Transformation Program of the Bureau of Internal Revenue

January 18, 1996 REVENUE MEMORANDUM ORDER NO. 03-96 SUBJECT : Transformation Program of the Bureau of Internal Revenue TO : All Internal Revenue Officials and Others Concerned I. Objectives : This Order is therefore issued to: A. Define the roles, responsibilities and relationships of the various groups involved in the transformation program of the Bureau; B. Define the requirements for coordination and the procedural guidelines to ensure smooth implementation of transformation activities. II. Background The Bureau of Internal Revenue (BIR) is currently undergoing an organizational transformation effort to realign the entire BIR organization towards the fulfillment of its vision and mission and achievement of its strategic goals; It also seeks to have a comprehensive, integrated, and systematic strategic implementation of its change process that will ensure unanimity in direction, coordination, and effectiveness of all the various change efforts currently being conducted and all those that will be implemented in the future. It desires to have timely monitoring, evaluation, and feedback of all on-going and future interventions, programs, and processes related to the BIR's transformation effort; "BIR ACTS MOST IN SPIRIT" is the slogan of the BIR Transformation Program. The slogan is derived from the acronyms of the different PROJECTs under the five-year Tax Computerization Project. To ensure its success, a transformation program has been created and named Action-Centered Transformation Strategy (ACTS). This strategy is directed towards the successful implementation of the various transformation PROJECTs. These PROJECTs include: A) Systems for Philippine Internal Revenue Information Technology-Andersen Consulting-Philippine Sun Systems (SPIRIT-AC-PS) and SPIRIT-BIR; B) Management and Organization Strategic Team (MOST); and C) Project Steering Committee (PSC) of the Operations Group and other Services. A committee known as the Transformation Committee (TRANSCOM) shall lead in the implementation of the BIR transformation program. The TRANSCOM is headed by the Commissioner with the three (3) Deputy Commissioners and a Transformation Coordinator (TC) as members. The following attachments are hereby incorporated and made an integral part of this order, to wit: 1. Listings of all projects under each PROJECT in the Transformation Program ATTACHMENT 1 2. Illustration on how the PROJECTs interface with one another ATTACHMENT 2 3. Diagram of the interrelationships of the entities under the Transformation Program ATTACHMENT 3 4. Concept of Operations ATTACHMENT 4. III. Roles and Responsibilities of each of the following : A. Transformation Committee (TRANSCOM) 1. Oversees the entire transformation program and ensures its success; 2. Harmonizes and synchronizes the PROJECTs and all the projects under each; 3. Settles coordination issues, concerns, and other requirements of all PROJECTs/projects. B. Overall Project Director (OPD) 1. Oversees the total implementation and completion of the PROJECT on time, within budget and in accordance with technical performance requirements; 2. Monitors PROJECT schedules, costs, resource expenditures, milestone accomplishments, and quality of products and ensures that the documentation to support PROJECT decisions is developed and maintained; 3. Assures completion of all milestone deliverables and forwards deliverables with recommendations to the TRANSCOM; 4. Provides users, affected management, and oversight officials with appropriate PROJECT status reports. C. Transformation Coordinator (TC) 1. Assists the Commissioner in the successful management of the transformation program; 2. Meets with the Implementation Coordinators to help resolve coordination issues, concerns and other matters; and 3. Works with the Transformation Management Office (TMO) to assist the BIR in its transformation program. 4. Is responsible for ensuring that all transformation activities are coordinated and carried out as envisioned through Implementation Coordinators (ICs) who represent the various transformation PROJECTs. D. Transformation Management Office (TMO) 1. Coordinates with the identified ICs on the progress of the program; 2. Provides overall progress reports of the transformation program to the TRANSCOM; 3. Elevates coordination issues that need to be addressed by the Transformation Committee (TRANSCOM). 