1.1.4  Organizational Planning

Manual Transmittal

August 16, 2013

Purpose

(1) This transmits revised IRM 1.1.4 Organizational Planning.

Background

This document supersedes IRM 1.1.4, Organizational Planning, dated February 8, 2011.

Material Changes

(1) This IRM is updated to establish procedures concerning filling positions vacated through the Voluntary Separation Incentive Payment (VSIP) process.

(2) Updated to include authorities under scope of Organizational Change and the approval process.

(3) Responsibilities, Approving Official, states what should be included in the Business Case when seeking approval to reestablish positions abolished by VSIP.

(4) Includes the role of the IRS Human Capital Officer when reviewing all requests from the business units when backfilling abolished positions.

(5) Under Preparation of the Organizational Change Business Case, additional information is included on the different types of Organizational Change and Features as related to backfilling positions.

(6) A new section on Backfilling Positions abolished through Use of Voluntary Separation Incentive Payments (VSIP) is included.

(7) Updates to organizational titles through-out.

Effect on Other Documents

This supersedes IRM 1.1.4, Organizational Planning, dated February 8, 2011.

Audience

All Business Units, Operating Divisions and Functions

Effective Date

(08-16-2013)

David A. Krieg
IRS Human Capital Officer

1.1.4.1  (02-08-2011)
Purpose and Scope

  1. The purpose of this section is to establish policy, procedures, and guidance for organizing the structure of the IRS and to define responsibility to govern the development, review, approval, implementation, and evaluation of proposed organizational changes within the IRS.

  2. The definitions, principles and procedures that follow apply to all IRS organizations and activities.

1.1.4.2  (08-16-2013)
Definitions

  1. Approving Official. The management official authorized to approve or disapprove implementation of an organizational change proposal.

  2. Business Units (BU). Includes all IRS organizations including top-level organizations reporting to the Commissioner, Services and Enforcement organizations, and Operations Support functions.

  3. Mitigation Strategies. Strategies used to avoid or lessen the number and severity of involuntary personnel actions that result from an organizational change, e.g., Voluntary Early Retirement Authority (VERA), Voluntary Separation Incentive Payment (VSIP), Job Swaps, Grade and Pay Retention, etc.

  4. Organizational Change. Any change to an organization's structure or geographic boundaries that may result in a change in the workforce. The organizational change may involve realignment, reorganization, or restructuring, and may result in abolishment of positions, changes to position titles, series and grades, and excess employees.

  5. Organizational Change Proposal. The business case for the organizational change. The business case includes a written description of the purpose of change, current and proposed organizations, the desired outcome, and other facts essential for the approving official to make a well informed decision.

  6. Realignment. An organizational change which does not affect the organization's mission or function, but places employees in a new organizational configuration. A realignment does not result in excess employees.

  7. Reorganization. An organizational change which eliminates, adds, or redistributes the functions or duties of an organization. A reorganization may affect the organization's mission, function, structure, geographic boundaries, jurisdiction, and reporting lines. Reorganization may result in excess employees.

  8. Restructuring. An organizational change to the structure of an organization which affects its mission or function. Restructuring may result in excess employees.

1.1.4.3  (08-16-2013)
Authorities

  1. Basic authority. Under 31 USC 321(c), the duties of officers and employees of the Internal Revenue Service are vested in the Secretary of the Treasury. The Assistant Secretary of Management and Chief Financial Officer, or the Deputy Secretary has retained the authority to approve significant bureau organizational changes and major changes in authority, function, or scope of activities as defined by Treasury Directive 21- 01 and identified in Section 1.1.4.3(2), Secretary of the Treasury authority, of this document. Authority to approve other organizational changes lies with the Commissioner or delegated officials.

  2. Secretary of the Treasury authority. Certain aspects of the IRS organization are defined through Treasury Orders and Directives. Treasury Directive 21-01, Organizational Changes, provides information concerning organizational changes for which the Secretary is the approving official. These include:

    1. Any creation, abolishment, or substantial changes in the organization at the level that reports directly to an Assistant Secretary or above (in Departmental Offices) or a bureau head and/or a deputy bureau head; or

    2. Proposed changes in mission critical programs; or

    3. Major changes in field structures; or

    4. Changes that will cause controversy or have a major impact on the organization's customers, stakeholders or Congress; or

    5. Changes that will have a major budget and/or personnel impact.

  3. Commissioner authority. By Treasury Orders and Directives, the Commissioner of Internal Revenue has been delegated most of the revenue and personnel functions and authorities. The Commissioner determines the organizational structure of the Service except as reserved for the Secretary, above, or as otherwise specified by legislation or Executive Order.

