EDITION 43 JUL-SEP 15

FINAL EDITION PRODUCTIVITY Thinking Beyond Today

The world is changing faster than ever. To keep up, government and all Australians must be thinking for tomorrow. At KPMG, we have a track record of working with government, business and the community to tackle challenging problems. This makes us the natural choice when government needs insight and analysis to think differently about public service delivery. Together, we’re exploring new opportunities and helping to create solutions that work for the nation today – and tomorrow.

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Government: thinking beyond today

© 2015 KPMG, an Australian partnership. All rights reserved. CONTENTS Public Administration Today is COVER: BUSY Dedication, focus and teamwork – ants are inspirationally productive http://visual.ly/7-productivity-lessons-ants published by IPAA ACT Division ©iStockphoto.com @auimeesri 06 08 44 FINAL EDITION

EDITOR Ron Dent EDITORIAL, PRODUCTION AND ADVERTISING MANAGER Sally Woolford DESIGN EnvyUs Design, Suzanne Green EDITORIAL & PRODUCTION MANAGEMENT Faceworks Marketing Solutions PRINTER Finsbury Green

This edition saved 1250kgs of greenhouse (CO2) emissions compared to a non-green printer PUBLISHER (COPYRIGHT) Copyright for published articles (including digital) resides with Public Administration Today and its publisher, IPAA ACT EDITOR’S NOTES PRODUCTIVITY IN Division, CEO Drew Baker. After publication, 03 FROM THE EDGE 28 PUBLIC SERVICE authors may reproduce their articles in other Goodbye and good luck Ed Bernacki says productivity forms with appropriate acknowledgement. and innovation are ‘personal’ STATE EDITORIAL CONSULTANTS 04 PRESIDENT’S COLUMN ACT & COMMONWEALTH Public service productivity WANT INNOVATION IN Amanda Anderson, 32 GOVERNMENT? [email protected] 06 PRODUCTIVITY’S Then keep your CEOs longer, NATIONAL Jo Rose, [email protected] ‘PRODUCT’ CRISIS says David Waterford NSW Megan Scardilli Doug McTaggart on productivity and Thinking [email protected] better understanding consumers MIDDLE MANAGEMENT Kieran McCann, [email protected] 35 CAN HELP NT Kevin Thomas, [email protected] ‘PRODUCTIVITY PARADOX’ It has a role to play, 08 Janine O’Flynn on QLD Christine Flynn, [email protected] says Peter Keogh Beyond Ray Lane, [email protected] performance measures FED UP? OR NOT? SA Tony Lawson, [email protected] AUTHENTIC PRODUCTIVITY 38 Today Renae Haese, [email protected] 10 Sydney hosts IPAA’s Renu Agarwal, Christopher Bajada, 2015 national conference TAS Rebecca Moles, Paul J Brown and Roy Green on why [email protected] Summa McIntyre, [email protected] current productivity approaches fail FUTURE IN FOCUS 44 Geoff Heriot reflects on VIC Robin Astley, [email protected] BEYOND A SINGLE PLANE The world is changing faster than ever. Nick Bastow, [email protected] Tasmania’s screen debut 14 OF PRODUCTIVITY WA Yohan Fernando, [email protected] Productivity is a multi-layered INVESTING IN GROWTH David Gilchrist, [email protected] To keep up, government and all Australians must be phenomenon; say Moira Scerri 48 Chrissie Berryman on The ACT Division of the Institute of Public and Renu Agarwal Tasmania’s workforce thinking for tomorrow. Administration Australia (IPAA) published Public Administration Today, with the support of National development strategy Council. The magazine was primarily a national 18 MOBILE PRODUCTIVITY At KPMG, we have a track record of working with communications medium for all IPAA members. Donna Adams on an innovative 52 DEVELOPING ‘EXPERTS’ It aimed to report IPAA activities, promote and initiative for Tasmania’s police Lynne Curtin on Victoria’s government, business and the community to tackle celebrate achievements in Australian public sector Environment Protection management, disseminate information about major EVIDENCE-BASED LINK Agency’s program challenging problems. This makes us the natural trends and developments, and facilitate discussion 21 Julie Sloan examines productivity and debate. Articles were published on editorial impact of workforce planning URBAN WATER choice when government needs insight and analysis relevance and merit. Views expressed are those 54 of individual authors and do not necessarily reflect Stuart Kells’ case study of to think differently about public service delivery. the views of the Institute or the editorial team. MEASURING REGIONAL public sector change 22 RESILIENCE Today is available on the web – full editions only to Brendan Rynne says that’s challenging REVIEW – AROUND THE NATION Together, we’re exploring new opportunities and IPAA members and subscribers – via a password. 57 Sample pages from each edition are freely available Members’ round up from IPAA helping to create solutions that work for the nation as are covers and contents lists from past issues. NEW CONFERENCE across Australia 25 FOR CANBERRA Visit IPAA ACT at www.act.ipaa.org.au today – and tomorrow. IPAA ACT’s inaugural COMING ATTRACTIONS GOLD SPONSORS IPAA ACT acknowledges 70 the generous assistance of its Gold Sponsors: public sector conference The best IPAA has to offer Centre for Public Management, Hays Recruiting, Join the conversation. KPMG, Telstra and Minter Ellison. 27 CHARITIES, COMPLIANCE ISSN 1832-0066 AND BACKFLIPS David Gilchrist on the ACNC Government: thinking beyond today

© 2015 KPMG, an Australian partnership. All rights reserved. PUBLIC ADMINISTRATION 01 REINVENTING THE POSTAL SERVICE FOR THE 21ST CENTURY

Australia Post and its Managing Director and CEO, Ahmed Fahour, are revolutionising mail as you know it. They’ve introduced the Digital MailBox to offer Australians online transactions and instant delivery, alongside stamps and physical mail. It’s the future of post. And Telstra’s secure Cloud is the foundation of Australia Post’s vision.

For more on this and other Telstra solutions, visit telstra.com/enterprise/auspost NOTES FROM THE EDGE

Goodbye and good luck This is the on-line products about government Suzanne and Dave Green from EnvyUs final edition and public administration was considered Design; Robin Coles and the professional of Public to offer alternatives. printers at Finsbury Green; Dion Pitsilos, Administration IPAA ACT’s IT supplier; and – for getting Today. It’s And so, it’s goodbye and good luck. the magazine to your desk on time every somewhat We have greatly enjoyed bringing time – John Morrison and the team at ironic the you what most people have freely Adelaide Business Bureaux. edition is acknowledged is a much improved, very We are also grateful to the contributors themed high quality version of Public Administration who helped provide Today with thoughtful, ‘Productivity’. Your national members’ Today. There are many who deserve user-friendly reading on such a wide magazine is a casualty of the ever-pressing acknowledgment. Topping the list are IPAA variety of public sector topics; and to need to cut costs and strive for new ways those advertisers and sponsors who did ACT division council and sub-committee of doing things. their bit to support the magazine. members and staff, particularly former Today was once universally supported. executive director, Tamara Cutcliffe. For me, it’s occasionally been hard but Recently, IPAA’s most populous divisions always a pleasure, especially to see each end result. I’ve learned much – from opted to discontinue support, making its It’s somewhat ironic continued publication problematic. The contributors and attendance at IPAA magazine’s long-time publisher, IPAA ACT, this edition is themed conferences and events. carefully considered many options before ‘Productivity’. It has been occasionally frustrating but reluctantly deciding it was no longer able ultimately satisfying to present the human to carry the burden of risk. and positive face of the much too often State and territory editorial advisers – current maligned public sector. You are people with From my first edition – Edition 28 in and former – have done a sterling job in the best interests of Australians and the October 2011 – a ‘flipping book’ digital deciding edition themes then following up nation in your thoughts, hearts and actions. replica of Today was made available on with contacts and contributions to each issue You deserve both acknowledgement and line. It has since been enhanced. We also with tremendous energy and enthusiasm. appreciation. Today has tried hard to give you developed a model for a much more that. We can only now wish you more of mobile device friendly version. But even Publishing a magazine is somewhat that ‘good press’. Goodbye and good luck. that solution was considered unsustainable. a labour of love. We could not have Ron Dent Most of the expense in publishing Today managed the chaos without our dedicated Editor occurs before the printer presses the start production team – Sally and Pat Woolford, [email protected] button. And, the plethora of competing from Faceworks Marketing Solutions; @mrrondent

PUBLIC ADMINISTRATION 03 NATIONAL PRESIDENT

‘Important to distinguish between productivity and efficiency’

Terry Moran on public service productivity.

sector performance management systems and improving the relationships between ministerial offices and senior public servants. That discussion also needs to bear in mind the importance of core public sector principles, including merit based selection, incorruptibility and impartiality, which are the foundations upon which the public sector is built. Finally, it’s also worth remembering that at the heart of public sector productivity is the sense of performance. As Professor © iStockphoto.com @Rawpixel Ltd Janine O’Flynn notes in her article on page 8 ‘looking more broadly to a range This edition contains differing is particularly significant given that the of measures of performance is much more perspectives on how, or indeed if, you can next wave of the digital revolution will practical and meaningful than a never- measure public sector productivity, given dramatically reshape the nature of many ending quest for productivity’. Here, we that many of the services that our sector public sector workplaces. do have more evidence, particularly in provides can’t be measured in the same comparing the Australian public sector way that economists measure the work of internationally. Notwithstanding its the private sector. The community want shortcomings in some areas, Australia is I won’t attempt to predict all the views governments to play well served by its public sector when you expressed in this edition of Today but a role, rather than the compare our cost of government, as share I will make some general observations private sector, in providing of GDP, to other countries. At around 35 per cent of GDP, Australia’s public about my experience of discussions about services to the community. productivity in the public sector. sectors cost less than almost all comparable countries including the US, UK, Canada The first is that it’s important to and New Zealand. We also know that distinguish between productivity and My second observation is that public the public continues to report a very efficiency. Too often these terms are used administrators at all levels of government high trust in the front line providers of as if they are interchangeable. Even are keenly aware of the need to do better. public services including nurses, teachers, within ‘efficiency’ there are a range of In part, this is because administrators police and judges. Indeed a recent useful distinctions, from the traditional often see at first hand the inefficiencies survey discussed in The Conversation of 3 sense of doing the most work with the caused by the ‘programmatic confetti’ June 2015 showed that the community fewest resources, to a measure of how that has been sprinkled across core overwhelmingly want governments to play well we are allocating resources to the government functions by successive waves a role, rather than the private sector, in right places, to a more dynamic sense of of political leadership, often with little providing services to the community. being able to use new technologies and evidence or outcomes to show for it. This adopt new ways of operating. This isn’t is a reminder that any rational discussion For all of us, that combination of esoteric wordplay because the way that about productivity and efficiency international level competitiveness and we use the words will ultimately shape improvements needs to be framed around community level trust should be a source of the policies and programs we devise. The the bigger issues, including reducing risk pride in what we have achieved and a source last and more dynamic sense of efficiency aversion at the political level, better public of confidence that we can do even better.

04 PUBLIC ADMINISTRATION IPAA ACT 2O15 CONFERENCE 24 SEPTEMBER PUBLIC SERVICE IN INTERESTING TIMES: DELIVERING BIG REFORMS?

IS BIG REFORM GETTING The inaugural IPAA ACT Public Sector Conference HARDER TO DEVELOP will be held in Canberra in September 2015. AND DELIVER? A range of speakers will share the stage, including HOW DOES THE PUBLIC Michael Thawley AO, Secretary of the Department SERVICE GET AHEAD of the Prime Minister and Cabinet and Kathy Leigh, the Head of the ACT Public Service. OF THE CURVE? We invite you to be a part of this important HOW CAN WE ALL WORK conversation with colleagues from across the sector. TOGETHER BETTER – THE PUBLIC, PRIVATE AND COMMUNITY SECTORS – Date: 9am–5pm Thursday 24th September 2015 TO DELIVER BIG REFORMS? Optional pre-conference dinner on Wednesday 23rd September Location: Gandel Hall, National Gallery of Australia

More information and registration is available at www.act.ipaa.org.au/conference

Corporate & Individual Members Non-Members

Conference Only Including Dinner Conference Only Including Dinner

Standard Rate $750 $850 $850 $950

Member pricing will be honoured for members of IPAA in other jurisdictions. OPINION

Productivity’s ‘product’ crisis Doug McTaggart, left, poses some penetrating questions about whether the public sector can improve its productivity without a better understanding of consumers and what they want. Governments have Cost cutting is just as likely to be It is not hard to see the source of been in the business counter-productive and unsustainable the problem. In simple terms, public of delivering goods if it is not known what those costs provision of goods and services was and services to contribute to in the production of the initially conducted to fill market failure consumers for a output consumers ultimately receive. And gaps. By definition, public provision was long time. Over herein lies the heart of the problem: until a monopolised activity as the private that time not much has changed in both the public sector can clearly specify – to market had failed to provide. Lack of the structure and organisation of the public a contractual standard – what it actually external competition facilitated an inward sector or in the mode of delivery of product. does and delivers – its ‘product’ – then focus on process and an exclusion of However, two current global trends are any attempt to increase productivity will external considerations – customer needs significantly challenging this complacency. ultimately fail because there is no metric and satisfaction in particular. A ‘business The first trend, widely acknowledged, against which success can be judged. as usual’ approach was accommodated, is the austere global fiscal environment. further evidenced by the lack of Worldwide, demand for publicly-provided innovation in public sector structures goods and services is increasing but Most public sector and organisation not designed to ensure public revenues are not rising as fast. agencies have little effective implementation of product Nor are they likely to in the foreseeable or no knowledge of delivery. But should we accept the future. The second trend, less widely proposition that public sector productivity acknowledged in public sector discussion, is who their customers are is by definition low or no growth? the disruptive impact of new technologies. or what they want. Productivity is ultimately measured in Generally speaking, these technologies are terms of ‘product’ (‘outputs’). Claims disintermediating service providers and that past attempts to define, measure and middlemen and are empowering consumers. The fiscal pressures currently impinging improve public sector productivity have As some have declared, we are entering the on the public sector are only going failed – and thus it is a forlorn hope – ‘age of consumer empowerment’. This will to get worse given the way the sector have dramatic implications for any service functions. It has been claimed that the have been based on activity and process, provider, governments included. very nature of the products – goods and not product. Before one can even think services – delivered by the sector, consigns about productivity, the product itself must Addressing first the issue of fiscal austerity, be defined. on a ‘business as usual’ basis, Accenture, it to low productivity. Effectively, the in conjunction with Oxford Economics, argument is that production largely uses It is safe to say this is not an easy task. After estimates that by 2025 the average fixed-coefficient functions so there is only all, governments got involved in product expenditure gap for a range of different one way of doing things – ‘business as and service delivery when markets couldn’t governments will be around 1.5 per cent usual’: think of how a symphony orchestra or wouldn’t. But it is essential. Ideally, it of GDP. They suggest this will require operates. Hence we have what Baumol must begin with a clear specification of productivity improvements in the public and Bowen termed ‘the cost disease’ what product – goods and services – the sector of around 1 per cent a year. One – that is, as private sector productivity customer wants. Logically therefore, the supposes that could be achieved by an continues to rise, driving up real wages, customer set must be identified. In my ongoing ‘efficiency dividend’ of 1 per cent by definition public sector productivity experience, most public sector agencies annually imposed on public sector budgets. is doomed to grow more slowly but have little or no knowledge of who their The challenge here, however, is just how their costs rise with rising real wages. customers are or what they want. Without such a policy would be implemented in an Ultimately, the shares of public sector such information, it is very difficult to informed way that would give confidence costs in the economy continue to rise know the best way of delivering product of achieving better outcomes. with no concomitant increase in product. for the public.

