150-800-550 (Rev. 03-13) 24

Key performance measures

I. Executive summary

II. Key measure analysis 1. Dollars collected per revenue agent per month (personal income tax).

2. Percent of property taxes collected.

3. Percent of assessors’ maps digitized in a GIS format.

4. Replaced with key performance measure 13: effective taxpayer assistance.

5. Personal income tax nonfiler assessments issued per employee per month.

6. Personal income tax and corporation tax cases closed per revenue agent per month.

7. Delinquent returns filed after compliance contact per filing enforcement employee per month.

8. Average days to process personal income tax refund.

9. Percent of personal income tax returns filed electronically.

10. Employee work environment.

11. Employee training per year.

12. Customer service.

13. Effective taxpayer assistance.

III. Using performance data

150-800-550 (Rev. 03-13) 25

Executive summary

Scope of reportTheagency’skeyperformancemeasures(KPMs)areintendedtorepresentourmajorbusinessoutcomesintheincometaxandpropertytaxprograms.

Thesemeasuresaddresstheagency’smajorfunctionsthatincludecollectingrevenue,auditingreturns,andassistingtaxpayers.

The Oregon contextTheDepartmentofRevenueisakeystrategicandoperationalpartnerinprovidinghealthytaxsystemsandlong-termrevenuestabilityforthestateofOregon.Ourmissionofmakingrevenuesystemsworktofundpublicservicesincludesstrongworkvaluesaroundoperationalexcel-lenceandfiscalresponsibility.Theexperienceandskillsrequiredtosupportourmissionsig-nificantlycontributestothegovernorandthelegislatureprovidingthebestpossiblefutureforallOregonians.

Ourperformanceisguidedbytheagency’svisionthatemphasizestheimportanceoftaxadministrationandservice,operationalexcellence,andasafeandpositiveworkenvironment.Wecurrentlyhave12departmentperformancemeasuresthattellushowwellwearedoingintheseareas.Ourorganizationalstrategicvisionisdesignedtomoveandmotivatethedepart-mentformanyyears.Tocontinuemakingthisvisionareality,wearecommittedtoinnovating,streamlining,andusingthemostappropriatetoolsandtechnologyavailabletous.

Theagencycontinuallycollects,analyzes,andcommunicatesinformationfromandtostake-holderstobuildhealthyrelationships,betterunderstandstakeholderneeds,anddrivecontinu-ousimprovementinouroperations.

Performance summaryThedepartmenthasidentified12keymeasuresofperformancelinkedtoitsmissionandvision.Significantsuccessesduringthepastyearinclude:asignificantincreaseinthenumberofper-sonalincometaxnon-filerassessmentsissuedperemployeepermonth.SuccessinthisarenaisduetochangesimplementedtoincreaseleadsduetodatamatchingwiththeIRSandcontinu-ingtofocusonenforcementtoincreasevoluntarycompliance.Wecontinuetoseegrowthinthenumberofpersonalincometaxreturnsfiledelectronically.Moreandmoretaxpayersarefilingelectronicreturns,improvingspeedandefficiencyofprocessingandreducingcosts(KPM#9).And,thenumberofdaystoprocessareturncontinuestotrenddownwardandexceedthetar-gets(KPM#8).

Thedepartmentalsohadsomechallengesinmeetingsomeperformancemeasures,including:thedollarscollectedperrevenueagentpermonth(KPM#1)andthecorrespondingmeasurepersonalincometaxandcorporationtaxcasesclosedperrevenueagentpermonth(KPM#6).Inbothofthesemeasures,thetargetswerenotmet.Uponcloserreviewitisclearthatthesetwomeasuresareasubsetofthetotalnumberofrevenueagentsanddon’trepresenttheworkofallthestaffintheseareas.ThepercentofassessorsmapsdigitizedinGISformat(KPM#3),hasmadesomeprogress,buthasstruggledtomeetgoals.Thenumberofdelinquentreturnsfiledaftercompliancecontactperfilingenforcementemployeespermonth(KPM#7)stillisundertarget,butdidmakesomegainsinFY2012.Newstrategiesaroundtrainingandcontacting

150-800-550 (Rev. 03-13) 26

taxpayerssoonerareinplace,buthavenotbeeninplacelongenoughtoproducedesiredresults.Duetobudgetconstraints,theabilitytoprovideemployeeswith20hoursoftrainingperyearhassuffered.WebelieveFY2013willbearoutdifferentresultsaswehaveputahighemphasisongettingemployeestrainingopportunities.

ChallengesAswelooktothefuture,sloweconomicgrowthandtightbudgetresourceswillcontinueforsometime.Wewillbechallengedtofindnewwaysandinnovativewaysofdeliveringservices,collectingtaxrevenues,providingemployeeswiththetoolsandresourcestheyneed,andwith-outmakingsomeinvestmentinourcoreITsystems.Inaddition,astheagencyhasrevieweditsKPMsandstrategicplan,wehavefoundthatsomeofthemeasureswecurrentlyhavearenotthebestmeasurestotrackourperformanceovertime.Aswehavehadsignificantturnoverinagencyleadershipinthelast18months,thereisarecognitionthatsomemeasuresneedtobere-tooledtoprovidebetterdataandmanagementresourcestotheorganization.TheagencybelievesthatKPM#1,KPM#5,KPM#6,KPM#7,andKPM#10needtobereworked.

Resources and efficiencyTheagency’slegislativelyapprovedbudgetforthe2011–13bienniumis$181,373,337,whichrep-resentsaslightdecreasefromthepreviousbiennium.Thedepartmentmadeprogressonitskeymeasures,includingitsefficiencymeasures,overthelastyear.

