Being an effective change manager – tips, tools & tactics Diploma in the Management of Modern Public Service Delivery IPA 22 January 2009 Owen Jacob Dept of the Taoiseach
My background Owen Jacob TCD & IPA Revenue Commissioners ICT, strategy, planning, HR International consultancy Customer service policy M odernisation  & change management projects Dept of the Taoiseach Organisational Review Programme
Case study 1 Restructuring  the Revenue
Revenue’s structure Inherited British Inland Revenue, Customs &Excise structure Evolved piecemeal over 75 years No over-riding design model  Ad-hoc structure Mixture of tax type & function Increasingly difficult to manage
The world ‘outside’ is changing fast… An organisation that doesn’t change at the same speed as its environment dies
What the boss wants… “ When I have a problem I want to see the whites of one pair of eyes, not twenty pairs of heels”
Structure v. Strategy mismatch Structure Focus on the tax Focus on the function   Strategy   Deliver excellent customer service Tackle the non-compliant = Focus on the customer
Cracks in the structure… Did not support overall view of customer.  Did not foster sharing of  Information – Knowledge – Experience Resources divided by tax/function – not matched to risk Unclear lines of responsibility and accountability. Not in line with international best practice.
Review team Small, highly motivated, independent, well resourced team Empowered by the Board Thought outside the box Traveled the world looking for best practice Made radical recommendations
Discussing the undiscussable Undermining complacency Retaining trust Using credible examples Ownership within the organisation –  by Revenue, for Revenue Progress in small steps
The organisational iceberg - 1 Overt organisation Structure, technology, objectives, operating systems etc Publicly visible, rational
The organisational iceberg - 2 Overt organisation Structure, technology, objectives, operating systems etc Covert organisation Power, influence, ambitions, loyalties, empires, fears, inflexibility etc Hidden, emotional, may not be rational Publicly visible, rational
The classic crisis Public Accounts Committee inquiry into DIRT tax Tribunals of Inquiry into  Big business Wealthy businessmen Top politicians Property sector … laid bare serious tax non-compliance
Organisational restructuring… It’s like changing the wiring while keeping the lights on
Path to success Crisis Quality of analysis & blueprint Leadership Four  Ps Patience Politics Pragmatism Process Examples of best practice & successful restructuring from other Revenues
Benefits of new structure? Structure = strategy Integrated approach to customer Clear accountability & responsibility – no hiding place Coherent, sensible structure Competition between regions Freedom to deploy staff where needed Information sharing
Case study 2 Modernising a tax process
Gift & Inheritance T ax  (CAT) CAT administered separately from other taxes Old fashioned approach Factors driving change Case processing too slow New top management Decentralisation of CAT Online filing via ROS
How? Full time project team ‘ Outsider ’  to manage project Supported by  ‘ insider ’  expert s Analysis Work flow processes Forms  Information technology Legislation Consultation  Scoping Document = recommendations
Internal consultation Informal with key experienced staff  especially at front line Steering Group Seminar s Presentations by top management Workshops Feedback Follow-up Shared understanding & commitment
External consultation Law Society  (solicitors) Institute of Taxation  (tax accountants) Roadshow Be honest Sell benefits… get out there!