06 PUBLIC ADMINISTRATION OPINION © iStockphoto.com @pagadesign

This brings us to the challenge of the The threat to the public sector is it gets left Secondly, these are the most difficult to second identified global trend: the age behind in terms of innovative, consumer- service and will require goods and service of consumer empowerment. By that is sensitive provision of product in areas provision different from that delivered to meant the ability for consumers to take traditionally supplied by the sector. In a the bulk of consumers. positive control of their consumption competitive democracy, funding will follow Some would argue that is the most decisions. Technological progress is, consumer demands and the public sector appropriate position for the sector to increasingly, putting the consumer directly may become increasingly irrelevant. be in. But it is a significantly different in contact with producers, bypassing and scaled-back position compared to intermediaries, leading to directly that currently occupied. It still does not customised product. Lack of external abrogate responsibility for understanding In the public sector we can think of competition facilitated an customers and their needs and providing patient-directed health care, demand-led inward focus on process relevant product. Nor does it mean that disability services and student driven and an exclusion of productivity measurement is irrelevant. education. These activities alone account external considerations The public sector’s choice is to become for a large share of public expenditure. – customer needs and consumer oriented in what goods and More generally, what sphere of public services it delivers and to become innovative sector activity is not, in some way satisfaction in particular. in how it does so, or become increasingly currently provided by non-government expensive and ultimately less relevant. sector bodies? Competition – either for This begins with knowing the customer, government funding in the case of not- One plausible outcome is that the public understanding them and the product they for-profit organisations, or for customers sector ends up being the service provider want and finding the best way of doing where profit drives activity – stimulates of last resort, with the difficult, complex that. In this environment productivity innovation and new ways of doing things. and most resource intensive customers. improvement has real meaning. Taking advantage of the new technologies That raises two issues. First, these are the most expensive to service. Doug McTaggart is Chairman of the enhances the consumer proposition. Queensland Public Service Commission.

PUBLIC ADMINISTRATION 07 OPINION

‘Productivity paradox’

Janine O’Flynn says looking more broadly to a range of measures of ‘performance’ is much more practical and meaningful than a never-ending quest for (the paradox of) ‘productivity’. A paradox is A 1978 issue of Public Administration The ‘productivity paradox’, it seems, is all a proposition Review is strangely reminiscent of the around us. We want to pursue productivity that seems self- current passion for productivity. For in the public sector but we don’t know contradictory or Burkhead and Hennigan productivity what it is. Let me set out three critical absurd, but in improvements were ‘obviously a virtue statements to explain my argument. reality expresses some truth. My view is worth pursuing’ – hard to argue. Quinn Productivity is one possible measure we have a productivity paradox in the agreed and argued productivity was of performance but not the only one, ‘the very hottest new word … the public sector: we want more of it but we and maybe not even a very useful one. don’t know if we have it. enthusiasm for the concept facilitated by the fact that, at the abstract level, Productivity is a measurement ratio It seems, over the past few years, everyone is for productivity’. Now, almost focused on the rate of production and ‘productivity’ has moved back to centre 40 years later as we hit another ‘peak refers to the ratio of output to input for stage. While it never really goes away, productivity’ moment, most of the ‘more a specific production situation. Most there is a fixation with productivity in productivity’ emphasis remains. But so do of what gets called productivity is not the public sector that reflects, perhaps, the challenges – most notably, we haven’t productivity but probably broader notions an era of fiscal pressure cuts, and austerity. solved the measurement problem, not that of performance, or other measures. A quick, albeit unscientific, scan of the you would know it as the productivity public sector provides a flavour of this. Former Secretary of Prime Minister and juggernaut moves along. The big consulting houses are talking up Cabinet, Ian Watt, has publicly noted that productivity, arguing that governments when we talk about productivity we tend need to look beyond cuts to sustainable We don’t have the ability to be actually talking about efficiency, and sometimes effectiveness. ‘Efficiency’ productivity improvement (PwC) and to measure productivity will need to either increase taxes or raise is how well we use resources in either a productivity (Accenture). in the public sector. technical sense – most outputs from given inputs – or an allocative sense – choosing A recent NSW public sector report While the chatter on productivity is the optimal mix. ‘Effectiveness’ is about made the case that productivity was the intense, most of what we tend to talk about how well we did in achieving intended fundamental measure of how well the is not productivity, but probably a bunch results. (Editor’s definition: ‘Efficiency is public service was performing. And poor of very different measures of public sector doing things right; effectiveness is doing the or lower public sector productivity than performance. Using the productivity term, right things, right’.) in the private sector is seen as a drag on however, seems to be on the increase and the economy (McKinsey). It is common Efficiency and productivity are often reflects past misuse of the term. Edward to publicly state that public sector related with efficiency increases, Hamilton wrote in the early 1970s that ‘the productivity is, as a matter of fact, lower or technological change – driving public is now assailed by more irrelevant than productivity in the private sector. productivity improvements, for example. facts, half facts, and non-facts on this Therefore, we could say that efficiency But do we really know this? I don’t think subject than any issue in public affairs’. is one aspect of productivity and we do. Largely because we don’t have So, are we experiencing a classic back efficiency improvements might lead to the ability to measure productivity in to the future moment? I would argue improvements in the productivity ratio. the public sector but also because we are the answer is yes. There is lots of loose But efficiency and productivity are mostly never talking about productivity talk about productivity and there exists not the same. All of these are, however, when we use that term. substantial, and well-recognised technical measures of performance in some sense; issues in measuring productivity. all distinct from the other but we tend

08 PUBLIC ADMINISTRATION OPINION © iStockphoto.com @florintt

to conflate them, at this point in time, Two main issues dominate. The first is the prices made measurement challenging, as did into this notion of productivity. The ‘output problem’. To measure productivity the inability to account for quality changes. loose talk on productivity, in my view, we need to be able to identify discrete And time also matters – what is a specific masks that we are probably much more units of output, allowing us to construct time period within which to measure, if interested in broader performance than the ratio of outputs to inputs. we could? What time lags exist between narrow productivity. the production of public sector goods and services and the link between inputs and There is no accepted way of measuring The ‘productivity paradox’ outputs? Because of this range of challenges, public sector productivity; statements is real! We want higher Boyle argued, in 2006, that most public sector on public sector productivity are productivity – but how would productivity data is of questionable validity not robust. we know if we had it? and/or reliability. For the most part, public Almost 40 years ago Hayward and Kuper sector productivity measures we see are argued ‘… nationwide statistics do not We rarely, if ever, have discrete units of output more proxy than actual productivity. exist by which we can determine at what in the public sector. Without a measure The ‘productivity paradox’ is real! We want rate government productivity is growing of outputs, measuring productivity is not higher productivity – who doesn’t – but how or declining’. In 2011, the Department of possible and we cannot track improvements would we know if we had it? The technical Finance and Deregulation commissioned or make serious claims about productivity constraints on measuring public sector the Review and Measurement of Agency in the public sector. The output problem productivity doesn’t mean we should not Efficiency, acknowledging there was no is caused by the fact many things produced care about performance – we should. In an accepted means of measuring productivity in in the public sector cannot be easily broken era of fiscal constraint where both politicians the public sector. To do so the report drew down into discrete units. What is a unit of and citizens demand more for less, public on the OECD, which accepts ‘productivity defence? Or education? Or child protection? sector performance is paramount. Why gains in the public sector are very difficult if we have become fixated on productivity not impossible to measure’. This means we The output problem underpins the is anyone’s guess but it is not very helpful don’t have a baseline upon which to robustly ‘measurement problem’. Even if we can to focus on a single metric when we can’t measure or make claims about productivity break public sector production down measure it. Looking more broadly to a movements in the public sector. into discrete units we rarely have prices for outputs. We might be able to measure range of measures of performance is much The technical challenges of quantities of some things the public sector more practical and meaningful than a measuring productivity in the public produces but are these discrete units of never-ending quest for ‘productivity’. sector are multiple. outputs? In its Review and Measurement Janine O’Flynn is Professor in Public To explain the previous statement it is of Agency Efficiency, the Department of Management at the University of Melbourne’s important to look at why this is the case. Finance and Deregulation noted the lack of Melbourne School of Government.

PUBLIC ADMINISTRATION 09 OPINION

Authentic productivity Renu Agarwal, below left, Christopher Bajada, below middle left, Paul J Brown, below middle right and Roy Green, below right, examine why current productivity approaches fail us. For example, how does it compensate for efficiencies in production and service delivery involving significant negative external influences – the uncompensated costs imposed on others – and waste production that impacts resource use and environmental degradation? The short answer is, it doesn’t. Productivity Over the last century there has been The differences in labour productivity statistics omit a number of important dramatic growth in the volume of goods between sectors are partly driven by considerations associated with production. and services produced by the average differences in the capital intensity of A more authentic approach to measuring Australian – and global – employee. production – for example, labour is productivity is one where the rate of That productivity improvement has been combined with larger amounts of capital output per unit of input is calibrated essential to long-run economic growth equipment in the mining sector than in for the effects, intended or unintended, the retail industry, producing larger output and improvements in society wellbeing. that production of goods and services values for mining. Today – according to Much of the growth has been spurred by may have on society, particularly on the the Department of Industry’s Australian technological progress, complemented environment. To take just one recent Innovation System Report 2014, http://bit. by increases in physical capital such as example, the dramatic and impressive ly/1JY0Wwi – mining is the only sector machinery and equipment – as well as growth in Chinese productivity has with labour productivity that exceeds the significant improvements in education. caused significant increases in the OECD median. However, the broader But have we adequately reflected on what level of pollution and environmental measure of ‘multifactor productivity’ has, we mean by this concept of productivity degradation. What does that tell us about according to the Australian Bureau of and do we have the right policies in place the relationship between productive Statistics, slipped in the resources sector to ensure long-term sustainable growth growth and social wellbeing? Such a and social wellbeing? and fell overall by 2.1 per cent in the decade to 2011–12. partial approach to the measurement of In Australia productivity will inevitably lead to less During the 1990s, following a period than optimal policy prescriptions. of microeconomic reform, Australia The differences in Beyond standard led the OECD in productivity growth. labour productivity approaches But – in his ‘Productivity’ presentation between sectors are partly Australia should reconsider what is meant to the Reserve Bank’s Annual Policy driven by differences by productivity so its measurement better Conference in 2011 – noted economist in the capital intensity informs the national strategic intent to Saul Eslake observed that since the of production. improve economic and social wellbeing. early 2000s it has slipped back to being In principle, the focus is on productivity a laggard. growth – the means – to achieve increases In 2013, Australia’s labour productivity Contemporary challenges in total welfare – the ends. In The Age of performance ranked 12th of all OECD What do we mean by ‘productivity’? Diminishing Expectations Paul Krugman countries, with labour productivity Put simply, it is a measure of the rate expressed this well: ‘Productivity isn’t of US$55.5 per hour worked, though of output per unit of input. But what everything but in the long run it is individual industry sectors exhibit a does this measure of productivity tell us almost everything. A country’s ability to diverse array of productivity outcomes. about the complete production cycle? improve its standard of living over time

10 PUBLIC ADMINISTRATION OPINION

Productivity over time

Australia’s productivity performance • Improving Australia’s talent pool models, systems integration and measures have triggered various (human capital and social networks). ‘absorption’ of technological responses and recommendations • Strengthening opportunities for change. from successive governments. information flows, market design • Adoption of transformative The Karpin Report (1995) and freedoms to innovate. management practices, drawing Enterprising Nation • Supporting research capabilities on improvements in management • Developing a positive enterprise and platforms. education and engaging with culture through education and the full spectrum of talent and • Developing market facing training. creativity in our workplaces. innovation programs including • Upgrading vocational education innovations within government. • ‘Expansion of participatory and training and business support. work organisation methods and Powering Ideas: An Innovation • Capitalising on the talents of improvements to skills formation Agenda for the 21st Century (2009) diversity. and skills utilisation so that firms • More effective dissemination of • Achieving best practice and organisations can achieve new technologies, processes, their potential.’ management development. and ideas with a particular focus • Reforming management education. on small and medium-sized The Australian Innovation System Report (2014) Management Matters in enterprises. Australia (2009) • Encouraging a culture of collaboration • ‘Improvements in management • Promote a transformation in the within the research sector and practices; enhanced innovation at a firm level; skills development, and calibre of the management and between researchersXX and industry. participatory work organisation.’ leadership of our organisations. McKell Institute Report (2012) Cutler Review (2008) Venturous Understanding Productivity – Industry Innovation and Australia: Building Strength in Australia’s Choice Competitiveness Agenda: An action Innovation recommended: • Support for enhanced innovation plan for a stronger Australia (2014) • Supporting entrepreneurial firms capability and performance of • Refocusing industry policy to drive and innovative workplaces. firms, including new business innovation and entrepreneurship.

depends almost entirely on its ability to Global climate systems have been affected Measuring economic raise its output per worker.’ This needs to by human-caused pollution largely and social losses be interpreted in its totality, so the focus from productivity enhancing activities. From as early as 1919, visionary economists is not only on the direct production of Declining fish stocks are largely a result goods and services but also on resource of over-investment in fishery capacity. such as King, Pigou, Fabricant and Mishan use and environmental sustainability. In both cases, short run productivity have recognised that measures of national At the time this approach gained broad growth has created long run ecological productivity do not reflect the economic acceptance, the key challenge for consequences. and social loss associated with exploiting scarce resources – see Economic Growth economies was under-production, with There are at least two key reasons and the Valuation of the Environment, A large sections of society living in poverty. why generally accepted approaches Debate. Distinctly, as income increases, While poverty remains a critical global to productivity are theoretically and challenge, it is much less of an issue today practically flawed. First, many industrial environmental degradation may also for advanced industrialised economies. practices result in environmental increase via the production and disposal It is paradoxical to think some of the degradation but that cost is not borne process. For example, most electricity most significant contemporary challenges by the individuals who directly benefit. production in Australia causes greenhouse facing society today are in many respects Secondly, significant waste is produced gas pollution through the process of consequences of the pursuit of a narrow by the production and consumption burning coal. Another example is the measure of productivity growth in the of many products, creating a range of adoption of production techniques that past. Examples include climate change problems including the storage and render arable land or water supplies less and declines in fish stocks. disposal of waste. productive over the long term. Continued.

PUBLIC ADMINISTRATION 11 PARTNERING WITH

GovERNmENT Debra Tippett

Michael Brennan

They have deep Our multi-disciplinary Government team of 300 lawyers, drawn understanding of the David Crane from all of our practice areas, delivers leading business and industry edge solutions to Commonwealth, regulatory framework, as well as State and as well as attention to Territory governments. detail and the ability to work seamlessly as a team across a variety of disciplines. They also Neal Parkinson Amanda Story have a strong focus on budget control and value for money.

GOVERNMENT CATEGORY, AusTRAliA Andrew Gill Nevin Agnew ChAMbERs AsiA PACifiC 2015

15 0014 Mark Treffers Alice McCormick OPINION

The founder of the Environmental Department at Statistics Netherlands, Dutch economist Rolf Hueting, spent several decades working with a team of public servants to provide an estimate of the economic loss from environmental degradation. A conservative estimate based on Heuting’s approach was that for each dollar of national income, an economic cost of 56c was incurred, with only 44c in every dollar of national income representing an increase in welfare. http:// bit.ly/1Fdvdkh This is indicative of the drag on long- term societal welfare that can result from productivity growth. Despite the increase in the quality and amount of reporting DIAGRAM 1 The circular economy—an industrial system that is restorative by design of environmental indicators, it is unclear Source: Ellen MacArthur Foundation (2013), Towards the Circular Economy, Part 1 how much of Australia’s productivity Economic and Business Rationale for an Accelerated Transition. Ellen MacArthur Foundation. Isle of Wight. UK growth is authentically value enhancing. There is limited benefit in increasing productivity in one part of the system, Diagram 1 presents the concept of New approach the circular economy, which has as its when it reduces the efficiency and In working towards a productive and aspiration an industrial system that is effectiveness of the system as a whole. sustainable economy, all stakeholders ‘restorative by design’. ‘Circular economy’ including government have a role to play in identifying and implementing That is why the development of the industrial practices that contribute to a ‘circular economy’ concept is so It is unclear how much of more authentic approach to productivity. important. Stated simply, the idea is that Australia’s productivity The message is the standard concept of waste, by-product and, at the end of their growth is authentically productivity is not sufficient and may useful lives, the products themselves, have value enhancing. result in policies that fail to integrate a contribution to make in subsequent economic and social wellbeing. A better cycles of production. A key leader in this understanding of productivity in the space is the Ellen MacArthur Foundation, Rather than raw material going through context of a circular economy provides which supports organisations in their a linear process of extraction, production, a way forward for the future. endeavours to transition to the circular consumption and ending in landfill, Dr Renu Agarwal, Associate Professor economy. Leading companies such as products and services are designed to have Christopher Bajada, Dr Paul J Brown Unilever, Philips, Cisco, DHL and Coca- a use beyond their initial purpose. The and Professor Roy Green are academics Cola have joined the Foundation in an value of the circular economy is evident at University of Technology Sydney. effort to aid the transition towards a in many successful recycling programs circular economy – bit.ly/1peYdC7. that touch our everyday lives.

PUBLIC ADMINISTRATION 13 OPINION

Beyond a single plane of productivity Moira Scerri, left, and Renu Agarwal, right, argue productivity is a multi-layered phenomenon.