Performance summary

41.7%Target to -5%

33.3%Target > -15%

25%Target -6% to -15%

Exception: Cannot calculate status (zero entered for either actual or target).

150-800-550 (Rev. 03-13) 27

Key performance measure 1: Dollars collected per revenue agent per month (personal income tax)

Measure since: 2000

Goal: Taxadministration—Provideexcellentservice,helpingtaxpayersmeettheircommitmentswitheducation,assistance,andcompliance.

Oregon context: Thisgoallinksdirectlytothedepartment’smission.

Data source: AgentproductionreportsACTF007,PTACperformancemeasures,costallocationsystem(CAS);basedonproductivityperposition.

Owner: JoannMartin,PersonalTaxandCompliancedivisionadministrator

1. Our strategy: Ourstrategyistomaintainaworkforceofskilledemployeeswhoareprovidedwithessentialcollectiontoolsandtechnology.Weevaluatetheeffectivenessofcollectionstaffincollectingdelinquenttaxdebt,analyzethetypeandageofdelinquentdebt,andevaluatetheuseofadditionalcollectiontools.

2. About the targets: Thetargetmeasurestheproductivityofcollectionstaff,basedonthedollarscollectedperposition.Thehigherthelevelachieved,thegreatertheproductivity.

3. How we are doing: Actualsfor2011of$112,977,exceedingthetarget($111,700).Actualsfor2012were$114,141andourtargetwas$121,000.

4. How we compare: ItisdifficulttocompareOregon’sperformancewithotherstates,giventhewidelydiversetaxstructuresofdifferentstates.Thedepartmentiscurrentlyworkingwithagroupofstatestodevelopawaytocompareresultsfromstatetostateanddevelopandsharebestpracticeinformationstatetostate.

5. Factors affecting results: Conceptually,thismeasureispersonalincometaxrevenueattributedtothecollectionseffortsofaspecifiedgroupofrevenueagentsdividedbythenumberofagentsinthisgroup.Themechanicsofthismeasurearesimple,butthedataforthismeasureisnotasstraightforwardasthemeasuresuggests.Ourabilitytobreakdowndatacollectionactivityattributabletoeachagentandthefactthatthismeasureonlyfocusesonasubsetofrevenueagentactivityhighlightsshortcomingsinthereliabilityofthismeasureofperformance.Althougha

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2007 2008 2009 2010 2011 2012 2013

$93,315 $103,340 $107,830 $118,285 $112,977 $114,141

Dollars collected per revenue agent per monthBar is actual, line is target

150-800-550 (Rev. 03-13) 28

slowingeconomyhasbeenidentifiedinpreviousreporting,collectionmeasurementscontinuetoshowthatthedepartmentisastrongresourceforresolvingstatedebtfairly,efficiently,andeffectively.Themostrecentincreaseincollectionsmayinpartbeattributedtotheimplementationofanewsustainableworkmodelthatallowsincomingcallstobehandledbyagentsspecializedincustomerservicetoresolveaccountsonthephone.Otheragentsarenowfocusedprimarilyonworkqueuesandresolvingaccountsthroughoutboundcalls,issuingletters,warrants,andgarnishmentstomeeta90-dayresolutiongoal.Thisandothermanagementpracticestoprioritizeworkqueueshaveresultedinanoverallincreaseinproductivity.Weareoneyearintothesechangesandhavenotfullyrealizedtheincreasesexpectedinproductivity.

6. What needs to be done: Withongoingturnoverofstaffduetopromotionandretirement,recruitingandtrainingnewstaffisaconstantchallenge.Weneedtocontinuetoevaluatehowtostreamlineourtechnicaltraining.

7. About the data: ThereportingcycleisOregon’sfiscalyear.Thedepartment’sinternalauditorreviewedthemeasureandreportedthatthecalculationsappeartobeaccurate,documented,andrepeatable.

150-800-550 (Rev. 03-13) 31

Key performance measure 2 Percent of property taxes collected

Measure since: 2000

Goal: Taxadministration—Partnerwithlocalgovernmentstopromoteahealthyandconsistentprop-ertytaxsystem.

Oregon context: Thisgoallinksdirectlytothedepartment’smission.

Data source: Oregonpropertytaxstatistics(variousyears),propertytaxcertified,propertytaxcollec-tion,andtotaluncollectedreport.

Owner: MarkKinslow,PropertyTaxDivisionadministrator

1. Our strategy: Ourstrategyistoprovidetrainingofcountycollectionstaff,anddevelopandmaintainsupportmaterialstohelpcountiescollectidentifiedpropertytaxes.

2. About the targets: Thetargetmeasuresthedegreetowhichcountiesareabletotimelycollectidentifiedpropertytaxes.Thehigherthepercentageoftaxescollected,thebetter,asmostunitsoflocalgovernmentrelyheavilyonpropertytaxestofundlocalservices.

3. How we are doing: The2011targetwas93.8percent.Actualmeasuredperformancewasslightlybelowthetargetat93.7percent,whichdoesnotrepresentastatisticallysignificantchangefromthepreviousreportingyear.

4. How we compare: Comparabledataisnotavailable.5. Factors affecting results: Datarevealsthecountiesarecollectingahighpercentageofthetotal

propertytaxesthataredueandaremanagingtheiraccountsreceivablewell.Additionalresearchhasshownthat,bytheendofthethirdyearfollowingtheinitialbilling,thecountieshavereceivedabout99.7percentofthetaxesdueforthatyear.Thestatisticsshowahighdegreeofeffectivenessinmaintainingtimelycollectionactivitiesforthepropertytaxyear.

