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
Wednesday, June 11, 2014
Driving Change – Enjoying the Journey
November 2011 Headline
State misplaces $320 million from corporate epayments
Wednesday, June 11, 2014
February 2012 Headline
State shorts local counties $230 million
Wednesday, June 11, 2014
Deloitte Observations & Recommendations
• Number of Findings: • Finance Group 75 • Information Technology 48 • Enforcement 10 • Collections 6 • Other 7
Wednesday, June 11, 2014
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
Wednesday, June 11, 2014
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
Wednesday, June 11, 2014
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
Wednesday, June 11, 2014
NO ONE CAN DO IT ALONE
Wednesday, June 11, 2014
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
Wednesday, June 11, 2014
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
Wednesday, June 11, 2014
Sounds Like This Guy
Wednesday, June 11, 2014
The Myth and the Legend
Wednesday, June 11, 2014
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
Wednesday, June 11, 2014
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
Wednesday, June 11, 2014
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
Wednesday, June 11, 2014
Getting Started
Wednesday, June 11, 2014
Strategic Priorities
Wednesday, June 11, 2014
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
Wednesday, June 11, 2014
Key Performance Metrics
• $250 of revenue for each $1 of cost
• 85% successful call resolution
• $195 million in collections from non-compliant taxpayers
Wednesday, June 11, 2014
Cultural Shift
Quality & Accuracy
Wednesday, June 11, 2014
Not Just Speed & Efficiency
Wednesday, June 11, 2014
New Governance Structures
• Leadership Council • Strategic Operations Committee • IT Resource & Planning Committee • Monthly Operations Review • Product Councils
Wednesday, June 11, 2014
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
Wednesday, June 11, 2014
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
Wednesday, June 11, 2014
Assessing the Technology Environment
Wednesday, June 11, 2014
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
Wednesday, June 11, 2014
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
Wednesday, June 11, 2014
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
Wednesday, June 11, 2014
It Takes the WHOLE TEAM
Wednesday, June 11, 2014
Questions?
Wednesday, June 11, 2014
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