The 2012 McKell Institute Report, Geography Understanding Productivity Australia’s The geographic dimension is described as Choice, discusses two options – the ‘low a matter of ‘place’ and ‘space’. Place is key road’ being cost cutting and the ‘high to productivity given it holds the natural, road’ of productivity enhancing pathways, man-made and human resources necessary through increasing Australia’s innovation for production. The counter argument is capacity, improving management we have transcended place and moved into capability, and making better use of skills. space and now live in a virtual world that Co-author Moira Scerri’s doctoral thesis In the 1990’s, Australia led the OECD in knows no geographical boundaries, where Defining new measures of productivity for service we can operate ‘any time, any place’ and productivity growth. For the past two decades and network based firms suggests the complexity Australia’s productivity growth has fallen. are able to gain access to resources around of measuring productivity is compounded by the world. However, the importance of Worrying, given productivity is considered a the singular input – transformation – output key measure of Australia’s economic growth, place is taking on a new dimension. Places approach. It articulates a new perspective are becoming barren of manufacturing competitiveness, and living standards. to the current measures of productivity. industries resulting in ghost towns. Productivity, put simply, is a measure of the Places are also where taxes are paid number of outputs produced for any given Productivity is a measure number of inputs. The underlying dynamics or bypassed and global currencies are of declining productivity growth calls for of the number of outputs transacted, rather than converted. Place either increasing the number of outputs, or produced for any given remains important as intangible elements reducing the number of inputs – or both – number of inputs. are attached to it, elements yet to be with the key measures being capital, labour, examined in the productivity sense. Place – ‘nodes’ in network speak – is where we energy, materials and services. Moira argues this current single plane live, what holds our identity. It is so much Interestingly, current productivity measures view of productivity is not sufficient. more than the ground we walk on, it is include only the physical and tangible It shows a more contemporary and the place we call home and the place we nature of inputs and outputs. However, for evolved view of productivity as operating those with responsibility for the delicate across four distinct planes: geography, want to be, with our family and friends. balance of more for less, more for the same, information technology, business and It is where local communities connect same for less or better quality for the same, social, and the critical notion that to create something larger than the sum measuring and maintaining productivity is productivity is driven by networks in of themselves. In the political sense, it is not as easy as it sounds. differing configurations (Figure 1). where the decisions of government and business have an impact. Place is what we value and where physical, social and SOCIAL human capital is created, rather than

BUSINESS simply where outputs are produced. INFORMATION Information technology TECHNOLOGY The information technology layer in GEOGRAPHY productivity is cruicial. Investments in and adoption of information technology are used as lead indicators for anticipated FIGURE 1 Multi-layered and networked to view productivity increases in productivity.

14 PUBLIC ADMINISTRATION OPINION © iStockphoto.com @solarseven

However, the world is flat and in a highly Technology and systems integration is not a Business operations and structures are networked global environment where thing of the past. It is very much a present- changing from large organisations ‘holding’ information exchange and real-time day issue and should be addressed at the their employees in factories or large operating enviroments are paramount, highest levels. After all, if we can’t compete corporate offices, to ones where walls the levels of technology integration on wages, we must compete on highly are becoming a thing of the past, where between systems and organisations are technical and integrated business grounds. there are less desks than employees and key to increasing productivity. For too where social connections are as important long, business and governments have been Until a concerted as business connections. Co-workspaces investing in and adopting technologies effort is made to are evolving – enabling desk rather than only to find themselves with siloed office rental, cross-industry collaboration operations struggling to communicate and explore and accept new and exchange, rather than a single-industry connect with their internal and external measures of productivity focus. Mobility across co-working spaces in stakeholders, despite spending millions, Australia will find it different cities and regional areas are today’s sometimes billions, trying to piece difficult to return a lead norms. Governments now also make their together their operations. position of productivity requirements and solutions accessible to IT start-ups. While these changes are being End-to-end IT systems and technology growth, globally. integration hold the key to productivity heralded as the new frontier in business gains now and into the future. Yet, studies collaboration and creativity, the change is taking a macro or environmental view of Business impacting our aggregate productivity and economies of scale. The efficiencies of large the world are absent from mapping the The business layer is innately very scale, standarised operations are giving integration across and between systems. much about exchange and transactions. way to smaller but more creative and Taking a macro view to see where our Inherently, business is about connections increasingly vulnerable businesses. information highways are leading and – who does business with whom. These making sure they are not dead ends is of connections are multi-dimensional. The According to the Australian Bureau of utmost importance. That is the responsibility impact of economies of scale, through the Statistics’ Australian Small Business Key of governments, technology providers, changes in how businesses operate and are Statistics and Analysis (2012) approximately and business groups seeking to increase structured, is of critical importance if we 14 per cent of new businesses failed within constituents’ productivity. are to fully understand productivity. the first three years of operation. Continued.

PUBLIC ADMINISTRATION 15 OPINION

Indeed, more coordination across Network perspective financial flows make the distribution of businesses is required as new networks income and costs visible on an end-to- Networks of businesses play a significant form and grow into global connections. end basis and across planes. The formal role in all layers of productivity and Australian businesses also are regarded dialogue and communication between indicate the movement of tangible goods as being poor in networking and people across layers and organisations and intangible inputs and outputs within collaboration, leaving geographically show the flow of intangible inputs and between layers. isolated small businesses competing on and outputs, such as information and a local level, rather than pushing the knowledge. Sharing of ideas across boundaries and innovating with a view Sharing of ideas across industry sectors fosters collaboration to capturing world markets and being an industry sectors fosters and innovation and ultimately opens intrinsic part of global chains. up new and improved ways of working. collaboration and The growing importance of networked Social innovation and ultimately operations across business and planes The fourth and final dimension is opens up new and calls for new measures of productivity social – where social connections are improved ways of working. as production and value creation no formed by interactions between two longer lie within the bounds of a single or more people. This dimension holds firm. Rather, contemporary productivity significance to productivity because the The importance of road, rail and sea measures lie in differently-configured interactions between two people may transportation networks servicing supply networks operating across each of the relate to business or personal areas of chains have long been recognised for four planes – geographic, information interest; may be close or far; and work is their major role in the movement of raw technology, business and social, as well as increasingly being performed in cross- materials and finished goods into, out across industries and geographic borders. functional teams rather than in single- of and through places. Alignment and No doubt, productivity remains a key focus groups. These new social dimensions integration of information technology measure of prosperity and economic introduce new elements that have an through electronic data interchange, growth for Australia and for the world. effect on productivity. extensible markup language and open However, the standard measures Links between people can be bonding, trading hubs have been shown to be of productivity fail to capture the linking, or bridging, with each of these enablers of productivity gains within and underpinning complexity. Key drivers and connections differing in their intent and across organisations. However, while the measures of productivity lie in and span the effect on productivity. These social connections and integration options may the geographic, information technology, dimensions and contemporary changes have been explored, they are yet to be business and social layers of our society are impacting communication flows mapped or measured in any meaningful and economies. between businesses and consumers – way. It is time to map these network Until a concerted effort is made to increasingly for organisations operating connections in a way that highlights explore and accept new measures of in ‘closely-knit networks’, where strong ‘structural holes’ and emphasises priorities productivity across each of the four bonds are formed and links with broader for ICT systems and technology providers dimensions, Australia will find it difficult ‘more distant’ networks provide the to work together. to return a lead position of productivity ‘strength of weak ties’. Business networks exist, in the form of growth, globally. These networks enable information and trading partners, supply chains, and service Dr Moira Scerri is Managaing Director of knowledge sharing to be transmitted with value networks coming together to meet, SEPIA Consulting and a Casual Academic agility and speed to areas otherwise out respond and deliver to meet consumer at UTS Business School where Dr Renu of bounds. needs. Inter and intra-organisational Agarwal is a Senior Lecturer.

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Mobile productivity An innovative initiative counters budget cuts for Tasmania’s police force. Donna Adams, left, reports.

In 2012, what Three years later, Tasmania Police leads the The mobile tablets provide access to started out as nation as the first police agency to deliver all operational systems officers need an aspirational ‘enterprise mobility’ through the issue for everyday duties but the defining goal to capitalise of around 1,100 mobile tablets to sworn point of difference is the capability to on emerging police officers across the state. access reports and information on the technologies quickly turned into a road. The productivity gains from the implementation of these devices have necessity when significant cuts were made The productivity gains to the Tasmania Police budget. 158 police been significant, with improvements in and state service positions were made from the implementation efficiency, effectiveness and intelligence redundant and the organisation was forced of these devices have sharing and, most importantly, has set a to adapt to its smaller workforce. been significant. foundation to create more possibilities in the future. It was a difficult time as remaining workers felt pressured to deliver the That initiative was achieved within the During the six-week trial period in one same level of service with less staff. existing budget as funding to replace IT police division, mobile tablets delivered, Tasmania Police managed to turn the hardware was used to create the mobile on average, a productivity efficiency austere environment to advantage platform. The need for desktop computers gain of one hour, per officer, per day – through innovation and it adopted new was reduced to state service support staff totalling approximately 280 hours or technology as the answer. and a small number of specialist work areas. 35 shifts.

18 PUBLIC ADMINISTRATION REPORT

TOUCH SCREEN Tasmania’s police have access to information at their fingertips and on the job

There are periods during a police officer’s Previously, that crime report would not without the need to burden radio dispatch working shift when they have to wait have been uploaded into the system until operators – whose increased availability for other resources such as tow trucks, officers returned to the police station allows coordination of more critical forensics examiners or the coroner’s later in their shift, potentially missing incidents with less interuption. ambulance. Having the mobile tablet in the vital window to catch the offender. To capitalise on the value and innovative the field allows officers to utilise ‘waiting’ Officers can now record witness and potential of the mobility platform, time to complete routine administrative victim statements directly to their mobile Tasmania Police developed two tasks usually performed after return to tablets saving precious time and the need applications specially designed for the the police station. There are now many for administrative staff to prepare and mobile tablets – the Police Infringement examples where reports are submitted distribute those after the event. Notice System (PINS) and the Online before the officer leaves the incident scene. The obvious benefit is the increased Crash Reporting System. Around 75,000 time for officers to continue to patrol Field officers no infringements are issued each year for traffic, drink driving, environmental, and respond to calls for assistance – a longer have to wait for particular gain for officers who work in marine and some street offences. country and remote areas where travel information such as motor Previously these were paper based and times are longer. vehicle or driver details required significant data processing to finalise. With PINS, these are now The advantages of immediate crime to be completed by busy recorded electronically and are sent to reporting cannot be underestimated. radio dispatchers. offenders by mail. In future, legislation Mobile tablets have allowed officers to will allow for PINS to be emailed or attend an incident and enter information sent by SMS. about the crime directly into police Field officers no longer have to wait for systems – recently leading, for example, information such as motor vehicle or The PINS system also brings other to the timely arrest of a burglar. Uniform driver details to be completed by busy radio significant benefits. A police officer can officers submitted a burglary report dispatchers. That is particularly beneficial immediately confirm a person’s identity that described a suspect and other officers during simultaneous traffic operations when an infringement is issued as the on patrol were able to identify and because the officers involved now directly application seamlessly integrates with the apprehend the person. conduct licence and registration checks Motor Registry System. Continued.

PUBLIC ADMINISTRATION 19 REPORT

to arrive and these electronic reports are disseminated directly to insurance companies, obviating the need for further processing. The information is also sent directly to the Department of State Growth, which assesses crash causes and provides relevant analysis and statistics. Tasmania Police’s journey with technology has enhanced operational safety, provided a positive impact Data errors have been reduced resulting in their own accidents using the system upon organisational productivity and less infringements being withdrawn. The without the need for police attendance enabled it to remain a highly visible and evidentiary information contained within or being required to subsequently responsive police service. Into the future, each PIN is of higher quality and includes complete crash reports. mobilisation offers the opportunity to the ability to take photographs in support remain an agile and flexible organisation. of the infringement. The introduction of It also may test the traditional policing PINS also has realised reductions in data Mobilisation offers model as it challenges the thinking processing staff and costs associated with the opportunity to around the purpose of police stations the publication of infringement books. remain an agile and and deployment of police officers and other resources. Tasmania Police attends more than flexible organisation. 5,000 crashes a year – by law 33 per Donna Adams is Assistant Commissioner cent of crashes do not require police of Tasmania Police. She is responsible for attendance – and the new Online Crash Police officers attending reportable the Crime and Operations portfolio and Reporting System provides a number of crashes can complete crash reports at the played an integral leadership role in the benefits. Community members can report scene while waiting for the tow truck mobility initiative.

FURTHER INSPECTION Sergeant Mathewson and Minister Rene Hidding

20 PUBLIC ADMINISTRATION OPINION

Evidence-based link Expert Julie Sloan, left, examines the productivity impact of workforce planning.

At last! Public models and practices. The public sector 5. Modernising corporate services. When sector leaders are needs to adopt a whole-of-government compared to private sector benchmarks, now asking the approach to workforce planning and the public sector still has a long way question: ‘What is productivity including: to go to improve on the efficiency the productivity of corporate services, strategic HR 1. Creating a clear mandate for improving impact of capabilities and the need to move from productivity – through strategic and workforce planning?’ reactive HR analytics towards proactive, operational workforce planning. Having banged on about the link between strategic and predictive analytics. productivity and workforce planning for 6. Modernising procurement – by more than a decade, I’m rather thrilled ‘A 2013 EY survey found investigating and implementing with the current interest. alternative models, including a more Australian public sector The evidence-based link between integrated, category-based approach productivity and workforce planning can productivity was lagging to strategic sourcing and contract be answered through quality HR metrics behind the private sector management across government. and workforce analytics. Descriptive – and costing Australian 7. Deploying services online – as much as what’s happened and what’s happening? taxpayers $2.4 billion.’ possible, automating manual processes and Predictive – what could happen? modernising outdated legacy systems that Mark Stewart Prescriptive – what should happen? are clunky and create inefficiencies. Metrics provide evidence 8. Actively engaging the public sector of strategic impact 2. Developing workforce planning and workforce – by asking all public productivity measures and targets Metrics can and do change behaviour – of servants about their levels of individual executive, of mangers and of the workforce. for all public sector agencies. Many engagement, wellbeing and views on agencies don’t know how they compare productivity, and using this data to Analytics answer many questions including: against their peers, or best practice. inform the development of a strategic What are the ‘highest return’ interventions Productivity improvement relies on workforce plan and productivity to boost performance? And, what are the knowing where you sit against a improvement plan. talent risks to executing a business strategy? benchmark and working to improve 9. Improving workforce skills, capability Mark Stewart, that position year on year. and leadership – by identifying and left, from Ernst & 3. Strengthening performance management fixing skills gaps. The public sector lags Young (EY) says and accountability mechanisms – to behind the private sector in investment there’s much room in training and capability development, for improvement ensure all employees, from the chief in particular in strategic workforce when it comes to executive down, understand their roles planning, governance and leadership. the business models, and responsibilities in workforce planning, practices and policies of many government the need for productivity growth and that 10. Encouraging more market organisations. He says a 2013 EY survey they are accountable for improvements. competition – to deliver government found Australian public sector productivity 4. Declaring a ‘war on waste’ – with services where it can be done more was lagging behind the private sector and more projects targeting critical problems, efficiently and at a lower cost. costing Australian taxpayers $2.4 billion. more staff trained to identify and Julie Sloan is Chief Executive of Improving productivity through eliminate waste, and reviews of outdated Workforce Planning Global. Mark Stewart is workforce planning requires a or unnecessary laws, regulations, systems, Ernst & Young (EY) Lead Advisory Partner fundamental change in organisational policies and processes. – SA/NT Government & Public Sector.

PUBLIC ADMINISTRATION 21 OPINION

Measuring regional resilience

Brendan Rynne, below, Chief Economist, KPMG Australia.