6. What needs to be done: Continuepartnershipswithcountycollectionsoffices.7. About the data: ThereportingcycleistheOregonfiscalyear.Thedataisself-reportedbyeachof

the36countiesandusesthesamemethodologyasisusedfortheHealth of the Property Tax Systempublication.

Percent of property taxes collectedBar is actual, line is target

0

20

40

60

80

100

2006 2007 2008 2009 2010 2011 2012 2013

94.4% 94.4% 93.9% 93.2% 93.4% 93.7%

150-800-550 (Rev. 03-13) 32

Key performance measure 3 Percent of assessors’ maps digitized in a GIS format

Measure since: 2004

Goal: Operationalexcellence—Adoptbestbusinesspractices,takingadvantageoftechnologytoimproveoursystemandprocesses.

Oregon context: Thisgoallinksdirectlytothedepartment’smission.

Data source: OregonMapProject(ORMAP).

Owner: MarkKinslow,PropertyTaxDivisionadministrator

1. Our strategy: OurstrategyistopartnerwithcountiestomigratedigitizedpropertytaxmapsintoGISformat,providingemployeesandbusinesspartnerswitheasyaccesstoaccuratepropertytaxmapinformation.

2. About the targets: TheORMAPadvisorycommittee(asprovidedunderORS306.135)hasestablishedatargetof70percentforthe2011reportingyear.Thistargetisbeingmet.TheagencywillbecomingforwardinthenextupdatecycletoformallyrequestthatKPMtargetsforthismeasurearechangedtobeconsistentwiththoseofthestate-wideadvisorycommittee.Thelong-termtargetistohaveatotallydigitalstatewidepropertytaxmapbytheyear2016.ThiswillrequiretransformingallthecountyassessormapsintoaGISformatbythatdate.Thehigherthepercentage,thebettertheperformance.

3. How we are doing: AsofJune2012,wehavecompleted75percentofthetaxmapsand83percentofthetaxlots.WearemeetingtheORMAPadvisorycommitteetargets.

4. How we compare: Thismeasureisdifficulttoevaluateacrossjurisdictionsbecauseofdifferingtechnologyandterminology.JurisdictionsinmanystatesareintheprocessofconvertingtheirtaxlotbasedatatoGIS-enabledformat.Few,however,aredoingitfromthestatewidelevel.

5. Factors affecting results: Fundingchallengesandascarcityofskilledstaffatboththestateandlocallevelpresentongoingchallenges,butadvisorycommitteetargetsarebeingmet.

6. What needs to be done: Thedepartmentneedstocontinuetopartnerwithcountiestomanageandfundremappingeffortsaimedatimprovingaccesstoassessormapinformation.

7. About the data: ThereportingcycleisOregon’sfiscalyear.Thedepartmentinternalauditorreviewedthismeasureforfiscalyears2006and2007.Theresultsofthatauditwereadoptedintohowthismeasureiscurrentlybeingmanagedandreported.

Percent of assessors’ maps migrated to GIS formatBar is actual, line is target

0

20

40

60

80

100

2007 2008 2009 2010 2011 2012 2013

50% 57% 63% 69% 70% 75%

150-800-550 (Rev. 03-13) 33

Key performance measure 5 Personal income tax nonfiler assessments issued per employee per monthMeasure since: 2000

Goal: Taxadministration—Provideexcellentservice,helpingtaxpayersmeettheircommitmentswitheducation,assistance,andcompliance.

Oregon context: Thisgoallinkstothedepartment’smission.

Data source: Costallocationsystem(CAS)andfilingenforcementmonthlyreports,basedonproductiv-ityperposition.

Owner: JoannMartin,PersonalTaxandComplianceDivisionadministrator

1. Our strategy: Ourstrategyistodevelopfilingenforcementtools,techniques,anddatasourcesthatwillimprovetheaccuracyofourinformationandhelpthedepartmentassisttaxpayersinfiling.

2. About the targets: Thedepartmentiscontinuingtoemphasizevoluntaryfilingoftaxreturnsbytaxpayers(KPM#7).Asthateffortincreases,weshouldnotbesendingasmanyassessmentsoftaxduetotaxpayers.Asaresult,weareprojectingthenumberofassessmentsperemployeeshouldpeak,andthendeclineovertime.

3. How we are doing: Weexceededthe2012target.Wechangedourfilingenforcementstrategyandprocessesinlate2010.Theseprocesschangesallowstafftoworkcasesmoreefficiently,resultinginmoreassessmentsbeingdone.Thismayseemcontradictory.Improvedenforcementisanintegralpartofourlargerstrategyofvoluntarycompliance.Thisissimilartoincreasingpolicepatrolsasschoolbegins,asanintegralstrategyofachievingdecliningaccidentratesinschoolzones.

4. How we compare: Comparabledataisnotavailable.Weexceededthetarget.5. Factors affecting results: Wearecontinuingtorefinethetoolsandskillsneededtoencourageand

assisttaxpayerstofiletheirreturnsvoluntarily.During2012fiscalyear,weimplementedprocesschangesthatallowedfilingenforcementstafftobemoreefficient.WealsoutilizeddataanalyticstofindfilingenforcementleadsfromthedatareceivedfromtheIRS.

