Transcript Document

Leadership and Change
The Revenue Story
Commissioner Josephine Feehily
Leadership and Change
The Revenue Business
The Revenue Organisation
The Story of a Change Programme
The role of PMDS
The Labour Relations Commission
Revenue – a Big Business
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2.8 million items of correspondence
2.9 million external emails
700,000 personal callers
4.3 million telephone calls
4 million visits to www.revenue.ie
4.2 million payments
3.5 million tax and customs returns
250,000 vehicles registered
50,000 plus new business registrations
Revenue – the Organisation
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Tax and Customs
Largest Department in the Civil Service
6,500 employees
130 offices/26 locations
2.8 million customers
Annual revenues: €42 billion (repay €4bn)
Budget to run the Office - €387 m
Cost of admin: 0.85% of gross revenues
Gender Balance
Age Profile
Male
Female
< 20
0.1%
21-30
13.1%
31-40
19.8%
41-50
44.6%
51-60
20%
>60
2.4%
42.9%
57.1%
Work arrangements
Full time
82%
Job Sharing
9.7%
Work-sharing
8.3%
Gross Revenue Receipts
B illio ns
50
45
40
35
30
25
20
15
10
5
0
1990
1991 1992
1993 1994
1995 1996
1997 1998
1999 2000 2001 2002 2003
Cost of Administration as a percentage of Gross Revenue
Receipts
1.60%
1.40%
1.20%
1.00%
0.80%
0.60%
0.40%
0.20%
0.00%
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
Indications of Scale of Revenue Business (1995 & 2003)
Millions
4
3
2
1
0
IT Returns
VAT Returns
(1996 & 2004)
Customs
Declarations
Payment Items
Rec'd
1995
235,000
578,214
500,000
1,700,000
2003
368,000
1,089,560
1,000,000
3,700,000
Electronic Services
Payment
Returns
Received
% of
Total
Income Tax
159,478
53%
Corporation Tax
30,151
18%
VAT
136,246
13.37%
PAYE
133,000
8.36%
VRT
147,637
79.08%
SAD’s
912,000
91.82%
The Theory
Michael Collins:
 “An integrated Customs and Tax
organisation responsible for all the
nation’s revenues and frontier
control”
 A Board of Revenue Commissioners
to oversee the organisation
The Reality 1923 - 2003
 Separate tax and customs Depts
 Roots going back to Middle Ages
 Different and deeply established
cultures
 Different information systems –
difficult dialogues
 Separate grade streams, promotion
systems and even magazines
 Multiple “Head Offices”
 But why change?
Most things were going well!
 Tax receipts rising
 Self-assessment big success
 Customer service accolades
So nothing really broken?
Environment Had Changed
 Single Market
 Economic growth/Wealth
 New business models
 More Sophisticated Citizens
 Public Sector Reform
 Some Doubts about Compliance
Strategy was Clear
 It’s all about compliance!
 Maximise voluntary compliance
through best possible service
 Enforcement – a sharp response
to those who do not voluntarily
comply
The Organisation?
 Both approaches are about the
Customer
 We were organised by tax/duty
 Cumbersome management structures
 Poor Accountability
Creating a climate for change
 Statement of Strategy
 Align the organisation with the
business
 “….review to ensure that we have
the best structure to complement
our Programmes”
The Review
In House Control
 Internal representative team
 No “consultants” reforming us
 Keep powerful people in the tent
 Confidential interviews
 Slow, steady engagement
 All in the loop – no ‘inner circles’
 Consensus building
Creating a climate for change
 Building a Senior Management Team
(MAC)
 Permitting Dissent
 Encourage a corporate view
 Provide a non-confrontational
environment to surface issues
 “The Status Quo is not an option!”
The Decision
 A more flexible focussed
organisation
 Re-build Revenue around our
strategy for compliance
 Operational Divisions – dealing with
all taxes and duties for their cases
 Supported by a streamlined
National Office
…/
 The Heads of Operational Divisions
would have clear responsibility and
authority
 A move from central (Dublin) command
and control
 Move to a single staffing stream
From this …
Chairman
Commissioner
C&E Collections
Division
C&E Enforcement
Division
Customs & Residence
Division
Information &
Communications
Technology Division
Revenue Solicitor
Commissioner
Chief Inspector of Taxes
Taxes Audit & Investigation
Corporate Management
Division
Taxes Customer Services &
Technical Services
Human Resources
Division
Direct Taxes Policy &
Legislation Division
Indirect Taxes Policy &
Legislation Division
Direct Taxes International &
Administration Division
Capital Taxes Division
Collector General’s Office
To this …..
Strategic Planning
Information, Communications
Technology & e-Business
Human Resources
Investigations and Prosecutions
Revenue Solicitor
Chairman
Chairman
Frank Daly
Frank Daly
Commissioner
Commissioner
Josephine Feehily
Josephine Feehily
Commissioner
Commissioner
Michael O’Grady
Michael O’Grady
Customs
Operations Policy & Evaluation
Debt Management (Collector General)
Dublin Region
Direct Taxes Interpretation
& International
East & South East Region
Direct Taxes Policy & Legislation
South West Region
Indirect Taxes
Large Cases Division
Border Midlands West Region
From this ….
