Las Vegas, Nevada
June, 2006
GLOBAL SIX SIGMA CONFERENCE
Embedding Quality in the IRS
A Journey from Quality Fundamentals ...
2
The purpose of this briefing is to describe the IRS journey from the
quality fundamentals of Embedded Quality (EQ) and t...
3
Embedding Quality in the IRS
 Background – IRS Wage & Investment Division
 Embedding Quality In Wage & Investment
 Le...
4
In 1998 RRA 98 was passed, mandating the IRS to modernize and
improve customer service in an organization with poor meas...
5
A primary transformation task was to reorganize the IRS from a
region-based to a customer-segment based organizational s...
6
The Wage & Investment division services individual U.S. taxpayers
and delivers a broad mission across several related se...
7
Embedding Quality in the IRS
 Background – IRS Wage & Investment Division
 Embedding Quality In Wage & Investment
 Le...
8
Baseline
Strategy
Org Design &
Effectiveness
Performance
Management
 Strategic
Planning
 Organization
Design
 Process...
9
In 2001, IRS faced pressure from stakeholders to improve quality,
but faced three key inhibitors
Measures Not Aligned
wi...
10
The treatment for these inhibitors centered on establishing three
‘Quality Fundamentals’ to ‘Embed Quality’ in the IRS
...
11
Global Common Measures begin with establishing new customer
facing measures that were cited by the Customers as critica...
12
EQ system reports aggregate data upward throughout the business
as well as a drill-down capability for ‘Line of Sight A...
13
Quality improvements noted in TIGTA (Treasury Inspector General
for Tax Administration) and GAO (Government Accountabil...
14
Embedding Quality in the IRS
 Background – IRS Wage & Investment Division
 Embedding Quality In Wage & Investment
 L...
15
Implementing Embedded Quality will make W&I more capable of
strategic improvement through Lean Six Sigma implementation...
16
Deployment work streams will progress along a specific timeline
that ensures full program stand-up by the end of FY 200...
17
Stealth Sigma
4% drop in deposit error rate in a
Submission Processing Center
Although implemented recently, LSS has fo...
18
A primary step in LSS deployment has been the establishment of a
Lean Six Sigma Office that will drive the LSS program ...
19
Internal and external Black Belt candidates follow a unique
progression for training and indoctrination
Sourcing
Candid...
20
By leveraging multiple experience subject matter experts, the LSSO
will deploy Black Belts simultaneously across multip...
21
W&I has integrated the overall LSS deployment process into its
standing ‘Modernization’ business model
Impact
Low High
...
22
Potential project opportunities within W&I consist of both Lean and
Six Sigma projects – both impacting our strategic o...
23
Customer/Market Focus
Leadership
Commitment
Strategic
AlignmentTechnology /
Infrastructure
Process
Management
As part o...
24
3σ
4σ
5σ
6σ
2σ
Looking to the future, expansion will be based on proven results;
resources are added when results are p...
25
Baseline
Strategy
Org Design &
Effectiveness
Performance
Management
 Strategic
Planning
 Organization
Design
 Proces...
