.Webmaster's Note:  The IRS held its "Annual Business Meeting" in Virginia from June 18-21, 2001.  Chapter 53 had an arbitration  hearing scheduled for June 18 and was, therefore, unable to send an observer to this latest exercise in Managerial Self-Aggrandisement.  Fortunately, Chapter 271's Executive Vice-President, Michael Royster, who also serves as Assistant Chairman of the Brooklyn Joint Council, did attend (yes, we have warned Mike about this tendency to smash his head into walls!) and provided us with a report.  Reproduced, below, is Mike's unedited report.   We warn you: This will not make you wish you had been there.
IRS Annual Business Meeting...
Still Clueless After All These Years
                                                              -by Mike Royster

    I attended the 30th Annual IRS Business Meeting in Alexandria, Virginia during June 18-21, 2001.  NTEU officials were invited to join approximately 400 upper-level IRS "leaders" to share ideas, solve problems, engage in meaningful dialogue, hold hands and sing campfire songs.  Very little of this happened.  This meeting was probably like the previous 29 where IRS management engages in self-congratulation and muscle flexing for their own gratification.  The usual platitudes of identifying/solving problems and partnering with NTEU were mouthed but as we know all too well it will be business as usual after everyone has gone home.  The NTEU attendees pre-meeting meeting with National President, Colleen Kelley showed some evidence of this.  Colleen informed the NTEU officials that management is concerned that productivity indicators such as case closings, direct examination time and customer service calls answered are down.  Indirect examination time and time charged to cases by office auditors is up. Needless to say the management (and congress) natives are getting restless.  Why is this?  Congress gave Rossotti resources, money and a mandate, so why is this not translating into increased productivity and compliance?  Does RRA'98 ring a bell? Section 1203(b) maybe?  Reorganization resulting in incomprehensible chains of command?  Several versions of RGS, none of which have worked?  Will things improve?  Let's see.  Direct examination time is expected to dip below 40%.  Case closings, levies, liens,  seizures and calls answered are expected to further decline.  To quote a former New York Knick:  "The ship be sinking."  Now, on to the meeting.

Day One of this sanctioned trial began the way all of these meetings begin.  After being issued spiffy commemorative canvass briefcases (has your supplies order been filled yet?), the messiah of management, Charles Rossotti, spoke.  Armed with cliches and meaningless analogies he trudged through a speech littered with non-solutions and nonsense.  He lifted lines from successful private business leaders and  tried to apply them to IRS.  There's just one difference, Chuck.  THEY are successful, WE are not  Don't steal their rhetoric.  Steal their ideas and do it right.  He told an anecdotal story that spoke volumes. He met with a local congressman and a tax practitioner.  The practitioner told him that things have never been better at the IRS.  This pleasanly surprised Rossotti.  Surprised?  We don't enforce the tax laws and employee morale is at an all time low.  Of course things have never been better for some taxpayers.  As he has done in previous speeches, Rossotti danced around issues such as 1203(b), attrition and deterioration of the agency while maintaining that management has a plan to increase compliance.  He also stated that there will be another attempt at modernization overseen by the Deputy Commissioner of Modernization.  This time for sure.  Do these tricks ever work?  For a pep talk it was pretty subdued and judging from the reaction of his minions, it was not too convincing.  After a brief speech by the head of the IRS Oversight Board, Deputy Commissioner Bob Wenzel introducted the newly appointed IRS executives.  He read brief, gratuitous bios and it appeared that a round of "The Weakest Link" was about to break out at any moment.  After this, Congressman, Jim Moran (Virginia) gave an impromptu speech.  He graciously apologized for the venom and lack of vision shown by his colleagues shown towards the IRS.  He thanked the IRS for a job well done.  Sadly, this was the highlight of the meeting.  Next up was Wenzel, again.  With the myriad problems and snafus enveloping the agency the big achievement he pointed to was the clean report the IRS' financial statements received from the GAO.  Someone, please, show him the door.

Colleen Kelley was the next speaker.  As she has done in other meetings, Colleen presented her vision far more clearly and forthrightly than management.  She tried to point out the mistakes, omissions and neglect by the agency in providing the resources employees need to accomplish the agency's mission.  She outlined the IRS' failure to achieve employee satisfaction in spite of their relentless pursuit.  She also pointed out the abysmal failure of the IRS to effectively and aggressively deal with attrition.  She may as well have been talking to the walls. These management "leaders" are only interested in feathering their high graded nests and marking time towards nice "high three year" retirement checks.  Colleen still believes that the IRS can pull out of this nosedive.  You have to admire her because she tried her best to clearly but politely point out that the agency has failed the bargaining unit.  Judging by the reaction from the management officials in attendance, again, she may as well have been talking to the walls.  After Colleen's speech, there was a table discussion moderated by Wenzel on what can be done jointly by IRS and NTEU to address employee workplace issues and problems.  The NTEU officials were separated and scattered all over the huge ballroom (just like in previous meetings) thereby impeding note comparison and discussion.  This produced the usual result.  Lists that will be ignored or bogged down in red tape were produced and collected.  After this exercise Rossotti handed out Commissioner's Awards.  These awards were issued to a number of IRS executives for various "achievements."  There were two recipients of note.  One was our own darling- ray- of- sunshine, Ellen Murphy.  She was recognized "for the exceptional caliber and far reaching effects of her leadership as Co-Chairperson of the Collection Due Process Task Force."  Words fail us, save one, "incredible."  The other award would be considered hilarious were it not so shameless.  The first "Robert E. Wenzel Excellence Award" was issued to, guess who?  To the utter amazement and amusement of some of the NTEU officials this was done with a straight face.  Wenzel was moved to tears but we're the ones who should be crying.  The IRS is ass deep in gasoline and Rossotti is handing out cigarette lighters to his managers.  As always, NTEU must provide ointment for the burns suffered by the bargaining unit.  It should be noted that NOT ONE bargaining unit employee or NTEU official was signled out for recognition.  Like I said, an exercise in self- congratulation.

