WO2002027427A2

WO2002027427A2 - Method and system for developing a tax-related strategy

Info

Publication number: WO2002027427A2
Application number: PCT/US2001/029845
Authority: WO
Inventors: Dan S. Trsic; Brenda Lacenski Daglisch
Original assignee: Ge Financial Assurance Holdings, Inc.
Priority date: 2000-09-25
Filing date: 2001-09-25
Publication date: 2002-04-04
Also published as: WO2002027427A3; AU2001293026A1

Abstract

A structured process for developing a strategy for achieving a tax-related objective includes a series of principal steps, each of which includes one or more substeps. The principal steps may include : (1) generating one or more ideas pertaining to the strategy; (2) identifying the opportunity in which the strategy is presented, including defining the objective and business environment of the strategy; (4) performing technical analysis pertaining to the strategy; (5) making a final assessment of the feasibility of the strategy; (6) implementing the strategy; (7) reporting the results of the implementation (control); and (8) providing feedback regarding the execution of the strategy. A method is also provided for providing, accessing and using the structured process. The method can be implemented using computer technology by storing the information regarding the structured process in a database and using a computer (or network or computers) to access and utilize the information. The computer may include an output device for presenting information regarding the status of the structured process, including an indication of the level of completion of each principal step.

Description

METHOD AND SYSTEM FOR DEVELOPING A TAX-RELATED STRATEGY

BACKGROUND OF THE INVENTION

The present invention relates to a method and system for developing a financial strategy. In particular, the present invention relates to a method and system for developing a financial strategy for achieving a tax-related objective.

An organization can often change its tax liability by modifying its business practices. However, an organization's business practices may comprise a complex series of transactions involving multiple individuals and departments. These individuals and departments may have difficulties coordinating their activities with each other, and may have conflicting interests. Further, the tax code itself is typically complex. It may therefore be uncertain how to modify an organization's business practices or structure to reduce its tax liability. For instance, a tax strategy may seem attractive because it offers obvious short-term benefits, but it may subject the organization to long-term losses.

Many organizations rely on tax managers to create and implement policies designed to effectively manage tax liability. These managers have typically relied on an ad hoc approach to this task. For instance, the manager may propose a program because it has succeeded in other business contexts. Alternatively, the manager may select the program based on poorly defined intuitive factors. To implement the change, the manager typically sends instructions to relevant departments in the organization with the expectation that the responsible parties will understand and execute their assigned tasks.

The above-described approach has achieved unreliable results. The unstructured development of the strategy has resulted in critical steps being performed in an untimely manner or not at all. This has resulted in delays and/or increased costs in developing the strategy, or, in the extreme case, has resulted in the ultimate failure of the strategy. Further, there was generally no methodology in the prior practice for monitoring compliance with the directives of a new strategy. Accordingly, non-compliance may have gone undetected for an extended period of time, e.g., until an annual audit was performed. Also, if the program eventually failed, the prior practice provided no mechanism for analyzing the cause of failure and applying this analysis to future projects. The patent and technical literature does not adequately address the above problems. A number of patents are directed to automating tax computations in specific environments. For example, U.S. Patent No. 3,944,801 is directed to the calculation of sales tax, U.S. Patent No. 4,994,657 is directed to the computation of gift tax, and U.S. Patent No. 5,970,481 is directed to determining tax on a vehicle. A number of other patents facilitate collecting or reporting of taxes, and/or the distribution of tax refunds. For instance, U.S. Patent No. 5,138,549 is directed to an automated tax deposit processing system, U.S. Patent No. 5,193,057 is directed to an electronic income tax refund early payment system, and U.S. Patent No. 5,799,283 is directed to a technique for reporting governmental sales and use tax. Some known commercial software products, such as Quicken™, perform financial tasks such as transaction logging, automatic bill payment, and limited cost-benefit analysis. However, none of the systems and techniques is suited to solving the unique problems identified above. More specifically, none of these systems and techniques provides a systematic and integrated approach to developing a tax strategy, e.g., for formulating, analyzing, implementing, and controlling a tax-related strategy.

It would accordingly be desirable to provide a more effective system and method for developing a financial strategy for obtaining a tax-related objective.

BRIEF SUMMARY OF THE INVENTION

A structured process for developing a strategy for achieving a tax-related objective includes a series of principal steps, each of which includes one or more sub- steps. The principal steps may include: (1) generating one or more ideas pertaining to the strategy; (2) identifying the opportunity in which the strategy is presented, which includes defining the objectives of the strategy; (3) making an initial assessment of the feasibility of the strategy; (4) performing technical analysis pertaining to the strategy; (5) making a final assessment of the feasibility of the strategy; (6) implementing the strategy; (7) reporting the results of the implementation (control); and (8) providing feedback regarding the execution of the strategy.

A method is also provided for providing, accessing and using the structured process. The method includes providing information regarding the structured process, including: (1) first data regarding principal steps of the structured process; (2) second data regarding sub-steps included in each principal step; and (3) third data regarding approval procedures performed during the process for validating the viability of the strategy. The method then includes a step of accessing the information and performing the principal steps, sub-steps, and approval procedures specified in the accessed information. This method can be implemented, for example, using computer technology by storing the information regarding the structured process in a database and using a computer (or network of computers) to access and utilize the information. The computer may include an output device (e.g., a display or printer) for presenting information regarding the status of the structured process, including an indication of the level of completion of each principal step.

