For H&R Block, Inc.OrganizationalAssessmentFinal Project Assignment, Harrison CollegeDebra Moulder12/14/2011
Organizational 2 Organizational Assessment More than fifty years ago, a decision was made to put forth a new plan to help workingindividuals and small businesses find solutions to their bookkeeping needs. You would not findthe same numbers of resources back then as you can today. There are hundreds of different typesof bookkeeping services including tax preparation online, in stores, and those that are offered bynumerous CPA firms and individuals. There is also a selection of competitive software systemsthat can be purchased and saved to a desktop computer. There is one bookkeeping service thathas come along way and is still growing fifty-five years later.History At the age of 24, one man by the name of, ―Henry Wollman Bloch‖, borrowed moneyfrom his aunt to start a new business with only a five thousand dollar loan and named it ―TheUnited Business Company‖. The business was only meant to practice bookkeeping andaccounting services to small businesses. Later, finding out that the office of the Internal RevenueService of Kansas City, Missouri advertised in the local Kansas City Star newspaper they wereno longer offering free tax preparation services. From that day forward, a new firm was startedand The United Business Company became, ―H & R Block, Inc.‖ (HR Block Digital LLC , 2010).Vision A simple goal was to make a difference by creating something that would last. The Blochbrothers just wanted to be the world’s leading provider of financial services through tax andaccounting based advisory relationships. A dream became a reality on Main street in Kansas Cityand H&R Block prides itself in developing and producing innovative and highly sophisticatedsystems, commercial products and services to meet the deversified needs of clients all over theworld.
Organizational 3Mission Our Mission is to help our clients achieve their financial objective by serving as their taxand financial partners. We strive to make sure our clients get the respect and consideration theydeserve the minute they walk into our office. We all share a responsibility to provide the highestquality products and services for the benefit of our clients we serve around the worldinternationally and domestically.Values These are simple values that build a company, establish an industry, and create a brandthat is known to people around the world. There is nothing more important to H&R Block’sfuture than incorporating our values in everything we do. Our values guide each of us in the waywe serve our clients and treat each other with these in mind: Client Focused, Excellence,Integrity, Respect, and Teamwork. H&R Block’s values are our set of basic beliefs that definewhat is important, what is wrong, and what is unimportant. Our values are a guide of principlesto help let us know how to behave, identify things we need to pay more attention to, and helpmake appropriate business decisions professionally.Commitment Plan First Impression-Smile on the phone and while greeting clients. Last Impression-Power of 3, Own every client’s problems and resolve, solidify every client’s relationship by asking them to make an appointment for the following year. Personalizaion-Pronounce the clients name when each opportunity arrises, serve clients how they want to be served to accommodate their preferences. Price/Value-Client understanding of price, Demonstation of value of the price client pays. Brand Value-Maintain office standards for office cleanliness and organization.
Organizational 4Organizational Structure We choose to start by helping hundreds of millions of Americans improve their financiallives along the way with the type financial and accounting products and services that is needed.The idea is to surround ourselve’s with the right people, practice the right ethics , and focus onthe right actions to better serve our customers and clients. Also, to provide the type of service forpeople so they will know we are their financial advisors and will assist them as long as theychose to return as our clients each new tax season.Leadership As a leader, Henry Wollman Bloch, built a fortress that has expanded into a huge success that provides financial services to all walks of life. More than 24.5 million tax returns prepared in more than eleven-thousand retail offices and with digital tax solutions. With a legacy of leadership and commitment, he once said, ―I’ve always wanted to do something different, something more than just a job, something to contribute to society‖ (College, 2011). Henry is still committed to building stronger communities in addition tobuilding a successful business. He was born and raised in Kansas City and still resides there with his wife and children.He has worked very hard to build the foundation for the business and his family. Through heyears as a co-founder, he not only helped to build H&R Block, but he also hasFinancial Overview For the fiscal 2011 for December, the net income and revenues are holding at 3.8 billionUS dollars which is down from 2008 of 4.4 billion US dollars.
