1.53.1 Managing Organizational Change18.104.22.168 Introduction22.214.171.124 Purpose/Guiding Principles126.96.36.199 Directives188.8.131.52 Responsibilities184.108.40.206 Organizational Change Categories220.127.116.11.1 Category A18.104.22.168.2 Category A Streamlined Template Instructions22.214.171.124.2.1 Category A Streamlined Template: Table 126.96.36.199.2.2 Category A Streamlined Template: Table 188.8.131.52.2.3 Category A Streamlined Template: Table 184.108.40.206.2.4 Review/Approval Authority220.127.116.11.2.5 Implementation18.104.22.168.3 Category B22.214.171.124.4 Category C126.96.36.199.5 Category B and C S-ROC Form Instructions188.8.131.52.5.1 Required AttachmentsExhibit 1.53.1-1 Category A Streamlined Template Form and ExampleExhibit 1.53.1-2 Category B and C S-ROC FormExhibit 1.53.1-3 Organizational Chart ExampleExhibit 1.53.1-4 Proposed OrganizationExhibit 1.53.1-5 SB/SE Human Capital Checklist Part 1. Organization, Finance, and Management Chapter 53. Small Business/Self-EmployedSection 1. Managing Organizational Change 1.53.1 Managing Organizational Change 184.108.40.206 (08-31-2007) Introduction On October 1, 2000, Small Business/Self-Employed (SB/SE) officially "stood-up" as part of the new, modernized IRS. As the second largest business operating division, SB/SE has undergone a reorganization that resulted in a decrease from more than 40,000 to 29,989 IRS employees engaged in the full range of programs associated with tax administration. The SB/SE Request for Organizational Change (S-ROC) process has been in place since February 2001 and has previously undergone revisions. As we continue to receive input from our customers, we constantly search for ways to improve the process. Accordingly, we are releasing these revised SB/SE organizational change procedures in order to refine the process and to parallel our current business needs and customers' demands. 220.127.116.11 (08-31-2007) Purpose/Guiding Principles Beyond the sheer size, scope and complexity of SB/SE programs and activities, the establishment of new field components and reporting relationships argues for the establishment of policies and procedures to govern the review and approval of proposed organizational changes. Notwithstanding the extensive planning, analysis, and coordination that preceded final approval of the organizational design and "geographic footprint" , the SB/SE Division Commissioner and SB/SE Senior Leadership Team anticipated that modifications and refinements would be required in the post-implementation phase. The following guidance is intended to serve as a framework for managing the organizational change process. It outlines the responsibilities of key officials and provides detailed procedures for processing and evaluating proposals that may emanate from many sources (both internal and external to SB/SE). The overriding objective of this decision-driven process is to ensure that each and every proposal is properly evaluated. The processing will differ depending upon the type of organizational change request. See Exhibit 1.53.1-1. Once a decision is made to modify any current structure, it should be communicated and implemented in a manner that: Supports the Strategic Vision; Minimizes Disruption to Business Operations; Ensures the Continuity of Essential Employee Services, and Reflects Operating Division Executive Direction. 18.104.22.168 (08-31-2007) Directives The S-ROC process is not intended as a replacement for the routine processes which are already in place to secure funding of additional positions, upgrades, etc. The S-ROC is the first step that should be taken when seeking approval of organizational design changes. The S-ROC approves the organizational design only. Once the S-ROC has been approved, the implementation of the new design (e.g., filling positions) must be done in accordance with current Finance and Human Capital guidelines. In addition, some SB/SE offices, such as Collection, recently have developed their own set of guidelines regarding the preparation and implementation of organizational changes. Those guidelines supplement these procedures and provide instructions specific to that part of the organization. 22.214.171.124 (08-31-2007) Responsibilities In order to meet these objectives and ensure full and open communication at all levels, the Division Commissioner, SB/SE, has designated the Director, SBSE Human Capital, as the responsible executive for monitoring and coordinating organizational change proposals. Within SBSE Human Capital, the Chief, Information Management(SE:S:HC:IM) will serve as the focal point for controlling and coordinating organizational change proposals, and communicating management decisions associated with this process. In addition, Information Management will serve as the official repository of all documentation associated with organizational change proposals and decisions. After a change has been approved, it is the responsibility of the initiating Executive (i.e., Management Sponsor) to ensure that the change is properly implemented and that all applicable systems have been updated. 