‘Productivity’ is That is, regional capacity contemplates In contrast, adaptability reflects a region’s often considered how well placed local and regional propensity to make decisions to leave solely as an economies are to external factors, a path that may have been successful economic such as the rise of global competition historically in favour of a new model measure. However, for industries, unplanned major plant of regional or sectorial development, productivity closures and technological innovation elevating the economic outcomes onto concerns the revolutionising current work practices. a new, alternative trajectory. outcome of a whole Measuring bounce back range of enablers that promote economic Regions are complex, Regions are complex, multi-faceted, and activity, include socio-demographic and continually changing; therefore, defining community factors. multi-faceted, and continually changing; and measuring regional resilience is In that context the concept of resilience challenging. In a Brookings Institution has started to emerge in the field of therefore, defining and Press publication, Dr Kathryn Foster, now economics, driven largely by the recent measuring regional President of the University of Maine, economic crisis. The International resilience is challenging. introduced and defined the concept of Monetary Fund noted: ‘the Australian regional resilience as ‘the ability of a economy has demonstrated considerable region to anticipate, prepare for, respond resilience in the face of the global Adaptation, in this context, reflects a region’s to, and recover from a disturbance’. Foster financial crisis’. http://bit.ly/1KBDkyZ ability to respond to an economic shock by postulates that a region has a ‘pre-stress moving back to, at least in the short term, a That is a good example of how this capacity for resilience’ and: when a region preconceived model of regional or sectorial concept is currently incorporated into encounters a stress event, it reacts with a development that has been successful economic commentary, implicitly ‘resilience performance’. historically; that is, ‘we will do what worked encapsulating two elements associated in the past and get better as we proceed’. Continued. with resilience: resistance – the differential ability of places to repel disruptive change; Table 1 Datasets included in the Australian Regional Capacity Index (ARCI) and the and recovery – the ability of a region United States Regional Capacity Index (USRCI) to ‘bounce-back’ or ‘come back’ from a shock or disruption. Importantly, the notion of resilience is one that is dynamic, as it focuses on a region’s ability to respond to shocks, either by maintaining a pre-existing state – consistent with the element of resistance – or by returning to its previous level or rate of output, employment or population growth – consistent with the element of recovery. Regional capacity debate Resilience and related concepts of adaptation, adaptability and adaptive capacity are now finding their way into academic debate and government policy documents NOTE The Australian economic dynamics index includes data on (a) the number of businesses in the context of regional capacity. opening and closing (i.e. business ‘churn’); (b) residential broadband connections; (c) size of business establishments; (d) spend on research and development activity.

22 PUBLIC ADMINISTRATION OPINION

Foster acknowledges that measuring The better a region is able to collectively The Australian Regional Capacity Index ‘resilience performance’ is challenging in enhance economic, socio-demographic (ARCI) is also based on capturing three the context of specifying what to measure and community outcomes, the more dimensions of capacity indicators: over a given time period, and how to likely it will be to withstand adversity and • Regional economic – income equality, ensure consistency of data across regions to ‘bounce back’ in the shortest time possible. economic diversification, regional allow for comparative assessment. Capacity, Introducing the ‘Australian affordability as well as a measure of the in the context of this analysis, relates to Regional Capacity Index’ dynamism of the regional economy. a range of resources, characteristics and • Socio-demographic – poverty, attributes of regions that allow them to In applying the same methodology and techniques as used for the URCSI, educational attainment, female labour deal with future challenges. She broadly KPMG has calculated a regional capacity force participation and life expectancy. groups these into three dimensions of index for Australia (Figure 1). capacity: regional economic; socio- • Community connectivity – how familiar demographic; and community connectivity. with and civically active a region’s residents are as expressed by voter participation rates, This work has led to the development The economy cannot net overseas migration, incarceration rates of the United States Regional Capacity function without individuals and participation in sport. Index (USRCI), a single statistic that or without those individuals summarises a region’s future ability to These indicators do vary from the 12 bounce back from an unknown stress. working together as a included in the URSCI but do provide an The USRCI is made up of 12 equally community to achieve ‘Australianised’ mix of factors influencing weighted indicators, classified into one social outcomes. a region’s capacity to ‘bounce back’. It of three capacity types (Table 1). is recognised that other factors such as environment and geography, governance Economic resilience therefore not only To prepare this analysis, it sought to and ability to respond to natural disasters, reflects the pure economic characteristics align the indicators used for each of the are also likely to affect a region’s resilience of a region or area but also relies on capacity types to Australian-sourced data. capacity. However, data for these types of the interplay of socio-demographic and Data that allows for a regional capacity indicators are rarely available or reported community factors. Simply, the economy index to be constructed on a time series on a consistent basis across regions. cannot function without individuals or basis rather than just on a periodic basis Table 1 identifies the datasets included in without those individuals working together was preferred, so it can evaluate how the ARCI and the USRCI. as a community to achieve social outcomes. resilience may have changed annually. Consistent with the USRCI methodology, Figure 1 Australian Regional Capacity Index the ARCI has been calculated on a z-score basis, with each of the indicators being equally weighted. Following is a summary of each of the indicators, the basis for their inclusion and the source of data used. The findings The ARCI is a combination of all the individual indicators that make up the three dimensional sub-indices, again with each measure weighted equally. As shown in Figure 1, it reveals the ACT as the most resilient region, with the highest capacity to deal with economic, social and community shocks. Victoria follows the ACT as Australia’s second most resilient area, influenced more so by its economic capacity than the ACT, whose ranking is achieved by very strong social and community factors. Continued.

PUBLIC ADMINISTRATION 23 OPINION

Figure 2 Regional comparison – Australian Regional Capacity Index

The US economic dynamics index includes data on (a) the number of businesses opening and closing (i.e. business ‘churn’); (b) residential broadband connections; (c) change in the number of broadband holding companies; (d) number of small business establishments; (e) access to enough venture capital. KPMG chose not to include a measure on disability like that in the USRCI as it is essentially incorporated in that analysis as a negative measure, with the interpretation that ‘regions with higher proportions of persons with a disability are more vulnerable to physical, social and economic challenges’. We KPMG concedes this analysis is thought Undertaking this analysis on a sub- see this measure as portraying people with provoking in the sense that the outcomes – regional basis would provide an disability in a negative light, and have therefore notably where each jurisdiction is ranked in assessment of the capacity of different chosen to use an alternative indicator. the ARCI – may not, in the first instance, geographic areas within a jurisdiction to Brendan Rynne – a Bachelor of Economics, appear intuitive. Again, it is important to bounce back from a shock in the shortest Master of Economics and Master of Applied reiterate what the ARCI measures and what period possible, and hopefully surpass Finance – is a Partner and Chief Economist it does not. The ARCI attempts to show them thereafter. at KPMG. He has extensive experience in the relative regional resilience for each state advising public sector agencies on economic and territory in Australia, and implicitly It is important to reiterate policy, econometric analysis, economy-wide each region’s capacity for adaption and modelling, cost benefit analysis, impact adaptability. It does not attempt to measure what the ARCI measures assessments, efficiency improvements, and absolute growth, either economic or and what it does not. legislative and regulatory reform. population. Rather it seeks to quantifiably assess the settings available to achieve For further information visit The implication of this analysis is that http://bit.ly/1dAKl5N growth in a post-shock environment. policy makers need to strive for not only In validating the outcomes of the ARCI, the fundamentals of a diverse, investment- The following references were supplied KPMG analysed gross state product (GSP) orientated and productive economy but by the author who can be contacted at over the same time period, particularly also the complementary building blocks [email protected] noting growth rates and their volatility – of an educated, healthy population and Dawley, S., Pike, A. and Tomaney, J., as measured by the standard deviation in an environment that supports a safe and Towards the resilient region? CURDS real GSP. (Figure 2). engaged community. Working Paper, 2010. Implications for Finally, improving regional capacity in areas Hill, E., Wial, H., and Wolman, H., policy makers identified to have low resilience is more Exploring regional resilience, Working Paper By any measure, Australia would be likely to be achieved through a place-based 2008-04, University of California Berkeley, considered a resilient country, having policy framework, given the challenges of 2008. delivering uniform policy settings across weathered many economic and Dawley, S., Pike, A. and Tomaney, J., diverse populations and geographies. environmental challenges in recent times. Towards the resilient region?, CURDS However, the capacity for individual The thinking underpinning the development Working Paper, 2010. regions to deal with significant economic, of Australian Regional Capacity Index is social and community challenges is varied. set out in a new KPMG report available at Simmie, J and Martin, R, The economic Some have a diversity of economic activity www.kpmg.com/au/regionalcapacity. resilience of regions: towards an evolutionary but poor social capacity and even poorer approach, Cambridge Journal of Regions, Insights on how the approaches applied in Economy and Society, 2010. community connectivity. Resilient regions this analysis can be enhanced to support need economic strength during times of an ongoing evaluation of resilience at a Brookings Institution Press, Urban and uncertainty plus a strong social fabric to sub-national level are most welcome. Regional Policy and Its Effects: Building ensure it can return to the ‘good times’. Resilient Regions, p 2.

24 PUBLIC ADMINISTRATION REPORT

New conference for Canberra Does the public service live in interesting times? And is it on the verge of delivering big reforms? These are the questions to be asked – and answered – at IPAA ACT’s inaugural public sector conference on September 24.

SPEAKERS From left, Kathy Leigh, John Lloyd, Renee Leon, Graeme Head and George Megalogenis

The one-day event to be held in the National Gallery’s Gandell Hall will feature Secretary of the Department of Prime Minister and Cabinet, Michael Thawley and Head of the ACT Public Service, Kathy Leigh. Other speakers already secured include Public Service Commissioner John Lloyd, Secretary of the Department of Employment Renee Leon and NSW Public Service Commissioner Graeme Head. Journalist and commentator, George Megalogenis, will also feature. An optional pre-conference dinner on September 23 will provide delegates with an opportunity to hear from ‘a leading commentator on the Australian public sector’. Chief Executive Officer of IPAA ACT Drew Baker says the role of government and the public sector is under renewed focus. VENUE Gandell Hall ‘Change will never go out of fashion. The media cycle feels as long as a twitter feed’, Meanwhile, big reforms – from welfare ‘There are no quick fixes’, Drew says. ‘These he says. and disability, to competition, federation trends have significant implications for the Volatile electorates were disrupting the and tax reform – required long- conception, delivery and implementation of political equilibrium. Digital disruption, term thinking, multi-jurisdictional big policy reforms and our way of working.’ contestability and the trend toward collaboration, engagement with citizens, Members’ rates are available to IPAA members smaller government were shaping the and an ability to exploit new technology. travelling to Canberra for the conference forward agenda. from other states and territories.

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Charities, compliance and backflips

The ACNC has defied the odds and delivered on a promise, writes David Gilchrist, left. In May, the Australian Charities and Not-for-profits Commission (ACNC) published its first charity compliance report describing activities since it began in December 2012. ACNC also reports the level of compliance achieved by the regulated sector and identifies a significant and very positive outcome that might not have been foreseen given recent political history. ©iStockphoto.com @trigga The ACNC’s future has been under a cloud during the Abbott Government. It was slated The pursuit of these objectives has However, the ACNC has not been for removal when the new government resulted in the development of a number frightened of flexing its considerable took selective soundings from those in of resources and the commission has muscle when it has identified risks to the charity sector who were vociferously swiftly increased its sector knowledge individual charities, groups of charities, against the ACNC’s continued existence. This – critical to the ACNC’s ‘light touch’ or the wider community. Indeed, since policy position has now been placed on the regulatory approach being directed where it began, the ACNC has effectively backburner. Primarily, the backflip occurred it has obviously been most effective. For protected over $100 million in charity because of overwhelming support garnered instance, for the 2013 year, 90 per cent of assets for the benefit of the community. Further, it has been effective in applying from the charities sector, encouraging the charities complied with their lodgment various powers to force organisations Senate to reject the government’s policy. obligations, with 98 per cent lodging documents online. to comply with their responsibilities in The persistent uncertainty could have relation to governance and reporting been expected to affect both the ACNC’s standards and has revoked charitable status performance and the response of the Since it began, the ACNC of a number of organisations. sector itself. The opposite has happened. has effectively protected So, the ACNC is not simply attracting Walking the fine line between the over $100 million in popularity but respect, for its rational government’s announced policy and its charity assets for the application of the ‘carrot and the stick’ responsibilities under its enabling legislation, and for filling a regulatory gap identified the ACNC has also managed the political benefit of the community. in Australia for more than 20 years. Its pressures resulting from the obvious sector focus in 2015/16 will be on timely support and demand for its services. The Notwithstanding the uncertainty, the and accurate data lodgments, charities ACNC was established with three legislated charity sector has responded positively operating overseas and those that provide objectives: maintain and build public trust to the ACNC and met its obligations private benefits to members. in the charitable sector; maintain and responsibly, effectively highlighting its Professor David Gilchrist is Director of the increase its capacity; and reduce red tape. comfort with those. Curtin Not-for-profit Initiative.

PUBLIC ADMINISTRATION 27 OPINION

Productivity in public service Ed Bernacki, left, says productivity and innovation are ‘personal’. In the last issue I learned much from the survivors. Many In terms of national productivity, the new of Today two saw the problems but felt frustrated by organisation was able to drop the charge interesting articles inefficient systems, poor communication for mailing letters by five cents where it – ‘Competitiveness and weak leadership. remained for about eight years. and productivity’ Productivity: not and ‘Innovate a new challenge to compete Our philosophy internationally’ – gave national perspectives, was simple – the more When the USA entered World War II, there was a vast need for American industry yet productivity and innovation are also efficient we were, personal. They both start with our decisions to supply the war effort. With thousands to manage resources, solve challenges and the more resources of men recruited for the military, a huge create value for stakeholders. could be invested in problem was created as manpower and something else. expertise disappeared overnight. Older For the past twenty years I have worked in workers and women had to fill the factories. various countries to develop the capacity of the public sector to be more innovative. I joined the new ‘Total Quality Service’ The government quickly realised current Before working in the public sector, I spent team, an internal think tank charged management models were inadequate. At five years with a large sporting association. with creating a strategy to improve the first a national consulting service was set We developed many initiatives to add value quality and delivery of services. Its role up to work with industry, which failed for our members, finding ways to enhance was to recommend how continuous as the need was too great. An approach the value of programs for key stakeholders. improvement and total quality could be to ‘train-the-trainers’ was conceived to To ensure our limited resources were used implemented within NZ Post, because give managers skills that would cascade effectively, we started workplace practices the executive wanted to develop internal across their company and then the that would today be labeled ‘innovation’ expertise rather than rely on consultants. country. Training Within Industries targeted – weekly and problem solving meetings managers who were seen as the major Our philosophy was that ‘everyone in the inhibitors of productivity and focused in to discuss staff ideas, or help an employee organisation has a customer’. Some will solve a specific challenge and viewing three types of training – ‘job instruction’, be ‘internal’ while some will have paying, to teach managers the importance of our work as projects with disciplines to external customers. measure results and identify opportunities proper training for the workforce and for improvement. Our philosophy was My role was to engage managers and staff how to provide it; ‘methods’ on how simple – the more efficient we were, by translating the quality philosophies to generate and implement ideas for the more resources could be invested in into practical problem-solving and continuous improvement; and ‘relations’, something else. decision-making tools. teaching leadership and human relations. In 1987, New Zealand Post became a state-owned enterprise with government as the shareholder. I joined in 1992 toward the end of a major restructuring. For years it seemed unofficial policy for the public sector to hire people without jobs to keep the unemployment rate near zero. Productivity was very poor. A productivity consultancy review led to a major redesign resulting in around a quarter of staff losing their jobs.

28 PUBLIC ADMINISTRATION OPINION

There was a belief that every employee it moved forward. That communication Though I simplify a complex issue, these was capable of finding new and tool gave mangers enough understanding are the options we face. Every one, in better ways to do their job and it was to allow them to teach their staff. It every organisation, must solve problems, emphasised they should never stop provided about 30 problem-solving tools make decisions and deal with change thinking about how improvements can to help small teams of people resolve in some way. The difference is how we be made. Research on Training Within challenges on the job. choose to do so. Industries later found that 86 per cent Roadmap A path forward is to consider how the of companies reported an increase in Singapore Prime Minister’s Office viewed production of 25 per cent or more. Any time we decide to work on new initiatives it is useful to make a distinction this issue of productivity and innovation After the war, the Japanese adopted these between two innovation problems we – when it sought to build the capacity principles to rebuild the country while the face. The first is solving the challenge of public servants to innovate. As part of USA went back to old ways of working. we face individually, in teams and as its ‘PS21’ program to pursue excellence, Time for healing departments – much like R&D in pursuit one element was to improve the skills for and reinvention of new solutions or technologies. In the problem solving and decision making in public sector this can be a project to the public sector. Extensive research led The reality for today’s public servant can address an important need. Second, is the to its ‘Innovation Skills Framework’. For be harsh. The latest Canadian Federal challenge of collaborating effectively to each skill public servants could take two Government budget was ‘balanced’ – create and deliver the ideas to solve the to three days of training – ‘Generating by cutting many programs and about first problem. ideas’, the seeds of great solutions to all 37,000 federal public sector jobs. One challenges. This involved brainstorming report suggests some departments such and tools to create solutions to problems; as Veterans Affairs will lose about one After the war, the ‘Developing ideas’, to develop potential quarter of its workforce between 2011 Japanese adopted solutions to enhance the possibility and 2017. for success and eliminate the risk of I learned a lesson with NZ Post from an principles to rebuild flaws or weaknesses; ‘Judging ideas’, at older worker who sorted mail for a living. the country while the numerous steps in the problem solving He survived the job cuts. He told me USA went back to process, involving understanding how about his manager who had invited staff old ways of working. to use criteria to improve judgments; to a meeting to allow each to talk about ‘Communicating ideas’, because even how they felt about friends and colleagues good ideas need to be communicated losing their jobs. The manager listened, Research has found poor collaboration well; ‘Turning ideas into actions’, because then focused on those who survived. often hinders the process of solving the implementing innovative solutions He wanted their advice on what they first challenge – and that presupposes requires robust strategies and tactics. wanted to feel secure in their jobs. The we actually want to solve our challenges. A sixth skill related to ‘Developing ideas’ three themes were ‘vision’ – staff wanted The more fundamental question is do we and was about team learning and the confidence of having a good future; want to solve our challenges? Research collaboration. An analogy was created ‘to be heard’ – no one had asked staff for from the private sector – even from based on a ‘hand of innovation’. Each ideas before; and ‘problem solving tools’– lobby groups like the Business Council of finger is one skill and the hand is team staff could see problems yet did not have Australia – suggests a roadblock to change collaboration. Each skill, like each finger, the tools, processes or opportunities to can be middle managers who, for various is important. An ‘innovation guide’ went implement solutions. reasons, ignore problems until there is a to 20,000 staff and managers in Singapore. These insights helped me create the NZ crisis. In essence we face two options – do It was a roadmap to understanding innovation Post Managers’ Manual to Total Quality nothing, at least until there is a crisis – or, and productivity and a way to engage Service, providing a vision for NZ Post as do something to solve a problem. with the training offered. Continued.

