ATO capability action plan 16 August 2013...ATO capability action plan – 16 August 2013. iii....

ATO capability action plan 16 August 2013

ii ATO capability action plan – 16 August 2013

Foreword

The ATO Executive led the collaborative development of this action plan in response to the capability review findings. The Commissioners, with a representative group of SES Band 2 leaders, convened a corporate forum to deliberate, define and agree the outcomes we seek and the initiatives that will support achievement of these outcomes.

The ATO recognises that to effect organisational change, it needs to have a clear sense of where it is headed and what success will look like. The upcoming ATO 2020 Vision and Mission statement along with the Commissioners’ 2013-14 statement will be the seminal corporate documents that set out the agency’s future direction.

The ATO realises however that significant change will take time to effect. Aligned with the Vision and Mission and emerging enterprise strategy, the focus of this action plan is on initiatives that will:

> address future workforce capability and information technology needs,

> improve connectedness with the community

> simplify and streamline administrative practices

> improve services for government, to the community and to the ATO itself.

Many activities outlined in this action plan are already underway and the timelines reflect progress to date.

Implementation approach

The implementation of this capability action plan will be part of a larger transformational program for the ATO. This transformational program will be known as ATO 2020 and there will be a Program Management Office established and led by an SES Band 2 officer.

The ATO will dedicate an SES Band 1 officer as program manager for delivery of this Action Plan.

Governance arrangements

Reporting on progress of this action plan will be linked into our existing governance system such as performance agreements, quarterly performance reviews, annual corporate plans, and strategic corporate plans for future years.

To maintain a strategic focus and ensure the necessary profile, and to ensure organisational capability improvements are embedded in the ATO, the following governance principles will be applied:

> The ATO Executive committee will oversee the implementation of intended changes and receive regular reports to track progress against the agreed action plan.

> Commissioners will take sponsorship responsibility for the different priority areas of the plan.

> Nominated SES Band 2 officers will be accountable for delivering specific capability improvements in this action plan and this accountability will be included in their performance agreements.

> Performance agreements for all SES officers will include responsibility for active support and contribution to delivery of this action plan.

ATO capability action plan – 16 August 2013 iii

Stephen Sedgwick AO Commissioner Australian Public Service Commission

Chris Jordan AO Commissioner Australian Taxation Office

Capability reviews focus on leadership, strategy and delivery capabilities and highlight the agency’s internal management strengths and areas for improvement. Please refer to the Capability Review Report of the Australian Tax Office (ATO) for the detailed assessment of agency capabilities against the APSC Model of Capability.

01. Summary of Findings and Actions

1 ATO capability action plan – 16 August 2013

1.1 Review Findings

The APSC capability review identified the following priority areas for improvement for the ATO to focus on to build organisational capability:

Developing a forward-looking, enterprise wide strategy

Developing ICT efficiency and agility

Building the future workforce

Streamlining governance arrangements and structures

Improving external connectedness

ATO capability action plan – 16 August 2013 2

1.2 The Plan

Priority Area 1: Developing a forward-looking, enterprise wide strategy

Activities Milestones Date Accountability Model element

Intended Outcome: A clear statement of strategic intent developed and driven top-down that covers the 2020 Vision and Mission and the enterprise strategies to achieve that intent1.

Sponsor: Commissioner

1. Develop the 2020 Vision and Mission.

Draft 2020 Vision and Mission articulated

31 Jul 2013 Commissioners L1

Commissioners consult with key stakeholders and finalise the 2020 Vision and Mission.

31 Oct 2013

2. Leaders commit to the draft Vision and Mission for 2020 (Corporate Design Forum) ensuring that the senior leadership team (Commissioners and NPMs) is united in direction.

Corporate Design Forum 31 Jul 2013 National Program Managers

L1, L2

2020 Vision and Mission published

31 Oct 2013

3. Identify the enterprise-wide shifts and strategies required to make the Vision and Mission a reality.

Key enterprise shifts and strategies agreed

31 Dec 2013 First Assistant Commissioner ATO Corporate

L1 S1

Finalised 2020 Vision and Mission statement with enterprise strategies articulated.

31 Mar 2014

1 The Vision, Mission and enterprise strategies will include a focus on: joined-up government through a single point of access to government; single capture of core data and sharing across government; common secure electronic identifiers; digitalisation of all transactions, other than in exceptional circumstances; single account for taxpayers covering multiple taxes, and maximise pre-filled tax returns using natural systems in real time to be accessible on-line.