Organizational 5Perception of the Organization H&R Block maintains 100,000 trained tax professionals that recievd10 million totalhours of trainting in a year. The average client is consulted by a tax prfessional with more thaneight years of exereince and 450 hours of training. The IRS requires that paid tax preparers get15 hours of training annually, while H&R Block requires 24 hours of training annually in orderto be re-hired. By 1962, there was 206 offices world wide. H&R Block world headquarters projectsparked the development of the $850 million Power & Light District inwhich it is located which is One H&R Block way, Kansas City,Missouri at 13th and Main streets as a 17 –story structure that wascompleted in July of 2006 with green glass exterior and 10, 318 piecesof stone measuring 30‖ by 30‖. According to Sarah Goddard, there is anew kid on the Time Square block. She confims plans were made tobuild a new stucture in New York City located at 555 Seventh Avenuewith a square foot of 2,635 feet to enhance the client experience (Goddard, 2011).Products and Services Since the first day H&R Block was established; tax laws, regulations, policies, and thecode of ethics were created and put into place because of the discrepancies in tax returnpreparation wrongdoings. There are reasons why the IRS has tightened the ropes for certainservices relating to fast loans. Although, the laws will always change, H&R Block continues totry harder to keep up with the demand. Since 1955, new services have been added such as H&RBlock at home online and as a desktop software.
Organizational 6Other products includes: W-2 Early Access—New Free online service to electronically send a copy of W-2’s to a tax office. Clients can receive their W-2’s up to 3 weeks earlier than when they would receive them in the mail. Access to approximately 80 million W-2’s through a new service. H&R Block Emerald Savings® --Prepaid card with year-round use. Includes elgibility for employer payroll direct deposit, availability for reloading funds, and ability to transfer to/from savings. H&R Block Emerald Advance® Line of Credit—Year-round line of credit that allows clients the ability to repeatedly borrow and repay money up to a maximum credit limit. Clients can apply for a line of credit up to $1,000 US dollars during the promotional period. Second Look® Review—Accurate returns are covered with the H&R Block Guarantee. Look for promotional coupons for a free Second Look review. H&R Block Guarantee—Included in every tax return, Reimbursement for penalties and interest charges due to H&R Block’s error; provides audit assistance(not as a legal representive). Peace of Mind® Extended Service Plan—Available for free, Will represent client at an audit(with Power of Attorney) Tax Audit Support—Audit Assistance. Form 1040EZ—Will be free for tax filers that have one form W-2 and no dependants. The promotion only covers those filing the 1040EZ federal form, which is about 16% of H&R Block customers (STEVERMAN, 2011). The company today, H&R Block, is dedicated to being the most trusted, state-of the arttax preparation firm at the best value. In addition to its more than 13,000 retail tax offices, theytried to acquire the online tax software, TaxCut, but that fell through. Also, The consultingservices that was provided by RSM McGladrey was sold for a good chunk of change recently.There have been a few changes within the last couple of years regarding the business processesand services. In 2010, the Instant Rapid Anticipation Loans were revoked and are no longeravailable. Now, a new addition of H&R Block Bank will handle the processing of loans, savingsassociate savings acounts, and some other products. Master Card is still a provider of the FDICEmeral debit cards for the processing of tax return refunds and Emerald Advance Loans. Even
Organizational 7though, there was a slight loss of revenue in the last two years, there was an increase in newclients and prior returning clients. H&R Block is still rising above the rest and is considered the #1 tax preparation servicesin the world. It’s rivals have jumped back for technicalities that put a damper on the finances andstability. The technology in todays society increases the changes that take place in the electronicworld. More and more people are logging on to social networks, downloading applications formobile phone devices, and creating profile after profile just to keep up with the traffic on theinternet. Nothing beats a moment of texting though in a time of communication chaos. That isanother world all on its own. And as crazy as it seems, H&R Block is joining the e-mail andtexting craze. That is a new thing this year with the downloading applications, now you candownload a tax form and file it straight from your iPod, iPhone, or Droid. It was already part ofthe eroding technology waiting to happen type thing any how. Now, it is really official and hasbeen posted In The News.
Organizational 8 REFERENCESHR Block Digital LLC . (2010). The American Dream that Began on One Main Street Now Lives on Main Streets Everywhere. Retrieved December 11, 2011, from HR Block: http://www.hrblock.com/press/PrintPreview.jsp?ArticleID=47828College, W. J. (2011, April 19). Henry W. Bloch. Retrieved December 14, 2011, from Department of Business Leadership: http://jewell.edu/gen/william_and_jewell_generated_pages/Business_Depart ment_Henry_W._Bloch_p6733.htmlGoddard, S. (2011). H&R Block goes Times Square chic. Display & Design Ideas , Vol 23 (April/May), Pg. 22-22.Parekh, R. (2010). UNLIKE IRS, H&R BLOCKS TAX STATEMENT IN PLAIN ENGLISH. (J. Rooney, Ed.) Advertising Age , 18 (3), 14-14.STEVERMAN, B. (2011, January 14). WHATS BEHIND H&R BLOCKS FREE TAX SERVICE. Retrieved December 14, 2011, from BLOOMBERG BUSINESS WEEK: http://www.businessweek.com/print/investor/content/jan2011/pi20110114_ 944345.htm