The Minnesota Department of Revenue fine-tunes its systems.

• Author: Steenblock, Terri
• Position: Solutions

The importance of efficient, effectively run operations within all branches of government becomes increasingly apparent in tough economic times. Government agencies are faced with the pressing need to continue generating revenue, but they must also recognize the economic hardships that affect their citizens. In an effort to create a finely-tuned revenue system, the Minnesota Department of Revenue (MDOR) has developed a comprehensive approach that includes investments in human capital, process improvements, and technological enhancements.

HUMAN CAPITAL INVESTMENTS

MDOR has consistently invested in human capital--quality employees with the competencies, knowledge, and abilities that allow a workforce to deliver valuable service. Since 2004, the department has had the opportunity to add new employees each year to direct-compliance areas such as audit and collections. To accommodate many of these new positions, resources from compliance-support areas such as mail and payment processing have been reduced by redirecting resources and through attrition. This shift has allowed MDOR to focus more time and resources on taxpayers who fail to voluntarily file returns or comply with tax laws. (Exhibit 1 illustrates the shift made in MDOR's budget concentration to accommodate compliance initiatives.)

By shifting workforce and budget, MDOR has effectively created an institution that is flexible and prepared for changing demands. In preparation for this shift, time and energy have been invested in developing detailed procedural manuals to aid in compliance efforts. Best practices, combined with the knowledge of seasoned employees, have helped produce a workforce that can easily evolve in work responsibilities, with minimal training. The department's collectors are knowledgeable in all tax areas, and this type of flexibility has allowed the department to increase audit output, thus increasing delinquent accounts receivable dollars collected. (Exhibit 2 illustrates delinquent accounts receivable dollars collected, per fiscal year. MDOR credits the increase in revenue to shifts in workforce.)

PERFORMANCE MODEL

MDOR has also shifted its focus, helping employees to understand work expectations with a results-based performance model. The performance model is a blend of qualitative (competency) and quantitative measurements. Each measurement is assigned a value, and both are combined into a total performance score. Examples of measurements used in the...