented measures to execute the service transformation, which included establishing a Chief Transformation Officer function, with the mandate to evolve the service transformation agenda, and support departmental resources in delivering process improvements (i.e., lean) as well as the adoption of new operating models for delivering digital-first, user-centered programs. To support this mandate, IRCC, in collaboration with PSPC, launched a competitive procurement process, within the aforementioned Supply Arrangement, to secure third party expertise and support, to mobilize, implement and scale service transformation.
• McKinsey & Co. were the only successful bidder to this Request For Proposal. This second contract to McKinsey & Co. started in June 2019 and continued until December 2021 (approximately 2.5 years, totaling $24.8M. Initial value was $16.4M, increased by $8.4M on March 2021). Through seven task authorizations (TA), IRCC engaged McKinsey & Co. to:
  • TA1: Mobilize and launch IRCC’s service transformation, build new organizational capabilities at IRCC by providing standardized tools and processes to conduct operational and digital transformations that improve the client experience and operational efficiency;
  • TA2: Assess processes and operational performance of IRCC’s Delhi Office as well as design and implement improved operational processes and management practices to reduce processing times of paper applications.
  • TA3: Guide the transformation of IRCC’s technology delivery model to an iterative and incremental development cycle that can independently produce, test and release user-centered, digital-first solutions quickly. Beginning with the Temporary Residence Visa program.
  • TA4: Build and sustain IRCC’s new continuous improvement techniques and practices to drive operational performance, including building in-house capabilities of staff and designing improved processes for IRCC Delhi Office.
  • TA 5: Expand IRCC’s technology delivery model by launching another digital delivery team focused on digitally transforming the Citizenship Grant program.
  • TA6: Help IRCC identify and source the digital talent required to scale transformation models, teams, and functions by designing and launching a new model for recruiting and onboarding digital talent.
  • TA7: Scale IRCC’s transformation initiatives including launching six additional Digital delivery teams, Digital Centre of Excellence, and cultivating the skills of IRCC employees to sustain independent transformation at IRCC.
• Without the services and expertise of a private sector firm like McKinsey & Co., improvements to IRCC’s service delivery would have continued, but at a much slower pace.
• The engagements with McKinsey & Co. yielded tangible products like the online citizenship application, but most importantly cultivated new operating models, culture and mindsets that have enabled IRCC to accelerate service delivery improvements with reduced need for private sector support, and lay the foundation for full-scale modernization under DPM3.
• The new operating models, iterative ways of delivering, and transformational mindsets have helped IRCC to nimbly and quickly respond to the growing volumes across all business lines (e.g., through bulk processing), crises like the pandemic (e.g., enabling digital intake and remote work for Citizenship), and the invasion of Ukraine (e.g., quick iteration of existing tools), while meeting record-high immigration level targets (e.g., robotic process automation integration to enable TR to PR).

Contracts Overview

(Note: Binder contains full breakdown and details of each Contract and Task Authorization.)

Contract One: Service Transformation Strategy And Roadmap

Dates:

August 2018 to April 2019

Total Cost:

$2.89 Million

• The initial contract was awarded August 2018 at $1.59 Million and resulted in the delivery of the service transformation strategy and roadmap.
• Increased December 2018 by $339k to provide further analysis and leadership alignment.
• Increased January 2019 by $958k
• Work under contract one ceased April 2019

Task authorizations:

TA1: Analysis and Research for the IRCC Transformation strategy and roadmap
$339,000.00 (Jan to Mar 2019)

• McKinsey & Co. provided IRCC with further analysis and research to support the Transformation strategy and roadmap, including working with internal and external stakeholders.

TA2: Expanding on the draft service transformations strategy and roadmap
$958,522.00 (Feb to Apr 2019)

• McKinsey & Co. provided greater detail for Transformation strategy and roadmap, including prioritization, mobilization and further engagement across the organization.

General Description of Contract One:

• McKinsey & Co. completed a diagnostic assessment of IRCC by conducting six site visits, interviewing 25+ leaders and analyzing the Department’s operational performance and transformation plans which created a case for change, identified gaps and areas of opportunity to transform the way IRCC delivers services.
• Developed a service transformation strategy and roadmap and two new operating models: (1) for delivering operational process improvements (i.e., Lean) and (2) for implementing the delivery of user-centered, digital-first services.
• Aligned leadership to be ready to mobilize and execute against the service transformation strategy and roadmap.
• Mobilized Transformation teams and led to the creation of Chief Transformation Officer function, which supported an organizational change and culture change focused on continuous improvement and adoption of digital services.

Contract Two: Mobilization And Scaling Of Service Transformation

Date:

June 2019 to December 2021

Total Cost:

$24.8 Million

• Initial contract awarded June 2019 at $16.4M.
• With onset of the COVID-19 pandemic, IRCC was faced with an immediate need to further accelerate the development and implementation of digital products and services. For this reason, the contract was amended in 2021 (increasing value by an additional $8.4M) to help IRCC respond to these pandemic-driven pressures.
• Overall, seven task authorizations were issued as part of this contract, as detailed below.
• Work ceased December 2021.

Task Authorizations:

TA1: IRCC Transformation Office Operations Support Service  - Year 1
$1,341,875.00 (Jun 2019 to Jun 2020)

• McKinsey & Co. provided one year of professional services to assist in the initialization of IRCC's Transformation Office.

TA2: Operations Transformation IRCC Delhi India Processing Centre
$3,483,225.00 (Jun 2019 to Mar 2020)

• McKinsey & Co. used lean principles to plan and execute an operational transformation at IRCC's processing office in New Delhi, India.

