Tax Branch Strategic Plan

2014 - 2017

“One Vision, One Team – EDD.”

Tax Branch Strategic Plan 2014 - 2017

Table of Contents

Message from the Deputy Director …………………………………………………………....…... 1

Who We Are – Tax Branch Overview ………………………………………………..….……….... 2

What is Strategic Planning? ………………………………………………………………….….….. 3

Tax Branch Vision and Mission: Vision ……………….…………………………………………………………………….…....... 4 Mission ………………………………………………………………………………................. 4

Alignment with the Department Strategic Plan: Core Values ……………………………………………………………….……………..……... 4 Daily Operations and Project Portfolio ……………………………………………………….. 5 Five Strategic Goals ……………………………………………………………….…………... 5 One Vision, One Team – EDD. ……………………………………………….…………….... 5

Strategy Map ……………………………………………………………………………………...…… 6

Tax Branch Strategic Goals: Goal One: Fiscal Stewardship ……………………………………….....………………......... 7 Goal Two: Skilled Workforce ………….……………………………….……………………... 7 Goals Three: Sustainable Operations ………………………………………….………..…... 8 Goal Four: Enabling Innovation …………………………………………………………….... 8 Goal Five: Responsible Service ……………………………………….…………………....... 8

Looking Forward …………………………………………….…………………………….……...….. 9

Closing ………………………………......................................................................................….. 9

Appendix A Strategic Plan Project Criteria

Appendix B Goal Stewards Roles and Responsibilities

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Message from the Deputy Director

Over the last decade, we have experienced significant events which have had varying degrees of impact on us, our customers and stakeholders, and the citizens of California. Some examples include shifts in the economy, technological innovations, legislative changes, leadership and workforce changes, budget and resource challenges, etc. Looking at our organization and moving it forward, to quote Peter Drucker, “If we cannot predict the future, we had best create it.” With this in mind, in 2013, the Tax Branch Senior Management Team (SMT) embarked on a journey to develop Tax Branch’s Strategic Plan to create the future of the State’s employment tax program. Our Strategic Plan articulates who we are, where we want to be, and provides the foundation for decision making so we can reach our destination. Before this journey began, the Tax Branch Executive Team (BET) provided great thought and careful consideration of the strategic planning process. It was important to the BET that the SMT, who are leaders reporting directly to the Tax Branch Division Chiefs and myself, play a strong role in helping to create the Branch’s future. In their role as key leaders, they have a strong pulse of the Tax Branch operations, and their voice was critical to set the best course for our Branch. In the strategic planning sessions, all programmatic areas across the Tax Branch were well represented, and, as you can imagine, the visioning sessions were passionate and highly interactive! This, in itself, made the journey even more valuable for our program and where we want to be in the future. As part of the highly collaborative process, the team members determined the Tax Branch Vision that has been in place over the years clearly paints the picture for our organization. Our vision statement provides a visual depiction of our organization’s purpose and value and also inspires us to where we want to be in the future. We are “Proud professionals making employment taxes a breeze.” Our Mission Statement goes hand-in-hand with our Vision Statement, and it articulates the Branch’s purpose for our employees and for the public we serve. The Mission Statement guides the Branch, spells out our overall goal, provides a path, and influences our decisions. It answers the question, "Why do we exist?" The Tax Branch Mission Statement is: “Tax Branch ensures the integrity of the employment tax program by collaborating with our customers to provide efficient, responsive, and innovative services.” Each and every day, Tax Branch staff clearly demonstrates the vision and mission by working closely with our customers and providing exceptional customer service. In alignment with the Department, we have adopted the same core elements as in the Department’s Strategic Plan, including the EDD Strategy Map, Strategic Goals, and Strategic Objectives, but we have tailored some of the core elements specific to the Tax Branch. As we determine specific efforts needed to help meet our Strategic Goals, we need to keep in mind our resources: fiscal, technological, and human. As representatives of the citizens of California, we have a responsibility to be good stewards of the resources entrusted to our care. Realizing we may encounter barriers along the way, the Tax Branch has always risen to the challenge, and we will continue to tackle any challenges with a “we can achieve” attitude. I am proud to be the Deputy Director of this Branch, and to work so closely with each and all of you. As members of the Tax Branch team, working together, we will achieve the goals set before us with this same attitude and strength. So, on behalf of the BET and our SMT, I am pleased to share with you the results of our efforts and introduce the Tax Branch Strategic Plan for 2014 – 2017. This plan will guide us through the next four years, as we determine strategic measures and projects/initiatives that will help us achieve the goals before us and get us where we want to be. Please take the time to familiarize yourself with our vision, mission, core values, and strategic goals, as you play a vital role in achieving our strategic vision. It is an honor and privilege to work side by side with you, for the good of our organization and the people we serve! Lisa M. Wheeler, Deputy Director Tax Branch One Vision, One Team – EDD.