PUBLIC ADMINISTRATION 29 OPINION

©iStockphoto.com @Rawpixel Ltd

Though we talk so much about To ensure we are productive, leaders Our idea meetings started with three ‘innovation’, facts show that 90 per cent need to set a direction and create the people. Everyone tried to have one idea of ideas used in all organisations are management policies to encourage to discuss. Before long, others engaged improvements, not true innovations. That managers and staff to make the right in the process. Within a few months is normal. About half of all ideas make decisions on a daily basis. these became brainstorming sessions current systems more effective while the to solve many issues and staff wanted rest make current systems more efficient. to be involved. Our systems should reflect these skills and We face two options – yet not ignore the need to create ideas do nothing, at least This may seem trivial compared to that can lead to innovations. until there is a crisis – the challenges of the public sector, yet consider one thousand – or 10,000 – Productivity and innovation or, do something small groups meeting weekly to work Productivity and innovation work in to solve a problem. on their challenges. How many would collaboration. The focus on productivity resolve difficult problems or identify is crucial for society. The more innovative new opportunities? Given the right skills we are in shaping solutions for challenges, At a team level, we cannot change what for solving problems and stronger skills the greater our productivity. Some have the we do not control but we can change for collaboration, that can be a great view productivity is driven by the cost of what we do. This was a lesson learned at investment in improving productivity. labor. That is nonsense in the knowledge the sporting association. Perhaps the best economy. Productivity is defined by the tactic I have experienced over the years is The Idea Factory’s Ed Bernacki is currently value created by people in pursuit of their a regular, unstructured staff ‘ideas’ meeting. writing a book on practical ideas to boost public objectives. Obviously, that is measured Staff members can discuss a problem that sector productivity and innovation based on his against the cost of creating the value. needs new ideas, or an idea they created. experience in various countries.

30 PUBLIC ADMINISTRATION register online today

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4-6 August, 2015 Melbourne

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Want innovation in government?

Then avoid the ‘doom loop’ and keep your CEOs longer, writes David Waterford, left. Governments of all state. Premier Tom Playford vigorously they are visionary entrepreneurs or political persuasions adopted Wainwright’s idea. For the because of their track record in creative, continue to talk-up next 30 years, through a number of transformative or innovative change. the need for more government instrumentalities, the SA The problem with this agrument is that innovation in and Government offered economic incentives the empirical evidence from the world by the public sector. to business, keeping production costs of corporate enterprise overwhelmingly lower than in Victoria and New South Voices as diverse as former New South says the sleek and fleet-of-foot are not Wales and transitioning the state from Wales Liberal Premier, Barry O’Farrell necessarily the leaders who deliver a largely agricultural economy to an – addressing the Institute of Public innovations leading to long term industrial one. Administration Australia in 2012; South corporate success. Rather, it is the quiet, Australia ALP Premier, Jay Weatherill – values driven, focused and disciplined when launching his public sector renewal If public sector operators who make the breakthroughs program in 2012; and former Queensland and sustain their organisations’ efforts LNP Premier, Campbell Newman – in organisational culture, to become great performers over the calling for nominations for public sector skill sets of senior long-term. This ‘Hedgehog Concept’ is awards in 2014 – have all made the call. leaders, or the risk- spelt out by Harvard Business School’s The public sector in Australia has conscious environment Jim Collins in Good to Great: Why some companies make the leap … and others don’t. demonstrated genius in generating of public administration innovative ideas. There has been successful don’t prevent innovation, Others argue the risk aversion of politicians proof of concept for many of these prevents the public sector from innovating. innovative ideas – in recent decades what is the cause? The problem here is that innovation and often called ‘pilot programs’ – and there high risk-taking are falsely conflated. Again, is a solid history of public sector-led the evidence from the corporate world is implementation of innovation. The South Australian Housing Trust was for many years a true innovator. It was the large publically listed companies that But is the public sector still capable of the first Australian housing agency to successfully innovate, repeatedly reinventing innovation? Will calls from political bank land, sell houses on the open market, themselves, are not high risk-takers. leaders for more innovation be enough to buy and conserve old houses as public The real secret of successful corporate re-catalyse any waning capability? housing, buy public housing from private innnovators is they have developed a Some argue the critcal drivers of public developers and design special housing for process of bringing new offerings to market sector operation – consistency, efficiency, pensioners and people with disabilities. more reliably, with less, not more, risk. That timeliness and uniformity – work against So if bureaucray itself is not an anchor is why they have repeated successes rather innovation. However, many highly- to innovation, is it the type of leaders than a few big hits. The demonstrated regarded innovations implemented by recruited? It could be argued that commitment to innovation of companies public sector agencies occurred when public sector leaders are recruited like Apple, Amazon, General Electric, and these drivers of a classic bureacracy were overwhelmingly for their capacity to IBM is not the equivalent of a preparedness at their strongest. coordinate, monitor and organise. The to flush cash down the toilet in pursuit For example, in South Australia in valuing of competition, goal achievement, of the next big idea. In these corporations, the 1930s, the Auditor-General John budget containment and customer focus innovation is a very controlled process, Wainwright conceived the notion of the has certainly increased. However, the meaning a tightly regulated approach to ‘South Australia Settlement’ as a means argument would run there are few, if any, managing risk is not evidence for the ‘systematic industrialisation’ of the public sector leaders recruited because of an inability to innovate. Continued.

32 PUBLIC ADMINISTRATION OPINION

GRAPH 1 Average tenure for departing CEOs of S&P 500 companies

11.3

9.9 9.7 9.4 9.3 8.8 8.6 8.1 8.4 8.1 8.0 7.7 7.4 7.2

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

SOURCE Conference Board

If public sector organisational culture, While there was a general downward GRAPH 2 Average length of tenure for skill sets of senior leaders, or the trend from an average of 9.9 years in 2000 executive directors in ASX-100 companies

risk-conscious environment of public to 8.1 years in 2012 – with 2013 being 7.7 administration don’t prevent innovation, seen as an outlier – the average is still 6.8 6.3 6.7 what is the cause? consistently above seven years. (Graph 1.) Obviously, no single factor creates an environment that supports or inhibits innovation. However, in the corporate The length of tenure world, the single most necessary condition of CEOs in the public for innovation to flourish is a chief sector agencies in executive with staying power; a leader Australia is much shorter 2010 2011 2012 2013 whose tenure exceeds seven years. That does SOURCE ACSI not mean the longevity of a CEO’s tenure than in Australian and automatically results in innovation. Far from US private sectors. My perception, based on sixteen years in it. But the evidence is that repeated and the South Australian Public Sector, is the sustained innovation requires the right length of tenure of CEOs in the public kind of CEO with a lengthy tenure. In the Australian corporate sector, the sector agencies in Australia – at both state People often like to reference Apple as an Australian Council of Superannuation and commonwealth levels – is much shorter example of a company that figured out Investors (ACSI) reports annually on than in Australian and US private sectors. how to use innovation to drive growth. ASX-100 company board rooms, To test this perception, I first looked In the December 2014 Harvard Business including the tenure of executive at the length of tenure of Secretaries/ Review, Maxwell Wessel pointed out that directors. (Graph 2.) Directors-General/Chief Executives from 1997 to 2014, nine of Apple’s 17 The pattern in Australia is for private of four department types – first-ministers, most senior executives lasted more than sector CEOs to be in the job, on average, treasury, health and education – over a decade in the executive team - five for just less than seven years. five jursdictions Continued. staying more than 15 years. In November 2014, the HBR reported that 82 per cent of the top 100 best performing CEOs had GRAPH 3 Average tenure of CEOs: selected public sector agencies at June 30. been in their jobs more than seven years. 4.7 4.1 Looking at the cut-throat world of 4.0 3.8 4.1 3.4 3.5 3.6 3.4 3.2 3.0 3.1 3.3 corporate USA more generally, the 3.1 2.9 Conference Board – an independent business membership and research organisation – regularly reports on the average length of tenure of departing 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 CEOs in S&P 500 companies. SOURCE Public domain data

PUBLIC ADMINISTRATION 33 OPINION

©iStockphoto.com @AdamRadosavljevic

(Commonwealth, New South Wales, The repeated quick succession of This is not an argument to reintroduce Queensland, South Australia and Victoria) new directions, programs, leaders and tenure of public sector executives. But as at 30 June 2000 to 30 June 2014. (Graph adminsitrative arrangements generates is it time the political class reconsidered 3). Using the same sample length of tenure in organisational terms what Jim Collins its obsession with reorganising of departing CEOs is shown in Graph 4. refers to as the ‘doom loop’. In this administration arrangements and, in The situation represented in these data goes environment, innovation is impossible this context, with terminating CEOs? some way to explaining why the public because changes work against the Very pertinent to this stituation is the sector is not able to implement the level of accumulation of results that are the observation of Wallace S. Sayre (one innovation being sought by governments. foundation for innovation. time Professor of Public Administration Linked with this, repeated machinery at Columbia University): ‘Generally speaking, the benefits of administrative of government (MOG) changes further Areas such as undermine the capacity of the public reorganization are immediate, but the sector to innovate. Aboriginal affairs, water, costs are cumulative’. In this instance the mining, transport and cost undermines the ability of the public The four agency types chosen for the above environment seem to be sector to innovate, ironically, often the analysis – first-ministers, treasury, health and stated purpose for reorganisation. education – are the ones least effected by on a MOG ‘lazy susan’ – MOG changes. Even when combined with David Waterford is Principal Consultant never in the same spot of Adelaide-based training and consultancy other agencies, the health and education for very long. division each has a strong continuing firm Oz>Train Pty Ltd. identity, is generally the dominant division and when super departments are dissolved the CEO often becomes the head of the GRAPH 4 Average tenure of departing CEOs: selected public sector agencies at June 30. new ‘smaller’ health/education department. 6.1 For almost every other government 6.0 5.0 5.1 4.8 department, it is impossible to create a data 4.6 4.5 4.7 4.4 3.9 3.8 series for CEO tenure because machinery 3.4 3.6 of government changes make it impossible 2.8 to define a continuing department. Areas 1.6 such as Aboriginal affairs, water, mining, transport and environment seem to be on a MOG ‘lazy susan’ – never in the same 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 spot for very long. SOURCE Public domain data

34 PUBLIC ADMINISTRATION OPINION

Middle management can help

The public service is critical to improving national productivity and middle management has a role to play, says Peter Keogh, left, of Ernst & Young (EY).

The public service The IGR is a warning to the public skilled labour and an effective workforce can improve sector that demographic shifts will change in the changing work environment. That productivity, the future workforce and to maintain is likely to require strategies of gender internally, productivity through greater participation, and generational diversity to cater for through structural new workplace strategies will be needed. increased numbers of women entering alignments and by improving workplace the workforce and Baby Boomers working practices – for example, focusing on alongside Gen X, Gen Y and Millennials. addressing future workforce shortages and The IGR is a warning to www.nsw.ipaa.org.au/events/2014/2014- by refining its service delivery models – the public sector that ppc-sig-eventgen-x-the-generation- both areas where middle management can demographic shifts born-not-to-rule. Ethnic and indigenous make an effective contribution. diversity strategies will be needed to will change the future accommodate increased numbers of ethnic Fiscal, monetary and industry policies and workforce and to maintain minority workers and ensure an inclusive efficient allocation of economic resources workforce; technology strategies to enhance should also be designed to stimulate productivity through greater participation, and integrate the workforce into next productivity growth. generation labour productivity gains; and The Intergenerational Report (IGR) new workplace strategies sharing of strategic specialist roles and identified the need to encourage older will be needed. functions across departments. workers to stay employed to maintain For the public sector, competition for work participation levels. But that may To encourage participation and at least talent should not be underestimated. not be enough to maintain a viable maintain productivity levels, the public That is particularly evident in a market working proportion of the population sector will be expected to take the lead for more technical skills that will operate or improve productivity in the public in refining workplace strategies to help competitively within even greater sector. Low fertility rates and current it remain a highly viable alternative in globalised markets, where most western immigration levels mean that, by 2020, attracting and retaining talent. Agencies will nations face similar labour shortages. Australia may face a shortage of working need to develop strategies at an individual Greater use of international attraction age individuals. level to ensure an adequate supply of methods, or industry secondments,

‘Over the next 40 years, ongoing improvements in Australia’s living standards will remain primarily contingent upon continually improving our productivity’. 2015 Intergenerational Report, Australia in 2055. The release of the latest ensuring Australia maintains living government services and successive Intergenerational Report (IGR) began a standards and remains competitive government fiscal deficits, a national conversation about Australia’s over the next 40 years. It also identifies country’s ability to improve its future economic prosperity. productivity as the most important of standard of living over time depends The IGR says population growth, these three factors. almost entirely on its ability to raise its workforce participation and improved Under the shadow of an aging output per worker. productivity are fundamental to population, increased demand for

PUBLIC ADMINISTRATION 35 OPINION

EFFECTIVENESS = OUTCOMES/INPUTS

PRODUCTION INPUTS OUTPUTS OUTCOMES PROCESS

PRODUCTIVITY = OUTCOMES/INPUTS may become more prevalent in The issue of ‘productivity’ in the public From a national economic perspective, the recruitment. The government’s skills sector is nothing new and the term has key issue in productivity measurement is strategy may also need to consider been intermingled with performance how to define and measure final outputs better adaptation and use of the and efficiency. While it has a universally of the public service. That has proved knowledge economy. accepted economic meaning, when problematic despite the many efforts, As well as addressing productivity barriers adapted to the public environment including the UK’s 2005 Atkinson review in the external environment, policies it has also come to mean operational – due to the nature of goods and services must also address the productivity of performance improvement. provided by government, the market it the government itself. The public sector operates in and, for the most part, no clear makes up a large proportion of the market price for its outputs. economy and improving its productivity The public sector The obvious question beckons – if it will have a significant effect on economic makes up a large is difficult to measure public sector growth. According to 2013 analysis by proportion of the productivity growth, how can you tell if the Institute of Public Affairs, public it is changing and/or requires attention? expenditure by all levels of government economy and improving That does not mean efficiency gains in Australia was approximately 39 per its productivity will have to deliver outputs and the effectiveness cent of GDP. So, increasing services to a significant effect on of policies to achieve outcomes should the public, while maintaining or reducing economic growth. be ignored. A method is to establish an costs of delivery, directly contributes to a agency performance framework with higher standard of living. two mutually exclusive measures – one In 2013, EY research found that despite One of the great dilemmas facing those providing an assessment of outcomes sharing comparable skills, capabilities attempting to address productivity in to focus on the question of agency and and remuneration, only 20 per cent of the public service has been the issue of policy effectiveness – the other addressing public sector workers believed they were measurement. We need to differentiate the issue of agency efficiency focusing on ‘operating at or above their lifetime between two types. The first measures outputs; ie, productivity. best’, compared with 29 per cent of productivity for the national accounts The existing discipline of evaluation using private sector workers. Closing that gap and the economy – ‘outcomes’, while the program logic, when implemented correctly, was estimated to result in a $2.4 billion second measures organisational efficiency still remains the most pertinent measure of productivity dividend. and improvement – ‘outputs’. policy effectiveness outcomes. Continued.