How did we do? Successfully delivered 6 week form turnaround time down to 1-5 days Team working, BPR,  real self-assessment,  new IT, new forms & guidelines,  online filing  all a success Staff  pleased with  change Middle management now convinced Customers delighted
Case study 3 ICT enabling transformational customer service
PAYE problems –  before…   after Too much paper…  paper eliminated Correspondence channel too time consuming…  iC makes it very fast Correspondence backlogs…  iC helped managers & case workers reduce backlog to acceptable levels Inefficient phone systems…  major revamp of telephony Poor customer service…  won national & EU customer service awards Staff frustrated…  staff delighted
Find best practice Visited & studied other “best of breed” organisations Public & private sector Got industry analyst advice Consulted best ICT brains in civil service Asked ourselves what would ‘perfect’ customer service be? …& worked back from that to what was possible
ICT… the key enabler Harness ICT talent Be creative Look at service from customer’s point of view Small business/ICT project team Ambitious, pragmatic, can-do attitude Quick decision making & support from the top Excellent personal relations Utilised state-of-the-market ICT technology
The ICT used VoIP telephone system Call treatment, voice recognition (incl. PPSN validation), automatic call routing, self service, screen pop enabler Web self service Most popular self service channel (best for complex transactions) SMS text Hasn’t caught on for self service… yet Integrated Contacts system (iC) No paper, instant on-screen retrieval of post, automatic statistics, faster processing, all contacts (incl. email & phone) included, screen pop
Lessons? Learn from best practice elsewhere See everything through customer’s eyes Aim for an idealised service Make use of serious ICT talent Be very tough with ICT contractors Test ICT applications exhaustively Have fallback in place in case ICT fails Sell benefits to ICT users Train & support ICT users carefully
Conclusions…
How people react - 1 20% 60% 20%
How people react - 2 20% 60% 20% Always resist change Need to be convinced & wait to see which way wind is blowing Actively embrace change
How people react - 3 20% 60% 20% Always resist change Need to be convinced & wait to see which way wind is blowing Actively embrace change Harness them & temper their expectations &  must  include leadership
How people react - 4 20% 60% 20% Always resist change Need to be convinced & wait to see which way wind is blowing Actively embrace change Main focus of communication &  must  be won over Harness them & temper their expectations &  must  include leadership
How people react - 5 20% 60% 20% Always resist change Need to be convinced & wait to see which way wind is blowing Actively embrace change Ignore Main focus of communication &  must  be won over Harness them & temper their expectations &  must  include leadership
Kotter’s  8 steps to change   (HBR March/April 1995) Establish a sense of urgency Form a guiding coalition Create a vision Communicate the vision Empower others to act on the vision Plan for & create short term wins Consolidate improvements Institutionalise new approaches
My top 10 tips Top notch project team High quality analysis Clear vision Inspired leadership (plus a crisis) Be political Communicate Empower change champions Reward supporters Be pragmatic & get stuck in Get quick wins
Finally Change is not easy  – most people & organisations resist change So… Get the analysis & vision right Communicate continuously But, do not crucify yourself on the cross of perfection Learn by doing – start small & build it up Be brave, lead from the front
Thank you

Being A Change Manager Owen Jacob

  • 1.
    Being an effectivechange manager – tips, tools & tactics Diploma in the Management of Modern Public Service Delivery IPA 22 January 2009 Owen Jacob Dept of the Taoiseach
  • 2.
    My background OwenJacob TCD & IPA Revenue Commissioners ICT, strategy, planning, HR International consultancy Customer service policy M odernisation & change management projects Dept of the Taoiseach Organisational Review Programme
  • 3.
    Case study 1Restructuring the Revenue
  • 4.
    Revenue’s structure InheritedBritish Inland Revenue, Customs &Excise structure Evolved piecemeal over 75 years No over-riding design model Ad-hoc structure Mixture of tax type & function Increasingly difficult to manage
  • 5.
    The world ‘outside’is changing fast… An organisation that doesn’t change at the same speed as its environment dies
  • 6.
    What the bosswants… “ When I have a problem I want to see the whites of one pair of eyes, not twenty pairs of heels”
  • 7.
    Structure v. Strategymismatch Structure Focus on the tax Focus on the function Strategy Deliver excellent customer service Tackle the non-compliant = Focus on the customer
  • 8.
    Cracks in thestructure… Did not support overall view of customer. Did not foster sharing of Information – Knowledge – Experience Resources divided by tax/function – not matched to risk Unclear lines of responsibility and accountability. Not in line with international best practice.
  • 9.
    Review team Small,highly motivated, independent, well resourced team Empowered by the Board Thought outside the box Traveled the world looking for best practice Made radical recommendations
  • 10.
    Discussing the undiscussableUndermining complacency Retaining trust Using credible examples Ownership within the organisation – by Revenue, for Revenue Progress in small steps
  • 11.
    The organisational iceberg- 1 Overt organisation Structure, technology, objectives, operating systems etc Publicly visible, rational
  • 12.
    The organisational iceberg- 2 Overt organisation Structure, technology, objectives, operating systems etc Covert organisation Power, influence, ambitions, loyalties, empires, fears, inflexibility etc Hidden, emotional, may not be rational Publicly visible, rational
  • 13.
    The classic crisisPublic Accounts Committee inquiry into DIRT tax Tribunals of Inquiry into Big business Wealthy businessmen Top politicians Property sector … laid bare serious tax non-compliance
  • 14.
    Organisational restructuring… It’slike changing the wiring while keeping the lights on
  • 15.
    Path to successCrisis Quality of analysis & blueprint Leadership Four Ps Patience Politics Pragmatism Process Examples of best practice & successful restructuring from other Revenues
  • 16.
