21st century tax & revenue administration...1 21st century tax & revenue administration...
TRANSCRIPT
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21st Century Tax & RevenueAdministration
Addressing the Challenges and PositioningYour Agency for the Future
2Copyright © 2006 Deloitte Development LLC. All rights reserved.
Today’s Presenters
Deloitte Consulting LLP:George Mitchell- Marketing Offering Leader for Finance & AdminChris Brubaker- Senior Manager, project manager FDOR SUNTAXPiyush Sampat- Senior Manager, Tax & Revenue Practice Coordinator
Florida Department of Revenue:Jim EversDirector General Tax Administration, Florida Department of Revenue
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3Copyright © 2006 Deloitte Development LLC. All rights reserved.
Who is Deloitte Consulting LLP
• We provide specialized services in strategy and operations, humancapital, technology integration and enterprise application services to helpstate governments address critical issues and transform the way they dobusiness.
• Our consultants are specialists who combine their past governmentexperience and knowledge of state government operations andcomplexities with Deloitte Consulting’s leading commercial bestpractices in business and technology.
• Our Public Sector practice professionals are uniquely qualified to helpgovernments and other public sector institutions address these needs bydrawing upon our full range of services – audit and enterprise risk,consulting, tax, and financial advisory – to bring an informed, 360 degreeperspective to each public sector project we undertake.
4Copyright © 2006 Deloitte Development LLC. All rights reserved.
21st Century Tax & Revenue AdministrationToday’s Tax and Revenue Agencies are faced with major challenges:
1. The 21st Century Tax & Revenue Agency: Meeting increase taxpayer serviceexpectations
2. Changing Legislative Requirements: Adopting your infrastructure to respondto legislative requirements
3. Reengineering Business Processes: Transforming processes and proceduresto increase efficiency and revenue
4. Managing the Enterprise So it Doesn’t Manage You: Effectively aligning IT,Business, Organization and People
5. Integrated Tax Systems: Achieving one system for multiple taxes6. Leveraging Analytics: Using information to improve revenue management7. Business Integration: Bridging the gap and maximizing efficiency of your
organization8. Talent Management: Minimizing sufficient staff capabilities9. Failure is not an Option: Preparing for the unpredictable10. Are we there yet?: Implementing continuous improvement
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5Copyright © 2006 Deloitte Development LLC. All rights reserved.
Is this how you feel?
6Copyright © 2006 Deloitte Development LLC. All rights reserved.
EVD Phases and Threads• The EVD Methodology is a series of project phases and threads. Project phases are key groupings of activities that
follow a progression through the project lifecycle. Project threads relate to common themes of Deloitte expertise that ‘cutacross’ each of the project phases.
• The six EVD project phases are:– Vision– Plan– Design– Build– Deliver– Operate
• The 9 EVD project threads are:– Value (VL)– People, Change and Learning
(CL)– Process and Package (PP)– Business Intelligence (BI)– Information Technology (IT)
– Security and Controls (SC)– Support (SU)– Tax (TX)– Project Management (PM)
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#1 The 21st Century Tax &Revenue Agency
Meeting increased taxpayer service expectations
8Copyright © 2006 Deloitte Development LLC. All rights reserved.
Meeting increased taxpayer service expectations
POTENTIAL SOLUTIONS
• Determine taxpayer service expectations• Leverage available solutions across industries• Realign business model to be customer-centric
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#2 Changing LegislativeRequirements
Adapting your infrastructure to respond to Legislativerequirements
10Copyright © 2006 Deloitte Development LLC. All rights reserved.
Adapting your infrastructure to respond to Legislativerequirements
POTENTIAL SOLUTIONS
• Development of flexible, configurable systems• Develop Service Oriented Architecture• Adopt common or shared services for business processes
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#3 Reengineering BusinessProcesses
Transforming processes & procedures to increase efficiency and revenue
12Copyright © 2006 Deloitte Development LLC. All rights reserved.
