120118 - IDEA MANAGEMENT FRAMEWORK

Idea Management Framework

Executive Summary
Idea management is a structured process of
generating, capturing, discussing and
improving, organizing, evaluating and
prioritizing ideas, valuable insights or
alternative thinking that would otherwise not
have emerged through normal processes.
Every organization wants better ideas. But it is
often too tough to capture them in a
manageable way. And product teams need a
way to quickly capture, categorize, and
prioritize ideas. The best solution is to practice
ideation -- the creative process of generating,
developing, and curating new ideas.
Better ideas lead to innovation, and
innovation leads to market leadership. An
Idea Management Framework provides an integrated means to capture and
respond to customer feedback, recommendations, and questions within the
context of submitted ideas.
The Kenya Revenue Authority institutionalized innovation through the creation
of the Innovation Unit under the Strategy, Innovation and Risk Management
Department to champion innovation in the Authority towards enhancing tax
administration through efficient processes, use of advanced technologies and
adopting new business models that will expand the tax base and increase revenue
collection.
The Idea Management Framework seeks to guide the process of getting ideas
through review and to the implementation of innovative ideas.
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Contents
Executive Summary ..................................................... 1
Introduction ................................................................. 3
Innovation Approach in KRA ..................................... 4
Key Pillars of Innovation in KRA............................... 5
Idea Management Matrix ........................................... 6
Idea Management Stages ............................................ 7
Innovation Committee .............................................. 11
Employee Innovation Forums – 5X ........................ 12
Open Innovation and Co-Innovation as Innovation Methodologies in 5X 13
5X Approaches to Innovation ....................................... 14
Innovation Culture and 5X ............................................ 15
Crowdsourcing as an Innovation Tool and 5X .............. 15
Implementation of Ideas .............................................. 15
5X Form ........................................................................ 16
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Introduction
Innovation features prominently in the Authority’s Sixth Corporate Plan.
Strategy, Innovation and Risk Management Department is expected to play an
important role in driving innovation in the Authority. In 2016, the Innovation
unit was formed under the Research, Knowledge Management & Corporate
Planning division and is tasked with the creation of an environment conducive
for innovation and facilitating the adoption of innovations aimed at increasing
the tax base, realizing cost saving and improving service delivery.
KRA’s Innovation function vision is to develop KRA into an innovative and
transformative organization that is customer-focused for enhanced tax
adminsitration.
During inception of the innovation unit, the following key strategies were
institutionalized:
a) Implement an idea management system to crowdsource for ideas
from internal and external stakeholders
b) Create Innovation spaces to act as physical nexus point for
collaboration and sharing on ideas
c) Hold forums/sessions that spur creative thinking and innovation
d) Scan the environment and provide recommendations on
innovations to be adopted by the authority
e) Audit processes and functionalities of current systems and provide
recommendations for cost saving and improved service delivery
f) Collaborate with external institutions to enhance tax administration
and increase revenue through emergent technologies and other
innovations
Setting up an innovation unit in the Kenya revenue Authority is a positive step
towards building a self-sustainability organization. Self-sustainability will be
attained by deriving solutions that improve the Authority’s service delivery
through optimization of both internal and external processes to ensure that
revenues are maximized, i.e. Increased long-run revenue collection and a
decreased aggregate cost.
The following are the benefits that KRA stands to accrue from institutionalization
of Innovation as a function:
a) New Competitive Edge: Improved products and services that improve
customer experience
b) Cost Saving: Faster, Cheaper, Non-Intrusive, Lean/Non-Wasteful,
Convenient Processes
c) Brand Image: Changing taxpayer/Stakeholder perception
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d) Re-Writing the Rules: Radically changing the course of tax administration
e) Increased Revenue: As a result of all the above
Innovation Approach in KRA
Guided by best practice and emerging trends, innovation is
implemented in the following ways:
1. Citizen driven approach which allows taxpayers,
businesses and other key external stakeholders to take
part in the innovation process as they are the users of the
services offered by the Authority and are therefore best
placed to suggest better ways that the Authority can
deliver its services.
2. Employee driven approach is important as employees are
aware of the current gaps and can provide optimizing
solutions that ease their work as well as optimize
efficiency. After collation of ideas, use of experts in
project management ensures objectivity to ensure success of the idea
implementation.