126.96.36.199 (08-31-2007) Organizational Change Categories Depending on the nature, scope, cost, and expected impact of recommended organizational changes, all proposed changes will be assigned to one of three categories. Category A, which will apply to most simple requests to realign, will be handled under "streamlined" procedures. Other proposals that involve more significant change, such as a change involving multiple operating units (e.g., Collections, CLD, Exam), or operating divisions (e.g., SB/SE, W&I, LMSB) will require approval by either the SB/SE Division Commissioner (Category B) or the IRS Commissioner (Category C). The following pages outline the definitions and examples for Category A, Category B, and Category C organizational changes. 188.8.131.52.1 (08-31-2007) Category A DEFINITION: Proposals that affect very limited components of the overall organization and typically involve one or more of the examples listed below. EXAMPLES: The following list of changes may currently be processed under the streamlined criterion: Create new permanent or temporary groups to accommodate new hire employees where funding was previously authorized by the SB/SE, Strategy & Finance Office (SE:S:SF:F). Realign employees or groups of employees to other groups or territories. Collapse or combine existing groups/territories. Eliminate vacant positions that are no longer needed. 184.108.40.206.2 (08-31-2007) Category A Streamlined Template Instructions All organizational changes approved under the streamlined Category A procedures require the completion and submission of a simple notification template. See Exhibit 1.53.1-1to view the blank template and a completed example. This template documents the organizational change and serves as a vehicle to obtain new or revised TIMIS/TAPS organizational codes. After approval has been obtained from the local SB/SE Executive in the Field or Headquarters, complete all of the shaded areas pertaining to your organizational change and forward the completed form, via email to the Information Management Office. The contact persons may be found on the SB/SE Human Capital website. 220.127.116.11.2.1 (08-31-2007) Category A Streamlined Template: Table 1 All streamlined changes require the completion of this table. List a brief description of the change, giving details as to what will occur. Attach before and after organizational charts, with the changes denoted on the charts. List the planned effective date of the organizational change. Note: The effective date for personnel actions (i.e., 52's) should be no earlier than two pay periods after Human Capital and/or AWSS have provided notification of new organizational codes or changes to existing organizational codes List the operating unit name (CLD, Exam, Collection, Campus Compliance). If applicable, list the area office and/or territory office, which initiated the change. List the name of the approving SB/SE executive. List the name, title, organizational symbols and telephone number of the contact person. The contact person is the employee who was assigned primary responsibility for development and coordination of the change. 18.104.22.168.2.2 (08-31-2007) Category A Streamlined Template: Table 2 Complete this table only if your organizational change requires the issuance of new TIMIS/TAPS organizational codes. 22.214.171.124.2.3 (08-31-2007) Category A Streamlined Template: Table 3 Complete this table only if your organizational change alters the function (e.g., Collection/Exam) or requires the deletion of an existing organizational code (i.e., group merger, realignment, or dissolution). 126.96.36.199.2.4 (08-31-2007) Review/Approval Authority The approving authority for Category A changes is the executive listed on the template. However, the Information Management office must conduct a brief review to ensure that the request meets the streamlined criteria and to ensure that all changes are addressed. This review normally takes less than 7 business days. After the review has been completed and it has been determined that the request meets the streamlined criteria, the contact person listed on the streamlined template will be given a control number by the Information Management Office. Implementation of the streamlined change should not begin until confirmation is given from the Information Management Office. 188.8.131.52.2.5 (08-31-2007) Implementation The approving executive is responsible for ensuring that all necessary personnel actions (i.e. 52's) and system changes (e.g., ICS, ERCS, TRAS, etc.) are initiated and completed timely. Human Capital and/or AWSS will notify the requestor when new organizational codes are issued and when there are changes to the existing organizational codes. In order for the financial systems to be updated, please make the effective date of the personnel actions (i.e., 52's) no earlier than two pay periods after Human Capital and/or AWSS have provided notification. Any Labor Management Relations issues should be resolved prior to implementation. 