21st century tax & revenue administration...1 21st century tax & revenue administration...

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21st Century Tax & RevenueAdministration

Addressing the Challenges and PositioningYour Agency for the Future

2Copyright © 2006 Deloitte Development LLC. All rights reserved.

Today’s Presenters

Deloitte Consulting LLP:George Mitchell- Marketing Offering Leader for Finance & AdminChris Brubaker- Senior Manager, project manager FDOR SUNTAXPiyush Sampat- Senior Manager, Tax & Revenue Practice Coordinator

Florida Department of Revenue:Jim EversDirector General Tax Administration, Florida Department of Revenue

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Who is Deloitte Consulting LLP

• We provide specialized services in strategy and operations, humancapital, technology integration and enterprise application services to helpstate governments address critical issues and transform the way they dobusiness.

• Our consultants are specialists who combine their past governmentexperience and knowledge of state government operations andcomplexities with Deloitte Consulting’s leading commercial bestpractices in business and technology.

• Our Public Sector practice professionals are uniquely qualified to helpgovernments and other public sector institutions address these needs bydrawing upon our full range of services – audit and enterprise risk,consulting, tax, and financial advisory – to bring an informed, 360 degreeperspective to each public sector project we undertake.


21st Century Tax & Revenue AdministrationToday’s Tax and Revenue Agencies are faced with major challenges:

1. The 21st Century Tax & Revenue Agency: Meeting increase taxpayer serviceexpectations

2. Changing Legislative Requirements: Adopting your infrastructure to respondto legislative requirements

3. Reengineering Business Processes: Transforming processes and proceduresto increase efficiency and revenue

4. Managing the Enterprise So it Doesn’t Manage You: Effectively aligning IT,Business, Organization and People

5. Integrated Tax Systems: Achieving one system for multiple taxes6. Leveraging Analytics: Using information to improve revenue management7. Business Integration: Bridging the gap and maximizing efficiency of your

organization8. Talent Management: Minimizing sufficient staff capabilities9. Failure is not an Option: Preparing for the unpredictable10. Are we there yet?: Implementing continuous improvement

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Is this how you feel?


EVD Phases and Threads• The EVD Methodology is a series of project phases and threads. Project phases are key groupings of activities that

follow a progression through the project lifecycle. Project threads relate to common themes of Deloitte expertise that ‘cutacross’ each of the project phases.

• The six EVD project phases are:– Vision– Plan– Design– Build– Deliver– Operate

• The 9 EVD project threads are:– Value (VL)– People, Change and Learning

(CL)– Process and Package (PP)– Business Intelligence (BI)– Information Technology (IT)

– Security and Controls (SC)– Support (SU)– Tax (TX)– Project Management (PM)

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#1 The 21st Century Tax &Revenue Agency

Meeting increased taxpayer service expectations


Meeting increased taxpayer service expectations

POTENTIAL SOLUTIONS

• Determine taxpayer service expectations• Leverage available solutions across industries• Realign business model to be customer-centric

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#2 Changing LegislativeRequirements

Adapting your infrastructure to respond to Legislativerequirements


Adapting your infrastructure to respond to Legislativerequirements

POTENTIAL SOLUTIONS

• Development of flexible, configurable systems• Develop Service Oriented Architecture• Adopt common or shared services for business processes

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#3 Reengineering BusinessProcesses

Transforming processes & procedures to increase efficiency and revenue


Transforming processes & procedures to increaseefficiency and revenue

POTENTIAL SOLUTIONS

• Process re-engineer to shorten business process times utilizing best practices• Reduce handoffs and manual interventions• Monitor and measure results

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Are you ready to accept the change?

Our diagnostic approach includes several assessment components:

Looks at fivedimensions ofculture withspecific andactionablesub-elements

Targets andfacilitatesprioritizationof Financeimprovementefforts

Identifies enablers / barriers for change – focusesefforts where more change management attention isrequired of leaders, sponsors, and the project team

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Culture Print AssessmentChange Readiness Assessment

#4 Managing Enterprise, So itDoesn’t Manage You!

Effectively Aligning IT, Business, Organization and People

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Effectively Aligning IT, Business, Organization andPeople

POTENTIAL SOLUTIONS

• Establish Project Management Office to develop master plan to monitor and controlprojects

• Align IT expenditures with enterprise strategies and utilize SLAs• Involve IT in operation improvement initiatives

#5 Integrated Tax Systems

Achieving one system for multiple taxes

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Achieving one system for multiple taxes

POTENTIAL SOLUTIONS

• Consider phased approach• Consider COTS, shorter implementation time, lower risk• Continually upgrade your data architecture• Redesign information repositories

#6 Leveraging Analytics

Using multiple information sources to improve revenueadministration

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Using multiple information sources to improverevenue administration

POTENTIAL SOLUTIONS

• Data harmonization• Federated data• Trend analysis• Business Intelligence


Business Events vs. Business Analytics

Business Events(Storing Data)

Business Analytics(Retrieving Data)

• BI project implementation methodology can be categorized into two main areas:– Business Events

• Events based on business processes that result in storing data to a database• These components are transactional in nature (Business Planning and Simulation, Business Consolidations, etc)

– Business Analytics• Visualization of data• Information output and related activities that support retrieving data from a database• Output may occur via the web, a spreadsheet or other documents. Related activities include standard

information extracts from source systems to the data warehouse

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#7 Business Integration

Bridging the gap and maximizing efficiency of your organization


Bridging the gap and maximizing efficiency of yourorganization

POTENTIAL SOLUTIONS

• Align technology, processes, people and organization• Establish standards across technology and data• Address common business needs and services across departments and agencies

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#8 Talent Management

Maintaining sufficient staff capabilities


Maintaining sufficient staff capabilities

POTENTIAL SOLUTIONS

• Training• Provide employee support programs, including work flexibility• Provide challenging, interesting careers

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Deploy Connect

Develop

Acquire Retain

Talent Management & Retaining Expertise – theHypothesis

Retaining and transferring valuable expertise is often ineffective unless done in the contextof an overall talent management approach

Emphasize co-worker andcustomer interaction

capabilities

Find the right incentives &focus on creative retention

strategiesHire for attributes &

aptitude

Foster connections –knowing to whom or

where to go for answers

Ensuring right personis in right role and

has expandingopportunities

#9 Failure is Not an Option

Preparing for the unpredictable

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Preparing for the unpredictable

POTENTIAL SOLUTIONS

• Business continuity plans• Develop enterprise resiliency using predictive modeling and penetration testing• Implement quality controls (ISO, Six Sigma, etc.)

#10 Are We There Yet?

Implementing continuous improvement

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Implementing continuous improvement

POTENTIAL SOLUTIONS

• Implement an infrastructure with proper capabilities for continued improvement• Produce performance monitoring benchmarks• Stay current on technology


Summary

• Align people, organization, process and technology tomaximize your investment and service to your taxpayers

PEOPLE

ORGANIZATION

PROCESS

TECHNOLOGY

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Deloitte

• Review our brochure foradditional information onthese and other relevanttopics


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Jim EversDirector General Tax AdministrationFlorida Department of Revenue

A Sunny Forecast for Florida’s Future

21st century tax & revenue administration...1 21st century tax & revenue administration...

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