36 PUBLIC ADMINISTRATION OPINION

At the organisational or agency level, it This covers market testing, commissioning taxation implementation tool, to address is necessary for each agency to activate and outsourcing aspects of service delivery. the same market failure issue. metrics that can be used to measure the Reduction of output A but While the high-level examples above performance of outputs and, therefore, enhancement of output B at the same provide practical ways the public service efficiency. Productivity should be measured cost. This is an optimisation or fine- can impact productivity at the group and defined as the ratio of all outputs tuning approach that looks for increased produced by a given organisation, divided level, these do not take into account public value through different routes to by the inputs used to produce them. more strategic departmental level achieve better outcomes – for example, productivity gains through strategic At the agency operational group level changing the mix of inputs and shifting alignment, technology and big data there are several different ways to assess some resources from one program to sharing analysis. Nor does it delve into and improve public sector productivity. another to achieve better results overall. potential productivity gains from any If there were no additional cost and no Reducing inputs to achieve the same wholesale structural changes to the cost saving, that would still represent an outputs. Put simply, cost reduction. public service, which may result from increase in productivity from a public Generally, for this to be realised there needs the current Federation review, as such to be redundancies – not transfers – and value perspective. initiatives are often beyond the realm reduction in the use of external services of middle management. However a or replacement of internal services with close re-evaluation of the workplace lower cost external services, for example, Productivity should environment, programs, service delivery outsourcing processing or activities. be measured and defined models and tools of intervention at the as the ratio of all outputs Increased outputs, using the same middle management level, can deliver inputs. For example, the delivery of produced by a given productivity gains and, ultimately, more community home care visits but at organisation, divided improved efficiencies. no extra cost – possibly achieved through better routing, shorter visit times and by the inputs used to This article was edited from information better scheduling. produce them. supplied by Peter Keogh, an Executive Better targeting of the outputs, Director in the Economics, Regulation and Policy area for EY in Canberra. Peter has reducing waste or surplus outputs. Substitution. Distinct from the spent more than 30 years in the private Identifying efficient service delivery above, this refers to productivity gains and public sectors, focusing on public policy, models that clearly identify and reach achieved by changing the intervention government intervention, program evaluation targeted customers, while reducing methodology, not the service delivery. and productivity issues. surplus services or funding. An example of this is to scrap a program Same outputs, using alternative and replace it with a less administratively This does not constitute advice from EY (Ernst service delivery models at lower cost. heavy and less costly regulation, or & Young) and should not be relied on as such.

PUBLIC ADMINISTRATION 37 Fed up? Or not?

IPAA’s much-lauded national conference is shaping up to be another engaging and engrossing event. This year the New South Wales division plays host when the conference comes to Australia’s biggest city as ‘Fed Up Federation Reform: Impacts and Opportunities’. Sydney’s Hilton will be the venue over Wednesday 14th and Thursday 15th October for what promises to be another in this series of national gatherings that your editor can attest are always world class. The results of the Reform of Federation currently underway are likely to have the greatest impact on the Australian public sector, with the potential to significantly change public sector activities, roles and responsibilities and the way services are delivered to Australian citizens.

PHOTO Ethan Rohloff, Destination NSW REPORT – PROMOTION

‘Fed Up. Federation Reform: John Brumby has immense experience in What are the next steps? Impacts and Opportunities’ provides public life serving for more than 10 years Public sector a forum for those passionate about as Treasurer and then Premier of Victoria, secretaries and the public sector to connect and six years as Leader of the Victorian director generals engage with their peers to discuss Opposition and seven years as Federal from around the issues that matter. MHR for Bendigo during the period of Australia will More than 50 speakers from around the Hawke Government. He is widely explore how we the world will gather for the two-day published on a range of issues including reconcile the Conference to explore how the public Federation, tax reform and China, was options and share sector will look as a result of Federation Chair of the COAG Reform Council their vision for the future of Federation reform and the skills required to excel in from January 2013 to June 2014 and has with Lateline presenter Emma Alberici. led a number of national policy reviews. this changed environment. Roundtable Briefings Five ‘Big Issues’ will provide the What do Australians Following the release of the Federal Conference core. want? What do public servants really think? Government’s Green Paper, Roundtable Why reform Federation? Briefings will explore reform options for The 2014 Australian In exploring the health, education, housing and homelessness. Constitutional case for change and Senior public administrators, academics Survey showed how it will deliver and representatives from the not-for- more than one better services to profit area will discuss the merits of the in three people Australians, former options and the impacts and opportunities consider Australia’s South Australian those might provide. three-tiered system Premier and The Roundtable Briefing on the Australian member of the of government is not working well. Tax System will explore the issues raised in Prime Minister’s Reform of Federation the preparation of the Taxation Green Paper, Expert Advisory Panel, Dr John Bannon, Professor AJ Brown will explore focusing on structural problems of vertical will share details of the process for reform, citizens’ thoughts on Federation and fiscal imbalance and funding reform options. the guiding principles and the allocation intergovernmental collaboration and of roles and responsibilities. compare them to the opinions of public Interactive What will it take to administrators across all levels of government. All four Roundtable Briefings will be achieve reform? How do we bring the highly interactive. Former Victorian people with us? ‘Skills for the Future’ sessions will dive deeply into the four skills that have been Premier, John Despite mixed identified as crucial in the post-Federation Brumby, will opinions about reform landscape: commissioning, market issue a leadership how to reform management, digital government and big data. challenge. Federation, An international thought leader will present everyone agrees Federation their perspective and insights on each of these the key to lasting reform is a once skills followed by Australian presenters who success is how in a generation will share local examples and case studies. opportunity to reimagine how the well we educate commonwealth and states could work our citizens about the need for reform Must attend together to deliver better services but and what benefits it offers. In a throw- This year’s IPAA National Conference is a affecting real change is going to require back to the popular Gruen Transfer must attend event for public administrators a mix of vision, compromise and session, facilitated by journalist Monica committed to building their understanding commitment and an ability to communicate Attard, advertising agencies will sell and developing their career in an the need for reform to citizens. Federation reform. increasingly complex environment.

All you have to It’s easy – just follow @IPAANSW Win free do to attend the and tweet your response using Conference for free is #ipaa2015 (up to 140 characters) entry. tell the organisers why or email [email protected] It’s easy! you want to attend. (using 25 words or less).

40 PUBLIC ADMINISTRATION REPORT – PROMOTION

Garran Oration – NSW Premier takes up where Federation began Other key speakers Blair Comley Greg Smith Blair Comley is Greg Smith is the Secretary of Chairman of the the NSW Commonwealth Mike Baird, above – elected Leader Department of Grants Commission, of the NSW Liberal Party and sworn Premier and a Senior Fellow in as the state’s 44th Premier on the Cabinet and the at the Melbourne same day – will be the first premier state’s senior public Law School, a in 20 years to deliver the Garran servant. He is a member of the Oration – always a highlight of IPAA’s board member of Infrastructure NSW, Tax and Transfer Policy Institute (ANU) National Conference. the Australia and New Zealand School advisory committee and a member of the of Government (ANZSOG), the NSW CEDA Council on Economic Policy. He The Oration honours Sir Robert Public Service Commission Advisory is a former head of the Commonwealth Garran who attended the Federal Board and is chair of the NSW Public Treasury Budget and Revenue Groups, Convention in 1899 as Secretary to Sector Secretaries Board. and a member of the ‘Henry’ Future Tax the then NSW Premier George Reid. System Review panel. In 1901, as Secretary to the Attorney Richard Collis General, Garran helped to establish the Richard Collis is an Terry Moran new Commonwealth Government and Assistant Deputy National was Australia’s first and briefly, its only, Commissioner in President and public servant. He later published his Compliance, working National Fellow, classic history of the Federation process in the Smarter Institute of Public and commentary on our Constitution, Data business line. Administration now standard reference works. He currently has Australia, Terry Fittingly, on 14 October, NSW Premier line management Moran has had Baird will offer perspectives on the responsibility for Enterprise Analytics where a varied public current challenges and opportunities he is responsible for the delivery of analytics service career, working with successive facing public administration in services internally to the ATO. Richard Australian and State Governments Australia against the backdrop of the also is chair of the cross agency Data and in public policy and public sector Commonwealth Government’s new Analytics Centre of Excellence. management. His early career as a CEO wide-ranging papers on the future of Professor Christine Bennett focused on building Australia’s education Australia’s Federation. and technical skills capacity. Christine Bennett 114 years after NSW Premier was appointed Professor A J Brown Henry Parkes’ vision for a federated in May 2011 as AJ Brown is nation was realised, and as debates Professor and Dean, Professor of Public about Australia’s Federation become School of Medicine, Policy and Law more relevant than ever, the 2015 Sydney at the in the Centre for Garran Oration will mark a high University of Notre Governance & point of IPAA’s National Conference Dame Australia. Public Policy at and provide new insights into Before that she was Chief Medical Officer Griffith University, the evolving nature of public for Bupa Australia Group. Professor Bennett Brisbane. He is also administration in Australia. is a specialist pediatrician and has more a board member This year’s Garran Oration sees than 30 years of health industry experience of Transparency International Australia, another milestone – it will be in clinical care, strategic planning, business Fellow of the Australian Academy of Law KPMG’s 10th year as sponsor. operations and senior management in the and of the Regional Australia Institute. public, private and not-for-profit sectors. Continued.

PUBLIC ADMINISTRATION 41 REPORT – PROMOTION

Professor Peter Noonan Helen Dickinson Peter Noonan has Helen Dickinson played a major role is Associate over the past two Professor of Public decades in shaping Governance at policy in Australia’s the School of tertiary education Social and Political and training systems Sciences at the as a policy adviser, University of senior executive and consultant to federal Melbourne. Her expertise is in public and state governments, universities, higher services, particularly in relation to topics education providers, TAFE and as a such as governance, commissioning and contributor to major reviews. priority setting and decision-making. Dr Anne Tiernan In the last five years, she has authored, co-authored or edited twelve books on Anne Tiernan these topics. is a Professor in the Centre for Emma Alberici Governance and Emma Alberici is Public Policy at the presenter of Griffith University. ABC TV’s Lateline She is director of and prior to that postgraduate and spent four years executive programs in policy analysis and as the ABC’s public administration at its School of UK-based Europe Government and International Relations. correspondent. Her research is on the work of governing. Her scholarly interests include Australian politics and governance, policy advice, executive studies, policy capacity, federalism DOCKSIDE PAVILION Venue for Garran and intergovernmental coordination. Oration and Gala Dinner

42 PUBLIC ADMINISTRATION IPAA 2015 NATIONAL CONFERENCE SYDNEY 14 &1 5 OCT THE HILTON, SYDNEY – 488 GEORGE ST, SYDNEY

BOOK TODAY Early Bird closes 31 July 2015

The two day program re-imagines how the public sector might look as a result of Federation reform and explores the skills those working in, and with the public sector, will need in this changing environment.

To learn more or register your interest: WWW.IPAA2015.ORG.AU REPORT

Future in focus Geoff Heriot, left, reflects on Tasmania’s screen debut.

It took just two Regardless of size, there are compelling The same digital technology responsible hours for Hobart’s public policy reasons for the island state for the great workforce disruption offers June winter festival, to support screen and other creative Tasmania an opportunity to strengthen its ‘Dark MOFO’, to industries. The rationale is likely to position in the international marketplace sell-out a theatre become ever more evident as the of ideas. It provides as much opportunity screening to Tasmanian economy joins the rest of as risk in terms of future employment launch The Kettering Incident. Interest in Australia in the next accelerating phase possibilities for Tasmanian youth. the eight-part television drama caused of workforce disruption. Already the film, television and interactive festival organisers to book an additional gaming industries in Australia make a eight cinema screens. The extra tickets substantially larger economic contribution reportedly sold within an hour and a half. No longer do factors such than, for example, the sport and recreation sector. PwC estimated the combined Like audiences everywhere, locals were as geographic isolation, economic contribution of those three keen to see on screen their stories and lack of traditional media industries, would be $12 billion in 2015. their place, specifically the maritime infrastructure, equipment The Internet contributes about another township of Kettering and surrounding cost or small domestic $14 billion. Content creation is one areas of southern Tasmania. This is the market size leave important value component of these first television drama series to be filmed industries where opportunity beckons. here and, for that reason alone, signifies Tasmania at a structural a high point in the history of the island’s disadvantage. No longer do factors such as geographic isolation, lack of traditional media screen industry. infrastructure, equipment cost or small It also serves as a highly visible manifestation A recent report by Deloitte estimated domestic market size leave Tasmania at a of strategic intent. The government’s small one-third of the Australian economy structural disadvantage. Not if it is clever. industry development body, Screen Tasmania, faced ‘imminent major digital disruption’. Fast broadband and digital production has proven adept at leveraging high value Another of the big consultancies, and communications technology offer from constrained budgets. Since the agency’s PricewaterhouseCoopers (PwC), built potential to project creativity anywhere. formation in 2000, it has invested more than on research work at Oxford University Screens are ubiquitous and virtually every to argue nearly half of all Australian seven million dollars in screen productions, industry sector uses them to tell stories, jobs were ‘at risk’, over the next two leveraging total budgets of about $93 million, engage audiences, educate and promote. decades, due to automation. PwC said of which some $26.5 million has been Digital skills developed in the screen and first in line would be clerical, financial spent in the state. Over its history, therefore, entertainment sectors are transferable. and insurance workers, and administrative the agency has leveraged a fourfold direct support staff. In the case of Tasmania’s The ‘screen sector’ therefore encompasses financial benefit to the state economy from small economy, to be very conservative, much more than the twentieth century every dollar invested. That is additional that could affect sectors employing well notion of film, television and advertising. to the financial, training and mentoring over 100,000 workers. Today, ‘screen’ offers diverse opportunities to support offered to screen enterprises, engage audiences with games, learning, short Culture has important intrinsic value, emerging practitioners, festivals and and long-form narratives, published works contributing to local community events. All these contribute to the growth and live events, music and performance. identity and socially attractive residential of an artistic and industrial ecosystem. environments. In anticipation of the next One forecast predicts there will be some Every state and territory has a screen wave of structural change, however, the 50 billion connected devices in the world agency. The majority of these operate on mantra must be: ‘invest, innovate and by 2030. Each of these will interface with a much grander scale than in Tasmania. market local talent’. applications and networks.

44 PUBLIC ADMINISTRATION REPORT

NOIRHOUSE Setting up a scene for the award-winning web series, Noirhouse. © Latitude Films

The more interfaces, the greater the production values and an undertone of which resulted in almost $6 million of opportunities for innovation and creative gothic moodiness. The series co-creator direct expenditure in the State including expression. More and more, content is the internationally credentialed 110 jobs in cast and crew roles. creators will have opportunities to screenwriter, Launceston’s Victoria As demonstrated by the previous communicate directly with audiences. Madden. The cinematography takes Porchlight production in Tasmania – There is not a moment to lose. inspiration from Tasmania’s signature award-winning 2011 feature film The topography and seascapes, and the Foundation growth Hunter – the direct and indirect benefits extraordinary quality of light that prevails to the state can be substantial. Screen To date the focus of Screen Tasmania south of the fortieth parallel. Tasmania invested $300,000 towards the has been on increasing the total value $6 million total production cost of The of content production activity and Today, there are more Hunter. More than $1 million was spent increasing the share of production budgets than 25 enterprises in Tasmania. Coinciding with the film’s spent in the state. That means growing and about 1,000 release in international markets, Tourism the local pool of skilled practitioners, Tasmania undertook targeted publicity giving priority to those forms of individual practitioners campaigns. By piggybacking on The content creation most likely to stimulate working on feature films, Hunter, for example, the campaigns reached employment and attracting talent from television, games and circulations of more than seven million elsewhere to use Tasmania as a residential mobile applications. people in the UK and almost eight million base. In recent years Screen Tasmania has in the USA. In Canada, a promotion in striven to encourage innovative digital association with Canada Sweepstakes projects and television series production. Produced by NSW’s Porchlight Films attracted almost five million impressions. The latter, in particular, tends to create and Madden’s Sweet Potato Films for In the period since The Hunter showcased more jobs for longer periods than most Australian release on Foxtel, the series Tasmania’s remarkable landscape and one-off productions. had a budget of $14.3 million. Through optical brilliance, two other high budget, The Kettering Incident promises much. Screen Tasmania, the state government international feature productions have It is a supernatural thriller with high made an equity investment of $1 million, been filmed here. Continued.