BRIEF DESCRIPTION OF THE DRAWINGS

The present invention can be understood more completely by reading the following Detailed Description of exemplary embodiments, in conjunction with the accompanying drawings, in which:

FIGS. 1 A and IB together describe a process for formulating, implementing, and managing a tax strategy;

FIG. 2 shows an exemplary system for implementing the process shown in FIGS. 1A and IB;

FIG. 3 describes an exemplary database for storing information used in the process shown in FIGS. 1A and IB;

FIG. 4 shows an exemplary main screen page for presenting information pertaining to principal steps in the process;

FIG. 5 shows an exemplary screen page for presenting information pertaining to one of the principal steps listed in FIG. 4;

FIGS. 6 and 7 together show a "thermometer" display screen for presenting an overview of the level of completion of the process; FIG. 8 shows an overview screen of the authorizations required (in one exemplary embodiment) to validate the viability of the process at various stages in the process;

FIG. 9 shows an exemplary worksheet page for assisting the user in completing principal step 2;

FIG. 10 shows a worksheet page for assisting the user in determining the compatibility of a proposed tax strategy with other existing tax strategies, within principal step 3;

FIG. 11 shows a worksheet page for assisting the user in determining the compatibility of a proposed tax strategy with non-tax-related strategies, within principal step 3;

FIG. 12 shows a worksheet page for assisting the user in performing selected sub- steps within principal step 3;

FIG. 13 shows a worksheet page for assisting the user in performing an initial assessment (early read) sub-step within principal step 3;

FIG. 14 shows a worksheet page for assisting the user in performing SIPOC

(Suppliers, Inputs, Process, Outputs, Customers) analysis within principal step 4; and

FIG. 15 shows a worksheet page for assisting the user in performing tax analysis within principal step 4.

DETAILED DESCRIPTION OF THE INVENTION

FIG. 1 (including FIGS. 1 A and IB) identifies exemplary steps in a method for developing a financial strategy that is intended to achieve some tax-related objective. A common objective of many tax strategies is to reduce the tax liability of a taxable entity.

The taxable entity may comprise any entity subject to tax laws, such as any person, group of persons, organization (e.g., a corporation or partnership), group of organizations, etc.

The taxing authority may comprise any governmental agency, such as a federal tax agency (e.g., the Internal Revenue Service), state tax agency, local taxing agency (e.g., county), foreign (non-U.S.) taxing agency, or group of taxing agencies. The basic technique described below applies a systematic development process to any tax-related strategy. In a typical organization, a tax department may use the technique as a tool to help it change the business organization to take advantage of a tax strategy. The strategy itself may vary widely depending on the individual or organization to which it is directed. For example, one exemplary strategy might pertain to changing the methodology used for recomputing common bonds so as to save on investment taxes. Another exemplary strategy involves making changes to better recognize tax-exempt dividends (e.g., collecting data to better characterize the dividends as tax exempt). Other strategies pertain to making changes to the reserve methodology and then taking the organization (e.g., the actuaries) through the process of using different computations.

Another strategy involves balancing the valuation of acquired assets between the optimal tax benefit and the optimal internal GAAP benefit (GAAP refers to Generally Accepted Accounting Principles).

Turning now to FIG. 1, the process generally includes eight principal steps interspersed with approval steps. The principal steps pertain to basic tasks performed in developing the tax-related strategy. Principal step 1 (102) pertains to the task of generating ideas for the tax-related strategy. Principal step 2 (104) pertains to the task of defining the opportunity in which the strategy is presented (e.g., including defining the business environment, objectives, problems, etc.). Principal step 3 (108) pertains to making an initial assessment of the feasibility of the strategy. Principal step 4 (112) pertains to performing technical analysis pertaining to the strategy after formation of a working group. Principal step 5 (116) pertains to making a final assessment of the feasibility of the strategy. Principal step 6 (120) pertains to implementing the strategy. Principal step 7 (122) pertains to reporting the results of the implementation (control). Principal step 8 (124) pertains to providing feedback regarding the execution of the strategy.

On a higher level of abstraction, the process flow can be categorized into multiple phases. The correspondence between the phases and the principal steps may not be exact. Nevertheless, a Definition Phase generally corresponds to the first and second principal steps (i.e., generating ideas and identifying the opportunity in which the strategy is presented). A Measurement Phase generally corresponds to the third principal step (i.e., making an initial assessment of the feasibility of the strategy). An Analysis Phase generally corresponds to the fourth and fifth principal steps (i.e., performing technical analysis and making a final assessment of the feasibility of the strategy). An Improvement Phase generally corresponds to the sixth principal step (i.e., implementing the strategy). Finally, a Control Phase generally corresponds to the seventh and eighth principal steps (i.e., reporting the results of implementation). These phases are identified in the vertical column adjacent to the flow chart. The phases (Define, Measurement, Analysis, Improvement, and Control) collectively represent a structured and "scientific" approach to developing the tax-related strategy.

The Define Phase basically entails identifying the basic characteristics of the project, such as the objectives that the project intends to reach, and why these objectives are important to the organization. The Measurement Phase includes assessing whether the strategy is worth implementing, and if so, identifying a baseline reference for use in determining whether the project is meeting its objective. The Analyze Phase includes validating that a particular improvement will actually achieve the objective. The

Improvement Phase involves implementing the strategy. The Control Phase includes measuring the improvement to ensure that the improvement remains valid.

Each principal step may produce one or more outputs, referred to as "deliverables." The deliverables may comprise documents or related products generated in the course of performing the principal step. The right-most column in FIG. 1 identifies the deliverables produced by each principal step. These deliverables are also discussed in further detail below.

It may be preferable or required that selected individuals perform selected steps in the development process. In the following discussion, the term "developers" is used to generically designate the individual or group of individuals assigned the task of performing a selected step.

Selected principal steps terminate in an approval steps, which define an approval procedure. For instance, principal step 2 terminates in approval procedure 106. Principal step 3 terminates in approval step 110. Principal step 4 terminates in approval step 114. Principal step 5 terminates in approval step 118. Principal step 6 terminates in approval step 122. And principal step 7 terminates in approval step 126. Approval procedures establish baseline criteria that the evolving tax-related strategy should meet, at various stages of development, to ensure that it remains viable. For instance, approval step 110 defines criteria that the strategy should meet at the completion of principal step 3. The approval procedures also identify the individuals (referred to herein as "authorizing agents") assigned the role of evaluating the developing strategy with reference to the baseline criteria. For instance, the authorized agent for approval step 106 is the tax director of an organization (in one exemplary context).

