Oleksandr Klymenko Official website

Changing the system

Project management in public administration

Oleksandr Klymenko has implemented the world’s best practice of strategic management in public administration. Fundamental reform of the tax authorities, its reorientation from their fiscal to service functions for citizens and business are the results of his projects.

When Oleksandr Klymenko became an official (after the business in 2005), he understood the complexity, bureaucracy and archaism of Ukrainian public administration system: from housing maintenance offices, regional tax services, to the highest authorities, including the government. The state machine has been working for years on a similar scenario, generating irresponsibility of officials, indifference to citizens and great opportunities for corruption.

Oleksandr Klymenko was invited as a crisis manager. He brought his experience and skills of building the systematic processes in business. Each implemented innovation, every reform – initially in the tax service and then in the Ministry of revenue and duties – were carried out as a project: there were specific goals, control points, efficiency criteria and a clear division of tasks.

Klymenko always focused on the automation of all processes and the usage of modern IT technologies. His ministry was the only (that time) state authority in Ukraine, which was using ultra-modern ERP-system for scheduling of workflows and stepwise control over the implementation of reforms: from the central office to each individual local inspection.

He had to not only change the well-established system of tax services, but to break it to the ground. Any system has always resisted reforms and innovations. Such system of the Tax Service with the centers of influence, flows and schemes (which have been forming for years) desperately resisted. Oleksandr Klymenko understood it. When he was creating a model of the new Ministry (which he headed in the end of 2012), he was guided by best European and world practice, involved reputable and experienced international and Ukrainian experts.

Klymenko invited specialists from PricewaterhouseCoopers in order to accompany all integration processes of the tax and customs services. As a result, stepwise plan was worked out, areas of ​​responsibility and control points were fixed. The first and main stage of integration of the two services was completed during six months. It became an absolute record among the similar reforms in the world. The number of tax inspections has been reduced by 10% (via combining the functions), the number of staff has been reduced by 8.2%.

After the first phase of integration, Oleksandr Klymenko and the specialists of departments together with the experts from PwC have developed and implemented a five-year Strategic Development Plan of the Ministry. This document – a rare case of using the project management in public administration. There were worked out personal performance indicators (KPI) for all units and departments. Each employee of every inspection clearly understood his/her area of ​​responsibility and the expected results of the work. Moreover, he understood his role in the overall transformation program, his/her own contribution to the development of the state.

This plan received positive feedbacks from Ukrainian and international experts, including the World Customs Organization (WCO). In October 2013 it was approved at a meeting of the Cabinet of Ministers of Ukraine.

The main working areas of the Ministry headed by Oleksandr Klymenko were partnership development and support of the business, creating favorable conditions for taxpayers, activization of international trade, and, subsequently, – filling the budget.

All the reforms, which were implemented by Klymenko, had concrete and measurable results for Ukrainian business and citizens. This is more than 500 service centers throughout Ukraine, and free keys for electronic reporting and the possibility of filing documents online, a reduction of time more than twice that Ukrainian taxpayers spend on filling tax reports, etc.

Implementation of strategic plan, which was developed by Oleksandr Klymenko, was suspended after February 2014. The new plan of the State Fiscal Service, which was renamed the Ministry of revenue and duties, haven’t been approved so far.

709 | 12.08.2015

Additional materials

The first year on the path of transformations
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Development Strategy of the Ministry of revenue and duties of Ukraine during 2013-2017
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