To this ….
Border Midlands
West Region
Dublin
Region
East & South East
Region
South-West
Region
Taxes & Duties
Taxes & Duties
Customers
From this (Customer View – 2000)
EFT
Start up Visit
Nenagh
Vat Refund
Custom
House
Enforcement
CG’s
CRO
Tax Clearance
BIK
CI’s
Local
Coll.
Payments
Excise
Licence
Refunds
VRT
CI’s
CG’s
Claims, reliefs,
allowances,
entitlements,
etc.
VAT
Certification
Taxpayer
(e.g. Publican)
Inspection
Admin. Policy
C&E
Corporation
Tax
PAYE / PRSI
Income Tax
Returns (All)
P35’s
Same as
for VAT
CI’s
TFA’s
CG’s
Payments
Local
Coll.
Enforcement
CI’s
CG’s
Enforcement
Local
Coll.
To this (Customer View – 2005)
Stamp
Office
All functions
(except as shown)
District Office
Stamp Duty
Dublin, Cork,
Galway
CG’s OR
ROS
Taxpayer
(Worst Case)*
AEP
Returns/
Payments
Import/Export
*Majority of cases have no import/export transactions and no or infrequent Stamp Duty transactions.
For most cases contact is limited to the District and the Collector General/ROS
Engaging the Organisation
 Urgency
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Timely external shock
Change agenda ‘out of the closet’
Government interest
Short-circuited a more prolonged
debate
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 Involvement
• Target everybody
• Try middle managers on board first
 Consultation
• Can we really involve all 6,500 staff?
• The ‘Revenue Roadshows’
 Communication
• Reclaiming the ‘radio station’
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Visible commitment from top
Individual letter to everybody
All the Board and MAC involved
The ‘powerful princes’
Local chairing of sessions
A consistent message
Making it happen
 From broad structure to detailed
design
 Small project teams – volunteers
 Briefing sessions – focus groups
 Dedicated central communications
function – bulletins – hotline for
queries – publication of FAQs
 Plenaries (150 people)
The Process
Spring 2001
Plan
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High-Level Design
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Project Board
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Detailed Design
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Implementation Plan
Winter 2003
T
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Project Board
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Project Board
A
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Implementation
Re-energising the Process
 Getting ‘bogged down’ in analysis
 Slow negotiations on the
Industrial Relations front
 New Chairman – important to
make it clear no change of
direction
Therefore
 Risks would have to be taken
 Civil Servants and leaps of faith!
 Not possible to tie down and validate
every detail in advance
 Get the fundamentals right and move
on
 Expect some mistakes
 Tell the Minister!
Parallel IR Process
 Plenary and Bi-lateral
 All parties would be dealt with
fairly and the same
 Representation issue
 4 out of 5 said yes
 Proceed Anyway!
Go and do it
 Assigned to new leadership positions
 Dominant figures very publicly
mapped into new roles
 Ambitious Start-up dates for new
Divisions announced
 Sceptics were outed
 Change was for real
Change ‘flags and emblems’
rapidly
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Email addresses
Corporate stationery
Telephones
Organisation Charts
The magazines – important
symbolic moment!
 Get people using and used to the
language of the new organisation
Making it happen
 Shut down for a week?
 Reconfigure the team with the ball in
play!
 Implementation Management Group
 Master inventory of tasks
 Careful planning of each transition
step
 Transition managers
 Planned Incrementalism
 Communicate! Staff and Unions
Visible Top Management Support
 Support managers
 Steady nerves
 Firefighting occasional crises
And always
 Re-affirming the core objectives of
change
 Focus on the gain
How have we done?
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Not all plain sailing
The vital signs are good
Streamlined governance/management
Streamlined customer service
Energy and initiative released
A high degree of flexibility
Business Growth
Most importantly
 Compliance moving in the right
direction
 Public confidence in Revenue being
rebuilt
 “New” Changes happening more
easily
Key Lessons
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Initiate Yourself
Vision – Articulate it
Urgency
Culture is Critical
Test proposals - suspect defences
Process and Pace – Drive momentum
Define milestones and celebrate them
Communicate!!!
And finally …
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Keep the change going
The bottom line is still Compliance
The Structure is a means to an end
Keep reminding people
PMDS
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Introduced in 2000
Partnership Intensive Group
Extensive Training
Key is Role Definition
Link to Strategy Statement
Conversation about Performance
2004 Upward Feedback
2007 Integration with HR policies
and processes
Labour Relations Commission
 An important part of the State’s
Industrial Relations Machinery
 New territory for the public sector
…but lots of business!
 34% of Conciliations in 2004
 Understand it and engage with it
Rights Based Legislation
 Growing body of law
 Rights Commissioners
– 19 Acts/Regs
 Employment Appeals Tribunal
 Equality Tribunal