HMRC: a top
to bottom change is needed
When the HMRC received a less than flattering review
from the Cabinet Office, the permanent secretary Lesley
Strathie was quick to point out the changes already
made. While the dedication of staff is not in dispute,
the answer to HMRC's problems lie in governance, leadership
and culture
Chris Mills PIPC
Guardian Public, February 2010
Lesley Strathie, the permanent secretary at HM Revenue
and Customs (HMRC), responded to the recent rather damning
review from the Cabinet Office with a spirited defence
of her leadership team and the changes they have already
made to improve processes and structures within the
organisation.
No less than one would expect, of course, and a fair
recognition that the right efforts have been made by
those who will further drive her vision going forward.
But, as any change expert will support, the main barriers
to implementing change tend to be not the visionaries
at the top of the organisation, nor the 'workers' as
a complete group but those who see change as a threat
to their career ambitions or a challenge to a comfortable
status quo.
The wrong job, the wrong way, for too long
Staff within HMRC are well known for their tenacity
and passion to do a great job. However, despite all
the change that the organisation has undergone over
the last few years, many still feel that they have been
doing the wrong job, the wrong way, for too long. The
key to successful change is usually to be found in engaging
key operational staff, then motivating them to drive
the whole process forward quickly and effectively.
This in turn requires a clear view, not just of the
strategic goals but also a comprehensively-thought-through
model for the entire new organisation, which encompasses
vision, strategic performance measures, organisational
structures, new projects and business-as-usual activities,
together with the right combination of skills, competencies
and behaviours needed by all staff.
More important than any of these areas individually
is the need to demonstrate clear alignment between all
of them. Research shows that organisations that do not
seek this rarely achieve their performance goals; whereas
those that do, often achieve 200%+ of their targets.
As Strathie recognised in her comments, top-down and
bottom-up alignment are vital to the future success
of the organisation.
If HMRC staff understand the organisation's goals at
strategic and operational level, they will also understand
how their own job contributes to those goals, and they
are likely to be well-motivated and strive even harder
to achieve their own targets.
The Cabinet Office review stated that at least one
layer of management remains more likely to be focused
on building the profile of their own area (and themselves)
than looking out across the silos for the good of the
department as a whole.
This is unlikely to change until they feel that their
advancement is clearly linked to HMRC's overall success.
Strathie's comments suggest that this will be one of
the first areas to which she will turn her attention.
The answer for HMRC lies in governance, leadership
and culture – harnessing the passion and work
ethic of the majority of staff and persuading or redeploying
those who see no need for change. The kind of detailed
alignment model I mentioned earlier is at the heart
of such a programme – but time to implement it
fully is limited, given the proximity of the General
Election which tends to change everyone's priorities.
For HMRC, the challenges have never been greater nor
the public scrutiny so intense. The Cabinet Office review
makes it clear that internal change is required: in
Strathie at least it seems they have found the right
leader at the right time to meet those challenges.
Chris Mills is a partner at PIPC, a global management
consultancy, which has delivered some of the largest
post merger integrations in the world.
|