6. What needs to be done: Thedepartmenthasdefinedstrategiestoincreasevoluntarycompliance.Webelievethestrategieswehavecurrentlyadoptedwillnotallowustomeetadecreasingtargetfor

Personal income tax nonfiler assessments issued per employee per monthBar is actual, line is target

0

10

20

30

40

50

60

70

2008 2009 2010 2011 2012 2013

35 36 49 47 60

Num

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f ass

essm

ents

issu

ed

150-800-550 (Rev. 03-13) 34

thisKPMinthefuture.WhenthisKPMwasdeveloped,thestrategywasgearedtowardsobtainingvoluntarilyfileddelinquentreturnsratherthanissuingassessments.WiththecurrenteconomicconditionsinOregon,webelievethatwewillbeunabletomeetthetargetofdecreasingassessmentsperemployeepermonthuntilweareabletoredefinestrategiesthatoffermoreeducationandassistancetononfilersratherthananapproachthatemphasizesincreasedproductionlevels.Byfocusingonproductionlevelsratherthanassistanceandeducationinfilingenforcement,itwillincreasethenumberofassessmentsperemployeepermonth.WewillredefinefilingenforcementstrategiesonceOregon’seconomyrecovers.Itwilltakesometimeforthestrategicchangesthedepartmentismakingtoproducethedesiredoutcomes.Weneedtocontinuewhatwearedoing,whilerefiningandconstantlyimprovingourpractices,basedondata.

7. About the data: ThereportingcycleisOregonfiscalyear.

150-800-550 (Rev. 03-13) 35

Key performance measure 6 Personal income tax and corporation tax cases closed

per revenue agent per monthMeasure since: 2000

Goal: Taxadministration—Provideexcellentservice,helpingtaxpayersmeettheircommitmentswitheducation,assistance,andcompliance.

Oregon context: Thisgoallinksdirectlytothedepartment’smission.

Data source: DatafromagentproductionreportsACTF007andFTEfromcostallocationsystem(CAS),basedonproductivityperposition.

Owner:JoannMartin,PersonalTaxandComplianceDivisionadministrator

1. Our strategy: Ourstrategyistoprovidecollectionstaffwithtoolsandtrainingtoresolvecollectioncasesquickly.Themeasureevaluatestheeffectivenessofstaffinworkingwithtaxpayerstoclosecases.

2. About the targets: Thetargetreflectssteadygrowthincasesclosedperrevenueagent.Ahighernumberisbetter.

3. How we are doing: For2011,thenumberofcasesclosedperagentwas135(80percentoftarget).For2012,thenumberofcasesclosedis137(81%oftarget).

4. How we compare: Comparabledataisnotavailable.5. Factors affecting results: Thedepartmentmadechangestothestaffingmodeltomoreeffectively

balanceincomingcallsfromtaxpayersandusingamoreeffectivecall-queuemanagementprocess.ThischangewasimplementedinJanuary2012andourresultshaveshownaslightincreaseincasesclosedpermonth.Ourabilitytobreakdowndataofcollectionactivityattributabletoeachagentandthefactthatthismeasureonlyfocusesonasubsetofrevenueactivityhighlightsshortcomingsinthereliabilityofthismeasureofperformance.

6. What needs to be done: Weneedtocontinuetoevaluatetheeffectivenessofprocesschangesimplementedin2012whichshouldleadtoacontinuedgrowthofcasesclosedperrevenueagent.

7. About the data: ThereportingcycleistheOregonfiscalyear.

Personal income tax and corporation tax cases closedper revenue agent per month

Bar is actual, line is target

0

50

100

150

200

250

2008 2009 2010 2011 2012 2013

194 126 159 135 137

Num

ber o

f tax

cas

es c

lose

d

150-800-550 (Rev. 03-13) 36

Key performance measure 7 Delinquent returns filed after compliance contact

per filing enforcement employee per monthMeasure since: 2001

Goal: Taxadministration—Provideexcellentservice,helpingtaxpayersmeettheircommitmentswitheducation,assistanceandcompliance.

Oregon context: Thisgoallinkstothedepartment’smission.

Data source: Costallocationsystem(CAS)andfilingenforcementmonthlyreports,basedonproductiv-ityperposition.

Owner: JoannMartin,PersonalTaxandComplianceDivisionadministrator

1. Our strategy: Ourstrategyistoidentifynon-filingtaxpayersandencouragethemtofiletheirownreturns.Iftaxpayersvoluntarilycomplybyfilingtheirownreturns,webelievethereisahigherlikelihoodoftheirfuturetaxcompliance.

2. About the targets: Thedepartmentisemphasizingvoluntaryfilingoftaxreturnsbytaxpayersasakeylong-termstrategicobjective.Asthateffortincreasestoproducepositiveresults,wewillprobablyproducefewerassessmentsoftaxdue(asmeasuredinKPM#5).Wewillcontinue,throughvariousmeans,toencouragetaxpayerstofileaftercompliancecontactwiththedepartment.Higherisbetter.

3. How we are doing: Wecameclosetomeetingourtargetandweincreasedthenumberoffiledreturnsperemployeepermonthoverthepreviousfiscalyear.Thisstrategyhasnotbeeninplacelongenoughtoproducethedesiredoutcomes.Wewillcontinuetomonitor,analyze,andrefineouractivitiesinthisarea.

4. How we compare: Comparabledataisnotavailable.5. Factors affecting results: Thedepartmenthasprovidedtrainingforemployees,emphasizingthe

needtocontacttaxpayersquicklyandworktowardvoluntarycompliance.During2012fiscalyear,weimplementedprocesschangesthatallowedfilingenforcementstafftobemoreefficient.WealsoutilizeddataanalyticstofindfilingenforcementleadsfromthedatareceivedfromtheIRS.