184.108.40.206.3 (08-31-2007) Category B DEFINITION: Proposals that involve or affect other operating units, add positions not previously funded, incur additional costs, or involve changes in type of position, grade or series. In addition, there are certain specific areas of interest that require Category B processing. EXAMPLES: Increase analyst or overhead positions (e.g., 343's, 301's etc.) Increase grade 14 and 15 positions Upgrade a position or positions (e.g. increasing analyst grade GS-343-12 to GS-343-13). Increase or decreases in the supervisory to employee ratios (spans of control) below generally accepted forms for the occupational series. Transfer management and program responsibility from one SB/SE operating unit to another. 220.127.116.11.4 (08-31-2007) Category C DEFINITION: Major organizational change proposals whose scope and impact directly affect other Business Operating Divisions (e.g., W&I, LMSB, TE/GE). In addition, the Commissioner has identified certain organizational design and footprint changes that require Commissioner and Deputy Commissioner level approval. EXAMPLES: Create/abolish/merge Deputy Commissioner or Assistant Deputy Commissioner area. Create/abolish/merge Division(s) - operating, functional or support Create/abolish/merge Director level organizations within divisions, functional or support unit. Create/abolish/merge areas in SB/SE. Substantially modifying employment base in any state. Close/Move Posts of Duty and service assistance locations. Note: An interim guidance memorandum issued by Chief, AWSS, on July 15, 2002, stresses that prior to taking any action to close a POD, the initiating office must obtain the Commissioner and Deputy Commissioner's approval. Close/build/move an IRS facility Create occupation upgrades Changes that impact National Labor Agreements Create/abolish/promote to ES-5 level position and above Increase SES/SL slot allocation (EXCEPTION: If the Commissioner has already approved the additional SES or SL position, you may submit a Category B S-ROC provided that no other elements of the S-ROC fall into the Category C criteria. Simply add a statement on the description section of the S-ROC form indicating that the Commissioner approved the additional executive position and provide the date of Commissioner approval). Use of critical pay 40 (EXCEPTION: If the Commissioner has already approved the critical pay position, you may submit a Category B S-ROC provided that no other elements of the S-ROC fall into the Category C criteria. Simply add a statement on the description section of the S-ROC form indicating that the Commissioner approved the new critical pay position and provide the date of Commissioner approval). Transfer management and program responsibility from one operating division to another (i.e. realign the Currency Transaction Reporting office from MITS to SB/SE Compliance). 18.104.22.168.5 (08-31-2007) Category B and C S-ROC Form Instructions All Category B and C type changes require the completion of a Category B/C S-ROC form. See Exhibit 1.53.1-2. PURPOSE: Provide a brief statement outlining the operational or programmatic reasons for the proposed change. Organizational changes should directly support the mission, strategic vision, goals, and objectives of SB/SE. Legitimate basis conducive of approval include improved operational effectiveness, increased customer service and/or enhanced employee satisfaction. This process is not intended to address resource requests or new program initiatives. Staffing increases and/or realignments of FTE's among program areas or business units that do not alter the existing organizational structure should be addressed as part of the Strategy and Program Planning process. DESCRIPTION: Provide a summary of the proposed change and expected impacts, including the following: total number of affected employees by employment type, grade, and location; changes in the number of executive/managerial positions, span-of-control and grade structure; labor relations issues that could require discussions or negotiations with NTEU; budgetary costs and/or savings (including out-years) If services to external customers are being impacted (e.g., POD or service assistance location closure), identify the extent of the impact and any proposed resolutions to level of service issues. This section should also include a preliminary assessment of the nature and extent of systemic changes required for successful implementation and a proposed effective date. The proposed effective date should be determined in consultation with the Business Systems Planning office, Information Management staff and systems analysts in your respective operating unit (e.g., ICS analyst). The date should be based on realistic time frames for accomplishing all necessary changes or modifications to any applicable systems. TIMIS/TAPS ORGANIZATIONAL CODES: If the S-ROC will result in any additions, deletions, or modifications to the current organizational code structure, the