As to effect, the approval steps halt the development of the strategy at various stages of the process and demand that it satisfy the prescribed criteria. In this sense, the approval steps serve as gates or checkpoints. A developing strategy that fails to satisfy the prescribed criteria will not advance to the next stage of development (e.g., it will not advance to the next principal step). If this is the case, the strategy developers have two choices. They may attempt to revise the strategy by repeating one or more subtasks in one or more previous principal steps. This is indicated by the instruction "revise plan" in FIG. 1. Alternatively, the developers may be forced to abandon the tax project. This may be appropriate, for example, if it is discovered that the strategy requires resources that cannot be obtained or the strategy has an irreconcilable conflict with another tax strategy or other business program.

FIG. 1 indicates that each of the principal steps includes one or more sub-steps.

The sub-steps describe subtasks pertaining to the basic task defined by the principal step. The subtasks generally provide a structure and rigor in performing the principal tasks. The sub-steps are preferably executed in a prescribed order, identified below.

Having described the process for developing the tax-related strategy in general terms, it is now possible to discuss the individual principal steps, sub-steps, approval steps, and deliverables in greater detail.

In one exemplary embodiment, principal step 1 includes only one sub-step. The sub-step entails systematically generating ideas pertaining to the tax-related strategy. This sub-step may entail any technique a business uses to solicit ideas, such as conducting roundtable meetings, surveying members of the organization, commissioning an independent study, generating various reports, etc. In the exemplary embodiment illustrated in FIG. 1, no deliverables are produced as a result of primary step 1. Further, there is no validation of principal step 1 in an approval step; rather, the process advances directly to principal step 2.

In one exemplary embodiment, principal step 2 includes five sub-steps. The first sub-step entails identifying the project lead, or, in other words, the individual or group of individuals having a supervisory role in implementing the development process. The second sub-step comprises defining the business environment of the strategy. This may entail assessing the characteristics of the business model and assessing the impact that the proposed strategy would likely have in the business environment. The third sub-step involves defining the problems (or more generally, business needs) that currently exist in the business environment, and then assessing whether the strategy is likely to resolve the problems. This sub-step might be useful in determining whether the strategy is contrary to the mainstream directives of the business. The fourth sub-step entails defining the goals (or series of goals or "milestones") that the strategy is attempting to meet. The last sub-step entails assessing project criteria to facilitate cost-benefit analysis performed at a later stage in the development process. The assessment of criteria may involve determining the GAAP net income potential (GAAP refers to "Generally Accepted Accounting Principles"). This assessment also makes a preliminary assessment of the risk involved in the project. For instance, the risk analysis might attempt to quantify the risk of the project in terms of how likely it is to withstand a challenge by the taxing authority or courts. This assessment can also assess the strategic fit (or compatibility) of the project with respect to the overall or mainstream business strategy of the organization. Finally, this assessment might also attempt to assess the complexity of the strategy and how difficult it will be to implement.

The output of the second principal step is a prioritized project charter document. This document generally outlines the plan of the proposed strategy.

Principal step 2 terminates in approval step 106. This step assesses the viability of the tax-related strategy mainly based on the analysis performed in principal step 2. The tax director (or analogous individual) may serve as the authorizing agent for this approval step. If the authorizing agent approves the strategy, the process proceeds to the next principal step. If the authorizing agent does not approve the strategy in approval step 106, then the developers may revise or abandon the strategy.

Principal step 3 may include eight sub-steps. The first sub-step prompts the developers to identify alternative approaches to implementing the strategy (if applicable). These alternative approaches represent different ways of executing the project. The second sub-step entails assessing the compatibility of the proposed strategy with other tax strategies within the organization (e.g., that have already been initiated by the organization). This step assesses the impact that the proposed strategy might have on the other tax strategies. The third sub-step entails assessing the compatibility of the proposed strategy with other general initiatives (e.g., non-tax-related initiatives) in the organization. This step seeks to determine whether the organization has committed itself to any policies, initiatives, or projects that may render the proposed tax strategy non-viable. The fourth sub-step entails performing a cost-benefit analysis of the proposed strategy. The strategy developers can apply any known cost-benefit tool to accomplish this task. The particular cost-benefit technique used will likely vary depending on the particular business environment of the organization. The fifth sub-step entails performing initial feasibility communication analysis. This step involves identifying the constituents of the development process and determining how to communicate with them to provide a successful strategy. The sixth sub-step involves identifying the working group, e.g., that group of individuals who are required (or useful) to implement the development process. The seventh sub-step involves identifying the resource needed to support the working group (including equipment, facility, and personnel resource needs). The eighth sub-step entails making an initial feasibility assessment (i.e., an initial "read") of the strategy. This involves communicating the proposed strategy to different departments of the organization and receiving their feedback. The departments may include any segment of the organization likely to be effected by the strategy, such as the tax department, regulatory department, accounting department, legal department, information technology (IT) department, operations department, actuarial department, etc.

The output of the third principal step is a product "pitch." This document generally outlines the main features and advantages of the proposed strategy. It is used to convince the authorizing agent of the strategy's merit. The pitch may estimate the budget for the project, including professional fees.

Principal step 3 terminates in approval step 110. This step assesses the viability of the tax-related strategy mainly based on the analysis performed in principal step 2. In one exemplary embodiment, a tax director (or similar individual) and chief financial officer of the organization both serve as the authorizing agent(s) for this approval step. In this exemplary embodiment, it is preferred to have both finance and tax approval for the tax strategies to best ensure the success of the strategies. For instance, the chief financial officer reviews the budgetary aspects of the strategy, including the identified professional fees. If the authorizing agent approves the strategy, the developers have effectively won internal support for their project. The process then proceeds to principal step 4. If the project is not approved, the strategy developers can revise or abandon the strategy.