4. Undertake planning, communication and engagement activities to socialise and embed the new Vision, Mission and enterprise strategies

ATO Annual Corporate Plan 2014-15 and a three year corporate strategic plan to 2016-17 delivered and published

30 Jun 2014 First Assistant Commissioner ATO Corporate

L1 D2, D3

Aligned corporate, group and business plans developed and published

31 Aug 2014 S1 D2

Communication and engagement strategy developed

31 Oct 2013 L2 S3

First stage of communication and engagement strategy completed

31 Dec 2013 L2 S3

Target and measurement strategy

> New ATO 2020 Vision and Mission statement with underpinning enterprise strategies in place for publication on 31 March 2014. The high level statement will be reviewed every 2-3 years and the enterprise strategies reviewed every year for inclusion in the ATO corporate strategic plan.

> ATO Annual Corporate Plan provided to relevant Ministers in July 2014.

> Clear line of sight and logic in cascading strategies, planning and performance documents.

> Maintain current position relative to the APS average, on results of APS Census questions regarding alignment with Vision/Strategy.


Priority Area 2: Developing ICT efficiency and agility


Intended Outcome: ICT investment is driven by our strategic intent and enterprise strategies, and our plans maximise our ability to keep pace with contemporary service expectations.

Sponsor: Second Commissioner, People, Systems and Services Group

1. Finalise and publish the new ‘top-down’ ICT strategy that incorporates:

– the newly identified ICT priorities aligned with the enterprise strategies;

– a three-year rolling funding program;

– efficiencies that allow us to increase funding for discretionary ICT investment to 10% of total ICT budget

– the work program for strategic investment including whole-of-government initiatives, and

– the work program to reduce complexity and streamline approval processes.

ICT priorities identified and investment work program developed

31 Dec 2013 Chief Information Officer

Enterprise Solutions and Technology

S1, S2 D1, D2, D3

ICT strategy finalised and published and to be identified within the ATO annual and strategic corporate plans.

31 Mar 2014

ICT business plans finalised and published

31 Aug 2014

2. Cease work that is not consistent with the strategic direction.

ICT work that is inconsistent with strategic direction identified

31 Dec 2013 S1, S3 D2

ICT work inconsistent with strategic direction discontinued

31 Mar 2014


> Publish the new ‘top-down’ whole of ICT strategy by March 2014 which will be informed by the Vision, Mission statement and enterprise strategies.

> Increase to 10%, (of total ICT budget) funds available for discretionary ICT investment by June 2015.

> Reduce by 5%, ICT operating costs through implementation of a three-year rolling funding program by June 2015


Priority Area 3: Building the future workforce


Intended Outcome: Our workforce is equipped, ready, willing and able to deliver our ongoing and future business needs.

Sponsor: Second Commissioner, Compliance Group

1. Agree strategies to build the future skills and workforce capabilities and support the future culture

Future skills and workforce capability needs identified

31 Mar 2014 First Assistant Commissioner ATO People

L2, L3

Strategies to build future skills and workforce capabilities agreed

30 Jun 2014

2. Establish a new workforce plan that defines the capabilities and culture required for the future with reference to the enterprise strategies to deliver the Vision and Mission2.

New ATO workforce plan delivered and forming part of the ATO’s annual and strategic corporate plans.

1 Jul 2014 L2, L3 S3

3. Consistent with the new workforce plan and enterprise strategy, develop a long-term ATO location strategy with a focus on:

– establishing parameters to guide optimum location of functions

– assessing critical mass of co-located staff needed for each function

– clearly articulating policy and guidelines for remote management arrangements.

Future location requirements consistent with the new workforce plan and aligned with the enterprise strategy, identified

31 Dec 2014 D2, D3

Long-term ATO location strategy developed and published

30 Jun 2015

4. Establish a systematic approach to leadership and management development across the enterprise, with an ongoing program of actions to embed learning, routinely measuring and improving effectiveness over time.

Leadership and Management development pilot program developed for delivery in the first quarter of 2014.

31 Dec 2013 L3

Leadership and Management development program implemented

1 Jul 2014

Design and pilot an assessment/evaluation tool to measure workforce capabilities before and after undertaking the development program

1 Jul 2014

2 Greater focus and increased resources allocated to support transformational change by developing skills and capabilities in: strategic thinking; leadership and management including change management effective communication; and relationship building


5. Design and implement an enhanced workforce capability assessment approach to capture, analyse and act on both internal indicators and external perspectives.