3. Expert driven innovation approach – Engaging experts to explore new
innovations that can be adopted to increase revenue and improve service
delivery. This will include but not limited to technological innovations. This is
done especially through the Annual Tax Summit.
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Key Pillars of Innovation in KRA
People
The people issue is very
critical towards the
success of any innovation
strategy.KRA
acknowledges that its
staff and taxpayers play a
critical role in submitting
innovative ideas.
Processes
Second after people in
driving innovation are
the processes, policies
and structures put in
place to guide the
innovation journey.
Systems
To support the
innovation processes, the
idea submission portal is
key in helping staff and
external stakeholders in
submitting ideas and
automating the review
and approval process.
The systems also help in
creating trust through
transparency in the
monitoring of the review
process.
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Idea Management Matrix
Approach
to
Innovation
Employee
Driven
Citizen
Driven
Expert
Driven
Focus Areas
Process Innovation,
Business Model
Innovation, Strategy
Innovation,
Product/Service
Innovation, Marketing
Innovation,
Organizational/People
Innovation, Technology
Innovation
User Experience Design,
Business Model
Innovation, Technology
Innovation,
Product/Service
Innovation
Process Innovation,
Business Model
Innovation, Strategy
Innovation,
Product/Service
Innovation, Marketing
Innovation,
Organizational/People
Innovation, Technology
Innovation
Mode of
Engagement
Forums/Sensitizations,
Hackathons &
Challenges
Hackathons &
Challenges
Forums/ Hackathons
& Challenges
Timelines Stakeholders Idea
Submission
Monthly/
Quartely
Quarterly
Quartely
Knowledge
Management, TLO,
Marketing and
Communication
Department
(Stakeholder
Engagement, Events
and Branding, PR &
Communication,
Taxpayer Education)
iHub, Marketing and
Communication
Knowledge
Management,
Marketing and
Communications
(Stakeholder
Engagement, Events
and Branding, PR &
Communication,
Taxpayer Education)
Innovation
Portal
Innovation
Portal
Innovation
Portal

Idea Management Stages
Stage Criteria Approver Activities Timeline Responsible
Stage 1: Ideation and
Innovation
Idea Generation and
Mobilization
• Ideas are generated and
at a high level,
researched, evaluated
and measured to better
understand the pros and
cons of each idea.
• KRA role here is creating
an environment of
enablers that allow for
process innovation for
instance the online
platform; Innovation
Portal that will allow
both the staff and
taxpayers involvement in
generating ideas on how
to improve the new or
existing processes.
Check the
innovation for
clarity, solution,
originality and the
risk factors in the
implementation of
the idea.
Innovation
Team Review
the Ideas and
the
Innovation
Manager
Approve the
Ideas.
Submission of
Ideas through
the portal.
Submission of
Ideas through
Forums.
Review of Ideas
and Approval of
Ideas.
Continuous
Continuous
Monthly
Innovation
Team support
the submission
of ideas.
Innovation
Team and the
Approval of
the Ideas done
by the
Innovation
Manager.
• The different forums for
public and staff to give
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their ideas on how the
systems can be improved
or even come up with a
new system.
Advocacy and
Screening
• Once the most beneficial
ideas are identified,
innovation begins.
• At this point,
opportunities for
application are analyzed
in more detail, risks are
assessed and benefits
measured.
• Innovation team plays a
very important role
during this stage by
involving user
departments and doing
thorough analysis before
the idea is to be
implemented.
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Stage 2: Incubation and
Implementation
Experimentation
• The new delivery method
is tested with the actual
technique, equipment or
software.
• This step includes
establishing prototypes
and analyzing benefits
against potential risks
• This process will involve
the user departments
together with the
innovation team
conducting different tests
and analysis in all case
scenarios before
implementation.
Assess the idea in
terms of the
problem being
solved, does it
improve efficiency,
is it financially
viable, does it meet
integration
requirements, does
it solve a real
problem and
whether it is
sustainable in the
long term.