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Who We Are – Tax Branch Overview

As one of the largest tax collection agencies in the nation, Tax Branch handles all the customer service, education, administrative, and enforcement functions for the collection, accounting, and audit of Unemployment Insurance (UI), Employment Training Tax (ETT), Disability Insurance (DI), and Personal Income Tax (PIT) withholding. Tax Branch works with California’s 1.4 million employers to collect employment taxes and data to support the employment security, PIT, and child support programs; and to ensure that employment taxes and information are reported promptly and accurately.

We are committed to providing excellent service and to increasing voluntary compliance with employment tax laws through education, simplified reporting processes, and the promotion of fair business competition. We strive to operate a fair, efficient, and effective employment tax system.

In SFY 12/13, Tax Branch: • Collected approximately $56 billion in employment taxes, including $44.2 billion in PIT. • Processed more than 61 million documents. • Maintained records for over 17 million workers.

Tax Branch is organized into four divisions: Collection Division (CD); Tax Processing and Accounting Division (TPAD); Field Audit and Compliance Division (FACD); and Tax Support Division (TSD). The Tax Branch has just under 1,600 employees located throughout California who educate and assist customers to meet their tax reporting and payment requirements, which include telephone assistance, web services, and employment tax seminars.

Collection Division (CD) – Collects employment taxes and benefit overpayments to support services and benefits for the UI, ETT, DI, and PIT programs.

Tax Processing and Accounting Division (TPAD) – Establishes employer accounts; maintains tax and wage information; determines employer tax rates; and digitally scans and stores forms images and correspondence. In addition, TPAD cashiers payments, reconciles payments with return filed, and processes New Employee Registry (NER), Independent Contractor Reporting (ICR), and claim related documents for Unemployment Insurance Branch and Disability Insurance Branch.

Field Audit and Compliance Division (FACD) – Provides employment tax education, assistance, and enforcement to maximize voluntary compliance, safeguard workers' rights, and promote fair competition. The FACD works with the employer community to increase voluntary compliance with employment tax laws.

Tax Support Division (TSD) – Provides support and services to the Tax Branch Deputy Director and the operating divisions. TSD coordinates with the operating divisions and the other branches

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in the areas of: customer service; resource planning and utilization; systems and processes; technology; and staff development.

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What is Strategic Planning?

Strategic planning is defined as a long-term, future-oriented process of assessment, goal setting and strategy building that maps an explicit path between the present and a vision of the future. Strategic planning relies on careful consideration of an organization’s capabilities and environment and leads to priority-based resource allocation and other decisions. It is a disciplined effort to produce fundamental decisions and actions that shape and guide what an organization is, what it does, and why it does it. The Tax Branch Strategic Plan lays the foundation for future management decisions and provides the direction needed to progress toward the vision of what we want our organization to be. Accordingly, the process to build the Strategic Plan helps us to identify where we are now, where we want to be, and how we will get there. The plan will ensure we have a common focus and that our focus is aligned with our vision. Equally important, the plan will allow us to measure our progress toward our goals. It communicates our vision, mission, values, and our strategy.

Vision: Our vision outlines what we want Tax Branch to be. It is a long-term view and concentrates on the future. It can be a source of inspiration.

Mission: Our mission defines the fundamental purpose of Tax Branch; it concisely describes why we exist and what we do to achieve our vision.

Values: Our values are beliefs shared throughout the Branch. Our values drive our organization’s culture and priorities and provide a framework in which decisions are made.

Strategy: Our strategy is a combination of our goals for which Tax Branch is striving and the means by which we will get there. A strategy is sometimes called a roadmap which is the path chosen to lead us toward our vision. The most important part of implementing our strategy is ensuring that Tax Branch is going in the right direction - towards our vision.

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Tax Branch Vision and Mission

Vision Proud Professionals Making Employment Taxes a Breeze.

Mission The Tax Branch ensures the integrity of the employment tax program by collaborating with our customers to provide efficient, responsive, and innovative services.

