1 MANAGEMENT OF CHANGE LEADERSHIP TOWARDS CHANGE, RENDERING STRUCTURES, FUNCTIONS AND PROCEDURES COMPATIBLE A Case Study of the Kenya Revenue Authority (KRA) Lorraine M. Malinda

OVERVIEW OF THE PRESENTATION Introduction Leadership of change Strategies to minimize trauma Rendering structures, functions and procedures compatible Key factors that determine the scope of such compatibility 2

INTRODUCTION Implementation of change involves influencing people to use technology effectively and or consistently following new methods in the context of doing their jobs. Leadership towards change requires effective communication,full and active executive support, employee involvement, organisational planning and analysis and widespread perceived need for change. 3

WHO LEADS THE CHANGE PROCESS AND HOW SHOULD IT BE DONE? Change must be led from the top. The Commissioner General and the Board lead the change process with confidence and commitment. Inspired, influenced and created “buy in” at all levels of the organization. Mobilized people and resources to realize the change. Integrated necessary behaviours that drove sustainability of change. Planned, communicated effectively and involved employees in the implementation. 4

Who leads change process?..cont Established a clear vision for change and a structure that supported change. Established a reward and recognition system Constantly communicated the need for change and the vision for change. 5

STRATEGIES KRA USED TO MINIMIZE TRAUMA DURING CHANGE Management communicated on what will change, how it will change, why it needs to change and what the future state will be Progress being made and the milestones achieved through the use of intranet, weekly and quarterly bulletins Involved employees in planning and executing change. Staff participated in various projects. Implemented reward and recognition systems that reinforced desired behaviour. A criteria for selection was developed that emphasised the core values 6

Minimizing trauma for change…cont Implemented training programmes that addressed the skills gaps arising from the new systems and procedures. Staff were trained on basic computer skills and on various new systems like simba 2005( new system for customs),vehicle management system( new system for vehicle registration) and other programmes at the training institute Counseling staff by use of internal and external counselors. 7

RENDERING STRUCTURES, PROCEDURES AND FUNCTIONS COMPATIBLE Strategies for compatibility include:- Linking business plans to corporate plans. Aligning business goals and the overall corporate goals to common mission, vision and strategic objectives. KRA did this through the adoption of the Balanced Scorecard concept and performance contracting. Engaging staff and external stakeholders Establishing supportive structures e.g., Programme Management & Business Analysis Office (PMBO) was set up, Steering Committees and Project Offices were established. 8

Rendering Structures, Procedures and Functions Compatible ……..Cont.. Functions were effectively combined into a single one by:- Reviewing mandates of current functions Conducting process mapping to identify overlaps. Grouping together or consolidating related processes and functions Examples: Motor vehicle clearing (Customs Function) and registration (RTD Function) were integrated under Customs. Joint Audits, compliance and taxpayer registration in VAT and Income Tax through merger of VAT, IT and Domestic Excise into DTD. 9

Rendering Structures, Procedures and Functions Compatible ……..Cont.. Example…cont Common strategies in dealing with tax evasion – formation of Investigations and Enforcement Department (Intelligence Gathering & Investigations). Uniform application of policies through centralization of support departments, e.g. Human Resources, Finance, ICT, etc. Sharing of support services to enhance integration through regional structures. Common marketing, communication and taxpayer services through creation of Marketing and Communication Department. 10

KEY FACTORS DETERMINING THE SCOPE OF SUCH COMPATABILITY Develop a communication strategy. Employee involvement and teamwork. Stakeholder involvement. Provision of adequate resources for capital intensive change. Experienced, confident, humane, decisive and committed leadership. Knowledgeable employees in possession of new and current skills. 11

Key factors determining the scope of such compatibility…cont Flexible Information Technology capable of integrating with other systems. Appropriate organizational culture change. Alignment of organizational structures and jobs to fit into the changed environment. Goodwill and sponsorship from government and other agencies. 12

CONCLUSION It takes prudent leadership which is ready and willing to take risks, seek views of all stakeholders and utilize modern technology to effectively manage the change process in a modern revenue authorities. 13

THE END THANK YOU 14