Innovation
Committee
reviews the
Ideas and the
Innovation
Committee
Chairperson
Approves the
Ideas
Business Case
Development
Presentation of
Business Case
Incubation of
Ideas
Review and
Approval of
Ideas
Continuous
Quarterly
Continuous
Quarterly
Innovation
Team and User
Department,
Innovator
Innovator,
Innovation
Team,
Innovation
Committee
Innovation
Team and User
Department,
Innovator
Innovation
Committee
Implementation
• At this stage, the
innovation is
implemented.
• Marketing and adoption
is done at this stage with
Implementation
of Ideas
Continuous
Innovator,
Innovation
Team and User
Department
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the user department
• This stage will also
involve the key
stakeholders in
influencing the change
while also enforcing the
business transformation.
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Innovation Committee
The Innovation Committee is the organ charged with the review and approval of the
ideas submitted by innovators. The committee is made up of the following 10 members;
1. Chairperson
2. Deputy Chairperson
3. Secretary – Manager Innovation
4. Members
The chairperson, his/her deputy and committee members are appointed by the
Commissioner SIRM with recommendations from the various departments in the
Authority;
a) Customs and Border Control
b) Domestic Taxes
c) Strategy, Innovation and Risk Management
d) Kenya School of Revenue Administration
e) Corporate Support Services
f) Marketing and Communication
g) Legal Services and Board Coordination
h) Investigations and Enforcement
i) Intelligence and Strategic Operations
Once an idea has reached the second stage, the approver is the Chairperson and in
his/her absence, the deputy approves ideas. The committee meets once in a Quarter to
review and approve innovative ideas.
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Employee Innovation Forums – 5X
Every company is made up of a team of people,
ranging from senior management to front of line
staff. Each member of that organization is assigned
a particular job, and work to ensure they complete
their role, yet one particular job title does not mean
that each employee should stop thinking outside
the box – rather, every organization should be encouraging them to do so.
The Kenya Revenue Authority is made up of 6000 members of staff all of them
performing various roles in the different departments in the Authority. Given the nature
of the business, there are so many dynamics around taxation from new technologies to
changing taxpayer behavior, there is a need to come up with innovative ways to enhance
tax administration.
“For innovation to flourish, organizations must create an environment that fosters
creativity; bringing together multi-talented groups of people who work in close
collaboration together — exchanging knowledge, ideas and shaping the direction of the
future.” —Linda Naiman
The best way to drive innovation in KRA is by empowering staff to innovate and come
up with new ideas. Members of staff are knowledgeable and understand the critical
areas that require improvement and have the solutions for the problems the Authority
faces in its day to day operations.
The Innovation Department was created to champion innovation in the authority
through creation of an Innovation Management Framework which includes Policy and a
Framework for identifying, reviewing and prioritizing available technologies and work
processes that can help in meeting KRA’s objectives.
With the Policy and Framework in place, there is need to create and instill an
Innovation culture among members of staff. 5X is a model whose main aim is to create
that culture and ensure its sustainability through creative Innovation Models and
Approaches.
The model uses employee engagement forums to spur innovation and a guided approach
towards problem solving. The forums form part of the idea review and approval process
whereby once an idea has been approved for the second stage, they are then reviewed by
the committee with innovators making presentations and members of staff present
contributing through the 5X form to improve the ideas.
For the case that an idea has not been submitted, the innovation team identifies critical
areas that require innovation in the Authority. The problem is shared with staff through
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their profiles in the innovation portal. The committee then meets to review
presentations by staff.
5X is a model of innovation for rapid change and improvement to KRA processes or
products rather than incremental change, it challenges the thinking about everything in
terms of revolutionary change rather than evolutionary change. It is a crowdsourcing
tool to get innovative ideas from KRA staff.
The model focuses on the factor of 5 “ways”
rather than by what % change takes place or
improvements made to a process, service or
product. Rather than having a process
improvement by a given margin, we focus on the
opportunities for innovation to make things
better. This approach helps to concentrate on the
core problems that affect the efficiency of a
process or the quality of a product.
It focuses on an approach where we focus on;
1 Challenge – the challenge on the critical area that needs improvement.
4 Questions – the questions that will lead to identifying the real problem, objective
and the solutions.
The questions are;
1. What is the problem? Identification of the real problem.
2. Why is the problem existing? Reasons why the problem exists,
redefining the problem further.
3. What would you like to have? The ideal scenario, process or
product.
4. In what ways do you think the ideal scenario, process or product can be
achieved? Seeking ideas on solutions.