Transforming processes & procedures to increaseefficiency and revenue
POTENTIAL SOLUTIONS
• Process re-engineer to shorten business process times utilizing best practices• Reduce handoffs and manual interventions• Monitor and measure results
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13Copyright © 2006 Deloitte Development LLC. All rights reserved.
Are you ready to accept the change?
Our diagnostic approach includes several assessment components:
Looks at fivedimensions ofculture withspecific andactionablesub-elements
Targets andfacilitatesprioritizationof Financeimprovementefforts
Identifies enablers / barriers for change – focusesefforts where more change management attention isrequired of leaders, sponsors, and the project team
0.0
0.5
1.0
1.5
2.0
2.5
3.0
1 4 6 7 2 8 5 3 13 16 17 12 14 15 9 10 11 18 21 20 19
Leadership Individuals Teams Infrastructure
Siz
e o
f p
erc
ep
tio
n g
ap
KEYKEY Leadership
FOCUSFOCUS Commitment Communications HR Infrastructure
AREASAREAS to Change
str
ate
gic
fo
cu
s
com
munic
ate
, in
volv
ed, part
icip
ate
leaders
hip
facilitate
s c
hange
decis
ion
-ma
kin
g
open to learn
ing/innovation
respect, s
upport
, develo
p s
taff
leaders
hip
cre
dib
ility
eff
ective
te
am
pra
ctice
s
tea
m s
kills
tea
m s
up
po
rt
indiv
. change inte
gra
tion
em
po
we
rme
nt
cro
ss-b
oundary
open to learn
ing/innovation
indiv
iduals
valu
e p
eople
infr
astr
uctu
re p
olicie
s
learn
ing a
nd d
evelo
pm
ent
pe
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nce
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astr
uctu
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rew
ard
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str
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re
com
munic
ate
, in
volv
ed, part
icip
ate
lea
de
rsh
ip c
om
mitm
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t to
ch
an
ge
0.0
0.5
1.0
1.5
2.0
2.5
3.0
1 4 6 7 2 8 5 3 13 16 17 12 14 15 9 10 11 18 21 20 19
Leadership Individuals Teams Infrastructure
Siz
e o
f p
erc
ep
tio
n g
ap
KEYKEY Leadership
FOCUSFOCUS Commitment Communications HR Infrastructure
AREASAREAS to Change
str
ate
gic
fo
cu
s
com
munic
ate
, in
volv
ed, part
icip
ate
leaders
hip
facilitate
s c
hange
decis
ion
-ma
kin
g
open to learn
ing/innovation
respect, s
upport
, develo
p s
taff
leaders
hip
cre
dib
ility
eff
ective
te
am
pra
ctice
s
tea
m s
kills
tea
m s
up
po
rt
indiv
. change inte
gra
tion
em
po
we
rme
nt
cro
ss-b
oundary
open to learn
ing/innovation
indiv
iduals
valu
e p
eople
infr
astr
uctu
re p
olicie
s
learn
ing a
nd d
evelo
pm
ent
pe
rfo
rma
nce
mg
mt
infr
astr
uctu
re
rew
ard
s in
fra
str
uctu
re
com
munic
ate
, in
volv
ed, part
icip
ate
lea
de
rsh
ip c
om
mitm
en
t to
ch
an
ge
str
ate
gic
fo
cu
s
com
munic
ate
, in
volv
ed, part
icip
ate
leaders
hip
facilitate
s c
hange
decis
ion
-ma
kin
g
open to learn
ing/innovation
respect, s
upport
, develo
p s
taff
leaders
hip
cre
dib
ility
eff
ective
te
am
pra
ctice
s
tea
m s
kills
tea
m s
up
po
rt
indiv
. change inte
gra
tion
em
po
we
rme
nt
cro
ss-b
oundary
open to learn
ing/innovation
indiv
iduals
valu
e p
eople
infr
astr
uctu
re p
olicie
s
learn
ing a
nd d
evelo
pm
ent
pe
rfo
rma
nce
mg
mt
infr
astr
uctu
re
rew
ard
s in
fra
str
uctu
re
com
munic
ate
, in
volv
ed, part
icip
ate
lea
de
rsh
ip c
om
mitm
en
t to
ch
an
ge
Culture Print AssessmentChange Readiness Assessment
#4 Managing Enterprise, So itDoesn’t Manage You!
