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The Valmis program, implemented during the 2013-2020 period, is the largest transformation program implemented in the history of the Finnish Tax Administration. The entire architecture of the taxation systems – more than 70 legacy systems - was reshaped and rebuilt through a standard, commercial-off-the-shelf (COTS) software. Simultaneously, legislations on taxation procedures were revised and internal processes related to taxation at the Administration were streamlined and automated. The program was completed on time, the costs were kept under control and the results exceeded the expectations and objectives set for the program. EY took the role of the management consultant for the program and was responsible for administrative and planning tasks such as implementation planning and preparation, and program and project management support.
In brief
- In the Valmis program, the entire architecture of the legacy taxation systems was reshaped and rebuilt using a standard, commercial-off-the-shelf (COTS) software. The objectives of the program were to focus on generating cost savings in IT maintenance and IT development while also speeding up future development projects and to increase automation in the Administration’s internal processes related to taxation.
- EY took the role of the program management consultant and was responsible for administrative and planning tasks such as implementation planning and preparation, and program and project management support.
- While the solution renewal played a significant part in the Valmis program, it was not only an IT project but a major strategic change and transformation.
The technology being used at the Administration for the taxation processes was outdated by the 2010’s standards and was yet to be renewed. Developing the legacy technology was known to be troublesome, expensive and time consuming. The outdated technology was also starting to put the operational reliability of taxation in jeopardy.
The Valmis program aimed to reduce IT maintenance and IT development costs and to shorten the development life cycle of future projects and smaller development efforts. The program also aimed to automate the internal taxation processes of the organization to free their personnel’s time to be spend more effectively on more worthwhile tasks.
Nevertheless, the main driver for the program changes was operational reliability. Tax collection, tax accounting and tax revenue could not be risked. Additional effort was put into planning and implementing these key features. When all systems and operating processes of an organization are renewed simultaneously, managing change becomes extremely important. In worst cases, the risks associated with the program could have crippled or paralyzed taxation and, thereby, the effects could have been felt by the entire society.
Non-visible work before the commencement of implementation
Although the system renewal was a significant part of the Valmis program, it was not only an IT project but a major strategic change.
Due to the strategic nature of the program, EY’s involvement commenced already prior to the actual start of the program. Meticulous planning was done and best practices from previous and on-going projects were leveraged in designing the program’s procedures and working methods. The significance of the program meant that vast efforts were made planning and executing organizational change management in the first implementations to ensure a successful transition.
In addition, EY employees worked rigorously in the background ensuring the smooth progress of the program.
Transformation with 5,000 people
During the life cycle of the program, 960 employees from the Tax Administration and nearly 400 consultants took part in the program’s five individual implementation projects. A separate project organization was established for the program to manage the projects. This project organization performed activities such as, resource planning and recruitment to the implementation projects, which were started over six months before the commencement of work in the implementation projects.
Well planned recruiting enabled people who are interested in and motivated by project work to be selected to this program. Combining the great people selected with strong support from the Administration’s top management and adequate resourcing to the program, as well as goal-oriented management style towards the actual implementation teams contributed significantly to the success of the program. Moreover, a “program spirit” was very much prevalent throughout the program. The entire team in the program was able to focus on working towards a common goal, regardless of the organization they came from.
“Inside the Tax Administration, the Valmis program was also a unique transformation as it affected nearly everyone in the organization and engaged a vast number of people to participate in the implementation of the program. Fortunately, the entire organization was truly committed to the transformation. We were able to gather motivated individuals and utilize committed and competent people from external partners – such as EY – in the critical parts of the program,” says Program Manager Pikkarainen.
The transformation involved the entire personnel engaged in taxation work at the Tax Administration which made change management a critical part of the program, and a considerable investment made to ensure a smooth transition. EY experts supported the client’s management team and project organization with change management by providing support in planning and implementation activities as well as through solid leadership support.
In practice, change management consisted of regular discussions within the Administration and close co-operation and communication between the business units, personnel unions, and personnel with managerial duties. The most work intensive and demanding task was planning and arranging the training for tax officers. Additionally, post-implementation support was planned right from the beginning of the program to support the transition and resolve any issues that people could face.