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Embedding Quality in the IRS - A Journey from Quality Fundamentals to World Class Quality Improvement Capability

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  • Embedding Quality in the IRS - A Journey from Quality Fundamentals to World Class Quality Improvement Capability

    1. 1. Las Vegas, Nevada June, 2006 GLOBAL SIX SIGMA CONFERENCE Embedding Quality in the IRS A Journey from Quality Fundamentals to World Class Quality Improvement Capability
    2. 2. 2 The purpose of this briefing is to describe the IRS journey from the quality fundamentals of Embedded Quality (EQ) and to then deploy Lean Six Sigma  Follow the IRS’ Stealth Sigma journey from first building the fundamentals of quality to deploying a full Six Sigma capability  See how the IRS reoriented itself to deploy common, customer-facing measures and true ‘line of sight’ accountability  Learn how the ‘success breeds success’ model overcame strong cultural barriers  Gain insight into how the IRS leveraged its strengths to ensure Six Sigma success and sustainability  See the IRS’ vision for deploying Six Sigma to drive operational excellence into the future This presentation will…
    3. 3. 3 Embedding Quality in the IRS  Background – IRS Wage & Investment Division  Embedding Quality In Wage & Investment  Lean Six Sigma in Wage & Investment
    4. 4. 4 In 1998 RRA 98 was passed, mandating the IRS to modernize and improve customer service in an organization with poor measures and accountability systems  “The modernization I have proposed will require drastic changes…”  “Fundamental change will require comprehensive systematic and sustained approach…..over a period of years…”  “How do we manage an agency tasked with collecting money?.....Develop measures of case quality and inventory, get someone to rate how well you are doing on a sample of work which takes into account how well you have treated the customers.”  “We have to have something to measure the performance in an organization of 100,000 people.”  “I have no confidence in the Internal Revenue Service of this country…Let me tell you what I think is wrong. A good system rewards good behavior and punishes bad behavior, and yours does exactly the opposite.”  “There has got to be improved feedback systems to hold people accountable….there is something wrong at the heart of the IRS….”  “It makes it very difficult to have effective oversight if we can’t trust the figures”  “We don’t want to judge (only the) productivity of a unit but…what else are you going to do?” Comments by the U.S. Senate Oversight Committee Prior to RRA 98 Responses by IRS Commissioner Rossotti to Address the Problem
    5. 5. 5 A primary transformation task was to reorganize the IRS from a region-based to a customer-segment based organizational structure Customer Assistance, Relationships and Education (CARE) Customer Assistance, Relationships and Education (CARE) Customer Accounts Services (CAS) Customer Accounts Services (CAS) ComplianceCompliance Pre-File Filing Post-File New IRS Organization IRS Commissioner IRS Commissioner Small Business/ Self- Employed Small Business/ Self- Employed Large/Medium Sized Businesses Large/Medium Sized Businesses Tax Exempt/ Government Entities Tax Exempt/ Government Entities W&I Commissioner W&I Commissioner Wage & Investment Wage & Investment Original IRS Organization  Regional organizations and districts duplicated similar structure multiple times  Focus on enforcement and not on customer service  Decentralized command and control  Centralized leadership organized by customer segment and activities within filing value stream  Focus is squarely on the customer [Geographically Based] [Customer Segmented]
    6. 6. 6 The Wage & Investment division services individual U.S. taxpayers and delivers a broad mission across several related services  Mission: To provide Wage and Investment customers top quality service by helping them understand and comply with applicable tax laws and to protect the public interest by applying the tax law with integrity and fairness to all.  Vision: To make taxes easier through continuous innovations in taxpayer service and compliance programs. Source: IRS, 2006 – 133.8M Individual tax returns processed – 51.1M Business returns processed – 100M Refunds issued totaling $218B – 59.1M Calls answered – 22.3M Web services provided – 7.2M Walk-ins serviced at Field Assistance Centers – 546K Cases examined for tax compliance – 2.1M Cases investigated through W&I’s Automated Underreporter process Yearly Operational Statistics Organizational Size – 53,130 employees during peak season – 26,373 permanent – 26,757 seasonal/other – 8 Processing & Account Centers – 25 Toll-Free Sites – 400 Walk-In Offices – $2.6B operating budget for FY 2006