PUBLIC ADMINISTRATION 45 REPORT

Screen Tasmania also has hosted a number raft of children’s animation series. Subject Existing screen-related training and of location scouts from Europe, Asia and to production investment agreements educational activities are fragmented the USA. Arguably, The Kettering Incident with Screen Tasmania, about half the across the secondary school, TAFE series would not have come to fruition, venture’s $17.5 million production outlay and university sectors, as well as a few had it not been for the proof of concept would be spent in Tasmania, providing private operators. demonstrated by The Hunter. employment for about 70 practitioners A decision by Screen Australia to In 2002, Tasmania had only two over four years. discontinue funding the general operations independent production companies and of so-called state resource organisations has a scarcity of skilled practitioners. Today, The ABC, once so eroded substantially the viability of Wide there are more than 25 enterprises and Angle Tasmania – a community not-for- about 1,000 individual practitioners substantial in its industry profit association providing valuable entry- working on feature films, television, games presence, has contributed level training and equipment hire services and mobile applications. The prolific negatively to the screen to aspiring screen practitioners. documentary and trans-media specialist industry in states other Just as media and other businesses face Roar Film and animator Blue Rocket, than NSW and Victoria. the challenge of developing new business continue to be industry leaders. Both models, so too Tasmania needs to achieve companies previously received enterprise a twenty-first century solution to talent development grants from Screen Tasmania All good. But impediments remain. incubation. The skills required are not to assist their maturation. They suggest questions for the Tasmanian only for creative and technical roles but Blue Rocket is an industry exemplar government, and those officers working also entrepreneurship, management and of the digital ecosystem. Over more on a Cultural and Creative Industries business development. The potential than a decade, it has grown to be one Policy for the pro-active Arts Minister, contributors to such an outcome-focused, of Australia’s most substantial animation Dr Vanessa Goodwin. multi-disciplinary model already reside here. producers. For each dollar invested Three Policy Issues Further consideration is required to by Screen Tasmania, Blue Rocket has ensure Tasmania has an appropriate generated about eight dollars worth of There is no issue more important than conclusive environment to allow content production activity in the state. Recently how best to use the resources of this state businesses to grow in company with it secured agreement with the Beyond to incubate talent. Tasmania is possibly the state’s other economic pillars such International group and Indian co- too small to support its own conventional as tourism, education and research and producer Criya Innfotainment to create a TV and film school. agriculture/acquaculture.

FILMING THE HUNTER Directing lead actor American Willem Dafoe in the Tasmanian bush, and above, Dafoe on location near Hobart for The Hunter. © Porchlight Films

46 PUBLIC ADMINISTRATION REPORT

ANIMATED Blue Rocket’s animation factory near the Hobart waterfront ABC’s negative impact through Screen Australia, federal taxation commissioning and acquisition relates to offsets and the state screen agencies. the diversity of the Australian federation.’ The ABC, once so substantial in its industry presence, has contributed Its capacity to benefit from all these A universal opportunity? negatively to the screen industry in taxpayer-funded sources, directly and Having undertaken his PhD at Latrobe indirectly, comes with obligation. states other than NSW and Victoria. University, eminent Indian scholar and Tasmania and other states would do It has progressively closed internal TV journalist, Nalin Mehta, knows quite a well to consider agitating for legislative production units for programs other lot about Australia. Writing about India’s change in order to specify more clearly than news, while failing to commission a media sector in his latest book Behind a the national broadcaster’s purpose. That is, comparable volume or value of content Billion Screens he could well have been clarify its obligation to serve the federated from independent producers in those reflecting upon an island as much as a nation in its constituent parts, including states. It also abandoned state-based sub-continent. television current affairs and, at the time those far from the ABC citadel in the of writing, has done little or nothing to Sydney CBD. Digital technology necessitates ‘a compensate. Perhaps the Corporation fundamental transformation of the way chose to redact section 51(v) from its we look at media’. Mehta argues there is copy of the Australian Constitution? Tasmania, an opportunity ‘to move from just being it’s time to rock. a provider of entertainment content to Managing Director Mark Scott told a being a creative industry … that plays a recent Senate inquiry into the ABC much larger role in the overall economic To quote my own submission to the Amendment (Local Content) Bill that, by vision for the country [or state]’. working with independent producers, recent Senate inquiry: Tasmania, it’s time to rock. the ABC could benefit from government ‘If the Corporation no longer wishes subsidies to which it would otherwise or no longer has the financial capacity Geoff Heriot chairs Screen Tasmania. Now not be entitled. In other words, the ABC’s to operate internal production based in Hobart as a consultant and writer, notion of production efficiency relies activities, across the nation, it should Geoff is a former foreign correspondent who considerably on its ability to leverage an be held to account to ensure that a held a number of senior executive and strategy even larger share of government subsidy reasonable proportion of its screen-based roles with the ABC.

PUBLIC ADMINISTRATION 47 OPINION

Investing in growth A skilled labour force is vital for an economy to compete and grow. Dr Chrissie Berryman, left, looks at Tasmania’s workforce development strategy.

Tasmania is for business and improved wages and salaries leavers and older workers looking to a unique and for employees. The availability of high-quality re-skill or up-skill to improve their beautiful island on and skilled workers attracts businesses and employment options. which to live and encourages business investment. Recent research by the global work. Its remote management consulting firm, the Boston setting off the Australian coast has been a Distance no longer has the negative consequences it has had previously. Consulting Group (www.bcgperspectives. decisive factor in shaping its demography com/content/articles/education_public_ Technology has already overcome many of and prosperity and, as a result, the capacity sector_vocational_education/), looking the barriers that distance creates for businesses and capability of its workforce. at education and training markets around seeking to grow new markets but new skills In the 18th century, geography meant the world, suggests four factors are key to Tasmania was a pragmatic and distant are required to utilise those opportunities. a successful VET system. solution for relocating convicts from The presence of a overloaded British gaols and, since then, Funding should go to co-ordinated ecosystem distance has played a significant role those providers of training in which stakeholders in limiting opportunities for trade and actively cooperate industry to flourish. best able to demonstrate the provision of quality This means all stakeholders align their At the present time, remoteness means a training valued by industry interests and work together to ensure the large number of younger Tasmanians ‘move VET system represents the needs of all to the mainland’ pursuing work, education and leading to real jobs participants. That includes government and other life opportunities. Many do and real productivity gains. oversight to set the long-term strategic not return. It also means Tasmania has direction of training in consultation with traditionally had a less affluent population stakeholders and ensuring that quality than other states and territories. Government also has a key role to play in supporting existing and future training, valued by both students and With the state’s population ageing at employers, is provided. It also includes industry and facilitating strategic a faster rate than any other Australian an active role for employers and industry workforce planning and the creation of jurisdiction, demographic imbalance groups in workforce development to the Department of State Growth is a key caused by age and socio-economic status ensure the long-term skill needs of the has had a major influence on the supply opportunity to coordinate government economy are well managed. efforts to grow the economy. Vocational of available and skilled labour. Performance-based education and training (VET) is a A skilled labour force is vital for government funding direct means of providing workers with an economy to compete and grow. and support skills relevant to the evolving needs of Employers are increasingly looking at the employers and the economy. This means funding should go to skills available in the local labour force those providers of training best able to when they make decisions about where A good VET system has a ripple effect demonstrate the provision of quality to locate their business, what to produce, on the economy. Quality training training valued by industry and leading what services they can provide and how increases the acceptance of VET. to real jobs and real productivity effectively they can run their business. This correspondingly increases the gains. Providers with strong graduate Skill levels enhance productivity, increase employability of and demand for VET employment rates and high rates of competitiveness and efficiency, reduce graduates. This then attracts more students employer satisfaction would be rewarded unemployment and generate positive returns into the VET system – including school through the funding system.

48 PUBLIC ADMINISTRATION OPINION

Apprenticeships and traineeships are an important mechanism to link training and theory to real-world experience in the workplace, improving the overall quality The contribution of providers of training Sustained of training and increasing the likelihood to equity clients is appropriately weighted support from industry of continuing employment in the industry. in this context to account for the and employers Governments can make a genuine greater challenge of achieving successful difference to economic growth by employment outcomes. Employers can and should play a crucial role in the VET ecosystem. Employer skill investing in skill acquisition for individual Respect for VET as a requirements should feed directly into the businesses but the greatest leverage valid educational pathway development and support of training and from such investment comes when a workforce-development approach leads for all students workforce development processes. This means VET should not be viewed as skills development. a ‘second best’ education experience and Investing in skills only for students incapable of achieving The strategy is focused for growth strategy university standards. Students need to on turbo-charging the Tasmania is currently reforming the be encouraged to see both university state’s economy through Government funded training and and vocational training as legitimate skills development that workforce development system so a learning options and horizontal and links to economic and skilled labour force can be effectively vertical mobility between university built and sustained and the influences of and vocational education should exist. jobs growth. distance and demography are lessened. Attracting high calibre students into The government training and workforce vocational education and training is That is particularly true where employers development strategy Investing in Skills important to ensuring Tasmania continues either directly fund or contribute to the for Growth is designed to complement a to remain strong in the technical trades cost of training and have direct, one-on- range of economic strategies so training and its important service sectors. one relationships with training providers. supports economic growth, Continued.

PUBLIC ADMINISTRATION 49 OPINION

meets industry needs and is directly targeted at regional level across the state, are As an adjunct to the enormous economic at individuals gaining employment. providing valuable information about potential to come out of this visit, the The strategy is focused on turbo-charging local skills needs. They are also a useful Department of State Growth supported the tourism and hospitality industries the state’s economy through skills means of educating and supporting employers, so they can best support their to develop cultural awareness courses to development that links to economic staff through training and other workforce support their workforces. With a huge and jobs growth. ‘Real skills for real development activities. influx of Chinese visitors expected jobs’ – to ensure job-related outcomes to follow their President to Tasmania, can be identified from the training At industry level, the agriculture, businesses are already well placed to reap government supports. The strategy also hospitality, tourism, aged care, disability, the benefit. has a goal to support industry so it can seafood and aged care industries are being strategically plan for workforce needs. supported in developing comprehensive The Tasmanian Government heavily A fundamental underpinning of these workforce plans. Those are a crucial subsidises training for people who do goals is a competitive and open training mechanism by which to target subsidised not have a Certificate III qualification system, where training providers that training so funding effectively supports to enable them to improve their skills meet the Tasmanian Government’s quality economic growth where industries need and employability. Planned initiatives to standards are able to compete for training it now and into the future and provide improve the connection of jobseekers funds. This focuses our work as the real employment opportunities. Industry with the workforce include supporting state’s training authority to ensure we are workforce plans and local-employer employers to play a more effective role investing in skills where they will clearly advice form the basis for determining in workplace training, supervision and drive state growth. what qualifications should be subsidised mentoring. Pre-vocational training, through jobseeker training. particularly when work experience is part The Tasmanian Government is working of the training, is a valuable mechanism closely with industry to ensure training to skill jobseekers to find employment. provided meets the local needs of Pre-vocational training, Examples include pre-apprenticeship employers so they can have confidence particularly when work training courses with a high transition rate that people with qualifications have the experience is part to apprenticeships. A new initiative, the skills their business needs. That recognises of the training, is a ‘Career Start’ program provides training for the vital importance of strong links people without a Certificate III or higher between industry and the training and valuable mechanism qualification where there is identified education sector at industry, enterprise to skill jobseekers to industry demand. The program also and local level. While planning with find employment. includes literacy and numeracy support individual enterprises for future business and employability skills, if required. and workforce needs is undertaken in the Stakeholder input also underpins the Collaborative approach Department of State Growth, Tasmania’s largest contestable fund offered by the system goes one important step further However, the employability and government. The ‘Skills Fund’ allows an and focuses on supporting industry sectors skills development of our workforce employer in partnership with a registered to strategically plan for workforce needs. cannot be developed by individuals or training organisation to apply for sole businesses, as the system has the High level strategic subsidies to train their existing workforce. partnerships responsibility to ensure training meets the Employers are required to contribute to needs of industry and that people with The department has established the cost of training, again ensuring their qualifications are sought by industry. That formal, high level, strategic partnership commitment to training that will boost arises out of strong partnerships between arrangements with businesses at regional productivity and grow their business. business, individuals and government. level and with industry leadership Such a comprehensive approach enables Employers are the major contributors groups such as the Tasmanian Chamber the state to be prepared when opportunities to ensure training makes a difference of Commerce and Industry, Farmers arise. In December 2014, China’s President to the economy and to each individual. and Graziers Association and Aged Care Xi Jinping spent a day in Tasmania after the Projects such as a pilot employability skills Services. These groups and others bodies G20 summit in Brisbane. project currently underway through the

50 PUBLIC ADMINISTRATION OPINION

TCCI links local employers to jobseekers. and those in transition should not be quality training system to support Employers taking part judge participants’ underestimated. Quality career advice and business growth. We need to continue work-readiness and give them advice on support can assist people to make realistic in our efforts to coordinate training and what it means to be employable – ‘straight career choices that lead to appropriate workforce development effort strategically, from the horse’s mouth’. Job seekers are training and employment. reward high-quality providers of training, helping employers to see what challenges promote VET as a valid education option they face. for all students and ensure employers are actively supporting and investing Apprenticeships and traineeships – with A high quality, well- in training. their direct employment relationships functioning VET system – ensure training is directed to real job has a significant That will build on current efforts to needs and it is pleasing to see signs of small attract business to Tasmania, as well as multiplier effect and is more opportunities for existing local increases in apprenticeship and traineeship essential to attracting commencements across the state. employers to compete and expand. business investment. Training programs developed and Approaches such as these will boost employment and ensure the state’s validated by industry are highly regarded. workforce is well prepared for business Tasmania has a number of industry This brings back into focus why VET now … and ready to make the most of validations of training initiatives, examples is so important for Tasmania. A high future economic opportunities. being tour guiding and commercial quality, well-functioning VET system has a cookery. The validation process will be significant multiplier effect and is essential Through Investing in Skills for Growth our expanded to all industries, with tourism to attracting business investment. aim is to turn the ripples into waves. and hospitality, an industry vital for With more skills come greater Dr Chrissie Berryman, General Manager, Tasmania, having priority. opportunities for investment. Employers Workforce Development and Training Branch, The importance of appropriate career want to know they have a reliable Department of State Growth, Tasmania advice and support for young people source of skilled labour and a high-

PUBLIC ADMINISTRATION 51 REPORT

Developing ‘experts’

Lynne Curtin, left, explains why and how Victoria’s Environment Protection Agency (EPA) was compelled to respond to a critical human resourcing issue.

In 2009, the and authority’ initiatives in EPA’s strategic ‘I’m committed to life-long learning, Victorian plan 2011-2016, which looked at how which this program exemplifies. Our Ombudsman EPA could transform to an effective, people deal with complex environmental reported on gas modern regulator. The program was issues and we have to support them to leakage from a designed to address needs identified by continually develop their knowledge so closed landfill in Cranbourne that severely the Ombudsman and the internal review they can deliver value for the Victorian impacted residents in the nearby Brookland by developing the technical knowledge, community’. Greens Estate. The report said EPA lacked expertise, and development of EPA people. Creative, innovative the appropriate expertise to make the correct decisions for that situation. From the outset, the program took a From the outset, the creative and innovative approach. EPA knew In 2010, EPA’s own ‘Compliance and of a few organisations that had ‘mapped’ Enforcement Review’ said its experts were program took a creative their experts; however none of them had no longer publicly visible and reported: and innovative approach. taken a strategic workforce approach ‘Community, business and EPA staff held and appointed ‘principal experts’ to roles the view that the technical capability specifically created for the program. of EPA and its access to experts had Chief Executive Officer Nial Finegan says diminished over recent years with a high the program now ‘identifies, recognises It first needed to understand the critical turnover of specialist staff’, and, ‘it would and rewards experts who support EPA’s technical knowledge EPA requires to be appropriate to support officers with leaders to make business-critical decisions regulate the environment. To do this, it access to internal subject matter experts’. backed by credible expertise’. developed detailed lists called ‘Knowledge Later that year the ‘Expertise Framework Nial, who values the program for its Classifications’ for air and water quality, Program’ began as one of four ‘knowledge focus on developing capability, said waste, contaminated land, noise and odour. The classifications were the basis for surveys that determined which EPA people had the highest knowledge ratings in each area. People across the organisation were invited to take the surveys and we asked our management team to review and calibrate the self-ratings. Rigorous selection EPA Victoria’s principal experts must be able to lead their environmental and industry areas, share their knowledge with decision makers across the business and broader Victorian community and mentor and develop EPA’s next generation of experts. To make sure it selects the right candidates EPA employs rigorous

ADVICE Anne Northway, Principal Expert Land & Groundwater with Scott McFarlane, selection including two panel interviews Manager Environmental Audit and psychometric assessment.

