Making IT work for business at SARS

The South African Revenue Service (SARS) partners with Business Systems Group (Africa) (BSG) in the design, implementation and growth of its internalised Business Solutions Design (BSD) unit, thereby creating a business analysis competency that ensures that SARS gets maximum return on its IT investment.

SARS aims to be an innovative revenue and customs agency that enhances economic growth and social development. By ensuring adequate revenue collection, it is able to support the development priorities of the nation, such as enabling the reduction of debt service costs, and extending the reach of essential public services (e.g. education, health and welfare, etc.).

To meet these needs, SARS is focusing its efforts on significant transformation, enabling it to continuously extend the tax base and close the tax gap, thereby exceeding the annual revenue collection targets of national government. This is achieved by driving improved business effectiveness and service delivery within the organisation, which in turn places a high emphasis on the investment in, and effective use of technology.

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SARS recognised that the Technology Services Division (TSD) was a core part of this transformation process. This meant ensuring that effective solutions were delivered to meet the needs of business, and that taking accountability for and ownership of its future business design, this knowledge would remain within SARS. With this being only part of the TSD mandate, Ken Jarvis was appointed in November 2002 as the new SARS CIO, with the task of ensuring this transformation took place.

"SARS needed an internalised business analysis competence, which would allow it to take responsibility and accountability for its business initiatives," says Jarvis. "We decided to adopt a two-pronged solution, where all projects became tightly aligned to the strategic goals of the business, and business analytical skills were developed in-house."

As a result, a formal decision was taken to establish the Business Solutions Design (BSD) unit within the organisation in order to create this internal competence. This would have the added benefit of reducing the reliance on external contractors and third parties for this service.

SARS chose (BSG), a national IT service provider with one of its core focuses being business consultancy skills, as its strategic partner for establishing the BSD. "The BSG team has the rare ability of doing business and systems thinking in one brain," comments Thabang Legae, Head of BSD at SARS. "By understanding our business, BSD creates order out of the chaos of needs. It then structures business solutions to ultimately provide specifications that our technology people can understand and work with."

BSG was no stranger to SARS. It had already worked on a number of projects within SARS, and had an existing history of successful business consulting with the organisation. "We were able to bring substantial experience to the BSD design," says Greg Reis, MD of BSG. "Our understanding of the SARS business processes and the opportunities for improvement, together with our expertise and knowledge in this very specialised field, were vital building blocks for mapping a way forward."

The project started at the beginning of 2003, with the first phase being the future design and implementation roadmap for the BSD. The resultant plan would manage capacity building and a transfer of skills over a two-year period. At the outset, BSG consultants would need to be more heavily involved in the projects that fell within the BSD area of expertise. However, through a successful transfer of skills and recruitment process, BSD would generate sufficient internal capacity and competency to deliver on all BSD projects by the end of 2004. SARS would then have the option to use BSG consultants to provide capacity and advice if required.

Based on the approved design principles for the implementation of the BSD, the unit was structured into four specific sub-units: Business Integration Specialists, Business Analysis, Methodology and Standards, and the Centre of Excellence.

* Business Integration Specialists - As SARS has the typical legacy in both business process and systems, the transformation process needs to take into account complex initiatives that will span across the organisation. This team needs to translate the overall frameworks and the strategic plans for transformation at SARS into implementable programs of work, to which each project within any business area would align. "This is the foundation upon which the BSD can build," points out Legae. "Above all, it provides for the integration of all future business solutions, preventing duplication across separate projects."

* Business Analysis - With this foundation in place, the Business Analysis area then manages the projects according to set methodologies. Acting as the bridge between business needs and IT capabilities, this area is responsible for taking ownership of the business design end-to-end within the project; interpreting and clearly defining the business requirements; applying research, experience and technological understanding to assist in developing innovative solutions; and ensuring the business needs are met and signed off prior to technical design.

* Methodology and Standards - But who analyses the analysts? "We must ensure the consistent quality of the work done," maintains Legae. Thus, the Methodology and Standards area measures each project implementation according to the same proven methodologies and standards. This sharp vigilance on the BSD`s output not only leverages on experience gained from other projects, allowing for successful methodologies and designs to be re-used, but also ensures the understanding and support of BSD projects amongst the various business areas.

* Centre of Excellence - At the heart of the BSD is the Centre of Excellence, with one key focus being responsible for the transfer of the BSG consultants` skills, thus ensuring the growth in competence and capacity of the internal BSD team. "It begins with the recruitment process, which maps each individual according to a competency map and the needs of the unit," says Reis. "The Centre of Excellence then ensures that the new recruits are set a structured plan for their development, and placed in a mentorship programme that guides them through practical experience over a six-month period. Through ongoing performance management, measurement and evaluation, recruits are `grown` to higher levels of expertise and responsibility."

Six months into the implementation, and the BSD unit is very much up and running, with 22 members already part of the team, and further analysts joining each month. Apart from collaborative project work taking place, competency maps and job descriptions exist for all positions. BSD has already designed and conducted the induction programme for its first set of trainee business analysts, who have now entered the mentorship programme. "We have been amazed at the quality of the candidates that we have managed to attract to SARS," concludes Legae. "This is not only a measure of how our organisation has become both an attractive and progressive company to work for, but also bodes well for the future of BSD and the role of business analysis at SARS as a whole."

Thabang Legae Head says, "The development of BSD has monumental implications for the efficient, customer-centric operations of SARS. BSG has played an integral role in assisting BSD to successfully plan, implement and guide this transformation process."

Every person within the IT industry is well aware of the vast investments made by customers in technology through the Y2K and Internet boom. The focus now is how to maximise the return on technology assets. Ken Jarvis says, "SARS, based on its transformation process, is continuing to make large investments in systems to support business. BSG has a huge role to play in assisting SARS to establish an internal capability to ensure maximum benefit is gained from this expenditure."