  4. IRS Oversight Board. 26 USC 7802(d)(3)(C). IRS Oversight Board responsibilities include the review and approval of the Commissioner's plans for any major reorganization of the Internal Revenue Service.

  5. Commissioner-assigned authority. The Commissioner has assigned certain organizational authority to the Deputy Commissioners and other IRS officials. In general, an organizational change proposal requires approval by an executive at the second level or higher above the highest level affected by the organizational change.

    Authorities to Approve IRS Organizational Changes
    Scope of Organizational Change Approving Official
    • Commissioner's Office

    • IRS Servicewide changes in authority, function or scope of activities

    • Highly visible and/or controversial changes impacting internal or external customers

    • Changes having a major budget or personnel impact

    • Changes in Mission Critical Programs

    Secretary of the Treasury
    IRS Oversight Board
    • Division Commissioner's Office

    • Changes affecting more than one Business Unit

    • Changes in IRS management of SES and critical pay positions

    • Changes requiring adverse action, the use of mitigation strategies, or resulting in Reduction in Force (RIF)

    • Changes involving the backfilling of positions abolished through use of Voluntary Separation Incentive Payments (VSIP) within one year after position has been abolished.

    Commissioner/Deputy Commissioner
    All organizational changes not meeting the scope or criteria listed above. May be re-delegated no lower than an executive at the second level above the highest level affected by the change.
    In general, Business Units have authority to approve organizational changes where the effect does not reach beyond their own Business Units, except for changes where the authority rests with the Commissioner (i.e., major Servicewide changes in authority, function or scope of a Business Unit's activities). In addition, changes must be approved by an executive at the second or higher level above the highest level affected by the change.
    Organizational changes resulting in the reestablishment of positions vacated through use of VSIP within one year after position has been abolished must provide documentation concerning why the abolished positions need to be reestablished and the business case must be reviewed by the IRS HCO.

1.1.4.4  (08-16-2013)
Responsibilities

  1. The Commissioner is responsible for the sound organizational structure of the IRS. Per 26 USC 7802(d)(3)(C), the Commissioner will consult with the IRS Oversight Board on plans for any major reorganization of the Internal Revenue Service.

  2. All IRS Executives and Managers will evaluate the effectiveness and efficiency of their organizations; plan, propose, and obtain review and approval of organizational changes as required; and evaluate the organizational change to ensure effectiveness of changes in meeting mission and organizational requirements.

  3. The Approving Official is responsible for the following:

    1. Ensuring proposed organizational changes conform to the goals and strategies of the IRS;

    2. Ensuring organizational change proposals are well-documented appropriate to the scope and effect of the change;

    3. Ensuring adherence to Congressional Directives, Executive Orders, Treasury Orders, OPM Circulars, and other relevant guidance and regulation;

    4. Coordinating changes affecting other Business Units with those units;

    5. Ensuring Human Capital (Embedded and IRS Human Capital), are informed of proposed organizational changes. Treasury and the IRS Oversight Board may also need to be informed;

    6. Ensuring organizational change efforts are coordinated with the Chief Financial Officer or Business Unit Finance, as appropriate, and that proper data elements are established within the IRS financial system to track budgets and expenditures;

    7. Ensure the Business Case includes justification for reestablishment of positions abolished through use of VSIP, if appropriate;

    8. Ensuring organizational changes are shared with the Human Capital Board (HCB), if the IRS HCO determines it is necessary;

    9. Obtaining approval of organizational changes within current directives and guidance, e.g., Congressional Directives, Executive Orders, Treasury Orders, Office of Personnel Management (OPM) Circulars, etc.;

    10. Tracking and monitoring affected employee movement from the current organization to the end state organization and ensuring the PARs necessary to implement the organizational change are implemented; and,

    11. Preparing and issuing a final report evaluating organizational change results and how they relate to stated business case goals, as appropriate.

