41;:t Inland Revenue Te Tan Taake

Business Transformation

The Transformation Story

Senior Management Team 16th October 2012

Objectives • Understand and agree the Transformation Story

- What we agree on - What needs more work - What we don't agree on.

•Confirm Options for the Programme Business Case

•Agree Tranche 1 for the Programme

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IR's operating model needs to transform to ensure IR can respond appropriately to the changing nature of our business and new

ways of working.

Our operating model needs to take into account expectations that IR will work differently with public sector agencies and private sector entities in the future.

The Case for Change

The nature of IR's business has changed significantly over the last 20 years and will continue to change into the future.

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Considerations for Transformation The government's priorities for 2011 include: a) building a stronger economy and b) building better results from public services.

IR contributes to these priorities by: • delivering an effective and efficient tax administration,

• providing better, smarter public services by changing the way we work to give customers greater certainty and faster, simpler interactions with us.

Focusing our efforts and resources on these priorities will ensure IR continues to progress towards the achievement of our outcomes i.e. revenue is available to fund government programmes through people meeting payment obligations of their own accord and people receive payments they are entitled to, enabling them to participate in society.

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CO Inland Revenue Te Tani Taake

Transformation Drivers Our Transformation programme has four drivers that help shape the plan and prioritise the timing and grouping of initiatives, the four drivers of transformation are:

• Our current operating model will not deliver the transformed agency described in IR4TF

• We need to replace aging technology

• NZ citizens are demanding reduced government spending and better services, while the Government are asking IR to increase revenue collection

• IR needs to align with the Governments "Better Public Services" programme and contribute to results areas 9 & 10.

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41:0 Inland Revenue Te Tad Taake

Stage 1 Current State Assessment

Stage 2 Design

Stage 3 Planning

Detailed Planning

Completed Completed Completed

Feb 2012— Jun 2012

Phase 3

Transformation Roadmap and Business Case I

Sept 2011

Phase 2

Foundation

Alignment

RFP & Preparation

Project Alignment

Assessment

Capgemini On-Boarding

Discovery and Joint Planning

Completed

Phase 1

High Level Blue Print

and Technology Integration

Finish Work

Completed

Jul 2012— Feb 2013

Phase 4

The Programme Journey

•-• ** * IR **

Strategy * **

Time

IR Business Transformation Roadmap

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CO Inland Revenue Te Tan i Taake

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What has to be done differently?

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What do we need to deliver?

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How will we get there? -

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How will we get there?

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How will we get there?

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The Costs and Benefits

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The Risks

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4120 Inland Revenue Te Tani Taake

Next Steps • Agreeing a programme of work

• Funding our Transformation Programme (through the "Better Business Case: process)

• Planning for Implementation

• Communication and Engaging with internal and external Stakeholders

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Next Steps /N

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