requestor should check "Yes" in the box provided on page one of the S-ROC form. After final approval of the S-ROC, the Information Management staff will contact the SB/SE Embedded Human Capital staff in order to alert them of the request for any new or revised TIMIS/TAPS codes. A representative from SB/SE HC will contact the requestor to implement any organizational code changes. The Management Sponsor of the S-ROC is responsible for ensuring that all necessary personnel actions (i.e., 52's) and system changes (e.g., ICS, ERCS, TRAS, etc.) are initiated and completed timely. Human Capital and/or AWSS will notify the requestor when new organizational codes are issued and when there are changes to the existing organizational codes. In order for the financial systems to be updated, please make the effective date of the personnel actions (i.e., 52's) no earlier than two pay periods after Human Capital and/or AWSS have provided notification. Any Labor Management Relations issues should be resolved prior to implementation. New TIMIS/TAPS codes may be obtained prior to approval of the S-ROC, if there is an urgent business need for the codes to be established. For example, a change involving transfer of employees from one operating unit to another may need to occur prior to the beginning of a new fiscal year for budgetary and timekeeping purposes. In these types of cases, the originator of the S-ROC would need to take the following steps in order to obtain TIMIS/TAPS codes PRIOR to final approval of the S-ROC: If the S-ROC crosses operating unit lines, verify that the SB/SE Division Commissioner's office approves of the proposed change. If the S-ROC qualifies as a Category C type change and the Commissioner's office has approved of the change, then secure the date of the Commissioner's/Deputy Commissioner's approval. However, if the Commissioner's office has not yet approved of the Category C type change, then you must submit a Category C S-ROC and have it approved through the normal approval channels prior to requesting any organizational codes. Contact the SB/SE Embedded Human Capital staff in order to identify any position management/classification and labor relations issues, as well as to obtain HC approval for setting up the organizational codes. Prepare an email detailing the completion of the prior steps and stating the business reason for setting up the codes prior to final approval of the S-ROC. Send this email to the Information Management Office. The contact persons may be found on the SBSE Human Capital website. AFFECTED OFFICES/SYSTEMS: This refers to the organizational components (both within and outside SB/SE) and business or administrative systems, which are affected by organizational change. Examples of systems that could require realignment include the Automated Collection System (ACS), Automated Underreporter System (AUR) and the Integrated Data Retrieval System (IDRS). Administrative systems such as the Travel Reimbursement and Accounting System (TRAS) and Requisition Tracking System (RTS), which may require realignments to approval paths, user profiles, or links to other systems, should also be identified. It is the responsibility of the Management Sponsor to ensure that the change is properly implemented and that all applicable systems have been updated. S-ROC CATEGORY: The S-ROC category (B or C) is used to classify the organizational change based on certain defined criteria (see definitions and examples). The category of the S-ROC determines the routing path and approval level. MANAGEMENT SPONSOR: The Management Sponsor is the manager or executive who promotes the organizational change and ensures that it is properly implemented subsequent to its approval. The Management Sponsor must be either a Director/Deputy Director or a direct report (e.g., Compliance Field Operations, Area 1 Director). CONTACT POINT: The Contact Point is the individual employee who is assigned primary responsibility for development and coordination of the S-ROC. This contact will serve as the Management Sponsor's liaison with Information Management and all other offices included in the routing, concurrence, and implementation stages of the approval process. The named individual, who may be a manager or staff analyst, should have a complete knowledge and understanding of the proposal and direct access to the Management Sponsor. OPERATING UNIT DIRECTOR: The Operating Unit Director is the Director of the operating unit who reviewed the organizational change proposal originating in their line organization. This Director must be a direct report to the Division Commissioner. S-ROCs will not be processed by Information Management (SE:S:HC:IM), without the approval of the Operating Unit Director or designee. ROUTING: Category B and C proposals must be submitted on the SB/SE Request for Organizational Change (S-ROC) form. After review and approval, the Originating National Director should route the S-ROC along with full and complete documentation (including current and proposed organizational