  4. The IRS Human Capital Office (IRS HCO) is responsible for:

    1. Providing Servicewide organizational change policy and guidance;

    2. Developing and implementing an efficient and institutionalized process for managing organizational change initiatives;

    3. Assisting with business case development, initiative implementation, tracking, and evaluation, as appropriate;

    4. Meeting with Business Unit to determine need for Human Capital Board review;

    5. Sharing the business case with Legislative Affairs, as appropriate;

    6. Reviewing all requests for backfilling positions abolished through use of Voluntary Separation Incentive Payments (VSIP);

    7. Serving as a focal point for ensuring IRS organizational change initiatives are provided appropriate integrated support services;

    8. Providing expert advice, guidance and support for changes resulting in Reduction in Force (RIF), directed reassignments, transfer of function, position abolishment, use of mitigation strategies, and employee separation policy and implementation;

    9. Serving as the lead for developing a labor relations strategy and serving as the chief spokesperson for all required negotiations;

    10. Providing Position Management/Classification advice, guidance, and support;

    11. Ensuring necessary Personnel Action Requests (PAR) submitted to implement the organizational change are completed;

    12. Ensuring appropriate organizational changes are maintained and tracked through a centralized tracking system; and,

    13. Assisting the Business Unit with their final report evaluating and documenting the results of the organizational change, as appropriate.

  5. Agency Wide Shared Services (AWSS). Provides support in the areas of payroll, data support, timekeeping, real estate and equipment. AWSS facilitates and supports planning and implementation of the organizational change related to AWSS responsibilities.

  6. Communications and Liaison (C&L), Legislative Affairs. Provides consultative services to the initiating organization and shares relevant organizational change information with Congress.

  7. Equity, Diversity and Inclusion (EDI). Responsible for ensuring Federal Equal Employment Opportunity principles, policies and laws are reflected in organizational change processes and decisions, managing diversity, and ensuring no protected class/group is targeted or unfairly affected.

  8. Information Technology (IT). Responsible for assessing the effect of the organizational change proposals on Enterprise and/or Information Technology (IT) applications and providing support during implementation.

  9. Chief Financial Officer (CFO) and Business Unit Finance. Responsible for advising the Business Unit of potential effects on the operating budget and assisting with appropriate implementation plans to address budget concerns. Coordinates with the Business Unit for the establishment of identifiers or codes required by IRS financial system to track budgetary and financial activities. Ensures the identifiers and codes will be available for budget authority when the organizational change is to be implemented. Coordinates with the Business Unit for the establishment of cost allocations in the IRS accounting system in time for the start of the fiscal year the organizational change is to be implemented. Ensures that details on planned reorganizations, job reductions, or increases in offices and activities are reported in the IRS Operating Plan so that Congressional appropriations committees can be properly notified.

  10. The Human Capital Board (HCB) is responsible for the following:

    1. Reviewing and providing support for organizational change initiatives meeting one or more of the following criteria:

      • Impacts service provided to taxpayers; or,

      • Impacts service provided to other Business Units; or,

      • Results in excess employees requiring the use of mitigation strategies potentially affecting other Business Units. As a general guiding principle, if the outcome from the use of the available mitigation tools results in anything other than a soft landing (i.e., no employees are placed or separated involuntarily) for all impacted employees, the initiative must be brought before the Human Capital Board for approval.

      Note:

      Organizational changes are reviewed by the Human Capital Board once the Business Unit Commissioner has approved the organizational change and the IRS HCO has determined the need for Human Capital Board review.

    2. Providing a forum for all Service entities to jointly address issues and challenges emerging during the development and implementation of organizational change initiatives;

    3. Identifying and addressing issues requiring cross-functional or Servicewide resolution; and,

    4. Providing oversight of organizational change initiative process.

1.1.4.5  (08-16-2013)
Preparation of the Organizational Change Business Case

  1. Regardless of scope, all organizational changes begin with an identified need for change, gathering and analyzing appropriate data, considering alternatives, and preparing a business case to fully inform the approving official.

  2. The extent of a business case will depend on the scope and effect of the organizational change. Changes affecting the taxpayer, other Business Units, or resulting in excess employees requiring use of mitigation strategies potentially affecting other Business Units, require a comprehensive business case which provides sufficient information for approving official and Human Capital Board review. Exhibit 1.1.4-2, Organizational Change Template, provides a template of factors to be considered.

