Summary: The Internal Revenue Service (IRS) is moving forward with its new business review process, which should help chart its progress in meeting agency objectives. Senior management appears strongly committed to making the process work, the process has been structured to include various essential elements that GAO outlined in an earlier report (GAO/GGD-89-1), and the process has continued to improve from year to year. IRS can further improve the process by (1) compiling review results in an overall assessment of its progress in implementing long-term strategies and meeting long-term objectives, (2) doing business reviews of its National Office, (3) ensuring that the number of performance factors being measured is appropriate, and (4) expanding communications about the business review process within the agency. An important step IRS can take to enhance the business reviews is to improve its performance measures. IRS is trying to develop better performance measures and is addressing many of the opportunities GAO identified.