Delinquent returns filed after compliance contactper filing enforcement employee per month

Bar is actual, line is target

0

5

10

15

20

25

30

2008 2009 2010 2011 2012 2013

20 18 25 20 23

Num

ber o

f del

inqu

ent r

etur

ns

150-800-550 (Rev. 03-13) 37

6. What needs to be done: Thedepartmenthasdefinedstrategiestoincreasevoluntarycompliance.Webelievethestrategieswehaveadoptedwillhelpusmeetthetargetinthefuture.Byincreasingproductionlevelsinfilingenforcement,webelievewewilllocate,andbringintocompliance,nonfilerspreviouslyundetectedbythedepartment.Increasingproductionwillincreasethenumberoffiledreturnsperemployeepermonth.Thedepartmenthasrecentlyintroducednewstrategies,whichwillrequiresometimetohavethedesiredimpact.Wewillcontinuetomonitor,analyze,andmakenecessaryadjustmentsandimprovements.

7. About the data: ThereportingcycleistheOregonfiscalyear.

150-800-550 (Rev. 03-13) 38

Key performance measure 8 Average days to process personal income tax refund

Measure since: 1999

Goal: Weadoptbestbusinesspracticestomaketaxsystemsworkbetter.Andtakefulladvantageofopportunitiespresentedbynewtechnology.

Oregon context: Thisgoallinksdirectlytothedepartment’smission.

Data source: Personalincometaxreturnprocessingsystem.

Owner: LarryWarren,AdministrativeServicesDivisionadministrator

1. Our strategy: Ourstrategyistogeneratepersonalincometaxrefundsinatimelymanner,throughtheefficientuseofpeople,processes,andsystems.

2. About the targets: Thetargetsarebasedongeneratingrefundswithina12-dayperiodinthefuture.Thistargetisaggressiveanddemandscarefulplanning.Lowerisbetterforthismeasure.

3. How we are doing: In2012,thetargetwas12days;actualperformancefor2012was10days.4. How we compare: Oregon’stargetsandusualperformancearecomparablewithotherstates.5. Factors affecting results: Taxpayersutilizationofelectronicfiledreturns.Processingdelaysbythe

IRSand/orthetimelinessofCongressenactinglegislationhasaneffectonourabilitytoprocessingtimely.

6. What needs to be done: Continuedprocessimprovementandeducationonthebenefitsoffilingelectronically.

7. About the data: Thereportingcycleiscalendaryear,inwhichreturnsfortheprecedingtaxyearareprocessed(example:2011returnsprocessedin2012).Note:Thedatadoesnotincludeamendedreturns.

Average number of days to process personal income tax refundBar is actual, line is target

0

2

4

6

8

10

12

14

16

2007 2008 2009 2010 2011 2012 2013

15 14 7 12 9 10Num

ber o

f day

s

150-800-550 (Rev. 03-13) 39

Key performance measure 9 Percent of personal income tax returns filed electronically

Measure since: 2002

Goal: Operationalexcellence—Adoptbestbusinesspractices,takingadvantageoftechnologytoimproveoursystemandprocesses.

Oregon context: Thisgoallinksdirectlytothedepartment’smission.

Data source: Personalincometaxreturnprocessingsystemstatisticsforelectronicallyfiledreturns.

Owner:JoannMartin,PersonalTaxandComplianceadministrator

1. Our strategy: Ourstrategyistoimprovecustomerserviceandefficiencybyincreasingthepercentofpersonalincometaxreturnsfilingelectronically.Electronicallyfiledreturnsarefasterandlessexpensivetoprocess.

2. About the targets: Thetargetswererecentlyrevisedupwardtoreflectthestronggrowthine-filingatthestateandfederallevel.Higherisbetter.

3. How we are doing: Dataforthismeasureisreportedbycalendaryear.Wehaveseenasignificantincreaseine-filingforthisreportingperiod(78.6percent)betteringboththepreviousyear,andthelegislativelyapprovedtarget(71percent).

4. How we compare: Oregon’srateofelectronicfilingiscomparablewithotherstates.Theaveragepercentageofelectronicallyfiledreturnsduring2012instateswithoutane-filemandateis75 percent.Instateswithane-filemandate,theaveragepercentageis79percent.

5. Factors affecting results: SinceOregon’selectronicfilingistiedwiththefederalreturn,webenefitasmoretaxpayerschoosetofiletheirfederaltaxreturnselectronically.In2011,theOregonlegislaturepassedHB2071authorizingthedepartmenttotietothefederale-filemandate.Themandaterequirestaxpractitionersthatexpecttopreparetenormorereturnstofilealloftheirreturnselectronically.Thedepartmentalsoimplementedadirectfilingwebsitein2011.Thisallowstaxpayerstoe-filetheirOregonreturnatnocost.

6. What needs to be done: Thedepartmentneedstocontinueemphasizingandmarketingthebenefitsofelectronicfiling.

Percent of personal income tax returns filed electronicallyBar is actual, line is target

0

10

20

30

40

50

60

70

80

2007 2008 2009 2010 2011 2012 2013

56% 60% 63% 67% 75% 79%

150-800-550 (Rev. 03-13) 40

7. About the data: ThereportingcycleistheOregoncalendaryear.DataforthismeasureistakenfromtheITXrunreportfromSuspenseandincludessuspendedreturns.Dataislimitedtopersonalincometax(PIT)returns.Thedepartmentinternalauditorhaspreviouslyreviewedthemeasureandreportedthatthecalculationsappeartobeaccurate,documented,andrepeatable.

150-800-550 (Rev. 03-13) 41

Key performance measure 10 Employee work environment

(based upon a scale of 1–6)

Measure since: 2002

Goal: Workenvironment—Provideapositive,productive,andwelcomingworkenvironment.

Oregon context: Thisgoallinksdirectlytothedepartment’smission.