  3. Changes limited in effect to the Business Unit and not requiring the use of mitigation strategies potentially affecting other Business Units require business case documentation based upon Business Unit specific requirements and guidance.

    Types of Organizational Change & Features
    Initiative Type Features
    Impact Beyond Business Unit
    • Affects service provided to taxpayers

    • Affects service provided to other Business Units

    • Results in excess employees requiring use of mitigation strategies potentially affecting other Business Units

    • Includes the reestablishment of positions abolished through use of VSIP within one year after position has been abolished

    Business Unit Specific
    • Respective Business unit effect only

    • Does not affect employees resulting in the need for mitigation strategies which potentially affect other Business Units

    • Does not include positions abolished through use of VSIP

  4. The initiating office must develop appropriate level business case documentation substantiating the proposed change and identifying potential effect. As part of the business case development, the initiating office will consult with their respective Finance office and Embedded Human Capital. Finance and Embedded Human Capital will consult with the IRS Human Capital Office and the Chief Financial Officer. IRS HCO will coordinate with Legislative Affairs.

  5. The initiating office prepares a written proposal (business case) with the appropriate level of detail identifying the need for change, describing the proposed changes and expected effect, and defining how the change will be implemented and evaluated.

  6. Organizational change proposals which may have an effect on other Business Units, the taxpayer, or require use of mitigation strategies, will address all of the following factors or explain why the factor is not applicable:

    1. Description of Initiative. State the purpose of the proposed changes in terms of the business need and the result the organizational change is expected to achieve.

    2. Proposed Changes. Describe the proposed changes from the current organization to the proposed organization.

    3. Organizational Charts. Provide current and proposed organization charts. Charts should present position title, pay plans (e.g., GS, WG, IR, etc.), series, grade at the full working level, and number of positions for each organizational segment and should clearly reflect direct lines of supervision.

    4. Staffing Charts. Provide information demonstrating the differences between current and proposed staffing, as necessary. Staffing charts may be in the form of multiple-column lists of position titles, pay plans, series, grades at full working level, bargaining unit status, and geographic locations and should include a comparison of the current and proposed staffing numbers and the net changes. Information should highlight any staffing increases/decreases and variance from existing staffing guidelines. The number of excess employees and a plan of action for addressing excess employees should be included. The effect upon Mission Critical Occupations (MCO) should be addressed.

    5. Implementation Strategies. Specifically address anticipated use of Reduction in Force (RIF), directed reassignments, transfer of function, and job abolishments, if applicable.

    6. Mitigation Strategies. Provide information concerning the planned use of mitigation strategies to address excess employees, e.g., Voluntary Early Retirement Authority (VERA), Voluntary Separation Incentive Payment (VSIP), Job Swaps, Grade and Pay Retention, etc.

    7. Timeline. Provide a timeline for implementation illustrating when the proposed organization will go into effect and highlighting critical milestones.

      Note:

      Given collective bargaining requirements, major organizational changes may take up to twelve months to conclude.

    8. Cost/Benefit Analysis. Identify and analyze costs, savings, and benefits. Consider costs and savings, such as personnel (including costs of mitigation strategies, e.g., VERA/VSIP, relocation allowances, etc.) and support costs (e.g., space, equipment, telecommunications, supplies). Separate costs by budget line items. Explain or propose how additional costs will be funded and the points in time when funds will be required.

    9. Risk Analysis. Identify the effect of the organizational change on other organizations or other agencies, and describe any coordination planned or completed. Identify associated risks (e.g., disruption of workforce, duplication of service, scheduling, etc.) and proposed strategies for addressing risk. Summarize any stakeholder engagement that has already taken place. Summarize additional required stakeholder engagement and identify the appropriate point in the process for that engagement.

    10. Issues. Identify anticipated challenges and issues and proposed resolution.

    11. Evaluation. Propose how, when and by whom the effect of the organizational change will be evaluated and timeline for completion. Evaluation criteria should be consistent with the scope, purpose, and effect of the change identified in the organizational change proposal.

  7. A Business Unit specific organizational change will consider these same factors to varying degrees, and proposals will adhere to respective Business Unit guidance.