    7. 7. 7 Embedding Quality in the IRS  Background – IRS Wage & Investment Division  Embedding Quality In Wage & Investment  Lean Six Sigma in Wage & Investment
    8. 8. 8 Baseline Strategy Org Design & Effectiveness Performance Management  Strategic Planning  Organization Design  Process Analysis  Embedded Quality  ‘Line of Sight’ Accountability PHASE PHASE  Lean Operations  Six Sigma  Learning & Improving Organization Lean Six Sigma Organization OUTCOME OUTCOME CAPABILITY CAPABILITY  Current Situation Revealed  Environment Assessed  Strengths, Weaknesses, Opportunities & Threats Identified  Direction Set  Vision and Mission Communicated  Goals Established  Operational Plans Developed  Realignment from Region-based to Customer Service-based Org Structure  Effectiveness Assessed  Improvement Opportunities Prioritized  Results Tracked, Measured and Rewarded  Leaders and Staff Held Accountable  Competencies Aligned to Requirements  Waste and errors eliminated  Operational metrics improved – overall performance improved  Efficiency infused in culture  Lean Six Sigma capability established STRATEGIC PLAN DEPLOYMENT EFFICIENCY GAINS AD HOC SIX SIGMA PROJECTS The Road to IRS Performance Modernization  Baseline Analysis Performance ModernizationRRA 98 Congressional Mandate to Improve 1998 2001 2006 and beyond…
    9. 9. 9 In 2001, IRS faced pressure from stakeholders to improve quality, but faced three key inhibitors Measures Not Aligned with Customer or Business  Measure only procedural adherence (procedures often not Critical To Quality)  Scored by Pass/Fail – defect detail is lost  Measures don’t represent what’s important to the Customer, Business & Employee  Front-line employees and managers are not evaluated and managed to the issues that matter to the customers and the organization  No clear line of sight from organizational leadership through each level of management to the front lines  Inspection focused vs. improvement focused  Management not engaged in driving improvement  Various quality organizations view quality differently  Measures have been stagnant or declining Weak Front-Line Connection to Organizational Performance Under-Performing Improvement Efforts Key Inhibitors to Quality Improvement
    10. 10. 10 The treatment for these inhibitors centered on establishing three ‘Quality Fundamentals’ to ‘Embed Quality’ in the IRS Global Common Measures 100% Line of Sight Accountability Strategic Improvement & Planning The ‘Quality Fundamentals’ of Embedded Quality • Measures focus on what is important to the customer, the business, and the employee • Measures are the same across like products • Everyone from Front-Line Employees to the W&I Commissioner are accountable to the new measures through performance evaluations & managerial commitments • W&I Commissioner develops strategic vision • Leaders propose projects according to strategic objectives • Resources deployed to high-priority projects
    11. 11. 11 Global Common Measures begin with establishing new customer facing measures that were cited by the Customers as critical Toll-free Customers Indicated What Matters Most to Them… 7.44 6.96 5.33 4.44 3.35 2.89 2.35 2.13 1.66 1.00 0 1 2 3 4 5 6 7 8 9 10 TimeSpent on Issue Time toComplete Call Completeness of Information Ease of UnderstandingInformation Responsiveness of Employees Listening toYour Concerns Professionalismof Employees Fairness of Treatment Courtesy of Employees Attitudeof Employees Low Impact High Impact LEVERAGE Timeliness Accuracy Professionalism …This Is Mirrored in the New Measures Timeliness – Measures the timeliness of the actions controllable by the employees in the execution of their transaction Customer Accuracy - Measure of the accuracy of the transaction, measuring if the customer received the correct answer and the correct resolution Non-customer impact measures are tracked that can affect Customer Accuracy: – Regulatory Accuracy – Measures adherence to regulations and statues; a fatal flaw in this measure will cause a fail in Customer Accuracy – Procedural Accuracy – Measures adherence to internal service procedures ; a fatal flaw in this measure will cause a fail in Customer Accuracy Professionalism – Measures the employee’s treatment of the taxpayer and positive representation of the service Voice of the Customer