– Focus on real-time feedback and timely analysis

New workforce capability assessment approach piloted for use with an agreed strategy to understand and act on feedback.

1 Jul 2014 First Assistant Commissioner ATO Corporate

S2, S3 D1, D4

6. Articulate professional standards required for different parts of the workforce.

Identify key professions and the external/industry standards required

30 Jun 2014 L3

Target and measurement strategy > New workforce plan in place by 1 July 2014.

> Enterprise Agreement supports the Vision and Mission statement and workforce plan.

> A new leadership and management development program is rolled out to all managers in the ATO from 1 July 2014 to 30 June 2015 and will be ongoing.

> Leadership and management assessment/evaluation tool piloted by 1 July 2014.

> Pilot a real-time stakeholder feedback mechanism by 1 July 2014.

> Maintain current position relative to the APS average, on results of APS Census questions regarding immediate manager and improve position relative to APS average from 2015.

> Ongoing improvement in results of APS Census questions regarding senior leadership to be on par with APS average in 2015.

> Ongoing improvement in results of APS Census questions relating to learning and development to be within 2% points of APS average by 2015.


Priority Area 4: Streamlining governance arrangements and structures


Intended Outcome: An efficient, streamlined governance system that supports accountability, quality decision-making and effective risk management.

Sponsor: Second Commissioner, People, Systems and Services Group

1. Design and deliver a streamlined governance system that informs government and the community about our risk management, performance, integrity and accountabilities. Features of the system will include:

– line of sight – revised enterprise risks – fewer measures overall – different tiers of measures

(at the ATO Executive and different levels of management)

– measures for current day deliverables as well as longer term directions

– measures for both efficiency and effectiveness

– third party views – quarterly performance

discussions as part of our ATO Executive meeting, eliminating the previously held Plenary Governance Forums.

Initial estimate of cost of governance activities completed

31 Dec 2013 First Assistant Commissioner ATO Finance

S1 D3, D4

Streamlined governance system implemented for 2014-15 and beyond


Cost of governance quantified through an agreed costing framework

31 Dec 2014 First Assistant Commissioner ATO Finance

2. Continue to develop a consistent approach to measuring effectiveness and monitoring business as usual outcomes.

Effectiveness measurement approach broadened to support the governance system and provide an enterprise view of effectiveness

31 Mar 2014 First Assistant Commissioner ATO Corporate

S1 D4

Measurement of enterprise effectiveness agreed and established for 2014-15 and beyond

1 Jul 2014

3. Undertake an assessment of whether decision making is at appropriate levels within the ATO.

Decision-making authority aligned with assessed levels of risk

30 Jun 2014 L1, L2, L3 D3

Decision-making authority assigned to appropriate level through changes made to practices and procedures

31 Dec 2014


4. Review and rationalise the ATO’s internal committees and take action to ensure that committees have a clear mandate and decision making authority linked to implementation of strategy.

Internal committees reviewed and rationalised progressively and new committee structure in place

31 Dec 2013 First Assistant Commissioner ATO Corporate

S1 D2, D3

5. Design a revised framework for policy and instructions that assures compliance and is easy to use

Revised practice statement and instruction framework and work program agreed

31 Dec 2014 S3 D3

Suite of corporate management practice statements, instructions and procedures updated.

31 Dec 2014

6. Design a revised conformance framework that is clear and fit-for-purpose.

Revised internal conformance processes framework and work program agreed

31 Dec 2014 D3

Internal conformance processes and requirements updated.

31 Dec 2014

7. Rationalise and simplify additional practices, procedures, work processes and sign-off points after the ATO level governance and conformance frameworks have been agreed

Progressively scope and finalise the agreed work program to rationalise and simplify additional practices, procedures, work processes and sign off points across all groups

30 Jun 2014 Second Commissioners

S3 D3

Progressively rationalise and simplify additional practices, procedures, work processes and sign-off points contained in the agreed work program.

31 Dec 2014


> Deliver the streamlined governance system for operation from 1 July 2014.

> Initial estimate of cost of governance activities completed by 31 December 2013

> Quantify the cost of governance through an agreed costing framework by 31 December 2014.

> Progressively, significantly reduce the estimated cost of governance as at 30 June 2013 in each of the two years to 30 June 2015.