  8. Business Units will ensure all organizational changes are well documented, monitored and evaluated.

1.1.4.6  (08-16-2013)
Backfilling Positions Abolished through Use of Voluntary Separation Incentive Payments (VSIP)

  1. IRM 6.350.1, Job Abolishment, states abolished positions should not be re-established or filled for at least 1 year after the abolishment unless there is a critical need to do so. Before the position can be reestablished or filled, the Business Unit (BU) should submit a request to HCO, Workforce Restructuring Services (WRS) with justification addressing the reason for the reestablishment, including why the need for reestablishment could not have been foreseen when the position was abolished. The request will then be forwarded to the IRS, HCO for final review.

1.1.4.7  (08-16-2013)
Organizational Change Review

  1. A proposal requiring the approval of the IRS Commissioner must receive written concurrence of the Deputy Commissioner prior to submission to the Commissioner.

  2. The concurrence process should include reviews by the appropriate consulting organizations including Finance Offices, Legislative Affairs and Embedded Human Capital. These reviewers analyze those aspects of the proposal specific to their responsibilities, including the potential legislative concerns, organizational effect, overhead costs, and labor costs.

    1. Embedded Human Capital reviews proposals for staffing and workforce relations issues including negotiation requirements, position management, procedures and operations, and concurs or provides guidance and comments on any areas of concern.

    2. Embedded Human Capital involves the IRS Human Capital Office to identify and address Servicewide Human Capital and support issues.

    3. IRS HCO facilitates coordination with other Servicewide support functions.

    4. IRS HCO ensures national notification of NTEU and negotiation requirements are met.

    5. IRS HCO determines if the Human Capital Board will be briefed.

    6. The Chief Financial Officer and Embedded Finance review proposals for impact on funding, planning, financial codes, and addressing timing issues, and concur or provide comments on any areas of concern.

    Organizational Change Review Process
    General Guiding Principle: If the outcome from the use of the available mitigation tools results in anything other than a soft landing for all impacted employees, the initiative must be brought before the Human Capital Board for approval.
    Initiative Type Process
    Impact Beyond Business Unit
    • Business Unit (BU) prepares business case including coordinating with any other affected Business Units.

    • As part of the planning process, Business Unit contacts IRS HCO, Worklife, Benefits and Engagement (WBE), Restructuring, Planning and Leave Share (RPLS)) and Workforce Restructuring Services (WRS), which serves as a liaison with support functions and in meeting requirements (Support functions include: HCO functions, AWSS, IT, CFO, C&L Legislative Affairs, and Equity, Diversity & Inclusion)

    • Business Unit obtains Business Commissioner approval of business case

    • Business Unit briefs the IRS HCO

    • IRS HCO determines if HCB briefing required

    • If an HCB briefing is not required, the IRS HCO notifies the Business Unit and the Business Unit implements the change.

    • If HCB briefing required, Business Unit presents business case to the Human Capital Board*

    • HCB provides feedback to the Business Unit

    • Business Unit obtains Deputy Commissioner approval of final business case, when required.

    • Deputy Commissioner obtains Commissioner approval when required

    • Commissioner consults with the IRS Oversight Board when required

    • Business Unit shares final approved business case with support functions and implements

    Note:

    *Not all Business Units have representatives on the Human Capital Board. Non-members will be invited to HCB meetings when organizational change initiatives are on the agenda.

    Business Unit Specific
    • Business Unit internal guidance will be used when preparing a request within the respective Business Unit

    • Initiatives are coordinated with Embedded Human Capital and Finance

    • Support services are provided through routine support channels, e.g., recruitment for positions would be achieved through the servicing Employment office

1.1.4.8  (08-16-2013)
Approval and Support Coordination

  1. The initiative will be approved by the appropriate management level in accordance with Section 1.1.4.3, Authorities, of this document.

  2. The process for reviewing and approving initiatives is defined in Section 1.1.4.7, Organizational Change Review, of this document. Exhibit 1.1.4-1, Organizational Change Initiatives - Features/Process, provides a summary of organizational change features and approval process.

  3. IRS HCO, WBE, RPLS, WRS will serve as liaison with support functions and facilitate the review and approval process of organizational changes having an effect beyond originating Business Unit.

  4. Business Unit specific initiatives will be coordinated and implemented through routine approval and support channels.

  5. Reestablishment of positions abolished through use of VSIP within one year after position has been abolished requires a business case and review by the IRS HCO.