Data source: Employeesurveyconductedbytheagency’sWorkforceEnvironmentCouncil.Allemploy-eeshaveaccesstoanelectronically-generatedsurveyviapostingontheagency’swebpage.Surveyresultswerecollectedelectronically,analyzed,andreportedbythedepartment’smetricsmanager.

Owner: KimberlyDettwyler,HumanResourcessectionmanager

1. Our strategy: Ourstrategyistoprovideemployeeswiththephysicalenvironment,support,andresourcesneededtodotheirjobswell.

2. About the targets: Employeesratetheirworkenvironmentonascaleof1–6,with1=verydissatisfiedto6=verysatisfied.Thetargetisanaverageofallquantitativeelementsofthesurveyof5.25,reflectingaratingabovesatisfied.Higherratingisbetter.

3. How we are doing: TheagencydidnotdeploythesurveytostaffinFY2012fortworeasons.Theemployeewhoheldthesurveysoftwarelicenseanddidtheanalysiswaslaidoffmid-year2012.Inaddition,inlatespring2012,theagency’sleadershipteamstarteddiscussingadifferentmeasurementtoolforemployeeworkenvironment/engagement.TheagencydidnotconducttheemployeeworkenvironmentsurveyinFY2012andisplanningforanewsurveytoolinFY2013.

4. How we compare: Comparabledataisnotavailable.5. Factors affecting results: Aspreviouslyindicated,nosurveywasconductedin2012tocompare

withpreviousyearresults.Inaddition,duetoasignificanthiringfreezebetweenJuly2011andJune2012,manyemployeesverbalizedconcernsaboutvacantpositionseffectingworkloadandmorale.Inaddition,austerebudgetmeasureswereinplaceandlittletrainingandnewtooldeployment(suchascomputerlifecyclereplacements)wereimplemented.SinceJuly2012,wehaveheldover60recruitmentsandhiredover110positions.

Employee work environment satisfaction(scale 1–6; 6 being most satisfied)

Bar is actual, line is target

0

1

2

3

4

5

6

2008 2009 2010 2011 2012 2013

4.65 4.34 4.15

150-800-550 (Rev. 03-13) 42

6. What needs to be done: ThedepartmentisrecommendingthatthisKPMbeeliminatedandanewonedevelopedtoreplaceitthatiscomparableandsustainable.ThedepartmentrecommendsthataKPMtitled“employeeengagement”beusedtoreplacethisKPM.ThefirstsurveywillbecompletedinMarch2013tocreatethebaselineandtheagencyplanstosurveystaffeverysixmonthstodetermineprogress.

7. About the data: ThereportingcycleisOregonfiscalyear.Datainpreviousyearswascollectedthoughanagency-wideelectronicsurvey.Allemployeeshadtheopportunityrespondanonymously.ThesurveywasdistributedandresultstabulatedbytheStrategicPlanningDivisionsurveyspecialistwhoisnolongerwiththeorganization.Inadditiontolayoffin2012,thepositionisrecommendedforeliminationinthe2013–15Governor’sBalancedBudget.

150-800-550 (Rev. 03-13) 43

Key performance measure 11 Employee training per year

(percent receiving 20 hours per year)

Measure since: 2000

Goal: Workenvironment—Providepositive,productive,andwelcomingworkenvironment.

Oregon context: Thisgoallinkstothedepartment’smission.

Data source: Agencycostallocationsystem(CAS)fortheperiodbefore2011.iLearnOregonfor2012andongoing.

Owner:KimberlyDettwyler,HumanResourcesmanager

1. Our strategy: Toidentifykeystaffandmanagementskills,knowledge,andabilitiesanduseavarietyofformalandinformaltraininganddevelopmentactivitiestomeetthoseneedswithintheavailableresources.

2. About the targets: MeasurespercentageofRevenueemployeeswhoreceivedatleast20hoursofskillstraininginthepastyear.Ourtargetisbasedonthepercentageofemployeeswhoreceivethattraining.Higherisbetter.

3. How we are doing: Thedepartmentaveraged29.2hoursoftrainingperemployeeforthisfiscalyear.Becauseofspecifictrainingneedsandlimitedresources,thedepartmentfocusedonprovidingcriticaljobskillstrainingforalimitednumberofemployees.Additionally,under-reportingoftrainingontimesheetshasbeen,andcontinuestobe,aperennialissue.ThedepartmenthasmigratedtoreportingandtrackingoftraininginiLearnOregonandweareseeingamoreaccuratereportingoftrainingfromiLearn’srecordsthenwewereseeingusingtimesheetdata.

4. How we compare: ItwouldbeusefulforDAStoprovideagencieswithasystem-widemeanforhoursoftrainingperemployee,foruseasabenchmark.

5. Factors affecting results: Ongoingbudgetchallengesandcriticaljobskillstrainingneedshavemadeitdifficulttoprovidethe20hoursminimumforeachofouremployees.

Employee training per year Bar is actual, line is target

0

10

20

30

40

50

60

70

2007 2008 2009 2010 2011 2012 2013

51% 32% 38% 33% 27%

Perc

ent r

ecei

ving

20

hour

s pe

r yea

r

150-800-550 (Rev. 03-13) 44

6. What needs to be done: Thedepartmentneedstoplaceahighpriorityontraininganddevelopment,andcontinuetoseekcreative,low-costwaystodeliverthetraining.Additionally,weareprovidingmoredevelopmentopportunitiestoouremployeesthroughparticipationinspecificprojects,processimprovementteams,LeadershipRevenue,andworkout-of-classassignments.

