driving change-enjoying the journey: transformation leadership … · 2014-06-11 · driving change...

Wednesday, June 11, 2014

Driving Change – Enjoying the Journey: Transformation Leader

to Jump Start the Engine

Federation of Tax Administrators 2014 Annual Conference

Mike Alley Commissioner, Indiana Dept. of Revenue


Driving Change – Enjoying the Journey

November 2011 Headline

State misplaces $320 million from corporate epayments


February 2012 Headline

State shorts local counties $230 million


Deloitte Observations & Recommendations

•  Number of Findings: •  Finance Group 75 •  Information Technology 48 •  Enforcement 10 •  Collections 6 •  Other 7


Deloitte Observations

•  Examples of Key Observations: •  Lack of integrated accounting and tax processing platforms •  Inadequate change management process •  Lack of process and system documentation •  Inadequate risk management and focus on internal controls •  Lack of comprehensive technology strategic plan •  Line of business leadership not effectively integrated into

decision processes •  Inadequate succession planning and knowledge transfer

process in place •  Inadequate governance structure in place


Strengths Identified by Deloitte

•  Organization focused on its customer, the Indiana taxpayer •  Metrics focused on:

•  Processing turnaround – getting the returns processed quickly and refunds out fast

•  Keeping overhead and costs low to yield greatest efficiency – headcount reduced by nearly ½ in previous 6 years


2012 Clearly Defined Priorities

•  MUST DO’s DEFINED: •  Regain the trust of stakeholders

•  Deep dive on root cause of errors •  Implement repairs and validate fixes •  Begin addressing Deloitte observations &

recommendations •  Define cultural shift

•  Primary focus on accuracy & quality •  Other key priorities

•  Bldg relocation, efile mandate, legislative changes, exceptional customer service


NO ONE CAN DO IT ALONE


Strategic Transformation Initiatives Leader Key Responsibilities

•  Support the senior leadership team in development and execution of strategic initiatives

•  Help identify operational risks and assist in development of operational controls to help mitigate those risks

•  Provide monitoring and reporting of progress in execution of strategic projects

•  Surface obstacles such as capacity, pacing, resourcing or other red flag issues which require attention of senior leadership

•  Provide advice and counsel to leaders without owning the projects themselves to ensure consistency and fairness

•  Help ensure anticipated benefits of initiatives are being fully realized and accurately measured


Strategic Transformation Initiatives Leader Role & Skills

•  Reports directly to Commissioner •  Actively participates in senior governance meetings •  Skills/Qualifications:

•  Masters degree in business or related fields •  Ten or more years experience in operations management or

enterprise implementations •  IT and project management experience •  Proven track record of successful outcomes based

performance measurement •  Proven problem solving skills •  Strong communication skills


Sounds Like This Guy


The Myth and the Legend


Strategic Transformation Initiatives Leader Profile

•  Purdue IT undergrad •  Purdue business MBA •  Army Special Ops •  Verizon operations specialist •  IT consulting •  Outcomes focused individual •  Proven problem solver •  Strategic thinker •  Trust builder


Steps for Successful Change

•  Recognizing the need to change •  Developing the necessary changes required for your

organization •  Preparing your team for the changes to come •  Implementing the changes and change plan as prescribed •  Nurturing and training your team with the new changes •  Validating and measuring the impact of the changes •  Celebrating the victories brought about from the changes


10 Principles of Change Management By John Jones, DeAnne Aquirre & Matthew Calderone

Booz Allen Hamilton

•  1. Address the human side systematically •  2. Start at the top •  3. Involve every layer •  4. Make the formal case •  5. Create ownership •  6. Communicate the message •  7. Assess the cultural landscape •  8. Address culture explicitly •  9. Prepare for the unexpected •  10. Speak to the individual


Getting Started


Strategic Priorities


Good To Great

Roadmap for

Indiana

DOR Strategic

Plan

Defining the FACT of our Priorities

Filing simplification and reducing regulatory burden, particularly on small businesses

Accuracy and reliability of all filing and reporting

Compliance improvement to create a level playing field

Team development to ensure sustained success


Key Performance Metrics

•  $250 of revenue for each $1 of cost

•  85% successful call resolution

•  $195 million in collections from non-compliant taxpayers


Cultural Shift

Quality & Accuracy


Not Just Speed & Efficiency


New Governance Structures

•  Leadership Council •  Strategic Operations Committee •  IT Resource & Planning Committee •  Monthly Operations Review •  Product Councils


Staffing & Organizational Changes

•  Strategic Transformation Initiatives Leader

•  Project Management Office •  Reorganization of Finance, IT,

Enforcement & Collections Groups •  Strengthened finance team staff •  Strengthened IT team staff


Restoration & Development of Controls

•  Restoration of controls eliminated to enhance speed & efficiency

•  Installation of financial/accounting controls •  Automated interfaces between RPS &

Peoplesoft •  Product Council scrub of process flows •  Enhanced user acceptance testing (UAT) •  Establishment of Assurance & Audit Services

Group


Assessing the Technology Environment


Overall IT Strategic Plan

•  Identify foundational building blocks for short & medium needs

•  Manage security, privacy and certifications to minimize risk

•  Establishment of Project Management Office •  Enhanced security & disaster recovery planning

and procedures •  Review and replacement of multiple “stand

alone” systems which are outdated, not supported and not integrated


Major Changes

•  Updated data portfolio warehouse •  Non-filer compliance initiative •  ID theft protection program •  Enhanced data encryption •  Agile development •  New audit toolkit & case management •  Elimination of over 40 stand alone systems •  Disaster recovery •  PMO •  RPS to PeopleSoft


Value of Strategic Transformation Initiatives Leader

•  Sets the tone – confirms that Commissioner is serious about transformative change

•  Surfaces sacred cows and challenges the status quo of “this is how it has always been done”

•  Provides independent perspective and discipline of measurement and accountability

•  Provides translation of “IT speak” to “business speak” •  Traverses all business lines and brings integration to

projects that overlap with multiple leaders •  On the ground interaction with team garners honest

feedback and reactions


It Takes the WHOLE TEAM


Questions?


driving change-enjoying the journey: transformation leadership … · 2014-06-11 · driving change...

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