Principal step 4 may contain eleven sub-steps. The first sub-step of principal step 4 entails assembling and finalizing the working group. (Note that the working group and resources have been approved in approval step 110.) The second sub-step entails determining the communication plan for the strategy. The third sub-step entails completing internal tax analysis. The fourth sub-step entails obtaining preliminary outside counsel opinion regarding the strategy. The fifth sub-step involves obtaining regulatory analysis of the regulatory impact of the strategy. The sixth sub-step involves obtaining accounting analysis of the accounting impact of the strategy (e.g., GAAP and other income impact). The seventh sub-step involves obtaining legal analysis of the legal impact of the strategy. The eighth sub-step involves obtaining operations analysis of the operations impact of the strategy (e.g., determining what internal procedural changes may be required by the strategy, such as accounting or system changes). The ninth sub-step involves obtaining actuarial analysis of the actuarial impact of the strategy (which is particularly appropriate for tax strategies associated with insurance programs). The tenth sub-step involves selecting the most promising structure for the strategy (where, in this context, the "structure" refers the legal and transactional characteristics of the strategy). Finally, the eleventh sub-step entails updating the cost-benefit analysis to take account for nneeww information obtained since the previous cost-benefit analysis. The output of the third principal step is a written sign-off. This document memorializes the approval of the authorizing agents.

Principal step 4 terminates in approval step 114. This approval step assesses the viability of the tax-related strategy mainly on the basis of the analysis performed in principal step 4. The authorizing agent in this step comprises the working group. Approval step 114 represents a final recommendation regarding the strategy. That is, prior to this point, the working group may have considered several versions of a basic strategy. If the authorizing agents approve the strategy, the process proceeds to principal step 5, where the firm requirements of the final strategy are resolved. If the strategy fails in approval step 114, the developers can revise or abandon the strategy.

Principal step 5 may contain eight sub-steps. The first sub-step entails determining final system requirements. The second sub-step involves assessing the feasibility of the system requirements. The third sub-step involves assessing how the strategy might affect company policies. The fourth sub-step entails assessing the timing of the implementation of the strategy (e.g., by developing a finalized timeline to execute the strategy). The fifth sub-step involves confirming (finalizing) outside counsel opinion. The sixth sub-step involves assessing the tax reserve. The seventh sub-step entails confirming and setting a final structure for the strategy. And the eighth sub-step involves developing an implementation plan.

The output of the fifth principal step is a product pitch document. This document generally outlines the main features and advantages of the proposed strategy. It is used to convince the authorizing agent of the strategy's merit.

Principal step 5 terminates in approval step 114. This step assesses the viability of the tax-related strategy based on the analysis performed mainly in principal step 5. In one exemplary embodiment, it is preferred that both the tax director and chief financial officer both comprise the authorizing agent(s) for this approval step. If the authorizing agent approves the strategy, the process proceeds to principal step 6. If not, the strategy developers may revise or abandon the strategy. Principal step six can include seven sub-steps. The first sub-step involves finalizing a detailed implementation plan. The second sub-step involves assigning action steps with due dates and delivery dates. The third sub-step involves receiving outside counsel opinion regarding implementation issues. The fourth sub-step entails determining documentation requirements of the strategy. The fifth sub-step entails updating the reporting tools (e.g., financial modeling tools) used for the strategy. The sixth sub-step entails training tax data suppliers associated with the strategy. The sixth principal step involves updating tax reporting processes and tax return workpapers in order to take advantage of the changes in the strategy.

The output of principal step 6 is an implementation plan. This plan defines how to implement the strategy.

Principal step 6 terminates in approval step 122. This step assesses the viability of the tax-related strategy mainly based on the analysis performed in principal step 6. In one exemplary embodiment, it is preferred that the chief financial officer (or other appropriate organization head) act as the authorizing agent for this approval step. The authorizing agent evaluates the strategy based particularly on the implementation plan. If the agent approves the strategy, this means that implementation is complete and the process advances to principal step 7. If not, the strategy developers may revise or abandon the strategy.

Principal step 7 includes six sub-steps. It generally involves following up on the implementation of a strategy and reporting the results of the implementation of the strategy. The first sub-step ensures that the proper tax return documents have been filed and reflect the change in strategy. The second sub-step involves ensuring that other financial documents adequately reflect or monitor the change in strategy. The third sub- step entails collecting documentation to show that the procedures that have been planned are implemented and are working successfully. The fourth sub-step involves ensuring that the strategy changes are properly represented in the tax reserve analysis. The fifth sub-step basically involves monitoring the structure. The sixth sub-step entails archiving the strategy in a database of previous strategies. The database may be used as a reference for developing future strategies. The output of principal step 7 is one or more of: a tax return, tax provisions for financial statements, tax reserve analysis, and a pitch document. The pitch document may comprise a presentation to demonstrate that the implementation of the strategy has been effective, based on analysis gleaned from the tax return, tax provision, reserve analysis, etc.

Principal step 7 terminates in approval step 126. This step assesses the viability of the tax-related strategy based primarily on the analysis performed in principal step 7 (and the deliverables generated therein). In one exemplary embodiment, it is preferred that the tax director (or similar individual) and senior leadership team both serve as the authorizing agents for this approval step. More specifically, the tax director first evaluates the strategy, followed by the senior leadership team. If the authorizing agents approve the strategy, the process advances to the last step. If not, the strategy developers can revise or abandon the strategy.

The last principal step (i.e., step 8) may include four sub-steps. It generally involves identifying the advantages and disadvantages of the strategy and identifying how future strategies can be improved based on these findings. The first sub-step entails reviewing the process with the working group. The second sub-step involves identifying the improvements provided by the strategy. The third sub-step entails assessing the working group's effectiveness. The last sub-step involves adding the project to a list of dependencies. This involves identifying how the current project may impact other existing projects, and how the other projects may impact the current project. To facilitate this task, a matrix may be maintained which identifies the interrelationship between projects.

The above-described process can be implemented in various ways. In general terms, the process is implemented by supplying a strategy developer with information that describes the structured development process. The information may contain first data that identifies the principal steps, second data that identifies the sub-steps contained in each principal step, and third data describing the approval procedures. The developer accesses the information and then performs the principal steps, sub-steps, and approval procedures described therein. FIG. 2 describes one exemplary system 200 for implementing the process using a standalone computer and/or a group of computers connected to a network. The system 200 preferably includes at least one computer, such as computer 230. The computer 200 may include any general or special purpose computer. It includes conventional hardware components, including processor 220. The processor 220 is connected to RAM 224

(random access memory), ROM 226 (read only memory), and storage device 228 via bus 234. The computer receives input data from input 232, and supplies output to an output device, such as display 230. In addition, or alternatively, the computer 230 can send its output to a printer (not shown).