Always fluently forward with correct situational awareness
The Valmis program was divided into five separate annual implementation projects to manage the risks and to ensure relative ease of implementation. Each project involved between 300-500 people from the Administration.
Every project consisted of hundreds of meetings for requirement definition and thousands of built functionalities. Monitoring the project implementation was performed using the main system supplier’s project management tool minimizing the administrative work needed for collecting and updating data and allowing people to focus on more important tasks.
Inspecting the project timeline, tasks and statuses were separated into task categories – for example definition, development and testing. Each task was assigned to a specific person who oversaw ensuring progress for the task and to keep the status up to date. Updates were done when each task had been implemented, reviewed or approved. Based on the insights gained from this tracking, it was possible to predict the completion of the tasks.
“We wanted to manage and lead the program relying on accurate and up-to-date information. EY’s contribution in for example this area was irreplaceable. We were able to operate as we wanted and direct the complex and large-scale program in the right direction, and to make corrections when needed. EY’s competencies supported our own organization’s know-how, and co-operation with EY was fluent,” says Program Director Pikkarainen.
The follow-up mechanism was tuned together with the suppliers throughout the program using continuous improvement principles. When information on possible bottlenecks and progress was available, it was possible to improve the ways working and the system development process to be even more efficient. Developing the tools together with the suppliers to satisfy the needs of both parties, and a common view on the actual situation, reduced discussions related to differing views on, for example, quality or progress.
All competencies from the EY Technology Consulting team were utilized in the project — IT management support, program management support, project management know-how, as well as transformation capabilities independent from any technology or supplier.
Exceeding expectations, on budget and on schedule
The Valmis program was as significant for EY as it was for the Tax Administration. A total of thirty EY employees participated in the program during its span of six and a half years.
The EY team consisted of the following experts and many more in other roles: Antero Juntunen, Keijo Korhonen, Esa Kuivaniemi, Antti Melander, Valtteri Ojansuu, Tommi Parviainen and Aku Pyymäki.
During the program, many of EY’s competencies were leveraged in operating in the interface between IT and business. Most essential was the expertise in IT operating models and project management, which meant the project team understood the requirements for following through on a transformation program from a technical and business perspective and could plan activities accordingly, from organizing work and processes to leading people. On a practical level, as program and project consultants, EY supported the Program Managers, Project Managers, Test Managers, Team Managers and other program staff in their tasks in general and designed the new IT operating model together with the Tax Administration.
EY’s budgeting and process expertise was also put to use to manage the running of the program. Additionally, the data tool used in reporting the progress and status of the individual projects was developed by EY.
The end result from the program was excellent in every respect. Although public sector project’s often appear in the headlines due to scheduling or budgeting issues, the Valmis program was exceptional not only due to its size, but also for exceeding the functional and quality objectives set for the program and for being completed on budget and on time.
For our part, EY was pleased to participate in a well-managed and implemented program. There are not many comparable successes around the world. The Tax Administration management’s staunch support and commitment to the success of the project, and the know-how, experience and exceptional work ethic of the personnel were key to the success of the program.
Roope Hyöky
Partner, Consulting, Business Transformation, EY Finland
The Valmis program also received the ‘Project of the Year 2020’ award from the Finnish Project Management Association. The arguments and rationale for the award were the scope of the project, its significance for all Finns and the tremendous digital leap it achieved. Among the previous winners of this award, the Valmis program is also special as it is not an Infrastructure project as many other winners are – a building, a tunnel or a road.
Summary
The Valmis program is the largest transformation program in the history of the Finnish Tax Administration. In it, the entire architecture of the taxation systems was reshaped and rebuilt through a standard, commercial-off-the-shelf (COTS) software replacing more than 70 legacy systems. EY acted as the management consultant in the program and was responsible for tasks such as, implementation planning and support. The program received the ‘Project of the Year 2020’ award from the Finnish Project Management Association.