4. Undertakes program management functions in behalf of or as directed by the Commissioner (TRANSCOM). E. Implementation Coordinator (ICs) Monitors and coordinates the progress of projects under his/her PROJECT in support of: 1. The Overall Project Director (SPIRIT-BIR, SPIRIT-AC-PS, MOST, or OPERATIONS/OTHER SERVICES) 2. The Project Steering Committee (PSCs) 3. The Transformation Management Office (TMO) F. Assistant Implementation Coordinator (AIC) Assists their respective Implementation Coordinators (ICs) in monitoring and coordinating the progress of each of the projects under his PROJECT in the Transformation Program. G. Integration Committee 1. Reviews functional integration Issues; 2. Liaises with other BIR committees/task forces; 3. Creates and supervises sub-committees that may be found necessary for the work of the PSC in the review of the functional aspect of application systems; 4. Liaises with various PSCs on the Functional Specification Reports, Management Report and SPIRIT and MOST PROJECT Signs-Offs; 5. Reviews and addresses functional integration issues emanating from the Implementation Planning activities for SPIRIT and MOST including the overall conversion and migration approach; 6. Settles functional integration issues and elevates those that cannot be resolved to the CC/TRANSCOM. H. Technical Acceptance Team (TAT) Reviews the technical aspects of SPIRIT-AC-PS projects, from Technical Design to Testing including the quality of their deliverables, and accepts them for the BIR. I. Coordinating Committee (CC) The TC, IC, Integration Committee Chairman and TMO shall constitute the Coordinating Committee. The CC shall assist the TRANSCOM in harmonizing and synchronizing the PROJECTs/projects. It shall also work with the TMO in elevating coordination issues, concerns and other requirements of their PROJECTs/projects. J. Integration Communication Coordinator (ICC) 1. Oversees the implementation of the Integrated Communication Plan (ICP) for ACTS. 2. Coordinates with SPIRIT and MOST on the planning and implementation of their respective communication plans for integration into the overall ICP. 3. Coordinates with other BIR offices for support of and synchronization with the ICP. K. Project Manager (PM) 1. Formulates and updates project schedules; project cost estimation and budget development including analysis and control of project costs and performance; 2. Controls functions for the business and project management, such as project cost/schedule analysis and control and performance measurement; 3. Oversees the quality of project deliverables for PMs of projects that have an impact on the functional aspects of application systems; 4. Informs the PSC of resource requirements; 5. Initiates work that need to be undertaken by each system under their project control; and 6. Schedules regular meetings with the PSCs for updates on work already done or still to be done. L. Project Steering Committee (PSC) 1. Acts as steering committee to all transformation activities for application systems which are affected by the SPIRIT-BIR, SPIRIT-AC-PS, MOST, and OPERATIONS/OTHER SERVICES projects; 2. Helps design, monitors changes in the processing and oversees the implementation of the application systems. 3. Provides inputs for the required physical and human resources to ensure the successful implementation of the application systems. 4. Meets with the Project Managers (SPIRIT/MOST/ OPERATIONS/OTHER SERVICES/TMO) to establish the initial and standard agenda and monitors and coordinates progress with them. 5. Provides overall direction to the projects in relation to his/her application system through validation of work already done and ensures that the descriptions of the application system are understood by all members of the PSC. 6. Ensures that the Project remains within scope and schedule and recommends scope and schedule changes requiring Change Notices and submits them to the PMO. 7. Ensures the required number of users and subject matter experts who are committed and qualified. 