7. About the data: ThereportingcycleisOregonfiscalyear.DatacomesfromiLearnOregon.ComparisonofthereportedhoursonbothtimesheetrecordsandiLearnOregonrecordshasshownthattheiLearnsystemprovidesatruerrepresentationofthetrainingattendedbyemployees.ManagersareresponsibleforinsuringtheaccuracyofreportingtrainingwithlimitedreviewforaccuracybyPayrollorHumanResources.

150-800-550 (Rev. 03-13) 45

Key performance measure 12 Customer service

(percent of customers rating their satisfaction with the agency’s customer service as “good” or “excellent”: overall, timeliness, accuracy, helpfulness, expertise, and availability of information)

Measure since: 2006

Goal: Taxadministration—Provideexcellentservicetotaxpayersinatimelymanner.

Oregon context: Thisgoallinkstodepartment’smission.

Data source: Writtensurveysofwalk-incustomersatourfieldofficesormainbuilding;telephonesur-veysofrandomlyselectedtaxpayercalls.

Owner:JoannMartin,PersonalTaxandComplianceDivisionadministrator

1. Our strategy: OurstrategyistoprovidethebestpossiblecustomerservicetotaxpayerswhovisitourfieldofficesorcallourTaxServicesUnitforassistance,asmeasuredbysurveysofourcustomers.

2. About the targets: Wehavesetthetargetsforallcomponentsat90percent.Higherpercentageisbetter.

3. How we are doing: Sincethe2009APPR,Oregonhasseensignificantdeclinesinoureconomy,andwecontinuetoseemacro-leveleconomicforecastssuggestingoureconomywillremainflatorperhapsevendecline,atleastforatime.Inspiteofthis,customerserviceratingshaveremainedrelativelypositive,remainingwithina5percentvariationfromthepreviousreport.Becausewearewhoweare,thisspeakshighlyforthedepartment’sabilitytomaintainpositiveservicelevelsthroughchaoticandtryingtimes.

4. How we compare: ItwouldbehelpfulifDAScouldprovideanoverallmeanfromallstateagenciesforeachofthecustomerserviceelementswhichwecoulduseasabenchmarkincomparingourresults.

5. Factors affecting results: Tomaintaincustomerservicelevelsthroughallofthechangesandchallengesthestateandthedepartmenthasfacedoverthepastfewyearsshouldbeconsideredacomplimenttothecommitmentandprofessionalismofouremployeeswhoservethepeopleofthe

Agency performance, average of tax services surveyLine is target (all at 90)

0

20

40

60

80

100

Accuracy Availability Expertise Helpfulness Overall Timeliness of information

2006

2009

2011

2012 86 87 87 89 85 86

91 86 93 96 87 89

95 95 96 97 97 96

92 87 94 96 87 89

150-800-550 (Rev. 03-13) 46

stateofOregon.Thedepartmenthad8fewerrepresentativestohandlecallsduetothehiringfreeze.ThefreezewasliftedinJuly2012.

6. What needs to be done: Thedepartmentwillcontinuetoemphasizetheimportanceofcustomerserviceinallareas,includingtimeliness,accuracy,helpfulness,expertise,andavailabilityofinformation,throughincreasingavailabilityofself-helpoptionsanddirectcustomerservice.

7. About the data: ThedataforthisreportwascollectedinDecember2012,usingarepresentativesampleoftaxpayerswhohadjustcompletedsometypeoftransactionwiththedepartment.ResultswereenteredintoSurveyMonkeyandtabulatedelectronically.Theerrorrateispresumedtowithin5percent.

150-800-550 (Rev. 03-13) 47

Key performance measure 13 Effective taxpayer assistance

(We provide effective taxpayer assistance services through a combination of direct assistance and self-service options)

Goal: Effectivetaxpayerassistance—Provideservicesinaneffectiveandtimelymannerfortaxpayerstomeettheircommitments.

Oregon context: Thisgoallinksdirectlytothedepartment’smission.

Data source:DepartmentofRevenueautomatedsystems,InteractiveVoiceResponse(IVR)system,tele-phonesurvey,andwebsitesurvey.

Owner:JoAnnMartin,PersonalTaxandComplianceDivisionAdministrator.

Effective taxpayer assistanceBar is actual, line is target

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10

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30

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60

2009 2011 2012 2013

Num

ber

51 51

1. Our strategy: Ourstrategyistoprovideweb-based,self-serviceoptionsforcommonandsimpletaskstaxpayerswanttoperformwithus(examplesincludemakingpaymentsorfindingthestatusofarefund).Personalizedone-on-oneserviceisprovidedtoreachtaxpayersthatdon’thaveaccesstointernetservicesorpreferindividualizedhelp.

Thisstrategyhelpsuscontainandreducecostswhileprovidingservicetothemosttaxpayerspossible.Weareusingcustomersurveysas“checks”withinthestructureofthecompositemeasuretoensurewe’reprovidingtherightbalanceofserviceoptions.

2. About the targets:Thedepartmentisusingacomplexperformanceoutcomemeasurethat“rollsup”individualresultsfromthreespecificcomponentoperationalmeasures:callwaittimes,IVR/internetself-service,andcustomerservicesurveys.

Wearemeasuringthecombinationofphonewaittimes,successfuluseoftheinternetforself-help,anddirectcustomerservicelevels.Individually,thesearesignificantoperationalmeasures;inaggregatetheyformamorecompletepictureofthedesiredoutcomethanasingle-elementmeasurecould.Together,thethreecomponentsofthemeasuretellusthedegreetowhichweareprovidingefficient,effectivetaxpayerservices.