Effectively Aligning IT, Business, Organization and People
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Effectively Aligning IT, Business, Organization andPeople
POTENTIAL SOLUTIONS
• Establish Project Management Office to develop master plan to monitor and controlprojects
• Align IT expenditures with enterprise strategies and utilize SLAs• Involve IT in operation improvement initiatives
#5 Integrated Tax Systems
Achieving one system for multiple taxes
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Achieving one system for multiple taxes
POTENTIAL SOLUTIONS
• Consider phased approach• Consider COTS, shorter implementation time, lower risk• Continually upgrade your data architecture• Redesign information repositories
#6 Leveraging Analytics
Using multiple information sources to improve revenueadministration
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Using multiple information sources to improverevenue administration
POTENTIAL SOLUTIONS
• Data harmonization• Federated data• Trend analysis• Business Intelligence
20Copyright © 2006 Deloitte Development LLC. All rights reserved.
Business Events vs. Business Analytics
Business Events(Storing Data)
Business Analytics(Retrieving Data)
• BI project implementation methodology can be categorized into two main areas:– Business Events
• Events based on business processes that result in storing data to a database• These components are transactional in nature (Business Planning and Simulation, Business Consolidations, etc)
– Business Analytics• Visualization of data• Information output and related activities that support retrieving data from a database• Output may occur via the web, a spreadsheet or other documents. Related activities include standard
information extracts from source systems to the data warehouse
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#7 Business Integration
Bridging the gap and maximizing efficiency of your organization
22Copyright © 2006 Deloitte Development LLC. All rights reserved.
Bridging the gap and maximizing efficiency of yourorganization
POTENTIAL SOLUTIONS
• Align technology, processes, people and organization• Establish standards across technology and data• Address common business needs and services across departments and agencies
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#8 Talent Management
Maintaining sufficient staff capabilities
24Copyright © 2006 Deloitte Development LLC. All rights reserved.
Maintaining sufficient staff capabilities
POTENTIAL SOLUTIONS
• Training• Provide employee support programs, including work flexibility• Provide challenging, interesting careers
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Deploy Connect
Develop
Acquire Retain
Talent Management & Retaining Expertise – theHypothesis
Retaining and transferring valuable expertise is often ineffective unless done in the contextof an overall talent management approach
Emphasize co-worker andcustomer interaction
capabilities
Find the right incentives &focus on creative retention
strategiesHire for attributes &
aptitude
Foster connections –knowing to whom or
where to go for answers
Ensuring right personis in right role and
has expandingopportunities
#9 Failure is Not an Option
Preparing for the unpredictable
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27Copyright © 2006 Deloitte Development LLC. All rights reserved.
Preparing for the unpredictable
POTENTIAL SOLUTIONS
• Business continuity plans• Develop enterprise resiliency using predictive modeling and penetration testing• Implement quality controls (ISO, Six Sigma, etc.)
#10 Are We There Yet?
Implementing continuous improvement
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29Copyright © 2006 Deloitte Development LLC. All rights reserved.
Implementing continuous improvement
POTENTIAL SOLUTIONS
• Implement an infrastructure with proper capabilities for continued improvement• Produce performance monitoring benchmarks• Stay current on technology
30Copyright © 2006 Deloitte Development LLC. All rights reserved.
Summary
• Align people, organization, process and technology tomaximize your investment and service to your taxpayers
PEOPLE
ORGANIZATION
PROCESS
TECHNOLOGY
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Deloitte
• Review our brochure foradditional information onthese and other relevanttopics
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33Copyright © 2006 Deloitte Development LLC. All rights reserved.
Jim EversDirector General Tax AdministrationFlorida Department of Revenue
A Sunny Forecast for Florida’s Future