Leadership and Change

1. Leadership and Change The Revenue Story Commissioner Josephine Feehily

2. Leadership and Change The Revenue Business The Revenue Organisation The Story of a Change Programme The role of PMDS The Labour Relations Commission

3. 2.8 million items of correspondence 2.9 million external emails 700,000 personal callers 4.3 million telephone calls 4 million visits to www.revenue.ie 4.2 million payments 3.5 million tax and customs returns 250,000 vehicles registered 50,000 plus new business registrations Revenue – a Big Business

4. Tax and Customs Largest Department in the Civil Service 6,500 employees 130 offices/26 locations 2.8 million customers Annual revenues: €42 billion (repay €4bn) Budget to run the Office - €387 m Cost of admin: 0.85% of gross revenues ../ Revenue – the Organisation

5. Gender Balance Age Profile Work arrangements

9. Electronic Services

10. Michael Collins: “An integrated Customs and Tax organisation responsible for all the nation’s revenues and frontier control” A Board of Revenue Commissioners to oversee the organisation The Theory

11. Separate tax and customs Depts Roots going back to Middle Ages Different and deeply established cultures Different information systems – difficult dialogues Separate grade streams, promotion systems and even magazines Multiple “Head Offices” But why change? The Reality 1923 - 2003

12. Tax receipts rising Self-assessment big success Customer service accolades So nothing really broken? Most things were going well!

13. Single Market Economic growth/Wealth New business models More Sophisticated Citizens Public Sector Reform Some Doubts about Compliance Environment Had Changed

14. It’s all about compliance! Maximise voluntary compliance through best possible service Enforcement – a sharp response to those who do not voluntarily comply Strategy was Clear

15. Both approaches are about the Customer We were organised by tax/duty Cumbersome management structures Poor Accountability The Organisation?

16. Statement of Strategy Align the organisation with the business “….review to ensure that we have the best structure to complement our Programmes” Creating a climate for change

17. In House Control Internal representative team No “consultants” reforming us Keep powerful people in the tent Confidential interviews Slow, steady engagement All in the loop – no ‘inner circles’ Consensus building The Review

18. Building a Senior Management Team (MAC) Permitting Dissent Encourage a corporate view Provide a non-confrontational environment to surface issues “The Status Quo is not an option!” Creating a climate for change

19. A more flexible focussed organisation Re-build Revenue around our strategy for compliance Operational Divisions – dealing with all taxes and duties for their cases Supported by a streamlined National Office …/ The Decision

20. The Heads of Operational Divisions would have clear responsibility and authority A move from central (Dublin) command and control Move to a single staffing stream

21. From this … Chairman Commissioner Commissioner C&E Collections Division C&E Enforcement Division Customs & Residence Division Information & Communications Technology Division Revenue Solicitor Chief Inspector of Taxes Taxes Audit & Investigation Taxes Customer Services & Technical Services Direct Taxes Policy & Legislation Division Direct Taxes International & Administration Division Collector General’s Office Corporate Management Division Human Resources Division Indirect Taxes Policy & Legislation Division Capital Taxes Division

22. To this …..

23. From this …. To this …. Border Midlands West Region DublinRegion East & South East Region South-West Region Taxes & Duties Taxes & Duties Customers

24. From this (Customer View – 2000)

25. To this (Customer View – 2005) Stamp Office Dublin, Cork, Galway Stamp Duty All functions (except as shown) Taxpayer (Worst Case)* District Office CG’s ORROS Returns/ Payments Import/Export AEP *Majority of cases have no import/export transactions and no or infrequent Stamp Duty transactions. For most cases contact is limited to the District and the Collector General/ROS

26. Urgency Timely external shock Change agenda ‘out of the closet’ Government interest Short-circuited a more prolonged debate …/ Engaging the Organisation

27. Involvement Target everybody Try middle managers on board first Consultation Can we really involve all 6,500 staff? The ‘Revenue Roadshows’ Communication Reclaiming the ‘radio station’ …/

28. Visible commitment from top Individual letter to everybody All the Board and MAC involved The ‘powerful princes’ Local chairing of sessions A consistent message

29. From broad structure to detailed design Small project teams – volunteers Briefing sessions – focus groups Dedicated central communications function – bulletins – hotline for queries – publication of FAQs Plenaries (150 people) Making it happen

30. The Process Spring 2001 Winter 2003 C O M M U N I C A T I O N Plan C O N S U L T A T I O N High-Level Design Project Board Detailed Design Project Board Implementation Plan Project Board Implementation

31. Getting ‘bogged down’ in analysis Slow negotiations on the Industrial Relations front New Chairman – important to make it clear no change of direction Re-energising the Process

32. Risks would have to be taken Civil Servants and leaps of faith! Not possible to tie down and validate every detail in advance Get the fundamentals right and move on Expect some mistakes Tell the Minister! Therefore

33. Plenary and Bi-lateral All parties would be dealt with fairly and the same Representation issue 4 out of 5 said yes Proceed Anyway! Parallel IR Process

34. Assigned to new leadership positions Dominant figures very publicly mapped into new roles Ambitious Start-up dates for new Divisions announced Sceptics were outed Change was for real Go and do it

35. Email addresses Corporate stationery Telephones Organisation Charts The magazines – important symbolic moment! Get people using and used to the language of the new organisation Change ‘flags and emblems’ rapidly

36. Shut down for a week? Reconfigure the team with the ball in play! Implementation Management Group Master inventory of tasks Careful planning of each transition step Transition managers Planned Incrementalism Communicate! Staff and Unions Making it happen

37. Support managers Steady nerves Firefighting occasional crises And always Re-affirming the core objectives of change Focus on the gain Visible Top Management Support

38. Not all plain sailing The vital signs are good Streamlined governance/management Streamlined customer service Energy and initiative released A high degree of flexibility Business Growth How have we done?

39. Compliance moving in the right direction Public confidence in Revenue being rebuilt “New” Changes happening more easily Most importantly

40. Initiate Yourself Vision – Articulate it Urgency Culture is Critical Test proposals - suspect defences Process and Pace – Drive momentum Define milestones and celebrate them Communicate!!! Key Lessons

41. Keep the change going The bottom line is still Compliance The Structure is a means to an end Keep reminding people And finally …

42. Introduced in 2000 Partnership Intensive Group Extensive Training Key is Role Definition Link to Strategy Statement Conversation about Performance 2004 Upward Feedback 2007 Integration with HR policies and processes PMDS

43. An important part of the State’s Industrial Relations Machinery New territory for the public sector …but lots of business! 34% of Conciliations in 2004 Understand it and engage with it Labour Relations Commission

44. Growing body of law Rights Commissioners – 19 Acts/Regs Employment Appeals Tribunal Equality Tribunal Rights Based Legislation