Computer 230 may comprise any known type of computer. The computer may operate using any one of a variety of operating programs, such as the Microsoft Windows™ 98 program. The storage device 228 may include any storage, such as a hard drive, CDROM, optical disc, etc.

The computer 230 may comprise a standalone computer (i.e., a computer which does not communicate with a network). In other embodiments, the computer 230 is communicatively coupled using communication interface 222 to other computers (e.g., computer 232 and 234) via network 204. The network 204 can be formed as an intranet, a PAN (Personal Area Network), a LAN (Local Area Network), a WAN (Wide Area Network), a MAN (Metropolitan Area Network), or other type of network. The network 204 may alternatively use wireless technology to connect computers together. The computer 230 can also communicate with the Internet 206 via ISP (Internet Server Provider) 208, and any additional computers (not shown) connected thereto. The network may link users involved in the development process, such as members of the working team, authorizing agents, etc.

The network can operate using any network-enabled code, such as Hyper Text

Markup Language (HTML), Dynamic HTML, Extensible Markup Language (XML), Extensible Stylesheet Language (XSL), Document Style Semantics and Specification Language (DSSSL), Java™, etc.

The computer 230 can access one or more servers via the local network 204 and/or the Internet 206. For instance, the computer 230 can access a local host server 210 via local network 204, and can access remote server 216 via the local network 204 and the Internet 216. The local host server 210 is coupled to database 212, and the remote server 216 is connected to database 214.

The servers 210, 216 may comprise, for instance, workstations running any one of a variety of programs, such as Microsoft Windows™ NT™, Windows™ 2000, Unix, etc. The databases 212, 216 may be implemented as Oracle™ relational databases, or other data storage or query formats, platforms or resources.

FIG. 3 shows database memory 300 containing information describing the process shown in FIG. 1. The information includes a principal steps file 302 that includes first data that identifies the principal steps in the process. The information further includes a component sub-steps file 304 that contains second data that identifies the sub-steps in each respective principal step. The information also includes an attributes file 306 that contains third data that identifies attributes of the steps of the process. For instance, this file may store information concerning the approval steps, such as the criteria used to evaluate the viability of the strategy, and an identification of the authorizing agent assigned to make the evaluation. The information also includes a documents file 308 that contains fourth data that identifies the deliverable documents associated with each principal step. And finally, the information includes a tools file 310 that contains fifth data that identifies the tools that can be used to perform analysis associated with each principal step and sub-step. The tools file 310 may contain merely a link to another storage location that stores the actual tools, or may contain the software code to implement the tools. The tools include a series of worksheets used to perform analysis associated with various principal steps and sub-steps. The tools may also include other software programs to perform financial analysis, to access information, or to communicate with other computers.

Each of the files 302, 304, 306, 308, and 310 may form distinct units of information having separate addresses. Alternatively, these information files may represent merely separate information fields in a single addressable file. In either case, information stored in the five files is preferably cross-indexed to indicate how one field of information corresponds to other fields. For instance, the database preferably indicates the correspondence between the steps in files 302 and 304 and the documents in file 308 that are generated by each of the steps.

In a standalone computer application, the memory database 300 can be physically stored in one or more of RAM 224, ROM 226, and/or storage device 228. In a network application, the memory database 300 can be stored in server database 212 or database 214, or duplicated in the memories of each network computer (e.g., each of computers 230, 232, and 234). Further, the files within memory database 300 can be downloaded from one or more server databases to the local memory within computers 230, 232 or 234.

FIGS. 4-8 illustrate an exemplary computer interface allowing a user to access the process information and perform the steps in the process. FIG. 4 shows an exemplary main (initial) page or screen. The page may comprise conventional graphic interface components, such as a main display section 402, a tool bar 406, and a menu bar 408. The main display section 402 includes a listing 404 of the principal steps in the process, namely, principal step 1 for idea generation, principal step 2 for the identification of opportunity, principal step 3 for the assessment of initial feasibility, principal step 4 for the completion of technical analysis, principal step 5 for the completion of final feasibility, principal step 7 for the implementation of the process, principal step 7 for control of the process, and principal step 8 for feedback. Each principal step entry in the listing may include a stored link that associates each principal step to a respective sub- page that lists its component sub-steps. For instance, activating the link for principal step 4 (complete technical analysis) will cause the display of a sub-page describing principal step 4. An example of this page is shown in FIG. 5 (to be discussed below). A link may be activated in a conventional manner, e.g., by clicking on the appropriate principal step text in FIG. 4.

The tool bar 406 contains an icon group 410 for use in accessing further information relating to the process. Namely, a thermometer icon 416 provides access to a "thermometer" progress display chart. An example of this chart is shown in FIGS. 6 and 7 (which is discussed in greater detail below). A deliverable icon 118 provides access to the deliverable document templates generated by the process (for example, a pitch template. Alternatively, this icon can access a database containing examples of prior completed deliverable documents. A "sign-off icon 420 provides access to a master listing identifying those individuals that are required to sign-off after the completion the principal steps (that is, the authorizing agents). An example of this page is presented in FIG. 8 (which is discussed in greater detail below). A help icon 422 provides access to information regarding the process. For instance, when the user sequentially activates the help icon 422 and the "identify opportunity" principal step, the computer presents a detailed explanation of the tasks of this principal step. A "WWW" icon 424 provides access to the World Wide Web (or other network) for retrieval of information regarding the process. In one particular example, icon WWW can be used to access a remote server and associated database administered by the Internal Revenue Service (IRS). For instance, a tax manager can access the IRS computer to download information regarding tax changes, rates, etc., which may be relevant to the development process.

