Strategies Aimed at Improving the Quality of Service CIAT General Assembly Douglas O’Donnell Santiago, Chile April 2012

2 Scope and Content Historical Perspective The Tipping Point A Customer-Focused IRS: Yesterday and Today

Historical Perspective

4 IRS and Government-wide Quality Initiatives Total Quality Management Commitment to Quality IRS Plan for Improving Customer Satisfaction and Organizational Performance Reinventing Government

Total Quality Management (TQM) Customer satisfaction Continuous and long- term improvement Full involvement of the entire workforce in improving quality Meeting customers’ needs Measurement Systems and how they work TQM Principles QIP Teams’ Lessons

Commitment to Quality Implement quality planning Develop long and short range plans and goals for quality Make customer service accomplishments key in picking managers Implement quality control systems Set goals for quality improvement with the National Joint Quality Council

Plan for Improving Customer Satisfaction and Organizational Performance Early ‘90’s – IRS Strategic Plan Objectives –Increasing voluntary compliance –Reducing taxpayer burden –Improving customer satisfaction and quality- driven productivity The Customer Satisfaction/Organizational Performance Plan focused on the third objective

Reinventing Government Create a government that: Gets the results Americans care about! Works better…. Costs less….

The Tipping Point

Reviews, Recommendations and Enactment of a Law Congressional Scrutiny The White House IRS Reform Plan Revenue Restructuring and Reform Act of 1998

11 Congressional Scrutiny National Commission on Restructuring the Internal Revenue Service Senate Finance Committee Hearings

12 The White House IRS Reform Plan Reinvention Rights Recourse Strengthen IRS Oversight

IRS Revenue Restructuring and Reform Act of 1998 (RRA 98) Taxpayer Bill of Rights III Changes to mission and structure Customer-focused operating units IRS Oversight Board National Taxpayer Advocate

A Customer-Focused IRS: Yesterday and Today

15 Summary of Recommendations to Improve IRS’ Quality of Service Customer-facing initiatives Face-to-face and telephone Problem solving system for taxpayers Organizational Structure and Mission Customer Satisfaction Needs Identification Measures of Customer Satisfaction

Customer-Facing Initiatives Customer-Facing Initiatives

Face-to-Face and Telephone Service Saturday walk-in operations including non-traditional locations 24/7 telephone service Leveraging technology –IRS2Go smart phone app –Virtual Service video conferencing Partnering with external stakeholders

A Problem Solving System that Works The National Taxpayer Advocate –Assist in resolving taxpayer problems –Identify problem areas –Propose changes to administrative practices –Identify potential legislative changes IRS Problem Solving Days

Organizational Structure

Mission Statement Emphasizing Service Old Mission Statement The Mission of the Internal Revenue Service is to collect the proper amount of tax at the least cost to the public. We accomplish this mission by providing information to taxpayers, educating and assisting taxpayers, maintaining taxpayer accounts and ensuring compliance. New Mission Statement The IRS Mission: Provide America’s taxpayers top quality service by helping them understand and meet their tax responsibilities and enforce the law with integrity and fairness to all.

Organized Around Specific Taxpayer Groups Wage and Investment Small Business/Self Employed Tax Exempt and Government Entities Large and Mid-Sized Business (now Large Business and International)

Customer Satisfaction

“How Important Is It?” Surveys More than 50% Toll-free telephone IRS office locations Web site Electronic filing Less than 50% Community-based tax clinics Tax assistance vans Computer kiosks in libraries or shopping malls “How important is it to you, as a taxpayer, that the IRS provides each of the following services to assist taxpayers?”

You Get What You Measure Government Performance and Results Act (GPRA) + Mission statement focused on collecting taxes = Production driven measures focused on enforcement “…getting rid of the wrong measures is only part of the solution; the other part is to put the right measures in place.” Vice-President Al Gore and Treasury Secretary Robert Rubin Reinventing Service at the IRS 1998

Balanced Measures Business Results Customer Satisfaction Employee Satisfaction

IRS’ High Level Measures: Business Results Voluntary compliance rate Enforcement contacts Non-revenue enforcement activity Non-filers Customer Satisfaction American Customer Satisfaction Index e-File rate Taxpayer satisfaction with IRS services Taxpayer perception of fairness of IRS enforcement Employee Satisfaction Employee engagement Effectiveness of recruitment – average time to fill a job New hire retention rate Modernization – timely data

Conclusion

What the IRS Learned Be proactive and rigorous Organize around your goals and customer needs Involve customers in identifying needs Measure their satisfaction Used balanced measures of performance Align performance management with organizational goals and balanced measures

29 “At the IRS, we’re working hard to make the process of filing your taxes as quick and easy as possible. Providing quality service is one of our top priorities. It not only reduces the burden on taxpayers, but also helps in filing an accurate return right from the start.” Douglas H. Shulman, IRS Commissioner January 4, 2012