    12. 12. 12 EQ system reports aggregate data upward throughout the business as well as a drill-down capability for ‘Line of Sight Accountability’ Results + Benefits  Aligns the organization with core mission and vision  Evaluates full organizational performance  Managerial and employees have shared goals and priorities  A common quality “language Provide data to drilldow n to source Provide data to drilldow n to source Overall Business Perf. Report Overall Business Perf. Report Operations Performance Reports Operations Performance Reports Performance Reporting Process Employee performance linked to critical business elements Employee performance linked to critical business elements Reports communicate critical business information through all Levels of organization Employee Performance Report Employee Performance Report
    13. 13. 13 Quality improvements noted in TIGTA (Treasury Inspector General for Tax Administration) and GAO (Government Accountability Office) reports demonstrate the success of EQ…  TIGTA, December 21, 2005: "The EQBI is an innovative approach to quality control for face-to-face interactions between assistors and taxpayers. No other federal government agencies we contacted have developed a comprehensive quality measurement system that measures face-to-face assistance like the one the IRS is implementing.“  2005 Annual Report for the IRS Oversight Board (presidential appointees): "During this period the IRS’ performance has improved for many important business functions. For example, the quality of telephone service has gotten markedly better, helping taxpayers to understand and comply with an extremely complex tax code.”  GAO, April 2006: – “IRS improved it’s filing season performance in important areas that affect large numbers of taxpayers. This continues a trend of improvement since at least 2002.” – “Taxpayer assistance has improved in the two most commonly used services – toll-free phones and the Internet Web site.” • Accuracy rate for telephone answers to tax law and account issues is 90%, which was originally considered a stretch goal for 2010 • Efficiencies have led to reduced resource requirements and call center consolidation opportunities • Length of time taxpayers are on hold awaiting telephone assistance has decreased from 235 to 182 seconds • Percentage of abandoned telephone calls has decreased from 11.5 to 8.9 percent • Operator availability has dropped to, on average, 4-5%, approaching world-class levels – “Representatives of the taxpayer industry corroborated IRS’s view that the filing season is going smoothly.” …with this quality foundation in place, we were poised to launch a full Lean Six Sigma capability
    14. 14. 14 Embedding Quality in the IRS  Background – IRS Wage & Investment Division  Embedding Quality In Wage & Investment  Lean Six Sigma in Wage & Investment
    15. 15. 15 Implementing Embedded Quality will make W&I more capable of strategic improvement through Lean Six Sigma implementation Improved, Standardized And Customer Centric Measures Each Level Of The Organization Aligned With And Linked To The New Measures Quality Infrastructure Optimized And Focused On Improvement Em bedded Quality & Strategic Planning Quality Transformation Capabilities & Outcomes Improvement Aligned with Strategy Improvement efforts coordinated with strategic vision, and top-level buy in for process improvement Capability Outcome Organization deploys Lean Six Sigma as the means to realize objectives defined in the Strategic Plan New staff dedicated to improving the organization at the enterprise and site level By assessing everyone’s performance on the same measures, 100% Accountability is achieved Common measures enables everyone to speak the same quality ‘language’