150-800-550 (Rev. 03-13) 48

Eachportionofthemeasureisweighteddifferently(callwaittimes=40percent,percentageofsuccessful“Where’sMyRefund?”inquiries=50percent,andcustomerserviceratings=10percent).Sincethedataformsaredifferent,targetsandactualsare“normalized”intoacommonexpression,ascaleof1–100,withahigheraggregatescorebeingbetter.

3. How we are doing: Callwait-times—thosewithlessthanfiveminuteswaittime=44.6percentoftotalcalls.Ofthe230,207calls,14,055(6.1percentofallcalls)requiredaSpanish-speakinginterpreter.Thedepartmenthasonly2–3interpretersavailablewhichsignificantlyincreasesthewaittime.StatisticsarenotkeptontaxpayersrequiringassistancewithlanguagesotherthanSpanish.

Wait-timeswereincreasedbyanumberofspecificeventslikechangestotheseniordeferralprogram,andnotificationtotaxpayersonachangetocollectionfees.Wealsoexperiencedahighvacancyrate(eightfull-timephonerepresentatives),ahiringfreezedelayedfillingvacantpositionsuntilNovember2012,andanassociatedtraininglagbeforenewhireswereabletoperformliketherepresentativestheyreplaced.Thesefactorsincreasedbothcallvolumesandcalltimes,resultinginhigherthanoptimalwaittimes.

Percentageofsuccessful“Where’sMyRefund?”inquiries=49percent.Aswithwait-timestatistics,IVRlook-upswereadverselyimpactedbyspecificevents.Forinstance,taxpayerslookuptheirrefundstatusbeforewaitingtherecommendedtimewecommunicateitwilltaketoprocesstheirreturn.

Percentageofcustomerserviceratingsofgoodorexcellent=96percent.Inspiteofthesignificantchangesinboththeinternalandexternalenvironmentandthemultiple,specificeventsnotedabove,DepartmentofRevenueemployeeshavecontinuedtodeliverconsistentlyhighdegreesofcustomerservice.

4. How we compare: Duetotheuniquenatureofthismeasure,comparabledataisnotavailable.5. Factors affecting results: Theprimaryfactorsimpactingthismeasurearelargelywithinthegeneral

categoryof“specificevent”causesofvariation(thosetypesofvariationwhicharestatisticallyoutsidenormalprocesscontrollimits).

6. What needs to be done: Thedepartmentwillcontinueitsongoingprocessre-engineeringandimprovementefforts.Weneedtocontinuetomonitorthespecificeventsweknowtocausehighdemandfortaxpayerservicesandrespondaccordingly.

7. About the data: ReportingcycleistheOregonfiscalyear.Websiteinformationistakenfromoregon.govandIVRdatagatheredbythedepartment.IVRdataincludesresultsshowingthenumberofcallersthathangupafterlisteningtoinformationontheIVR.Italsoincludesresultsshowingthenumberoftimestheresponsetoaninquirytothe“Where’smyrefund?”applicationissomethingotherthan“notfound.”Waittimedataisgatheredfromthephonesystem.CustomerservicedataistakenfromthestandardcustomerserviceKPMsurveyprocess.

150-800-550 (Rev. 03-13) 49

Using performance dataThefollowingquestionsindicatehowperformancemeasuresanddataareusedformanage-mentandaccountabilitypurposes.

InclusivityStaff: Staffareincreasinglyinvolvedinreviewingouragencymission,vision,andvalues,whicharesupportedbythesekeyperformancemeasures.Thereisincreasingparticipationandinputonreviewandrequestsformodifyingand/orchangingmeasures.

Elected officials: Electedofficialsreviewtheperformancemeasuresaspartofthelegislativeprocess.

Stakeholders: Stakeholdersareconsultedregardingthemeasuresasappropriate.

Citizens: Citizensreviewtheperformancemeasuresonthedepartment’swebsiteandsubmitquestionsandcomments.

Managing for resultsPerformancemeasuresareusedaskeyindicatorsoftheagency’sprogresstowardachievementofitslong-termvision.Theyarealsousedasindicatorsofprogressmadeinprojectedefficiencygainsasaresultofautomation.Theagencyusesadditionalinternalmeasuresanddivisionandagencyleveldashboardstotrackinternalindicatorstoassistinusingoutputdatatomoreeffec-tivelymanagetoidentifiedoutcomes.

Staff trainingVariousagencymanagershavepreviously,andcontinueto,attendtargetedtrainingclasses,withtopicsrelatedtopublicsectorperformancemeasurementandhavebroughttheknowledgegainedatthoseclassesbacktotheagency.Inaddition,managershavereviewedtrainingandinformationpostedontheDepartmentofAdministration’swebsite.Thedepartmenthasbegunofferinginternaltrainingonprocessperformancemetricsandthetoolsofquality.

Communicating resultsStaff: Staffhavethecapabilitytoreviewkeyperformancemeasuresonthedepartment’sinter-nalwebsite.Managersareengagedinmultiplelevelsofreviewofeachupdatedannualper-formanceprogressreport.Basedupontheirreviews,workprocessesmaybechangedorprob-lems/trendsidentified,whicharethenaddressed.

Elected officials: Electedofficialsreviewtheperformancemeasuresandevaluatethedepart-ment’seffectivenessaspartofthedepartment’sbudgetprocess.Themeasuresarealsoincludedintheagencybusinessplanprovidedtothelegislatureandotherelectedofficials.

Stakeholders: Stakeholdersreviewthemeasuresonthedepartment’sexternalwebsiteandmayaskquestionsormakesuggestions.

Citizens: Citizensreviewthemeasuresonthedepartment’sexternalwebsiteandmayaskques-tionsormakesuggestions.