    Benefits of newstructure? Structure = strategy Integrated approach to customer Clear accountability & responsibility – no hiding place Coherent, sensible structure Competition between regions Freedom to deploy staff where needed Information sharing
  • 17.
    Case study 2Modernising a tax process
  • 18.
    Gift & InheritanceT ax (CAT) CAT administered separately from other taxes Old fashioned approach Factors driving change Case processing too slow New top management Decentralisation of CAT Online filing via ROS
  • 19.
    How? Full timeproject team ‘ Outsider ’ to manage project Supported by ‘ insider ’ expert s Analysis Work flow processes Forms Information technology Legislation Consultation Scoping Document = recommendations
  • 20.
    Internal consultation Informalwith key experienced staff especially at front line Steering Group Seminar s Presentations by top management Workshops Feedback Follow-up Shared understanding & commitment
  • 21.
    External consultation LawSociety (solicitors) Institute of Taxation (tax accountants) Roadshow Be honest Sell benefits… get out there!
  • 22.
    How did wedo? Successfully delivered 6 week form turnaround time down to 1-5 days Team working, BPR, real self-assessment, new IT, new forms & guidelines, online filing all a success Staff pleased with change Middle management now convinced Customers delighted
  • 23.
    Case study 3ICT enabling transformational customer service
  • 24.
    PAYE problems – before… after Too much paper… paper eliminated Correspondence channel too time consuming… iC makes it very fast Correspondence backlogs… iC helped managers & case workers reduce backlog to acceptable levels Inefficient phone systems… major revamp of telephony Poor customer service… won national & EU customer service awards Staff frustrated… staff delighted
  • 25.
    Find best practiceVisited & studied other “best of breed” organisations Public & private sector Got industry analyst advice Consulted best ICT brains in civil service Asked ourselves what would ‘perfect’ customer service be? …& worked back from that to what was possible
  • 26.
    ICT… the keyenabler Harness ICT talent Be creative Look at service from customer’s point of view Small business/ICT project team Ambitious, pragmatic, can-do attitude Quick decision making & support from the top Excellent personal relations Utilised state-of-the-market ICT technology
  • 27.
    The ICT usedVoIP telephone system Call treatment, voice recognition (incl. PPSN validation), automatic call routing, self service, screen pop enabler Web self service Most popular self service channel (best for complex transactions) SMS text Hasn’t caught on for self service… yet Integrated Contacts system (iC) No paper, instant on-screen retrieval of post, automatic statistics, faster processing, all contacts (incl. email & phone) included, screen pop
  • 28.
    Lessons? Learn frombest practice elsewhere See everything through customer’s eyes Aim for an idealised service Make use of serious ICT talent Be very tough with ICT contractors Test ICT applications exhaustively Have fallback in place in case ICT fails Sell benefits to ICT users Train & support ICT users carefully
  • 29.
  • 30.
    How people react- 1 20% 60% 20%
  • 31.
    How people react- 2 20% 60% 20% Always resist change Need to be convinced & wait to see which way wind is blowing Actively embrace change
  • 32.
    How people react- 3 20% 60% 20% Always resist change Need to be convinced & wait to see which way wind is blowing Actively embrace change Harness them & temper their expectations & must include leadership
  • 33.
    How people react- 4 20% 60% 20% Always resist change Need to be convinced & wait to see which way wind is blowing Actively embrace change Main focus of communication & must be won over Harness them & temper their expectations & must include leadership
  • 34.
    How people react- 5 20% 60% 20% Always resist change Need to be convinced & wait to see which way wind is blowing Actively embrace change Ignore Main focus of communication & must be won over Harness them & temper their expectations & must include leadership
  • 35.
    Kotter’s 8steps to change (HBR March/April 1995) Establish a sense of urgency Form a guiding coalition Create a vision Communicate the vision Empower others to act on the vision Plan for & create short term wins Consolidate improvements Institutionalise new approaches
  • 36.
    My top 10tips Top notch project team High quality analysis Clear vision Inspired leadership (plus a crisis) Be political Communicate Empower change champions Reward supporters Be pragmatic & get stuck in Get quick wins
  • 37.
    Finally Change isnot easy – most people & organisations resist change So… Get the analysis & vision right Communicate continuously But, do not crucify yourself on the cross of perfection Learn by doing – start small & build it up Be brave, lead from the front
  • 38.