8. Initiates the PSC meetings and coordinate with ICs of SPIRIT and MOST. IV. Procedural Guidelines : A. Concept of Operations The PSC is the key to all transformation projects. They provide direction and control over the functional aspect of application systems for SPIRIT and MOST projects. B. Acquisition of resources All requests for acquisition of resources (physical, human, financial) shall be processed in line with the guidelines and procedures of the BIR upon approval of the Commissioner. All requests shall be submitted to the Project Management Offices (PMO) of SPIRIT, MOST and OPERATIONS/OTHER SERVICES. The PMO shall submit these requests after proper review to the TMO for consolidation and approval by the TRANSCOM. C. Reporting 1. Reporting relationships a. All PMs/PSC Chairpersons shall update their respective ICs on the status, issues, concerns of their projects. b. The ICs in turn, after consultation with and feedback to their respective OPDs, shall report to the TMO on whatever output they have as well as resolve any issues or concerns they may have encountered in any of the projects through the CC. The CC shall elevate to the TRANSCOM any suggestions or recommendations that may need approval by the Committee. 2. Status Reports a. SPIRIT-AC-PS Projects 1) PMs are required to submit a weekly detailed status report to the OPD; 2) The OPD shall submit a bi-monthly summary report to the CC/TMO; 3) CC/TMO shall submit a monthly executive summary report to the TRANSCOM. b. Other projects The status reports for other projects shall have the following level of reporting: 1) All PMs/PSC Chairpersons shall prepare and submit to their respective ICs a detailed status report of their respective projects weekly; 2) The ICs shall have a bi-monthly summary of said reports to be noted by their respective OPDs and to be submitted to the CC/TMO; and 3) The CC/TMO shall prepare and submit a monthly executive summary report to TRANSCOM. All written reports shall follow a format that will allow for easy consolidation. 3. Issue Logs All ICs shall maintain an issue log where all outstanding issues/concerns shall be recorded and presented to the CC for resolution. D. Meetings All entities are requested to avoid conflicts in meeting schedules and to take note of the following regular schedules: 1. The TRANSCOM shall have its meeting every first Monday of the month at 9:00 A.M. 2. The CC shall hold its meeting every Wednesday at 9:00 A.M. 3. The ICs shall have regular meetings with the PMs/PSC Chairpersons. 4. The PSC Chairpersons shall have regular meetings with their members/other PMs. E. Settlement of Issues/Concerns Issues/Concerns shall be settled at the level of projects, Project Steering Committees and Integration Committee. All issues/concerns that cannot be resolved shall be elevated to the next higher level, i.e. PM or PSC Chairperson, to IC, to CC and/or OPD, to TRANSCOM. Resolutions made by the TRANSCOM on any issue/concern shall prevail. An issuance shall be provided to confirm all resolutions made. F. Project Site 1. SPIRIT 2nd Floor National Office Bldg. 2. MOST 8th Floor National Office Bldg. 3. TMO Office of the Commissioner 4. OPERATIONS/ Other Services Office of DCIR B. L. Rualo V. Repealing Clause : This Order amends all other existing issuances or portions thereof inconsistent with this Order. VI. Effectivity : This Order shall take effect immediately upon approval. LIWAYWAY VINZONS-CHATO Commissioner ATTACHMENT 1 LIST OF TRANSFORMATION PROJECTs SPIRIT-AC-PS A. Thirteen (13) ITS Applications 1. Registration System 2. Legal Information System 3. Collection & Bank Reconciliation System 4. Excise Tax Reconciliation System 5. Returns Processing System 6. Taxpayer Accounting System 7. Tax Credits and Refunds System 8. Case Monitoring System 9. Audit System 10. Accounts Receivable System 11. Revenue Compliance System 12. Tax Reconciliation System 13. National Office-Management Information System Other projects under ITS 1. Technical and User Training 2. System Users Guide 3. On-Line Help 4. Conduct the Pilot 5. Implementation (AC) B. Three (3) IAS Applications 1. Human Resource System 2. Fixed Assets System 3. Accountable Forms System C. Other Projects 1. Architecture, Design and Support 2. Site Preparation 3. Facilities Management (AC) SPIRIT-BIR A. Forms Redesign B. SPIRIT-Legislative Change C. Interfacing with External Agencies D. Data Center E. Conversion/Migration F. Site Preparation G. Facilities Management (BIR) H. SPIRIT Communication Plan MOST A. Macro 1. Tax Administration Reform Act 2. Values Reorientation B. Micro 1. Business Process Improvement 2. Job Design/Staffing Pattern 3. Internal Recruitment 4. Organizational Review 5. External Training 6. Forms Implementation 7. MOST Communication Plan OPERATIONS/OTHER SERVICES A. Deconcentration B. Project Steering Committee TMO A. Coordination ATTACHMENT 2 ATTACHMENT 3