    16. 16. 16 Deployment work streams will progress along a specific timeline that ensures full program stand-up by the end of FY 2006 Oct Nov Dec Jan Feb Mar Apr Jun JulMay Aug Sep Program Design LSS Staffing LSSO Design Project Execution Develop & Approve Position Descriptions and hiring guidelines Develop & Approve Position Descriptions and hiring guidelines Exec Strategic Planning Exec Strategic Planning LSSO Stand Up & Governance LSSO Stand Up & Governance LSSO Strategy and Organizational Design LSSO Strategy and Organizational Design Process Mapping and Performance BaselineProcess Mapping and Performance Baseline Build Proj Pipeline & Selection Criteria Build Proj Pipeline & Selection Criteria Additional customization of Project Tracking Application Additional customization of Project Tracking Application Develop & Approve LSS Organizational Design Develop & Approve LSS Organizational Design Recruit and Hire LSS CandidatesRecruit and Hire LSS Candidates Develop TrainingDevelop Training Deliver TrainingDeliver Training LSS Projects (Coaching & Mentoring)LSS Projects (Coaching & Mentoring) Integrate LSS with Modernization Council Integrate LSS with Modernization Council Showcase Projects Showcase Projects Train-the-TrainerTrain-the-Trainer LSS Resource CPE StrategyLSS Resource CPE Strategy Develop LSS Program Metrics, and applicable W&I Strategic Metrics Develop LSS Program Metrics, and applicable W&I Strategic Metrics ENVISION DEFINE DESIGN DEVELOP DEPLOY & CONTROL Develop LSS organizational placement and reporting structure Develop LSS organizational placement and reporting structure Create LSS job postingsCreate LSS job postings Develop LSS project prioritization mechanism Develop LSS project prioritization mechanism Develop Tools and MethodsDevelop Tools and Methods Identify LSS software reqs & selected vendors Identify LSS software reqs & selected vendors Identify key W&I metrics for process improvement Identify key W&I metrics for process improvement Implement Project Performance Tracking SolutionImplement Project Performance Tracking Solution Develop LSSO Web PortalDevelop LSSO Web Portal Develop Organizational LSS Communication Plan Develop Organizational LSS Communication Plan
    17. 17. 17 Stealth Sigma 4% drop in deposit error rate in a Submission Processing Center Although implemented recently, LSS has followed a “Stealth Sigma” path over several years to achieve gradual cultural acceptance TimeTime2001 2002 2003 2004 2005 2006 100 FTE saved and redeployed in a service center through elimination of steps Productivity gains between 10% to 30% consolidated Compliance programs 11% reduction in quality defects for Fresno Accounts callsImprovement of Toll-Free Quality to over 90% Cultural Indifference for LSS Eager Support to deploy LSS SAMPLE PROJECTS LEVERAGING LSS SAMPLE PROJECTS LEVERAGING LSS Tax Law Accounts calls for one site increases accuracy to over 95%
    18. 18. 18 A primary step in LSS deployment has been the establishment of a Lean Six Sigma Office that will drive the LSS program capability Lean Six Sigma Office (LSSO) LSSO Building Blocks The LSSO manages the project portfolio, prioritizes resources, and tracks their progress / success The Master Black Belt and Black Belts train staff to replicate Six Sigma capability across the organization The LSSO maintains a ‘Project Library’ to enable innovation transfer across the organization The LSSO provides Black Belts with up-to- date tools and access to new, proven methodologies that can be applied in their environment
    19. 19. 19 Internal and external Black Belt candidates follow a unique progression for training and indoctrination Sourcing Candidates Training The Lean Six Sigma Progression ModelThe Lean Six Sigma Progression Model Internal Black Belt Candidate Mentorship W&I established specific position descriptions & standards for candidates Mentor helps train candidates on LSS skills and IRS culture & process External Black Belt Candidate Challenge: LSS Skills Challenge: IRS Culture Transition to Fully Capable IRS Black Belt Black Belt has the technical skills and environmental understanding to be successful working projects in the IRS
