Statement of Intent 2009-12: Part three - Strategic overview
Capability
The Development Goals for the State Services set out the expectations for the way the state services work. This is a useful framework for planning our efforts to achieve those expectations. Inland Revenue's approach to achieving the Development Goals is set out in Figure 10.
| Development goal | By June 2015 | Our approach |
|---|---|---|
| Employer of choice | ||
| Ensure the State Services is an employer of choice attractive to high performers, who are committed to service and the achievement of results. | State Services agencies are positive, inclusive workplaces populated by engaged, high-performing staff focused on current and future results. | We have an overall Gallup engagement survey score of 3.90 out of 5 (as at November 2008). We are aiming to reach the 75th percentile in the Gallup public administration database. Our People Capability strategy is aimed at providing the right people with the right tools to achieve our outcomes. |
| Networked State Services | ||
| Use technology to transform the provision of services for New Zealanders. | New Zealanders confirm that their experience of State Services has been transformed through technology. | We continue to develop new and improved e-services to give customers increased choice and ability to self-manage when accessing our services. |
| Value-for-money State Services | ||
| Use resources and powers in an efficient, appropriate and effective way. | New Zealanders see increased efficiency and effectiveness throughout the State Services. | We are adapting our services to provide better value for money from existing government expenditure and deliver efficient customer services. We have administrative costs which are low by international standards. Refer to Figure 5 for details. We are already working on a programme that will equip our people and infrastructure to deliver better value for money. It will also be achieved by better aligning our resources to deliver workloads and transforming the way that we do our work. Our people are reminding customers about information, tools and advisory services available to help them manage their payment obligations and what to do if they cannot pay or have a debt. |
| Coordinated State agencies | ||
| Ensure the total contribution of government agencies is greater than the sum of its parts. | New Zealanders gain real benefits from high-performing and effectively-coordinated State agencies. | We work closely with other government agencies in the design and delivery of programmes and services. This includes social support programmes and other outreach programmes. We work with other government agencies on policy issues that interact with the tax system. |
| Accessible State Services | ||
| Enhance access, responsiveness and effectiveness, and improve New Zealanders' experience of State Services. | New Zealanders' experience of State Services is characterised by practice and personalised service delivery that meet their diverse circumstances. | We have an outreach team that works with our customers to understand their needs and deliver services they require. Continued development of e-services will improve access for customers. Our work to deliver better e-services will help streamline and simplify our processes. |
| Trusted State Services | ||
| Strengthen trust in the State Services, and reinforce the spirit of service. | New Zealanders increasingly trust State servants to act with integrity. | Our code of conduct sets out the high standards of integrity expected of employees. Our training and induction programmes support this code. |
Investing in our people
At 31 March 2009, Inland Revenue had 6,121 staff. Our approach to developing their capability aligns with the capability toolkit[12] released by the State Services Commission in December 2008.
The 2009-14 People Capability Strategy supports Inland Revenue's commitment to invest in its people. The strategy sets out how we will develop our people to deliver services that will meet customer's future needs. We are building an agile workforce that can respond quickly and efficiently to changing demands, this requires:
- strong leadership
- engaged employees
- excellent technical skills
- a good view of future workforce needs.
Building strong leadership
To perform at the highest level, we need strong leadership that can promote Inland Revenue's purpose and goals and engage staff.
To develop leadership capability, we have implemented a leadership and management framework that focuses on performance management, development opportunities and succession planning. We have identified core competencies (based on the Lominger competencies) for leadership positions and are redesigning our leadership programmes around them.
Engaged employees
International research has shown that engaged employees are more productive, customer-focused and more likely to stay longer with an organisation. An engaged workforce will help us meet our customers' needs and improve compliance.