Alignment with the Department Strategic Plan

To align with the Department Strategic Plan for 2012 through 2016, Tax Branch has adopted the Department Strategy Map, Strategic Goals, and Objectives and specifically tailored them to Tax Branch.

The Strategy Map on page 6 summarizes the elements of our Strategic Plan starting from the Core Values at the bottom of the map, moving us to the culmination of our purpose - One vision, one team – EDD.

Core Values Tax Branch has embraced the Department’s core values. Core Values are our “guiding principles” that we value and are the foundation of our organization. We have nine core values and each of them is of equal importance in the synergy of our Department. These core values help to ensure our customers are served with fairness, honesty, and integrity. Our core values guide us in our daily operations and projects. These values are of equal importance and include:

Service: We provide efficient, quality service to our customers – including each other.

Adaptability: We adapt our operations, products and services to meet the needs of our customers.

People: We are EDD’s most important resource and we invest in ourselves.

Care and Respect: We treat everyone with courtesy, dignity, and consideration.

Communication: We strive for understanding through open, timely, and clear communication.

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Core Values (continued)

Leadership: We define our vision, accomplish our goals, and create an environment of continuous learning and progress.

Teamwork: We make each person a part of the team by active employee participation.

Accountability: We use our resources effectively and continually improve the quality of our services.

Citizenship: We are active members of the communities in which we live and work. Daily Operations and Project Portfolio Our daily operations speak to our business, it is “what we do,” and is the services we provide to our customers. Depending on our priorities and strategic management, we shift our resources between our daily operations and our projects. We manage these daily operations and projects in alignment with our strategic goals. At any time, Tax Branch has many projects underway; some of the projects are strategic, while others are operational. Our focus on specific projects can change based on legislation, resources, and other factors. Strategic projects are defined by specific criteria outlined in APPENDIX A. Five Strategic Goals We have five goals for our Branch which follows the Department’s goals: Fiscal Stewardship, Skilled Workforce, Sustainable Operations, Enabling Innovation, and Responsible Service. These five goals are the “building blocks” or foundation. Members of the senior management team will be the goal stewards for these five goals to help facilitate the completion of the projects that fall under the strategic plan. The goal steward’s roles and responsibilities are defined in APPENDIX B. One Vision, One Team – EDD. One vision, one team – EDD is our shared purpose; and our rallying cry. It is a statement that unites us as an enterprise and acknowledges the interconnected nature of our business.

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Strategy Map

Tax Branch Vision

Proud Professionals Making Employment Taxes a Breeze.

Tax Branch Mission The Tax Branch ensures the integrity of the employment tax program by collaborating

with our customers to provide efficient, responsive, and innovative services.

Daily Operations Projects

Responsible Service Negotiate clear commitments with stakeholders and focus on priorities.

Fiscal Stewardship Responsibly manage our public resources and align investments with strategic

goals.

Strategic Goals

• Service • Care and Respect • Teamwork

Core Values

One Vision, One Team – EDD.

• Adaptability • Communication • Accountability

• People • Leadership • Citizenship

Skilled Workforce Build a highly skilled and

responsive workforce with clear roles and

responsibilities.

Sustainable Operations Align system operations,

administration, and business processes with

strategic priorities.

Enabling Innovation Invest in our future by supporting appropriate

business and technology solutions.

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Tax Branch Strategic Goals

The five goals work together and are interdependent on one another. We have identified strategic objectives for each of the goals. These strategic goals and objectives will help us to accomplish our mission and vision. Goal One: Fiscal Stewardship

Definition: Responsibly manage our public resources and align investments with strategic goals.

Strategic Objectives: Align investments with strategic goals Manage Tax Branch’s operating budget Provide education and transparency in Tax Branch’s financial management process Achieve return on investments identified in the project portfolio Promote solvent UI and DI trust funds and the health of Tax Branch’s funding streams ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Goal Two: Skilled Workforce

Definition: Build a highly skilled and responsive workforce with clear roles and responsibilities.

Strategic Objectives: Implement succession plans within all ranks Improve employee awareness of enterprise-wide topics Increase targeted training to address skill gaps Improve accountability for both managers and employees to have and meet clear performance

expectations Increase employee awareness of career options and opportunities

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Goal Three: Sustainable Operations

Definition: Align system operations, administration, resources, and business processes with strategic priorities and budgetary parameters.