Day Two of the meeting offered breakout sessions on such topics as "Facilitating Cross Division Cooperation" (believed in by few) "Service Center Transition" (understood by fewer), "Increasing the Effectiveness of the Fraud Referral Program" (pipe dream because of 1203(b)), and "The Roles and Relationships of the Commissioner's Representatives."  In the last one former district directors whined about the power they no longer have concerning building issues (as if they ever effectively used it, just ask the Garden City employees).  These sessions were, basically, opportunities for managers to leave and make their cell phone calls. 

The afternoon session began with a speech by Treasury Secretary, Paul O'Neill.  The only noteworthy thing he said was in response to a question about TIGTA's treatment of employees.  He stated that "he did not have enough personal knowledge to understand the passion expressed in the question."  Sounds like good news for TIGTA.  The next and thankfully last presentations were made by the commissioners of the four operating divisions.  Joe Kehoe (SB/SE), Larry Langdon (LMSB), John Dalrymple (W&I and Dalrymple Dollars) and Evelyn Petschek (TEGE) in turn offered empty platititudes (they learn from Rossotti well) about leadership, partnership, communication and productivity.  They appear to be as clueless now as when they first started.  They are, indeed, the crown jewels of Rossotti's reorganization.

The session ended with a question and answer period (the questions were submitted on index cards) that included Rossotti, Colleen and the four commissioners.  Colleen was asked no questions (there were questions for her, to be sure, but the honchos on stage did not want to hear the answers.)  Here is where Rossotti lost it, a little.  He responded indignantly to a question as to whether or not the new TEC and SPEC functions were dumping grounds for displaced managers.  He claims to have trimmed the management ranks by 25% ( a figure no one from NTEU believed.)  He intimated that the question was a demonstration of cynicism by NTEU and the bargaining unit and that his managers have to do a better job of publicizing these functions.  That's right, try slick PR and marketing and when that doesn't work, blame the employees for their cynicism.  He also responded negatively to the question of why should employees in compliance functions bust their behinds under the shadow of !203(b).  His answer was basically "if you don't like it...leave."  The management jackals enthusiastically applauded this response from their leader and in so doing showed their true colors.  They are not interested in employee satisfaction, employee advancement or employees feeling safe in doing their jobs.  They have never had to be accountable for anything.  They are only interested in being feudal lords and jettisoning any employees who dare question or disagree with them. 

In general this meeting was just like all of the others, whether it's SB/SE, LMSB, TEGE, W&I, or WXYZ.  It was a huge waste of time and money.  The IRS spent a fortune on transportation, excess per diem (the hotel rate the IRS contracted for was $20/night over the per diem rate), promotional handouts and refreshment for 500 top level management and NTEU officials.  What was accomplished?  Management still does not have a clue when it comes to providing adequate services to customers, achieving employee satisfaction (there was little or no mention of Survey 2001), and addressing attrition resulting from an aging work force.  In the NTEU breakout session with Colleen after the conclusion of this charade, one chapter president asked simply, if management doesn't care, why are we (NTEU) bothering to come to these meetings?  After reading this, you're probably wondering the same thing.





                              IRS ANNUAL BUSINESS MEETING  -   "WE'RE STILL HERE?"


          The title best describes the overall atmosphere in which the IRS conducted their Annual Business meeting on October 18th. Mercifully the NTEU representatives would only be subjected to one day of pompous and irrelevant pap from the scions of a failed agency. The theme of the meeting was the ever so trite "Focused on the Future" (how much did Booz-Allen charge for that one?) They ought to focus on the future. The 10-miniature IRS concept (divisions) along with the abysmal failure of modernization in terms of squandered billions and inept implementation does not make for a great present and we all know what the past was like!.

Although the meeting had the usual management flexing for it's own gratification feel, it seemed more subdued than the previous ones. It was more like a farewell to Rossotti (who definitely is glad to be going). The first speaker was Wenzel. He unconvincingly went on about how far the IRS has come and that it is headed in the right direction.  (Any opinion you have is as good and more printable than what I was thinking when I heard that.)

