5950CanogaAvenue,Suite600,WoodlandHills,CA91367ListofCandidateBestPracticesAgenciesPreparedonBehalfofSTATEOFARIZONADEPARTMENTOFREVENUEBusinessReengineering/IntegratedTaxSystemsProject(BRITS)PhaseI28March2000StateofArizonaDepartmentofRevenueListofCandidateBestPracticesAgenciesEntirecontents©2000GartnerGroup,Inc.UseexternaltoStateofArizonaDepartmentofRevenuerestrictedbytermsofcontract08.doc28March2000—Page11.INTRODUCTIONAsapartoftheStateofArizonaDepartmentofRevenue(ADOR)BusinessRe-engineering/IntegratedTaxSystem(BRITS)Phase1Project,Gartnerisconductingabestpracticessurveyofotherpublicsectorrevenueagenciesandappropriateprivatesectororganizations.Thepurposeofthissurveyistounderstandwhattheseorganizationsaredoingintheareasoforganization,businesspracticesandinformationtechnology.Duringthesurvey4to5publicsectoragenciesand1to2privatesectororganizationsthathavedemonstratedinnovativeapproachesinoneormoreoftheseareaswillbecontactedregardingcurrentorganizationalstructure,customerserviceorientationandinitiatives,informationsystems,businessprocesses,plansfornewsystemsandeffortstoimprovebusinessprocesses.Theresultsofthesurveywillbecompiledanddocumented,andGartnerwillidentifykeybestpractices,whichADORmayuseinimprovingitsprocesses,organizationandtechnology.Becausethecriteriausedtoselectpublicsectoragenciesisdifferentthanthatusedforprivatesectoragencies,thisdocumentisdividedintopublicsectorandprivatesectorsections.Eachsectionincludesadescriptionofhowthelonglistofpotentialbestpracticesagencieswasgenerated,definesthecriteriausedtoselecttheshortlistofcandidateagencies,providestheapplicationofthecriteriaandrecommendsashortlistofcandidateagenciestobepartofthisstudy.2.PUBLICSECTOR2.1IDENTIFICATIONOFCANDIDATELISTOFSTATESGartnerhasdevelopedalistofpotentialagenciestobeincludedinthisstudy.Thelistwascompiledusingseveraldifferentsources.SevenofthestateswereidentifiedinArizona’sJanuary2000,“StateRevenueAgenciesQualityPracticesInventorySurvey”.SeveralofthesestatesandsomeadditionalstateswereidentifiedbyADORstaffduringfocusgroupdiscussions.Gartneralsoconductedresearchintostaterevenuecollectingagenciesandidentifiedseveralstatesthatshouldbeincludedonthepotentialbestpracticeagencylist.ThesestateswereidentifiedasinnovatorsintheuseoftechnologyintaxprocessingthroughpublicationsfromGartner,theNationalAssociationofGovernors,theU.S.TaxMonitor,theTaxFoundation,theNationalConferenceofStateLegislatureandtheGovernmentTechnologyMagazine.Thefollowingtableincludesthelistofpotentialbestpracticeagenciesalongwiththesourcethatcitedthestateasabestpractice.StateofArizonaDepartmentofRevenueListofCandidateBestPracticesAgenciesEntirecontents©2000GartnerGroup,Inc.UseexternaltoStateofArizonaDepartmentofRevenuerestrictedbytermsofcontract08.doc28March2000—Page2PotentialBestPracticeStatesSourceStatesDORQualityPracticesSurveyFocusGroupGartnerResearchCaliforniaXXFloridaXXXKansasXXXMarylandXMassachusettsXXMichiganXXMinnesotaXXMississippiXNorthCarolinaXOhioXPennsylvaniaXSouthCarolinaXXVermontXWashingtonXXWisconsinXX2.2CRITERIAFORSELECTIONOFCANDIDATEBESTPRACTICESAGENCIESThefollowingequallyweightedcriteriaweredevelopedtoselectashortlistof4-5candidateagenciesinthebestpracticessurvey:1.Thestatemustcollectataxrevenueamountsimilar(+/-30%)tothatofArizona.2.Thestatemusthaveonerevenuecollectionagencythathasresponsibilityformultiplemajortaxtypes(e.g.,sales,corporate,income,withholding).3.Thestatemusthaveaninnovativeapproachtotheuseofinformationtechnologyinitstaxprocessingoperations.4.Thestatemusthaveastrongcustomerfocusinitsoperationsandorganization.5.Thestatemusthaveaninterestin,orexperiencewith,communicatingandinteractingelectronicallywithtaxpayersandtheiragents.StateofArizonaDepartmentofRevenueListofCandidateBestPracticesAgenciesEntirecontents©2000GartnerGroup,Inc.UseexternaltoStateofArizonaDepartmentofRevenuerestrictedbytermsofcontract08.doc28March2000—Page32.3SELECTIONOFCANDIDATEBESTPRACTICESTATESThefollowingtablelistsallthepotentialbestpracticestatesandappliestheselectioncriteriatoeach.ApplicationoftheselectioncriteriaisbasedonGartner’spreliminaryresearchintoeachpotentialbestpracticestate.AstatewasgivencreditformeetingacriterionifinformationspecifictothecriterionwasprovidedbytheresearchmaterialortheADORsources.CriteriaStatesSimilarRevenueAmountMultipleTaxResponsibilityITInnovationCustomerFocusE-GovKansasXXXXXMississippiXXXXXCaliforniaXXXXSouthCarolinaXXXXVermontXXXXWisconsinXXXXMarylandXXXMichiganXXXPennsylvaniaXXXWashingtonXXXFloridaXXMassachusettsXXMinnesotaXXNorthCarolinaXOhioXBasedontheapplicationoftheselectioncriteria,thefollowingstateswereselectedascandidatebestpracticeagenciestobeincludedinthebestpracticessurvey:•Kansas•Mississippi•California•SouthCarolina•WisconsinStateofArizonaDepartmentofRevenueListofCandidateBestPracticesAgenciesEntirecontents©2000GartnerGroup,Inc.UseexternaltoStateofArizonaDepartmentofRevenuerestrictedbytermsofcontract08.doc28March2000—Page43.PRIVATESECTOR3.1IDENTIFICATIONOFPOTENTIALPRIVATESECTORBESTPRACTICEORGANIZATIONSThroughresearchingGartnerdocum