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This paper provides a comprehensive account of how the Inland Revenue Authority of Singapore (IRAS) successfully managed organizational transformation to achieve significantly increased customer satisfaction, enhanced organizational agility, and dramatic reduction in tax arrears. The case study reaffirms that the soft issues are the hard issues in reengineering. Indeed, the recognition by IRAS that people resource issues are at the heart of change is the major factor for its success. In addition to tackling people issues, the transformation experience of IRAS also reveals the need to integrate the traditional change models more tightly in managing large‐scale change. The inability of IRAS in anticipating all major consequences of their change actions suggests an improvisational model of change management. Organizations embarking on large‐scale transformation should consciously build their internal capabilities to tackle emergent changes (e.g. establishing the information systems for change, nurturing people resources, and providing slack resources).

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