charts and S-ROC related materials) to the SBSE Director of Human Capital (Attn: Chief, Information Management, SE:S:HC:IM). The Information Management office will conduct an initial review of the S-ROC for conformance with administrative procedures before routing it to the other applicable reviewing parties, who will each conduct a separate review. For example, Organizational Workforce Transition will review the proposal for position classification and position management issues such as proper grade levels, duplication/redundancy of positions, organizational layering, span of control, and availability of position descriptions. Upon approval or disapproval, the Information Management office will return a copy of the S-ROC to the "Operating Unit Director's" office. See Exhibit 1.53.1-2. for details regarding processing. POSITION MANAGEMENT AND POSITION CLASSIFICATION: If the proposed reorganization results in a change in the grade of a position(s), classification approval by Strategic Human Resources will be required prior to implementation of the reorganization. If a reclassification is indicated, contact the servicing Position Classification Specialist as early as possible in the development of the proposed reorganization for advice and instructions. The contact persons may be found on the SB/SE Human Capital website. CONTROL AND MAINTENANCE: The Chief, Information Management, (SE:S:HC:IM) will serve as the primary control point and official repository for all S-ROC's. That office will assign a unique identifying number for all requests and respond to ad hoc status requests. To the extent possible, email will be used to request and report the status of individual proposals. APPROVAL AUTHORITY & LIMITATIONS: The parties that may review/approve a Category B or C S-ROC will vary due to the nature of the request. Category B requests which cross operating unit lines will be approved by the SB/SE Division Commissioner, after concurrence by applicable functions (i.e., Operating Unit Director, Information Management, BSP, Organization Workforce Transition, and Strategy and Finance ). All other Category B requests may be approved by the Operating Unitl Director, after concurrence from the Director of Human Capital and any other applicable functions. Category C requests require Commissioner level approval. Approval of Category B & C type requests authorizes a change in the organizational design. Once the S-ROC has been approved, the implementation of the new design (e.g., filling positions) must be done in accordance with current Finance and Human Capital guidelines. 22.214.171.124.5.1 (08-31-2007) Required Attachments All Category B and C S-ROC's should include, as attachments or exhibits, the following supplemental material: ORGANIZATIONAL CHARTS: These charts should be actual organizational charts that clearly depict the reporting relationships, specific number of positions, job series numbers, and grades of the positions shown. The current charts should reflect the organization as shown in the SBSE Phase II redesign Commissioner's Package (rev. 08-19-05), plus any prior S-ROC approved changes. The proposed charts should reflect all of the changes described on the S-ROC form. See Exhibit 1.53.1-4. for an example of current and proposed organizational charts. If applicable, documentation pertaining to the SB/SE Human Capital Checklist See Exhibit 1.53.1-5.. If the organizational change will result in a change to the functional statements, then revised functional statements should be attached to reflect the new proposed organization. Exhibit 1.53.1-1 (08-31-2007) Category A Streamlined Template Form and Example There is currently no description available for this image. For help with this image, please call the IRS.gov Helpdesk at 1-800-876-1715. Please click here for the text description of the image. Exhibit 1.53.1-2 (08-31-2007) Category B and C S-ROC Form There is currently no description available for this image. For help with this image, please call the IRS.gov Helpdesk at 1-800-876-1715. Please click here for the text description of the image. There is currently no description available for this image. For help with this image, please call the IRS.gov Helpdesk at 1-800-876-1715. Please click here for the text description of the image. Exhibit 1.53.1-3 (08-31-2007) Organizational Chart Example There is currently no description available for this image. For help with this image, please call the IRS.gov Helpdesk at 1-800-876-1715. Please click here for the text description of the image. Exhibit 1.53.1-4 (08-31-2007) Proposed Organization There is currently no description available for this image. For help with this image, please call the IRS.gov Helpdesk at 1-800-876-1715. Please click here for the text description of the image. Exhibit 1.53.1-5 (08-31-2007) SB/SE Human Capital Checklist There is currently no description available for this image. For help with this image, please call the IRS.gov Helpdesk at 1-800-876-1715. Please click here for the text description of the image.