The tool bar 406 also contains a an icon group 412 which provide access to financial and/or project management tools. For instance, a scheduling icon 426 provides a link to a software scheduling tool. The scheduling tool may allocate events in the process to timeslots, provide a detailed summary of the status of each step (including percent completed, duration, starting date, etc.), provide audible and/or visual reminders, etc. In one example, the Microsoft Project Plan™ program can be used. A worksheet access icon 428 provides a link to pre-stored worksheets. The worksheets serve as tools for analysis and may be tailored to a particular principal step or sub-step. Accordingly, these worksheets may be accessed and completed by the user at particular stages in the process. FIGS. 9-15 shows a series of exemplary worksheets (to be discussed in greater detail below). A CBA (cost-benefit analysis) icon provides access to a cost-benefit analysis tool. This tool provides an evaluation of the costs and benefits of a particular strategy. A money icon ("$") provides a link to one or more additional tools used for financial analysis (e.g., other than CBA analysis).

The tool bar 406 also provides an optional conferencing icon 414. This icon can initiate a meeting between individuals involved in the process. For instance, the creator of a tax strategy can use computer 230 (with reference to FIG. 1) to conduct a meeting with a working member or authorizing agent who is using computer 232 (with reference to FIG. 1) by activating the conferencing icon 414. More specifically, the computer system 200 can include hardware and software to provide video and/or audio conferencing features. For instance, using well known video conferencing technology, images of the remote meeting attendees can be projected on the computer screen in real time (or near real time). In yet another embodiment, the computer system may provide known remote control features. Such features allow a meeting leader to commandeer the control of the computer displays of the other attendees (the "passive attendees") of the meeting. The actions performed by the meeting leader would then be duplicated on the screens of the passive attendees (such that, for instance, the same sequence of pages accessed by the meeting leader would be presented to the passive attendees).

FIG. 5, as mentioned above, identifies the sub-steps 504 in a principal step (e.g., in this case, the sub-steps in principal step No. 4). It is accessed by activating the link associated with the principal step "Complete Technical Analysis" listed in FIG. 4. The sub-steps include: sub-step 1 for assembling a final working group; sub-step 2 for determining a communication plan; sub-step 3 for completing internal tax analysis; sub- step 4 for obtaining preliminary outside counsel opinion; sub-steps 5-9 for performing regulatory, accounting, legal, operations, and actuarial analysis, respectively; sub-step 10 for selecting the most promising strategy structure; and sub-step 11 for updating the cost- benefit analysis. Each of these sub-steps, in turn, comprises a link to further information regarding the activated sub-step. For instance, activating a sub-step link can access one or more worksheets that assist the user in performing the sub-step, or if so configured, may access detailed textual instructions regarding the sub-step.

The page shown in FIG. 5 also provides a group of tool icons 506. These tool icons can comprise the same tool icons identified in FIG. 4. Preferably, tool icons 506 also provide access to specific tools useful in performing the principal step being displayed. For example, activation of the deliverable icon in the context of FIG. 5 would preferably generate a display (not shown) that identifies only those deliverables appropriate for the fourth principal step. Further, activation of a financial analysis icon in the context of FIG. 5 would preferably access the financial tool(s) most appropriate for performing the fourth principal step. The memory database (see FIG. 3) provides the relational links to provide this type of association between steps, deliverables, tools, and other information.

Finally, FIG. 5 includes well known navigation "buttons" to access the previously accessed page ("previous"), the next screen in a stored series of screens ("next"), and the original screen shown in FIG. 4 ("home").

FIGS. 6 and 7 provide a detailed process status screen (otherwise known as a "thermometer screen"), which can be accessed by activating the thermometer icon in a prior page (e.g., note thermometer icon 416 in FIG. 4). The triangle symbols and text legends (604, 606, 608, 610, 612, 614, 616, and 618) represent principal steps in the process. More specifically, FIG. 6 presents principal steps 1-5 and FIG. 7 presents principal steps 6-8. Horizontal scroll bar 630 allows the user to adjust the horizontal position of the chart on the page to achieve the displays shown in FIGS. 6 and 7 (or some intermediate position).

The sub-steps appear beneath their respective principal step legends (these sub- steps were discussed in connection with FIG. 1). Further, the chart presents a thermometer that vertically extends beneath each principal step. For example, thermometer 624 extends beneath the triangle symbol and text legend designating the first principal step (idea generation). The thermometer can indicate the level of completion of a principal step by successively changing the color (or gray scale) of the thermometer to simulate the rising of the level of fluid in an actual thermometer. That is, the thermometer level is "low" when a principal step is initiated. The thermometer level is "high" when the task is almost completed. Further, each thermometer is divided into right and left vertical columns. The right column (e.g., column 628 in the second thermometer) indicates the level of completion at the end of a previous status meeting (e.g., a week ago). The left column (e.g., column 626 in the second thermometer) indicates the level of completion in the current frame. Comparison of the levels of the right and left columns provides an indication of whether there has been any progress since the last time frame. An equal level in the right and left columns indicates lack of progress in the development since the previous time frame. The computer is also configured to present two horizontal thermometers, namely thermometer 620 and thermometer 622. Either or both of these thermometers can indicate the level of completion with respect to the overall process. That is, these thermometers can indicate how many of the principal steps have been completed by changing the color (or gray scale) of the thermometers to simulate the rising level of fluid in an actual thermometer. All level information presented in the horizontal and vertical thermometer charts can also, or in addition, be presented in numeric percentage format, or some alternative format.

The diamond symbols (e.g., diamond symbol 629) designate junctures in the process in which an approval procedure should be performed. These diamonds thus designate gates (or checkpoints) because they prohibit further progress in the development process until the strategy meets the criteria specified in the approval procedure.

An authorized individual can update the thermometer chart by entering relevant information through a keyboard or other input device (e.g., via mouse) in a manner well known to those skilled in the art. For instance, in one implementation, the computer is configured to present the chart using the EXCEL™ software program, in which the screen defines a series of user entry fields. The user can enter symbols into the appropriate fields to designate progress through the process, such as by entering check marks in the right and left columns of the vertical thermometers via keyboard or mouse data entry. Alternatively, the computer can be configured to link information entered via another tool (such as a separate scheduling tool or sign-off worksheet) with progress data presented in the thermometer chart, such that the thermometer chart would automatically be updated upon data entry via the other scheduling tool.

