With implementation of the major changes well under way we are about half way through the Program. How are we tracking against the original intent?
Most client product and service commitments have been delivered on schedule with some, however, being several months late. Surveys and product uptake indicate we have been particularly successful with tax agents. Individual taxpayers’ uptake of enhanced products like e-tax has been very strong. Our biggest challenge remains with business and especially small business where satisfaction levels and uptake are increasing slowly, and from a low base.
As for internal systems and business process releases, we are still on track for the original plan to be completed by 2008. We have had some delays of around six months overall on the first and second of the three main releases, but the first was completed last year and the second is well progressed for completion during 2006. The fixed price means that there has been no material cost increase as a result of these delays. The evidence to date is that we can still achieve all of the expected outcomes by 2008, although we have often had to revisit the exact way we do this. Basing the contract on what we want to achieve rather than the detail of how we achieve it, is already paying dividends.
We have some additional learnings from the implementation phase so far:
Technology. Introducing a new platform entails risk. So far, in the Change Program, where we are introducing several new platforms and systems, most have now settled in, but only after a range of problems – unexpected issues, integration issues – which have been the prime cause of the temporary delays noted above;
Rapid decision making versus wide engagement. One of the continuing struggles is to find the right balance between the need for well informed but quick decision making, and wide consultation with the rest of the business. Engagement has been intensive but we have also had to recognise when we need to go forward on an 80-90 per cent confidence level rather than 100 per cent;
The call on other Tax Office business areas. We attempted to factor the costs of this fully into the Business Case but clearly underestimated the level of resource demand on the rest of the Office, to play their critical part in both design and deployment;
Value of the stage gate reviews. These have been invaluable in forcing us to step back and assess how we are going and making any necessary adjustments; and
Staying focused. There is a lot of pressure from both inside and outside the organisation to add scope. In a program of this size one of the main tasks is to stay focused. One of the key roles for the leadership team has been to keep the program in line with the original outcomes, and recognise that we cannot deliver everything in the first wave.