The next speaker was Rossotti. He was also unconvincing as he tried to prop up this Focus on the Future jive. His demeanor was more revealing than his words because his assessment of past accomplishments seemed muted. His tepid response to a question about dealing with NTEU was evidence that the last contract negotiations took their toll on him. He said little regarding his possible successor but he may have been thinking "God help him or her". The assemblage stood and applauded a visibly relieved commissioner for a "fine five years".

The next speaker was GOP congressman, Rob Porter from Ohio. He gave a bland and non-committal speech designed not to offend. He was saving that for Senator Grassley to do at a future meeting.

The next speaker was NTEU National President, Colleen Kelley. As usual she was more realistic about the state of the IRS than management. She began with what IRS and NTEU did well together (partnership, pre-decisional input), although one wonders if she still believes it has any relevance, and then threw cold water on their delusions of adequacy.  She called IRS on their negative and reactionary posture during the negotiations of the new IRS/NTEU agreement. She called IRS on their perennial failure to deliver any meaningful "employee satisfaction" or empowerment" thereby rendering such terms empty platitudes. She also called the IRS on their 10- fiefdom concept that resulted in increased petty bureaucratic infighting and stagnation.

The afternoon session began with the most entertaining part of the meeting. Taxpayer Advocate, Nina Olson addressed these senior executives. In a tone not unlike the one they use to address their underlings she chided them on their failure to properly work with the TAS function. She haughtily asserted her function's independence and basically told the managers there's a new sheriff in town. She intimated to them that if they didn't like it, tough. She reports to the commissioner, not them. Reactions included some "who does she think she is?" grumbling, squirming and outright disbelief. It was kind of nice to see one of them eat their own. To put it another way, the shoe fits very tightly on the other foot.

After Ms. Olson there was more drivel from Wenzel. He weakly patted himself and his senior executive team on the back and trotted out the cadaver of balanced measures.

The next speaker was some drone from AWSS. He went on about how great AWSS is and what their aspirations are. What he couldn't explain is how come you have to call a Memphis, Tenn. Help Desk to get a light bulb changed in Brooklyn or why it takes over a week to fix a bathroom door lock.

Next up was the latest poster boy for tax systems modernization failure. All that the Deputy Commissioner for Modernization, John Reece, could say was "we're making progress" and "I'll be here until we get it right". At that point I could have sworn I heard someone say, "or when the moon is in the seventh house or when Jupiter collides with Mars" (from the musical, Hair). We asked for improved service from MITS (they didn't). He promised more is on the way.  ( More of what, no one dared to ask.)  He didn't have nearly enough time to recite the litany of excuses for the total failure that is MITS management. He promised improved customer service and (21 years ago I promised that working at the IRS was only temporary. )

Next was an analysis of management's performance on survey 2002 (that sound you hear is another fat check being cashed by Gallup). The speaker offered nothing but cotton candy observations in an attempt to show that management "improved" in a totally irrelevant survey that fewer employees take every year.

Last and definitely least was a panel discussion (it seems this is going to be an  "Annual Business Meeting" staple) conducted by the four operating division commissioners. The topic was the alleged  "one IRS concept."  This seemed pretty interesting in light of what the Brooklyn Dodger recently reported about their experience with the "one IRS" concept. The discussion was entitled "Engagement-One IRS" Each commissioner blathered on about how and why we are one IRS. No one could tell whether or not Area Director, Mike Donovan was paying attention. To sum up the rest of the discussion Dalrymple was clueless (filing season), Petcheck was flavorless (TEGE call site), Kehoe was shameless (career paths) and Langdon was helpless (tax shelters). After this discussion there was a Q and A period. The gem came from Dalrymple. He addressed the issue of attrition by stating that outside vendors can help the IRS select employees more suitable to a call site environment so these employees won't call in sick so much. I was surprised how little reaction there was to this scintillating observation. I could only surmise that after hearing all of this jive the audience was so sedated, he could have done a hula dance and no one would have noticed. This guy is truly the crown jewel of Rossotti's brain trust.  Finally Rossotti took one more bow. He stated he had a couple of regrets. 1) How he handled and his management team handled 1203(b). The "what me worry?" attitude clearly did not work and 2) implementation of reorganization as it pertained to the impact it had on the employees.

As expected nothing of any material use came out of this meeting. The gaggle of executives in attendance could give a rats tail about employee satisfaction or empowerment. They won't even allow their managers to make decisions on the most basic issues and concerns of BU employees. Sans Rossotti this is hog heaven for these senior executives. They are basically leaderless. They get to play the same role as those guys in the movie, Weekend At Bernie's. That's the movie where they prop up a cadaver and trick people into thinking it's alive.                           


Unlike last year, when Chapter 53 had an arbitration hearing scheduled and could not attend the IRS Business Meeting; this year's version came at a time when we simply had no intention of wasting our time listening to them pat themselves on the back.  Again, as before, Mike Royster, now serving as Chairman of the Brooklyn Joint Council, did attend and has provided us with the following report.  As long as Mike is willing to go (and he has shown a far greater willingness to subject himself to this kind of punishment) and provide us a report of the goings-on, we'll publish his reports on this web site.  Mike's report from last year has been pushed further down on this page in case you feel like seeing how little things change from year-to-year.
And, still available for those who care, is last year's report.