    20. 20. 20 By leveraging multiple experience subject matter experts, the LSSO will deploy Black Belts simultaneously across multiple projects The W&I Lean Six Sigma Resource Deployment Design Dir AM Dir AM Dir JOC Dir JOC Dir SP Dir SP Dir F&PC Dir F&PC Dir R&C Dir R&C Master Black Belt Director Compliance Director ComplianceDirector CAREDirector CAREDirector CASDirector CAS Dir Med/Pubs Dir Med/Pubs Dir SPEC Dir SPEC Dir FA Dir FA Black Belts W&I Commissioner’s Office W&I Commissioner’s Office + Wage & Investment will execute LSS projects using a leveraged resource model: • The W&I Leadership team represents each directorate by selecting high-value projects and providing full-time dedicated team resources to execute the project • Each team resource is trained as a LSS Green Belt, providing them with the necessary knowledge to be a fully contributing team member • The LSSO provides team leadership and LSS expertise • Each W&I Black Belt will work on two simultaneous projects each Lean Six Sigma Projects Resource Deployment Strategy & FinanceStrategy & Finance
    21. 21. 21 W&I has integrated the overall LSS deployment process into its standing ‘Modernization’ business model Impact Low High High Low Effort Directors prioritize submissions Project Title: Sponsor: Project Type: Cross-BOD DMAIC Lean Enterprise LocalLean Project Project Status: Proposed Approved Active OnHold Rejected Problem Statement: People Requirement Name Role Location Start End FTE Required BlackBelt 100% 1/1/2006 12/31/2006 1.00 Process Owner 15% 1/1/2006 12/31/2006 0.15 Team Member 0% 1/1/2006 12/31/2006 0.00 Team Member 0% 1/1/2006 12/31/2006 0.00 Team Member 0% 1/1/2006 12/31/2006 0.00 Team Member 0% 1/1/2006 12/31/2006 0.00 Team Member 0% 1/1/2006 12/31/2006 0.00 Total FTE (Person Years) 1.15 Lean Six Sigma Project Investment Proposal Division DMAIC Dave Medeck Name #7 Name #3 Name #4 Name #5 Name #6 % Dedicated Improve Efficiencyof SubmissionProcessing Operations Black Belt Name Name #2 Project Duration While modernization drawsSubmission Processing (SP) sites down, E-file usage has not met expectations, increasingthe burdenon the remainingSP centers during filing seasons, increasingthe riskof not meeting Program Completion Date (PCD). This in turnhasa direct result in deposit timeliness, resultingina potential annual loss of $25M ininterest, and refundtimeliness, resultingina potential loss of $36M in annual penalties. By improving peak SP return cycle time by5 days,we can eliminate this risk. W&I Operations identify problems and submit a project proposal Directors submit projects to the LSSO for Enterprise prioritization The Modernization Council approves projects for resource assignments Key Success Factors External Customer Internal Customer Key Success Factors External Customer Internal Customer Core Process Variability Core Process Variability GapGap LSS Projects LSS Projects SpeedSpeed AccuracyAccuracy CostCost D Tollgates M A I C Mod Council Approval… …Leads to LSSO Resource Assignments The project is tollgated through the W&I Modernization Council Project selection process is monitored for improvement CAS Director Top Operations Needs 1) __________ 2) __________ 3) __________ 4) __________ 5) __________ CAS Director Top Operations Needs 1) __________ 2) __________ 3) __________ 4) __________ 5) __________ CARE Director Top Operations Needs 1) __________ 2) __________ 3) __________ 4) __________ 5) __________ CARE Director Top Operations Needs 1) __________ 2) __________ 3) __________ 4) __________ 5) __________Compliance Director Top Operations Needs 1) __________ 2) __________ 3) __________ 4) __________ 5) __________ Compliance Director Top Operations Needs 1) __________ 2) __________ 3) __________ 4) __________ 5) __________
    22. 22. 22 Potential project opportunities within W&I consist of both Lean and Six Sigma projects – both impacting our strategic objectives  Streamlining returns processing at Submission Processing Centers  Reducing waste in walk-in center processes IRS Strategic Objective Potential Lean Opportunities Potential Six Sigma Opportunities Improve Taxpayer Service Improve Taxpayer Service Enhance Enforcement of Tax Law Enhance Enforcement of Tax Law Modernize the IRS through People, Processes, and Technology Modernize the IRS through People, Processes, and Technology  Improving telephone response quality  Reducing defects in forms and publications  Reduce lag time before detecting fraud  Improving cycle time for the release of Liens  Reducing erroneous tax assessments  Improving the selection process for Exam case audits  Automating non customer- focused activities to improve response time  Streamline the Amended return process  Eliminate barriers that impede employment opportunities for employees and applicants