Strategic Objectives: Examine critical business operations to identify and implement opportunities to improve

efficiency and effectiveness Integrate and consolidate services, system operations and maintenance, and administrative

activities Promote collaboration across programs ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Goal Four: Enabling Innovation Definition: Invest in our future by supporting appropriate business and technology

solutions. Strategic Objectives: Focus on those innovations that align with the Tax Branch Strategic Plan Examine internal capabilities to identify obsolete business processes and bottlenecks Concentrate business process improvements on critical bottlenecks Target technology innovation solutions on critical business processes that are well designed

or have been improved Prioritize our innovation opportunities on a more comprehensive Return on Investment

assessment Within each innovation effort, emphasize a progressive, incremental approach to delivering

business value ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Goal Five: Responsible Service Definition: Negotiate clear commitments with stakeholders and focus on priorities. Strategic Objectives: Proactively educate and seek constructive feedback from stakeholders to manage

expectations Drive our stakeholders to more efficient self-service options

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Looking Forward

Looking into the future, Tax Branch will continue to build a successful highly forward-thinking organization. We will focus on aligning our strategic initiatives with where we want to be in four years. Through legislation, technological advancements, and education, Tax Branch hopes to realize the following accomplishments through the respective strategic goal:

Fiscal Stewardship: Effectively leveraging our resources to maximize our operations.

Skilled Workforce: Investing in a highly skilled and responsive workforce.

Sustainable Operations: Continuously improving business processes to optimize our performance.

Enabling Innovation: Optimizing technology and using innovative solutions.

Responsible Service: Promoting the use of Electronic Services as the preferred method for interaction between our customers and Tax Branch.

Closing

To ensure that we continue to move in the direction of our strategic goals, the Tax Branch will utilize a modified version of the Balance Scorecard. The Balance Scorecard is a tool to provide the framework that defines where we are going in terms of strategic goals, describe how we will measure our progress through our strategic objectives, and identify the initiatives and strategic projects we are focusing on to reach our goals. In addition, the SMT is using the Branch SQR process and the Branch Project List to identify strategic projects to ensure our ongoing efforts align with our strategic goals. Since these tools and processes are fluid and ever changing, they are separate documents that exist outside of the Strategic Plan; but they are integral in helping us achieve our goals. The various tools, along with our vision, mission, core values, and strategic goals all work together to help us reach our short and long-term goals. Tax Branch management and staff are encouraged to embrace our strategic plan and ensure success in achieving our strategic goals. One Vision, One Team – EDD.

APPENDIX A

Tax Branch Strategic Plan 2014 - 2017

Strategic Plan Project Criteria

An endeavor will be classified as a Tax Branch Strategic Plan project if it: • Is a defined unique product, service, or result (not routine operations). • Aligns with a strategic objective(s). • Has due dates for specified objectives. • Has multi-divisional/branch impact. A project is a temporary endeavor with a defined beginning and end, undertaken to meet unique goals and objectives, typically to bring about beneficial change or added value and has the following elements: • A charter that defines the:

◊ Problem/Opportunity Statement ◊ Project Objective Statement (POS) ◊ Deliverables ◊ Scope ◊ Strategic Alignment ◊ Stakeholder(s) ◊ Assumptions ◊ Constraints ◊ Issues/Concerns/Risks ◊ Related/Dependent Projects ◊ Resources (Sponsor, lead, staff, duration, hours)

• A workplan which includes: ◊ Tasks ◊ Action Steps ◊ Responsible person(s) ◊ Start Date ◊ Target Completion Date

• Regular reports (monitor and evaluation) to management on progress.

APPENDIX B

Tax Branch Strategic Plan 2014 - 2017

Goal Stewards Roles and Responsibilities

The Strategic Plan for 2014-2017 is a living document which will continue to be enriched and be enhanced as we move forward. In doing so, our SMT will be Goal Stewards for the strategic goals. They will champion the strategic goals and act as cheerleaders to motivate us to embrace the goals, objectives, and projects within the strategic goals. In addition, they will be responsible and accountable to the Branch Executive Team (BET) for the projects which fall under the strategic goals. Specific to each project, a Goal Steward:

• Verifies the project is in alignment with the strategic plan, goals, and objectives.

• Acts as the conduit between BET, the SMT, and the project team to communicate the status of the project and significant decisions related to the project.

• When necessary, provides recommendations to the BET and secures approval.

• Meets with the team regularly to provide guidance, oversight, direction, and an enterprise perspective to ensure the project is successfully completed.

• Removes barriers, constraints, and obstacles.

• Ensures the communication plan is executed.

• Recognizes the accomplishments of the team.

State of California Employment Development Department

Tax Branch