TA3: IRCC Transformation, Digital Lab - Temporary Resident Visa
$5,093,475.00 (Jun 2019 to Apr 2020)

• McKinsey & Co. planned and executed the launch of the Temporary Resident Visa Digital Journey Lab, and developed improved digital tools.

TA4: IRCC India Processing Centre
$563,875.65 (Mar to Apr 2020)

• McKinsey & Co. helped IRCC implement additional process improvements at IRCC's New Delhi office by providing training and support services.

TA5: IRCC Transformation Digital Lab – Citizenship
$5,093,475.00 (May to Nov 2020)

• The contractor planned and executed the launch of the Citizenship Digital Journey Lab, and developed a digital tools to improve the client experience.

TA6: IRCC Digital Talent Engine
$796,014.94 (Nov 2020 to Jan 2021)

• McKinsey & Co. designed, stood up, and accelerated IRCC's Digital Talent Engine to help ensure that IRCC has the right resources and skillsets at its disposal.

TA7: Digital Talent Engine and Digital Journey Lab Support
$8,475,000.00 (Mar to Dec 2021)

• The contractor planned and executed the launch of additional journey labs (incl. development of digital products); further scaled the Digital Talent Engine; and developed a strategic assessment of the digital transformation strategy in support of DPM3.

General Description of Contract Two:

• McKinsey & Co. helped IRCC mobilize and launch a Transformation Office, six digital delivery teams, one process improvement team and initiative at IRCC’s New Delhi processing office, a Lean Centre of Excellence, and a Digital Centre of Excellence.
• Designed and guided the mobilization of new operating models for delivering technology and improved processes iteratively, resulting in faster service delivery improvements.
• Designed and launched new approach and team for recruiting and onboarding IRCC employees (i.e., Digital Talent Engine) to source the digital talent required for continuous, IRCC-led service transformation across business, technology, and design.
• Developed and maintained the digital strategy and roadmap, including strategic advice for scaling the digital delivery teams (i.e., journey labs) and supporting DPM3 modernization.
• Helped IRCC build and deploy improved processes and digital solutions. Some key examples:
  • Moved Citizenship Grants from paper process to fully digital application.
  • Simplified online website and improved digital application for visitor visa clients;
  • Redesigned and integrated bulk processing (Chinook) into IRCC’s Global Case Management System) for processing efficiencies;
  • A digital capture prototype to improve integrity and bolster identity.
• Coached IRCC employees and built employee capabilities for leading digital and process improvement transformations independently.

Lasting Impact From Engagement

Repeatable playbooks for new operating models that have been tried, tested, iterated and improved by IRCC employees. Outputs include:

• Operational transformation playbook (operating model and approach for conducting process improvement initiatives across the organization).
• Continuous Process Improvements playbook (redesigned processes at IRCC’s New Delhi processing office and tools for improved performance management, demand and capacity management).
• Digital Delivery playbooks (i.e., best practices and standards for developing digital-first, user-centered services from inception to delivery).
• Digital Talent Engine playbook for recruiting and developing talent across business and technology at IRCC.
• End-to-end service and user-experience design capability that understand client and officer needs across the full client journey and build products that address, simplify and improve client experience while also supporting efficient service delivery.

Digital Solutions making an impact on IRCC clients and officers. Results include:

• Temporary Resident Visa streamlined application flow (e.g., “seek and apply” phase) simplifying the process and creating efficiencies in downstream processes (e.g., improving completeness of applications).
• Citizenship Grant digital application brought the application process from completely paper in 2019 to 90 % digital intake by Spring 2023 impacting nearly 200k applicants and, to date, close to 50k clients that granted citizenship that benefited from faster processing time.
• Officer productivity tools that increase efficiencies within legacy systems for Temporary and Permanent resident applications (e.g., document viewers and automation of simple repeatable tasks reducing active processing time).
• Robotic Process Automation that eliminates wasteful manual work of agents and officers (e.g., close to 100 thousand Permanent Resident applications loaded by bots between systems between TR to PR Program and Permanent Resident Digital Intake).

Independent and sustainable transformation talent and capabilities. Achievements include:

• Over 150 employees able to apply best-practices in lean process improvements and agile digital delivery and over 300+ employee partners across the Department leveraging new practices and cultivating transformational ways of working.
• A continuous process improvement team (i.e., lean centre of excellence) continuing to design and deliver optimized processes across the IRCC service delivery network.
• A digital recruitment team (i.e., Digital Talent Engine) with the capability to source and grow the digital transformation skillsets and talent of IRCC across the entire Digital Solutions and Services sector.
• Ability to independently deliver and improve digital tools at a fraction of the cost of third-party delivery teams. IRCC took over multiple digital tools developed by third parties and have scaled and enhanced them independently (e.g., MP scheduler, Permanent Resident Digital Intake, etc.).
• New critical Transformation functions and roles created and matured. For example, User Experience and Human Centered Design, and Lean / agile practitioners like, Product Owners, Scrum Masters and Agile coaches.

Sparked Transformation across IRCC and laid foundation for DPM3

• Dedicated Chief Digital Officer and service transformation role established – with in-house expertise to design new user-centered services, and deliver digital service improvements.
• Prepared IRCC culture for a more significant service transformation (DPM phase 3), which will re-imagine processes (versus optimize existing), deploy modern technology to replace monolithic existing tech (versus build on top) and support a business oriented, digital transformation culture.
• Instilled a culture of innovation and continuous improvement across all sectors and the Department, where local innovation has been critical to achieving rising levels plans and where enterprise change has been required to drive new service delivery models.