In our fourth Gallup engagement survey, in November 2008, we recorded an improved engagement score of 3.90 out of 5 (this is at the 50th percentile of all employers in the Gallup database). This score brings us into line with the international average and well above the worldwide average for the public sector. In looking at the Public Administration subset of the Gallup database, we are currently at the 62nd percentile and our intention is to reach the 75th percentile.
Developing our technical skills
Much of Inland Revenue's tax and social policy administration is highly technical, and it is becoming more so. Examples include increasing complexity in non-compliance cases, more complex phone calls and delivering advice across a wider range of topics.
We have established a Technical Training and Development Unit in the Office of the Chief Tax Counsel, responsible for training senior technical staff. We have also introduced a tax technical induction programme, to ensure consistency in training for all new tax technical staff. The unit is identifying gaps in technical competency and will develop training resources to fill them.
Planning our future workforce
We are continuing our high-level workforce planning to help us understand and plan for future workforce demands across Inland Revenue. Our focus has been on four key groups (investigators, customer service representatives, legal tax technical specialists and information technology staff).
To build our future people capability, Inland Revenue needs a robust learning and development environment. We are reviewing learning and development programmes and are also developing plans to ensure appropriate diversity in our workforce.
Finally, but very importantly, we are aligning our workforce planning with the business processes and system change initiatives in our Transform IR programme.
Investing in our tools and infrastructure
Our people need the right tools to do their work and appropriate processes and information technology infrastructure to support them. Inland Revenue's responsibilities have grown in recent years with the addition of new programmes. In the future we will need to change the way we deliver our programmes and services, and invest in tools and infrastructure to achieve our outcomes.
Transform IR
Inland Revenue has begun a programme that will transform the way we do our work. The Transform IR programme includes work to streamline processes and practices, update our capability, and modernise ageing technology infrastructure and systems. The first phase of the programme will simplify, standardise, and rationalise processes. The intent of this phase is to streamline processing to improve operational efficiency, reduce complexity and barriers to compliance for customers, and to automate where possible.
The next phase, which will run partially in parallel with the first, is the modernisation of our core infrastructure and systems over the next five to seven years. There are some issues which, if left unresolved, could reduce our ability to deliver a high quality tax system and administer social support programmes. The Transform IR programme will safeguard our capability and capacity to deliver core programmes and future government initiatives. The programme will make sure our systems and infrastructure are efficient for administering both tax and social policy programmes. It will enable a better service for our customers, greater responsiveness to government needs, and increased efficiency and effectiveness.
As mentioned in the previous section, it is important that our workforce planning, recruitment, and training and development are closely aligned with our Transform IR agenda.
Accommodation
Over the next two years Inland Revenue will be consolidating accommodation in Wellington into two buildings instead of the ten buildings we currently occupy. We expect to move into 1 Featherston Street from the end of 2010. We will have fewer leases and improved organisational efficiency after the consolidation.
Departmental capital intentions
Our planning methodology incorporates ways of identifying and aligning future capital intentions with our need to invest in tools and infrastructure. There are three key components of these future capital intentions:
- maintaining our current asset base - we will continue to reinvest in our current asset base. This includes replacements and enhancements to our IT systems, software licences, computers, motor vehicles, furniture and equipment. Inland Revenue does not own any land or buildings. However, we do fit-out office accommodation we lease. The consolidation of accommodation in Wellington is being funded from departmental cash reserves as well as through a capital injection from the Crown. Maintaining our asset base from our limited capital reserves continues to be a challenge.
- delivering government initiatives - often new initiatives that Inland Revenue delivers for the government require capital investment. In 2009-10 we will finalise system changes for Budget 2009 initiatives (including personal tax rate changes and the independent earner tax credit).
- investing for the future - as part of our strategic planning processes we are developing future capital investment strategies under a portfolio approach. Our key area of focus for capital investment will be modernising our core infrastructure and systems over the next five to seven years as part of the Transform IR programme.
12 The capability toolkit promotes and informs capability management and helps State Services agencies improve their performance.
Date published: 18 Jun 2009
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