    23. 23. 23 Customer/Market Focus Leadership Commitment Strategic AlignmentTechnology / Infrastructure Process Management As part of our implementation, we are performing a self-assessment of our organizational progress to determine key needs/areas of focus Legend 0 = Center = Poor 3 = Half way between center and outer ring = Average 5 = Outer Ring = World Class Wage & Investment Lean Six Sigma Assessment Chart A “spider chart” summarizes the relative rankings of key deployment considerations A “spider chart” summarizes the relative rankings of key deployment considerations ILLUSTRATIVE ILLUSTRATIVE
    24. 24. 24 3σ 4σ 5σ 6σ 2σ Looking to the future, expansion will be based on proven results; resources are added when results are proven Previous StatePrevious State Capability Building Phase Capability Building Phase Program Expansion Phase Program Expansion Phase Steady State PhaseSteady State Phase Proven Impact = Expanded Black Belt DeploymentProven Impact = Expanded Black Belt Deployment W&I CommissionerW&I Commissioner Director, CARE Director, CARE Director, CAS Director, CAS Director, Compliance Director, Compliance Director, Strategy & Finance Director, Strategy & Finance Director, Business Systems Planning Director, Business Systems Planning CARE Operations CARE Operations CAS Operations CAS Operations Compliance Operations Compliance Operations W&I CommissionerW&I Commissioner Director, CARE Director, CARE Director, CAS Director, CAS Director, Compliance Director, Compliance Director, Strategy & Finance Director, Strategy & Finance Director, Business Systems Planning Director, Business Systems Planning Master Black Belt, LSSO Master Black Belt, LSSO CARE Operations CARE Operations CAS Operations CAS Operations Compliance Operations Compliance Operations Strategic Deployment Strategic Deployment W&I CommissionerW&I Commissioner Director, CARE Director, CARE Director, CAS Director, CAS Director, Compliance Director, Compliance Director, Strategy & Finance Director, Strategy & Finance Director, Business Systems Planning Director, Business Systems Planning Master Black Belt, LSSO Master Black Belt, LSSO CARE Operations CARE Operations CAS Operations CAS Operations Compliance Operations Compliance Operations W&I CommissionerW&I Commissioner Director, CARE Director, CARE Director, CAS Director, CAS Director, Compliance Director, Compliance Director, Strategy & Finance Director, Strategy & Finance Director, Business Systems Planning Director, Business Systems Planning Master Black Belt, LSSO Master Black Belt, LSSO CARE Operations CARE Operations CAS Operations CAS Operations Compliance Operations Compliance OperationsOperational Deployment Operational Deployment Functional Deployment Functional Deployment WE ARE HEREWE ARE HERE
    25. 25. 25 Baseline Strategy Org Design & Effectiveness Performance Management  Strategic Planning  Organization Design  Process Analysis  Embedded Quality  ‘Line of Sight’ Accountability PHASEPHASE  Lean Operations  Six Sigma  Learning & Improving Organization Lean Six Sigma Organization CAPABILITYCAPABILITY The Road to IRS Performance ModernizationThe Road to IRS Performance Modernization Performance Modernization Performance ModernizationRRA 98 Congressional Mandate to Improve RRA 98 Congressional Mandate to Improve 1998 2001 2006 and beyond… In conclusion, the Quality Transformation in the IRS is a real success story in improved customer service  “I have no confidence in the Internal Revenue Service of this country…Let me tell you what I think is wrong. A good system rewards good behavior and punishes bad behavior, and yours does exactly the opposite.”  “There has got to be improved feedback systems to hold people accountable….there is something wrong at the heart of the IRS….”  “It makes it very difficult to have effective oversight if we can’t trust the figures”  “We don’t want to judge (only the) productivity of a unit but…what else are you going to do?” The Challenge… …The Answer Strategic improvement driven by senior executives through a Lean Six Sigma program Results-focused leadership reinforces the right behaviors Embedded Quality links employees directly to outcomes, ensuring accountability Global common measures standardize how we measure processes Business metrics aligned to timeliness, accuracy, and professionalism

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