© Nihilent 2009 Creating a Learning Government – A case study from South Africa Bommireddipalli Ravi Teja 5 June 2009

© Nihilent 2009 Agenda  Learning Government?  South African Revenue Services (SARS) 1. Mission & Vision 2. Strategy execution 3. Objectives, metrics, initiatives 4. Citizen loyalty 5. Strategic and core processes 6. Learning agenda 7. Align IT to business 8. Knowledge & Innovation management 9. Results & benefits

© Nihilent 2009 A Learning Government A learning government is sensitive to the environment It learns, innovates, adapts and manages the changing needs Of its stakeholders (citizens, vendors, employees, businesses & partners) For the sole purpose of its survival and growth

© Nihilent 2009 South African Revenue Services (SARS) - A case for transformation  Inland Revenue and Customs & Excise collections  Pravin Gordhan – the leader  Increase tax collection and exceed targets  Enable voluntary and pro-active filing of tax returns  Ensure collections and not just assessments  Provide excellent tax payer service

5 1. Revisit mission and vision Mission To optimise revenue yield, facilitate trade and enlist new tax contributors by promoting awareness of the obligation to voluntarily comply with South African tax and customs laws, and providing a quality and responsive service to the public. Vision To be an innovative revenue and customs agency that enhances economic growth and social development, and supports our integration into the global economy in a way that benefits all South Africans.

© Nihilent Execute the mission Mission If we succeed, how will we look to our financial donors? To achieve our vision, how must we look to our customers? To satisfy our customer, financial donors, and mission, what business processes must we excel at? To achieve our vision, how must our people learn, innovate, and work together? Mission Cost of providing services including social cost Internal processes Learning and Innovation Value/benefit of service including positive externalities Support of legitimizing authorities; legislature, voters/taxpayers  Internal Processes Operational efficiency Citizen management Innovation management Regulatory and Social  Learning and Innovation Competencies, Knowledge and Skills Information Technology (eGovernance) Infrastructure Knowledge Mgmt.

© Nihilent Finalise objectives, metrics, initiatives SARS strategic objectives Increase Revenue Yield Responsible Enforcement Service Excellence Good Governance Build Capability Performance Culture SARS strategic objectives Increase Revenue Yield Responsible Enforcement Service Excellence Good Governance Build Capability Performance Culture Divisional objectives - GM AGM / NGM objectives Regional / Zonal / Branch objectives Divisional Project / Initiatives AGM/ NGM Project / Initiatives Branch Project / Initiatives Commissioner Dashboard GM Dashboards Operations Dashboards

© Nihilent Get perception of citizens Predictive Loyalty Index Predictive Loyalty Index Check perception of citizens Check perception of citizens Check experience of citizens Check experience of citizens Percei ved Value Percei ved Cost Experie nced Value Experie nced Cost Stimulation Index > 1 Experiential Index > 1 Predictive Loyalty Index = Experiential Index (EI) Stimulation Index (SI) Predictive Loyalty Index = Experiential Index (EI) Stimulation Index (SI)

© Nihilent Identify strategic processes Manage Network Capital Manage Intellectual Capital Manage Financial Capital Manage Technology Capital Manage Human Capital Manage Internal Services GOVERNMENTGOVERNMENT TAXPAYERTAXPAYER Promote Wealth Creation

© Nihilent a. Design core process Promote Wealth Creation’ is aimed at effective and efficient revenue administration and service, trade facilitation and development of the economy, actively supporting government priorities such as regional integration and social and economic development.

© Nihilent 2009 SARS Net (Web Enabled Services) Drive Throughs Tax collection Agencies $ Corporates / Business Banks $ Retail Outlets / Business Parks Postnets / PostOffices $ SARS Franchise Agent Unions Customer Service Centre $ $ Assisted Service Cash Handling Information/ Service Kiosk Drop off point Document Handling Legend Processing Centre Enforcement Centre Contact Centre 5b. Multiple touch points

© Nihilent Learning agenda Job Title Job Description Competency Requirements Competency Gaps Job Scorecard Employee Job Kit Performance Review Overall Performance Review Learning agenda Skills Audit Remuneration, Incentives, Promotions Recruitment & Selection Standard Titles Standard Requirements Criteria for Selection Competency Standards Criteria for Objective Assessments Scientific basis for needs identification Prioritization based on multiple criteria Objective basis for performance appraisal Comprehensive assessment Mapping of overall score to reward system

13 7. Align IT to business Transition Plan Process Map Application Map Technology Architecture Product Evaluation Processing Customer Knowledge Base Solution repository Audit and Compliance Tax Payer's information Enforcement and Collections Information about Noncompliance Serviced Customer Serviced customersServiced customers Government Regulations QCDS standards Risk profiling Government Regulations QCDS standards Government Regulations QCDS standards Risk profiling Functionality Matrix Business Use Case Roles and responsibilities Cognitive Framework Business Context

14 7a. Increase information capital e-Government e-Citizens e-Commerce The Knowledge Economy GOVERNMENT BUSINESSES CIVIL SOCIETY

© Nihilent 2009 Enterprise Reporting eFiling Citizen Self Service News Dissemination Employee Self Service Collaboration Partner Services Procurement Relationship Office & Dashboard Tools Contact Center Web Content Document Managemen t Data Warehouse ERP and Legacy 7b. Set up IT – Enterprise Applications Portal Loyalty Profiled, Personalized and Preferentiated

© Nihilent Knowledge & Innovation Management  Learning happens in COMMUNITIES.  What is easier? Learning or Sharing 3. Innovation process Review, prototype and institutionalize ideas and best practices 3. Innovation process Review, prototype and institutionalize ideas and best practices 1. Communities of Practice Best Practice sharing and ideation 1. Communities of Practice Best Practice sharing and ideation 2. Tacit Knowledge Transfer Techniques to externalize the Gut Feel or the Unsaid 2. Tacit Knowledge Transfer Techniques to externalize the Gut Feel or the Unsaid

© Nihilent Results – Performance Dashboard

© Nihilent a. Benefits  Track benefits of transformation through metrics  Set up Metrics office  Better operational performance Customer service improved by about 28% Reduction in unprocessed tax returns (from 400,000 to 288,000) Rate of customer complaints resolution increased

© Nihilent ‘It is not the strongest of the species that survives, nor the most intelligent; it is the one that is most adaptable to change.’ Charles Darwin

© Nihilent 2009 Questions?