> Progressively, significantly reduce the number of rule-based statements (for example, corporate management practice statements, instructions and other work practices or procedures) over each of the two years to June 2015 and implement a system that monitors, measures, and actions their currency, relevance and usability.

> Ongoing improvement in results of APS Census questions regarding management of risk, to be 2% points above APS average by 2015.

> Ongoing improvement in results of APS Census questions regarding autonomy of decision-making, to be on par with APS average by 2015.


Priority Area 5: Improving external connectedness


Intended Outcome: Our connections and relationships across government and the community are purposeful and effective and provide benefits to the tax and super systems and our administration..

Sponsor: Second Commissioner, Law Design and Practice Group

1. Strengthen our relationships across government:

– improve the effectiveness of our exchange and secondment program with government agencies

– further develop the newly established Integrated Tax Design business line with a focus on - providing feedback

on policy proposals to government;

- policy advice capability – in particular, prioritising areas of the law most in need of improvement.

Expanded exchange and secondment program in place with government agencies including elements facilitated by Integrated Tax Design.

1 Jul 2014 First Assistant Commissioner ATO People (Policy and practice)

SES Band 2s (Engagements and effectiveness assessments)

S3 D3

Effectiveness indicators for Integrated Tax Design developed and implemented

31 Dec 2013

New Integrated Tax Design function and processes established and fully effective

1 Jul 2014 First Assistant Commissioner Integrated Tax Design

2. Finalise current review of external consultative forums:

– develop and implement new external consultation model, and

– develop process for regular assessment/review of effectiveness of consultative arrangements.

– implement consultation hub

Post implementation review of external consultation model completed

31 Mar 2014 First Assistant Commissioner ATO Corporate

S3

External consultation model changed to account for improvements identified.

1 Apr 2014

3. Undertake analysis of community expectations of the tax and super systems:

– develop a clearer understanding of what drives the behaviour and attitudes of Australians,

– validate our vision for future client experience with user groups, and

– develop sharper mechanisms to understand and action feedback.

Behavioural-attitudinal study piloted


S2, S3

Enterprise approach to analysing community expectations of the broader tax system established

1 Oct 2014

Undertake user group analysis of expectations for future client experience

1 Oct 2014

Improved mechanisms to understand and action feedback established

1 Jan 2015


4. Develop initiatives to improve and demonstrate our understanding of the commercial environment and practices:

– establish a secondment program approach with the private sector,

– implement a practice that leverages opportunities for increased external engagement in projects

Secondment program with the private sector established with measures of effectiveness established.

1 Jul 2014 First Assistant Commissioner ATO People (Policy and practice)

SES Band 2s (Secondment engagements and commercial initiatives)

L3 S2 D3

Guidelines for engaging external representatives in projects agreed and published

1 Apr 2014

5. Broaden the application of successful initiatives in the large business sector such as:

– improving timeliness of audits and advice through a strengthening of audit leadership and project management,

– open and effective consultation.

Initiatives to improve timeliness of audits and advice implemented across market segments, where appropriate

31 Dec 2014 Deputy Commissioner Public Groups and International

(Through working closely with the Compliance Group Executive)

S3 D1

New model for consultation with business developed and implemented across market segments, where appropriate

30 Jun 2014

Target and measurement strategy > Increased percentage of external representatives who agree they have been purposively engaged in improving the

administration of the tax system.

> Develop feedback mechanism (for example, survey of key Treasury stakeholders) that will provide evidence of increased collaboration with Treasury in policy formulation. The first survey will establish a baseline to measure trends.

> Extent to which ATO advice to Treasury has led to ATO priority issues entering the government policy agenda. Target: Top 5 ATO priority issues routinely being accepted into the government’s policy agenda.

> Establish a baseline measure (based on 2012-13 and beyond) to identify the number of amendments to new law proposed by the ATO post implementation. Target: declining number of proposed amendments for 2013-14 and beyond.

> Improved quality of secondment programs into and out of the ATO, demonstrating more effective use of skills and experience – in place and operating by 1 July 2015 with those programs in place for each subsequent year.

> Significant reductions in the total average cycle time to complete our end-to-end compliance interactions with taxpayers, with those reductions particularly visible in all future years from 1 July 2015

02. Health-check Review


11 ATO Capability Action Plan 16 August 2013

A Health-check Review of progress against the Action Plan is scheduled for late November 2014, with the date to be agreed between agency heads, and will be undertaken by the Australian Public Service Commission.

ATO Capability Action Plan 16 August 2013 12

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