HMRC Departmental Board - Notes of meeting, 12 February 2007

Attending:

Paul Gray, Stuart Cruickshank, Kate Dunlop, Mike Eland, Bill Griffiths, Dave Hartnett, David Hogg, Chris Hopson, Kate Owen, Mark Haysom, Mike Hanson, Penny Melville-Brown, Steve Lamey, Nick Macpherson (did not attend items 1 and 2), Adam McMordie (Secretary)

Invitees:

Chris French, Sara Woollard, Colin Bailey, Ann Chinner,

Apologies:

Bernadette Kenny, John Spence

Key points of discussion

1. Minutes of the Last Meeting and Matters Arising

The minutes of 13 November, 11 December and 15 January agreed.

2. Departmental Update

Paul Gray introduced Stuart Cruickshank, Chief Finance Officer, and Kate Dunlop, non-executive director, and welcomed them to the Board.

Mike Hanson had been appointed Chief People Officer. ExCom membership was not expanding.

During the industrial action on 31st January the department opened all Enquiry Centres and there were no significant incidents at the frontier. Further non-strike action is still anticipated. The Board was concerned strike action and the recent results from the Staff Survey reflect levels of staff motivation, but noted that PaceSetter should help create identification and ownership across the department.

Paul Gray updated the committee on business performance, commenting on CT, MTIC fraud and tobacco, and Avian Flu.

3. Departmental Transformation Programme (DTP)

Paul Gray and Steve Lamey explained the objective of the discussion on the DTP was to gain input on high level relative priorities.

Strategic Objectives

Steve Lamey and Sara Woollard described 10 strategic objectives for the DTP. The Board agreed the objectives but felt a number were more crucial to underpinning the transformation. The objectives should be seen as a hierarchy, separating the most fundamental from more specific objectives. The Board agreed that a narrative brining together all aspects of the DTP around the main ideas would be an essential communication tool. Additionally, defining the two or three key drivers to communicate to staff will help to galvanise people to cope with change.

Stakeholder Perspectives

DTP presented a number of stakeholder perspectives, which demonstrated what DTP will deliver for the Department’s key stakeholders. The Board felt these perspectives were a useful prism through which to think about delivery priorities and customer expectations. The perspectives should be verified with customers to ensure they truly reflect their needs. The Board agreed that there is a multi-dimensional balance to find between improving the experience of customers who are compliant and coming down hard on those who are not. In a customer focused organisation this balance will determine the allocation of funding between various programmes.

Capability

The Board noted the funding constraints in relation to the number of programmes that are available, especially in light of existing PSA and revenue targets. Existing commitments and unforeseen pressure could impact on the Department’s ability to deliver its vision through the DTP. Within the ultimate framework of programmes it will be necessary to ensure that the efficiencies from different programmes do not hit the same business areas disproportionately, as this too will impact on the Department’s ability to deliver objectives.

The non-executive members of the Board agreed that the number of programmes and projects was large. The project management of a transformation programme of this scale needs to be nimble enough to cope with competing demands and change priorities, but rigorous enough to ensure that no aspects of the transformation are neglected.

Overall Impact on Managers and Deliverers

PaceSetter was seen as a key underpinning enabler, equipping staff with leadership skills and creating a culture of performance management. PaceSetter will allow a greater ownership of processes in the business. Managers will also need to be supported in understanding the impact of the whole range of DTP programmes upon their areas. Although there will be a significant change for lots of people in the business the Board was concerned that the positive messages should also be communicated clearly.

4. Any Other Business

There was no AOB

Action points

1. Secretariat: to circulate Committee Structures papers to non-executive directors.