The chart also presents two additional fields beneath the vertical thermometers.

Namely, a first field 632 ("sign off) identifies the authorizing agents that are assigned the role of validating the viability of the developing strategy. The second field 634 ("outputs") identifies the deliverables generated in each principal step. The deliverables were discussed in the context of FIG. 1. Each of the fields in the thermometer chart may additionally include a link which provides access to additional information (e.g., by "clicking" on the field in the thermometer chart with using a mouse, etc.). The chart may also be printed out and used as a hard-copy reference in performing the development process.

Finally, FIGS. 6 and 7 provide a series of tool icons 602. These tool icons may comprise the same tools identified in FIG. 4. Alternatively, these icons may present an additional group of tools that are particularly adapted to interact with the thermometer presentation.

FIG. 8 is a screen for receiving the authorization (and date of authorization) of the authorizing agents. An agent may indicate his authorization by entering his name with a keyboard, mouse, etc., or by entering his digital signature. The computer system may additionally provide well-known security features to ensure that only authorized agents enter information through the screen in FIG. 8. For example, the computer system can compare an entered password or signature against a database of authorized passwords and signatures. Further, the system may prevent a user from accessing new worksheets (pertaining to new principal steps) if the appropriate authorizations have not been obtained in any approval stage.

The remainder of the screens are worksheets for assisting the user in performing one or more specific steps in the process. For example, FIG. 9 shows a checklist screen used to assist the user in performing principal step 2. More specifically, the screen includes a first field for identifying the project leader and business environment. The screen includes a second field prompting the user to enter the goal/objective of the project. The screen includes a third field prompting the user to enter a problem/opportunity statement. The screen includes a fourth field prompting the user to consider various assessment criteria. Namely, this field prompts the user to consider the Generally Accepted Accounting Principles (GAAP) Net Income and Strategic Fit of the strategy. This field also prompts the user to consider the tax complexity of the strategy, as well as other factors contributing to the complexity of the strategy (including regulatory and operational aspects of complexity). FIG. 10 presents a worksheet screen that assists the user in identifying whether other tax strategies may conflict with the tax strategy under current consideration. More specifically, this screen prompts the user to identify the tax strategies and the leaders of the tax strategies, and then asks the user to assess whether there is a conflict (by entering Y or N).

FIG. 11 presents a worksheet screen that assists the user in identifying whether the tax strategy may conflict with other non-tax strategies. More specifically, this screen prompts the user to identify the strategy (i.e., initiatives), the business contact associated with the strategy, and the tax contact associated with the strategy. Further, this screen asks the user to assess whether there is a conflict (by entering Y or N).

FIG. 12 presents a worksheet screen that assists the user in performing sub-steps within principal step 3. Namely, this screen presents a first field that prompts the user to identify any compatibility and dependency concerns with respect to the strategy. This screen presents a second field that prompts the user to identify the working group for the tax strategy from various fields. This screen also presents a third field which prompts the user to identify internal and external resources necessary to implement the strategy, by specifically listing the individuals (heads) associated with the resources and the respective monetary value of the resources. Finally, this worksheet contains a fourth field that is useful for making a cost-benefit analysis. The screen may identify conventional cost- benefit considerations, such as net income, hard costs, and soft costs. This field identifies net benefit and return on investment (ROI) with respect to the first year (YR1) and the net present value (NPV).

FIG. 13 provides a checksheet containing a first field (left) that assists the user in making an initial assessment (early read) of the tax strategy. The screen prompts the user to identify whether other departments (e.g., tax, regulatory, legal, actuarial, information technology, and/or operations) raise issues that constitute "deal breakers" with respect to the proposed strategy. A "deal breaker" constitutes an impediment that may disable the strategy or negatively impact the strategy in a significant way. The checksheet also provides a second field (right) that prompts the user to identify the initial structure of the strategy. FIG. 14 provides a checksheet that prompts the user to enter SIPOC information (Suppliers, Input, Process, Outputs, Customers). More specifically, the upper field prompts the user to identify the strategy, its boundaries, and its importance. The boundaries of the strategy defines its scope, and, more specifically, identifies when it is to start and stop, what it is intended to accomplish, and what it is not intended to accomplish. The term "importance" refers to where the project ranks with respect to other projects or initiatives. The bottom chart prompts the user to itemize the suppliers, inputs, processes, outputs, and customers of the strategy. More specifically, "customers" refers to the entity that will receive the benefit of the program. The term "process" refers to those strategies used to confer the benefit. The term "inputs" refers to the goods, services and/or information required by the process. The term "suppliers" refers to the individuals or organizations that furnish the inputs. The term "outputs" refers to the goods, services and/or information generated by the process. In the tax context, an output may be a return that is filed with the tax authority. This chart therefore allows the designers of the strategy to confront many aspects of the strategy at an early state in its evolution.

FIG. 15 provides a checksheet that prompts a user to identify the federal and tax implications of the tax strategy. Namely, the top field requests the user to itemize the issues presented in the tax strategy, the responsible person associated with the issues, and whether the issues present a significant hindrance to the advancement of the strategy. Finally, this field prompts the user to identify how the issues can be (or have been) resolved. A bottom field requests the user to enter similar information with respect to state tax. Further, although not shown, the computer may present similar checksheets with respect to actuarial, operational, legal, information technology, regulatory, and accounting aspects of the tax strategy.

Other tools may provide automated mechanisms for implementing the strategy. For instance, the integrated computer interface described above can include a software tool for electronically transferring strategy-related funds or tax information to remote sites, such as a bank or governmental taxing authority. In summary, the above-described technique provides a structured approach to the formulation, implementation, control, and improvement of a tax-related strategy. The technique may therefore contribute to reduced development costs, delays, and complications in the development process.

To facilitate explanation, the above discussion was framed in the context of an exemplary business environment characterized by defined exemplary business considerations. However, it should be noted that the principles described here apply to many different business environments having correspondingly different business considerations. For instance, different business environments may use a different set of authorizing agents than described above. Further, different business environments may attach different importance (or significance) to the agents' approval than described above. Accordingly, the above-described "preferred" modes of operation are exemplary and should not be construed as limitations on the invention as claimed.