1.1.4.9  (08-16-2013)
Implementation of Initiative

  1. Once an initiative is approved, the Business Unit will implement a plan that includes:

    1. Detailed timeline identifying major milestones, including negotiation requirements;

    2. Defined roles and responsibilities for Business Unit functions including Embedded Human Capital, major stakeholders, and support functions;

    3. Identified risks and planned responses and contingencies;

    4. A communication plan addressing information needs of project team members, affected employees, customers, and NTEU; and,

    5. A plan for evaluation of completed initiative.

  2. Section 1.1.4.4, Responsibilities, defines the roles and responsibilities of support functions in assisting the Business Unit with implementation of the organizational change.

  3. Business Unit specific initiatives will be coordinated and implemented through routine support channels.

  4. The Business Unit is responsible for reporting the organizational change to the Chief Financial Officer. Budgetary and financial issues to be coordinated with the CFO are outlined in IRM 1.1.4.4(9).

  5. Any new organization or reorganization request for establishing identifiers/codes in the IRS financial and accounting systems meeting the following criteria must be submitted to the CFO by the annual master data call deadline (late June) in the year prior to the fiscal year the organizational change is to be implemented. Criteria include:

    • Deputy Commissioner approval or higher required;

    • Establishment of a new Financial Plan;

    • Moving established cost offices (centers) from one budget office (fund center) to another budget office.

  6. Changes in identifiers/codes in the IRS financial accounting systems that do not meet any of the criteria in IRM 1.1.4.9(5) may be submitted to the CFO anytime during the fiscal year at least 60 days in advance of the reorganization's effective date.

1.1.4.10  (08-16-2013)
Evaluation of Completed Initiative

  1. As part of the organizational change process, the Business Unit is responsible for evaluating the effectiveness of the implemented organizational change.

  2. For initiatives with an effect beyond the initiating Business Unit, the Business Unit is responsible for preparing a final report addressing the completed organizational change.

    1. Evaluation criteria should be consistent with those identified in the business case proposal;

    2. The completed evaluation will be shared with the IRS HCO, CFO, and Legislative Affairs;

    3. Evaluation should include a final employee/position reconciliation identifying the effect on the originally identified affected employees and positions; and,

    4. IRS HCO may assist the Business Unit with the final evaluation.

  3. Business Unit specific organizational changes should include a final report documenting implementation and completion, if appropriate. This report should be maintained by the Business Unit with the original business case for change.

Exhibit 1.1.4-1 
Organizational Change Initiatives – Features/Process

Features Approving Official Process
General Guiding Principle: If the outcome from the use of the available mitigation tools results in anything other than a soft landing for all impacted employees, the initiative must be brought before the Human Capital Board for approval.
IMPACT BEYOND BUSINESS UNIT
•Impacts service provided to taxpayers
•Impacts service provided to other Business Units
•Results in excess employees requiring use of mitigation strategies potentially impacting other Business Units
Deputy Commissioner or Commissioner 1. Business Unit (BU) prepares business case
2. As part of the planning process, BU contacts IRS HCO, WBE, RPLS, WRS who serves as a liaison with support functions and in meeting requirements (Support functions include HCO, AWSS, IT, CFO, C&L, and EDI)
3. BU obtains Business Commissioner approval of business case
4. BU briefs the IRS HCO
5. IRS HCO determines if HCB briefing required
6. If no HCB briefing required, Business Unit finalizes business case, obtains appropriate Business Unit executive approvals, and implements
7. If HCB briefing required, BU presents business case to Human Capital Board (HCB)*
8. HCB provides feedback to BU
9. BU modifies business case if necessary and finalizes
10. BU obtains Deputy Commissioner approval of final business case
11. Deputy Commissioner obtains Commissioner approval, when required
12. Commissioner consults with the IRS Oversight Board, when required
13. BU shares final approved business case with support functions and implements
BUSINESS UNIT SPECIFIC
•Respective Business Unit affect only
•Does not affect employees resulting in the need for mitigation strategies which potentially affect other Business Units
Business Commissioner or delegate 1. Business Unit internal specific guidance will be used when preparing a request within the respective Business Unit
2. Initiatives are coordinated with Embedded Human Capital and Finance
3. Support services are provided through routine support channels, e.g., recruitment for positions will be achieved through servicing Employment office

Note:

*Not all Business Units have representatives on the Human Capital Board (HCB). Non-members will be invited to HCB meetings when organizational change initiatives are on the agenda.