5 Solutions – the solution to the challenge/problem in a critical area in KRA.
Open Innovation and Co-Innovation as Innovation Methodologies in 5X
There are several methodologies to starting and sustaining innovation in KRA. The
following methodologies will go a long way towards creating an innovation culture in the
Authority.
1) Open Innovation
Use of purposive inflows (internally and externally) of knowledge to accelerate
internal innovation and create opportunities in Tax Administration and Service
Delivery using innovation.
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2) Co-Innovation
Core to the approach is use of collective intelligence formally organized in the
following pillars;
a) Convergence of Ideas – form staff sharing ideas through the 5X
Boot Camps and Angaza ZONE Platform.
b) Collaborative Arrangement – partnerships with other
organizations, educational institutions etc. on innovative solutions on
critical areas for example Marketing, Research, Corporate Planning or
ICT.
c) Co-Creation of Experiences – thinking through improvements in KRA
processes, products and services to create better experiences staff, taxpayers
and or stakeholders.
Beyond the pillars, innovation’s focus is not technological (neither new technology nor
invention), but a market/business area reality: new blue oceans, new product ideas, new
ventures spark from the convergence of ideas and the co-creation of internal (staff) and
external stakeholders to KRA.
Moreover, the engagement of customers/stakeholders in developing and activating
KRA’s brand is a new definition of customer experience which goes beyond customers
being part of its execution, but include stakeholders in designing, planning for and
supervising the experience itself.
Co-Innovation is an open to the world platform that connects internal KRA function
with external stakeholders. In co-innovation the revolution is expanding into marketing
and commercial functions, creating intertwined ecosystems which are difficult to
unbundle.
5X Approaches to Innovation
The following are the approaches used for innovation in the model.
1) Ideas-Driven Innovation
Using ideas generated from the staff to come up with new ways, improved
processes or products in Tax Administration.
2) Research and Analysis Driven Innovation
The use of data and analysis to drive innovation. Focuses on the real issues
and critical areas that need improvement in Kenya Revenue Authority.
3) Design Driven Innovation
Thinking from the design perspective of what customers would embrace for
example the design of KRA internal systems e.g. Customs’ COSIS and iTax
System.
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Innovation Culture and 5X
Building an innovation culture is an important step towards the success of innovation.
5X helps to create that culture among staff through the 6 I’s of 5X.
They are;
1) Inspire
Motivate members of staff to innovate and
own the process of change in the
Authority.
2) Inculcate
Instill a culture of innovation where
members of staff are able to champion
change and innovation.
3) Identify
Establish the critical areas that require improvement and innovation in KRA.
4) Imagine
Visualize the ideal solution to a critical problem.
5) Idealize
Think through the possible solutions to improve a process, product or service.
6) Innovate
Come up with the solution to the critical area.
Crowdsourcing as an Innovation Tool and 5X
Crowdsourcing assumes a “crowd” from which a collaborative approach to solutions is
implemented to get innovative ideas on how to improve a service, product or process.
Through crowdsourcing, KRA can get many ideas of diverse approaches, it helps to build
a knowledge base of solutions.
Crowdsourcing will be implemented through the boot camps where staff share their
ideas through the 5X Form and also through the Innovation Portal.
Implementation of Ideas
The success of any innovation framework is in the implementation of ideas. There has to
be a guided innovation implementation framework. The ideas are implemented by a
project team with the innovator leading unless for the case where an innovator doesn’t
have the capacity to do so for which the innovator becomes a member of the project
team and a member of the innovation committee from the user department leading the
project team.
The funding for innovations is also a critical factor, there is need to set aside some funds
specifically for the implementation of ideas. But while this may be a long-term agenda,
funding for innovations will be contributed for by SIRM and the user department.
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5X Form
NAME
KENYA REVENUE AUTHORITY
5X FORUM
IDEA CONTRIBUTION FORM
PHONE NUMBER
PERSONAL NUMBER
DEPARTMENT
CRITICAL PROCESS/PRODUCT/SERVICE
What is the Problem?
Why is the problem existing?
What would you like to have? (What does the ideal
situation/service/process/product look like?)
In what ways do you think the ideal
(situation/service/process/product) can be achieved?
(Give 5 Ways)
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