More generally, while the foregoing description includes many details and specificities, it is to be understood that these have been included for purposes of explanation only, and are not to be interpreted as limitations of the present invention. Many modifications to the embodiments described above can be made without departing from the spirit and scope of the invention, as is intended to be encompassed by the following claims and their legal equivalents.

While the foregoing description includes many details and specificities, it is to be understood that these have been included for purposes of explanation only, and are not to be interpreted as limitations of the present invention. Many modifications to the embodiments described above can be made without departing from the spirit and scope of the invention, as is intended to be encompassed by the following claims and their legal equivalents.

Claims

WHAT IS CLAIMED IS:

1. A process for developing a financial strategy to achieve a tax-related objective, comprising the principal steps of: generating one or more ideas pertaining to the strategy; identifying the opportunity in which the strategy is presented, including defining the objectives of the strategy; making an initial assessment of the feasibility of the strategy; performing technical analysis pertaining to the strategy; making a final assessment of the feasibility of the strategy; implementing the strategy; reporting the results of the implementing step; and providing feedback regarding the execution of the strategy.

2. The process according to claim 1, wherein at least one of the principal steps includes plural sub-steps.

3. The process according to claim 1 , further including the step of performing an approval procedure at the termination of at least one principal step for validating the viability of the strategy.

4. The process according to claim 1, further comprising the step of accessing and utilizing at least one tool to provide assistance in performing the strategy.

5. The process according to claim 1, further comprising the step of presenting information regarding the status of the strategy, including an indication of the level of completion of each of principal step.

6. A method for developing a strategy to achieve a tax-related objective, comprising the steps of: providing information regarding a structured process for developing the strategy, the information including: i) first data regarding principal steps of the structured process; ii) second data regarding sub-steps included in each principal step, wherein each principal step includes at least one sub-step; and iii) third data regarding approval procedures performed during the process for validating the viability of the strategy; accessing the information; and performing the principal steps, sub-steps, and approval procedures specified in the accessed information.

7. The method for developing a strategy according to claim 6, wherein the step of performing comprises performing the following principal steps: generating one or more ideas pertaining to the strategy; identifying the opportunity in which the strategy is presented; making an initial assessment of the feasibility of the strategy; performing technical analysis pertaining to the strategy; making a final assessment of the feasibility of the strategy; implementing the strategy; reporting the results of the implementing step; and providing feedback regarding the execution of the strategy.

8. The method for developing a strategy according to claim 6, wherein the information provided regarding the structured process additionally includes fourth data regarding output-deliverables produced by the structured process flow and the timing at which the output-deliverables should be generated.

9. The method for developing a strategy according to claim 6, wherein the information provided regarding the stractured process additionally includes fifth data regarding at least one tool that can be utilized to provide assistance in performing the strategy.

10. The method for developing a strategy according to claim 9, wherein the at least one tool includes at least one worksheet for use in performing at least one step in the structured process.

11. The method for developing a strategy according to claim 6, wherein the step of providing information comprises providing a database containing first, second, and third files storing the first, second, and third data, respectively.

12. The method for developing a strategy according to claim 11, wherein the step of accessing the information comprises utilizing a database access device to retrieve information stored in the database and presenting the information to a user.

13. The method for developing a strategy according to claim 6, further comprising the step of presenting information regarding the status of the stractured to a user, including an indication of the level of completion of each of principal step.

14. A system for assisting a user in developing a strategy to achieve a tax- related objective, comprising: a database providing information regarding a structured process for developing the strategy, the information including:

(i) a first file containing first data regarding principal steps used in the structured process; ii) a second file containing second data regarding sub-steps included in each principal step, wherein each principal step includes at least one sub-step; and iii) a third file containing third data regarding approval procedures performed during the process for validating the viability of the strategy; and a database access device configured to access the database and allow the user to interact with the information, to thereby allow the user to perform the principal steps, sub-steps, and approval procedures specified in the information.

15. The system for assisting a user in developing a strategy according to claim 14, wherein information provided in the first file identifies the following principal steps: generating one or more ideas pertaining to the strategy; identifying the opportunity in which the strategy is presented, including defining the objective of the strategy; making an initial assessment of the feasibility of the strategy; performing technical analysis pertaining to the strategy; making a final assessment of the feasibility of the strategy; implementing the strategy; reporting the results of the implementing step; and providing feedback regarding the execution of the strategy.

16. The system for assisting a user in developing a strategy according to claim 14, wherein the information provided regarding the structured process additionally includes fourth data regarding deliverable-outputs produced by the strategy and the timing at which the deliverable-outputs should be generated.

17. The system for assisting a user in developing a strategy according to claim 14, wherein the system additionally includes at least one tool that can be utilized to provide assistance in executing the structured process, and wherein the information provided regarding the stractured process additionally includes fifth data regarding the identify of the at least one tool.

18. The system for assisting a user in developing a strategy according to claim 17, wherein the at least one tool includes a worksheet for use in performing at least one step.

19. The system for assisting a user in developing a strategy according to claim

14, wherein the database access device comprises an output device configured to present information regarding the status of the strategy, including an indication of the level of completion of each of principal step.

20. The system for assisting a user developing a strategy according to claim 14, wherein the database access device comprises a computer.

21. The system for assisting a user in developing a strategy according to claim 14, further including: at least one other database access device which is configured to access the database; and a network configured to communicatively connect the database access devices together.

22. A system for assisting a user in developing a strategy for achieving a tax- related objective, comprising: a database providing information regarding a structured process for developing the strategy, the structured process including a plurality of principal steps, each having at least one sub-step; a database access device configured to access the database and allow the user to interact with the information, to thereby perform the principal steps and sub-steps; wherein the database access device includes an output device configured to present information regarding the status of the stractured process, including an indication of the level of completion of each principal step.

23. The system for assisting a user in developing a strategy according claim 22, wherein the indication of the level of completion comprises a thermometer-type display for each principal step.