Exhibit 1.1.4-2 
Organizational Change Template

The following template provides the factors to be considered and addressed for large scale organizational change initiatives. Although not all factors will apply to all initiatives, consideration should be given to these factors and should be addressed or noted as not applicable.

PROJECT BACKGROUND
Business Unit (BU)  
Initiative Title  
Initiative Type (e.g., Reorganization, Business Process Reengineering, Restructuring, etc.)  
Does this initiative involve a potential Reduction in Force (RIF)? (Yes/No)  
BU Contact Point (Name/Title/Phone Number)  
Description of Organizational Change
 
 
 
 
 
Organizational Change  
Affects Service Provided to Taxpayer (Yes/No)    
Affects Service Provided to Other Business Units (Yes/No)    
Requires use of Mitigation Strategies potentially affecting other Business Units (Yes/No)    
Includes positions abolished through use of VSIP (Yes/No)    
Timeframes  
Current Date of Organizational Change Proposal    
Targeted Implementation Start Date    
Targeted Completion Date of Organizational Change    
Developed Key Milestone Chart/Timeline (Yes/No)    
FACTORS & COORDINATION POINTS  
Relevant Factors Coordination Points  
Employee Impact Coordination with HCO, AWSS, EDI  
# of Directly Affected Employees (includes employees who will be directly affected by the proposed organizational change)    
Total # of Affected Employees (includes employees who are directly affected as well as potentially affected by the organizational change, e.g., in the instance of a bump and retreat RIF)    
# of Anticipated Excess Employees    
There is a process in place to track and monitor placement and separation of affected employees (Yes/No)    
Positions  
# of Directly Affected Positions    
# of Bargaining Unit Positions Coordination with IRS HCO-Workforce Relations  
# of Non-Bargaining Unit Positions    
# of Mission Critical Occupation (MCO) Positions    
# of Positions to be Abolished    
# of New Positions Created Coordination with IRS HCO Employment, Talent, and Security (ETS), Position Management/ Classification (PM/C)  
# of Position Descriptions Requiring Revision Coordination with IRS, HCO, ETS  
# of Positions to be Filled Competitively Coordination with IRS HCO, ETS  
There is a process in place to track and monitor affected positions. (Yes/No)    
Mitigation Strategies Coordination with IRS HCO, WBE, RPLS, WRS  
Voluntary Early Retirement Authority (VERA or Early Out) (Yes/No)    
Voluntary Separation Incentive Payments (VSIP or Buyouts) (Yes/No)    
Job Swaps (Yes/No)    
Reassignment Preference Program (RPP) (Yes/No)    
Career Assistance Transition Plan (CTAP)/Interagency Career Transition Assistance Plan (ICTAP) (Yes/No)    
Grade and Pay Retention (Yes/No)    
Voluntary Relocation Incentives (Yes/No)    
Other Mitigation Strategies (define)    
Congressional Notification Coordination with Communications & Liaison, Legislative Affairs  
Positions Affected (Title, Series, Grade (Full Working Level), Bargaining Unit status, Geographic Locations)    
Costs/Benefits Coordination with Chief Financial Office (CFO)  
New Positions    
New Technology Coordination with Information Technology (IT), Agency Wide Shared Services (AWSS)  
Space Coordination with AWSS  
Mitigation Strategies (e.g., cost of VERA/VSIP, Voluntary Retention Incentive (VRI) Coordination with IRS HCO, WBE, RPLS, WRS  
Severance Pay Coordination with IRS HCO, WBE, RPLS, WRS  
Savings    
Issues Requiring Resolution (list issues and potential resolution)  
   
 
 
 
 
Organizational Change Approval Level  
(Business Commissioner, Deputy Commissioner, Commissioner)  
 
 
 
 
Attachments:  
Timeline with Key Milestones  
Current Organizational Chart  
Proposed Organizational Chart  
Listing of positions including position title, series, grade (Full Working Level), bargaining unit status, and geographic location. Indicate if positions are Mission Critical Occupations.  
Evaluation Plan for Completed Organizational Change: Evaluation plan serves as a basis for ensuring implementation of the proposed organization change, as identified in the approved business case, has met the stated organizational goals and objectives of the change.  

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