52 PUBLIC ADMINISTRATION REPORT

MENTORING From left, Jason Choi, Associate Applied Scientist - Air & Odour; Paul Torre, Principal Expert Air Quality and Melanie Middleton, Air & Noise Policy Officer A position description clearly defines learning curve … but, ultimately, very and reverse mentoring; applying tools principal expert responsibilities and rewarding professionally,’ she said. developed for the program to support deliverables and each appointee has an agreed Success and sustainability deeper understanding of the technical performance plan. The roles are demanding capability of the workforce; and supporting A year before the pilot’s projected end- and it is suggested principal experts split and encouraging the nationalisation of date, in 2013 the program transitioned to their time – 50 per cent as a guide – the program by working with other ‘business as usual’. It continues to identify, between expert and substantive roles. environmental regulators around Australia. recognise, develop and reward EPA’s Value and development experts and it says it ‘can now demonstrate EPA Victoria’s Chairman Cheryl Batagol said EPA Victoria faces the same challenges EPA recognises that not everyone to the Victorian community that we have as its counterparts in other states in that: has the breadth of knowledge to be a the right experts who can provide the right information at the right time’. ‘No environmental regulator is able to have principal expert. It values and encourages all of the experts it needs all of the time so a significant number of staff with deep sharing resources provides the opportunity expertise in narrower areas by engaging A year before the to resolve complex incidents as they arise. them in ‘expertise communities’, where pilot’s projected And importantly, it means we can develop they receive development opportunities end-date, in 2013 the national networks to continually learn through the program’s annual learning from each other.’ and development budget. program transitioned to ‘business as usual’. EPA Victoria was the joint winner of Developing people the ‘People Development Award’ in Principal experts appointed to the To ensure the program is sustainable, EPA IPAA Victoria’s Leadership in the Public program’s first cycle, 2012-2014, is now focused on integration with other Sector Awards. acknowledged it had made them organisational and development programs Lynne Curtin is Expertise Framework more confident in their leadership and – for example with its technical mentoring Program Manager at Victoria’s Environment capability to develop EPA people. stream, along with career, leadership, Protection Authority. In reflecting on what she learned from her appointment, Anne Northway, EPA’s Principal Expert Land and Groundwater, said it had allowed her the opportunity to work with EPAs decision makers across the business – very different to her substantive role. ‘Providing expert advice

to the ceo and executive directors carries EXPERTS From left, Cheryl Batagol, Randall Lee, Laura-lee Innes, Paul Torre, enormous responsibility and was a big Nick Simmons, Jim Demetriou, Anne Northway, Leon Metzeling and Nial Finegan

PUBLIC ADMINISTRATION 53 OPINION – CASE STUDY

Urban water Stuart Kells, left, examines a case study of public sector change.

I joined Melbourne The regional premises in Sunshine – an The sector directly employs thousands of Water in 1991 as a architectural period piece acclaimed as an people and yet, effectively, all jobs, nearly wide-eyed summer example of ‘Brutalism’ – became the head all economic activity, plus our living intern. Some of my office of a new entity, City West Water. standard, crucially depend on the water time was spent in its Looking back on that period of change, sector being effective and efficient. CBD headquarters the institutional reforms are as redolent Change but mostly I of the 1990s as the building was of the worked at the Western Region office, Against that background, the Victorian 1980s. In the current decade, the Victorian in outer suburban Sunshine – setting up water sector has entered a period of urban water sector is again facing a period deferred payment plans for people who change that differs in several important of transformation and it is timely to look had trouble paying their water bills. From ways from the corporate and economic again at the sector as a case study of change. Sunshine – and, later that decade, from reforms of the 1990s. Whereas those the Department of Premier and Cabinet reforms could be interpreted as a – I witnessed an organisation grappling precursor to significant privatisation, with transformative change. Water is crucial to our Victoria has since made a strong commitment to retaining responsibility Melbourne Water had only recently been wellbeing and prosperity for water services in public hands – created from the infamously powerful now and is likely to be that commitment is enshrined in the Melbourne Metropolitan Board of more so in the future. Constitution Act. Partly because of that Works. ‘Corporatisation’ was the label commitment, the next wave of water given to the process of working through Importance reform will have a distinctly different a series of tough questions. How should flavour. In particular, government and Melbourne Water be managed and The importance of the water sector the community will play larger parts in governed? How should it measure and is widely appreciated. Through its 19 reform than they have perhaps done in report its performance? How and from publicly owned water corporations and other times and in other regions. This where should it obtain finance, and on a variety of other entities that affect the new wave of change is being driven by what terms? Should legal and other water system, the Victorian Government a confluence of factors – administrative, professional services be provided in-house, tackles one of the most fundamental regulatory, technological and social. or purchased on the market? How big economic problems – allocating a scarce should the capital works division be? resource. And in this case, the resource Environmental scans – undertaken for Should Melbourne Water have its own is perhaps the most essential service the Victorian Government’s ‘Intelligent works division at all? households need. Water is crucial to Water Networks’ program – have looked our wellbeing and prosperity now and Most of these questions found answers carefully at factors expected to affect is likely to be more so in the future. from the 1990s toolkit of ‘new public the water sector in the coming years. How we manage our water and water management’. Outsourcing, and the The program also considered how other adoption of more businesslike approaches services capacity are primary challenges sectors have experienced and responded to financial management and corporate of intergenerational equity. to change and how those experiences can governance, presented a plethora of Annually, the Victorian community help inform the Victorian water sector. challenges for the organisation and its makes a multi-billion-dollar investment The scans identified examples that serve workforce. More challenges were to in the delivery of water services, making as parables for the water sector – such follow when the State Government split it, from an economic perspective, one of as the $100 million manufacturing plant Melbourne Water to create a wholesale the state’s largest industries. The water immediately made redundant by a new water and wastewater corporation and corporations manage assets worth more fabrication technology that was much three separate retailer-distributors. than $40 billion. cheaper and much more effective –

54 PUBLIC ADMINISTRATION OPINION – CASE STUDY

the public agency managed by a private to reducing the scouring of natural The potential for step-change innovations firm operating under a ‘charter’-style waterways. Other innovations include that make current approaches obsolete incentive contract – and the once- pressure sewers using technology to is very large in the water sector. The indispensable industry turned upside control flows and utilise off-peak capacity. degree of ‘innovation readiness’ in down by a new greener, smarter, cheaper Improving the utilisation of existing the sector also seems high. There is an way of delivering services. infrastructure can allow thousands increasing willingness to look outside the The scans showed transformative industrial more homes to be connected without sector for ideas and exemplars. A recent changes align technological, regulatory, expensive infrastructure augmentations. water symposium, for example, heard government and consumer forces. Each of remarkable insights from Coca Cola and Australia Post that can be applied in the these alone is not sufficient to drive major The potential for step- change. In the Victorian water sector, all water sector – like new ways to identify the ingredients of accelerating change are change innovations that efficiencies, engage with customers, tailor present, including a ‘burning platform’ that make current approaches services and drive value. makes change more urgent. obsolete is very large in With regard to water services customers, With regard to technology and the water sector. there are greater expectations about the innovation, there are many examples reporting of environmental and social where people are using information performance; a deeper consciousness technology to make better use of public Step-change innovations about conservation; and some cases of ‘bill and private water assets. South East Water, Other vibrant areas of innovation in shock’. Social media are providing new for example, has developed an app that the sector include decentralised water avenues for customer engagement and allows household rainwater tanks to treatment; the development of new choice and new ways to express consumer be monitored and controlled remotely. water markets; remote asset condition expectations and pressure. Victorians have South East Water is also experimenting monitoring; advances in water sensitive shown we value our waterways and our with linking rainwater tanks to form a urban design; and using ice and robots green open space. People want to be coordinated but decentralised storage – to clean pipes. A wide range of other actively involved in water management. to better manage stormwater flows – innovations is possible. Continued.

PUBLIC ADMINISTRATION 55 OPINION – CASE STUDY

The Victorian Government and Households and businesses – through This is about investing in professional Melbourne Water are experimenting with improved services at lower cost; development and building an engaged, different ways to plan the whole water the environment – through better high-performance culture that values system, such as through multi-agency management of water and waterways; and embeds innovation. Culture is both planning within regions of Melbourne. and the state – as owner of the water the main barrier to change and the most These experiments bring together global corporations – will be the clear effective pathway toward change. ‘megatrends’, like holistic and outcomes- beneficiaries of such productivity- The fifth and final aspect is measuring, based planning of infrastructure and land- enhancing changes. monitoring, evaluating and feeding back, use and ‘localism’ putting the community Five ‘bread and butter’ so the organisation continues to do the at the heart of planning. strategies right things, efficiently. Policy changes are occurring at the same Building on the lessons from the Intelligent Clarity time new commercial and regulatory Water Network, water sector organisations models are emerging. For example, Clarity about the sector’s core capabilities can embrace and benefit from the late in 2014, a new ‘Water Industry also requires clarity about the products changes by applying five ‘bread and butter’ Regulatory Order’ was released, providing and services it delivers. A key question strategies of successful business change. the Essential Services Commission for every manager in the sector is ‘what with greater flexibility and ability to are the sources of value for water services streamline regulation of water prices. The customers and the overall community?’ government has announced changes to If the sector can Arguably, those can be better understood, water corporation boards, and a stronger harness the impetus for as can the breadth of markets in which emphasis on the relationship between change then the water the sector operates. These include markets water services and the environment. corporations and their for talented staff, corporate control, Further innovation on the policy and customers, owners and potable water services, sewerage services, regulatory front is likely. drainage services, bulk entitlements, employees will all benefit. Ingredients of change alternative water rights, resource recovery, capital works, environmental services and All the ingredients of change are present. the right to service new developments. And the ‘burning platform’ that is The first is a well resourced and mobilising these ingredients is the need to concerted change management effort, The sector needs to make change a priority improve efficiency and productivity. The toward a clear vision, with buy-in at all for business and strategic planning and Essential Services Commission has found levels. Change needs to be treated as a to align its strategies and capabilities low productivity growth in the sector, project, with change management and deeply and explicitly with the government’s and even declining productivity in some innovation embedded in everyone’s roles. policies for urban and rural water. The sector instances. In its most recent budget, the can also learn from other sectors about The second is a willingness and capacity, Victorian Government has committed to how to make the most of transformative at both board and management levels, to improving efficiency in the sector. change and how to avoid being blindsided question the cost-effectiveness of current ways by change. As a senior executive in the sector There are likely to be multiple causes of of operating across the whole value chain. said recently: ‘If you are not running an low productivity growth, including missing efficient show, you may not be running that markets, barriers to coordination and a The third involves enlisting the lack of clear price signals for some types community and business partners to the show for very long’. If the sector can harness of investment. In light of those causes, the vision and change process. the impetus for change, and use it to achieve government has sponsored reforms that The fourth aspect is understanding what a more productive and engaged future, then focus on better allocating water and directing the organisation is good at, and what it the water corporations and their customers, investment, making lazy assets work harder needs to be good at, then building that owners and employees will all benefit. and costs and benefits more transparent, plus core capability by finding and motivating Dr Stuart Kells is Chief Economist at searching for operational efficiencies. the right people to deliver the vision. PPB Advisory.

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National Tops in government communications

WINNERS From New South Wales

Government communications and GCA president Deb Ganderton said the Best Communications Campaign marketing teams from across Australia awards were the only ones to exclusively on a Shoe-string City of Boroondara – have been honored for outstanding work recognise communications in government. ‘Boroondara Gotta Go’ in communications fields. All the winners Best Advocacy/ Public Affairs Wyndham Government Communications Australia City Council – ‘Get Wyndham Moving’ National Award Winner Mildura City (GCA) made the awards at its 6th annual Council ‘Triple J One Night Stand’ Best Social Marketing Campaign GCA conference in Sydney. Department of Education and Training Best Communications/Engagement More than 100 delegates from across Victoria - Education Campaign City Council – Darwin City 40th Australia and around the world – in ‘Preparing today’s students for tomorrow’ digital and social marketing, social ‘Anniversary of Cyclone Tracy’ Best Inclusive Communications entrepreneurship, strategic communications Best Communications/ Engagement City of Canada Bay – Rhodes – a new and civic engagement – attended GCA’s Shire or Rural Council – Isaac Regional community and a new approach to ‘thought leadership conference’. Council – ‘How we outfoxed the bats’ communications and engagement The event brought together Best Marketing/ Public Relations Best Tourism and Events communications and marketing Campaign City Council – Randwick Communication Mildura City Council professionals working in government and Coogee Beach Library - Triple J public sector agencies. Best Marketing/ Public Relations Best Internal Communications/ Top honors at this year’s award function Campaign Shire/ Rural Council – Engagement Yarra City went to Mildura Regional Council for Clarence Valley Council – Clarence their ‘Triple J One Night Stand’ event. Best Digital Media City of Greater Libraries Branding Dandenong.

WINNERS From Victoria

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Queen’s Birthday honours public service – Halton, Pratt Made AO Commonwealth Government organisations, many in the health field, Finn has been departmental secretaries Jane Halton including the World Health Organisation; Secretary of the (Finance) and Finn Pratt (Social 60th World Health Assembly, 2007; Department of Services) were both awarded AOs – Intergovernmental Meeting on Pandemic Social Services, ‘Officer in the General Division of Preparedness; Organisation for Economic (formerly the Order of Australia’ – in the 2015 Cooperation and Development (OECD); Families, Housing, Queen’s Birthday Honours List. Both Institute for Health Metrics and Evaluation, Community Services also had previously been awarded the University of Washington, USA; National and Indigenous Affairs) PSM – Public Service Medal. E Health Transition Authority; Australian since 2011 and of the Commission on Safety and Quality in Department of Human Adjunct Professor Sarah (Jane) Halton Health Care; Health Insurance Commission; Services from 2009-2011. was made AO ‘for distinguished Australian Institute of Health and Welfare; service to public administration, He was involved in the establishment National Aboriginal and Torres Strait Islander particularly to the health and aged of the Australian Government’s Health Council; Australian College of Health care sectors, through the development National Disability Insurance Service Executives; Melbourne Institute of and implementation of public policy, Scheme and is currently Chair of the Applied Economic and Social Research; and to professional national and Australia and New Zealand School of Centre for Applied Philosophy and Public international organisations’. Government (ANZSOG), established Ethics; and the Australian Sports Commission. in 2002 as an initiative of governments, Jane has been Secretary of the Finn Pratt was made AO ‘for distinguished universities and business schools to Department of Finance since June 2014 service to public administration, to social provide tailored learning opportunities and of other departments since 2002. policy development and government for future public sector leaders. She has been involved as a board service delivery reform, and to care and Public Service Medal recipients page 72. member, chair, delegate and president of support for people with a disability, their a wide range of prestigious international families and carers’.

Australian Capital Territory Monthly seminar – shared services

ENGAGING From left, Will Story, Delaine Wilson, Jill Divorty and Sheila Pringle A morning seminar – ‘Shared Services They took up the theme: ‘Successful and accepting development of a successful and Outsourcing: Contestability in shared services won’t happen overnight; model is a ‘long game’ that involves Government’ – was held in April at the but they can happen’ and discussed shifting from a service provider identity Theatre in Civic. operational efficiencies and establishing to that of a business partner. As well, standard practices to reduce costs and Chaired by the Acting Assistant Secretary, there is often a recurring need to ‘resell’ improve service delivery models. Strategy and Delivery Division, AGD, the initiative to new business leaders as Will Story, the seminar featured Delaine All three speakers were frank in political landscapes change. describing coal-face perspectives of what Wilson: CEO, Australian Department of Both the attending and online audiences Education/Department of Employment: is involved in establishing and successfully were engaged and submitted a number of Shared Services Centre; the ACT directing shared services centres to probing questions to the panel. Government’s Executive Director, Shared achieve the intended purpose. Services, Jill Divorty and KPMG Director, The panel agreed there were challenges, For the seminar webcast visit Sheila Pringle. the most prevalent being constant change livestream.ssc.gov.au/ipaa/april2015

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New chief takes up the reins Drew Baker has taken the reigns at IPAA ACT division from Tamara Cutcliffe – who has moved to the federal department of finance.Today asked Drew (DB) about himself and his new appointment. of consultative forums with IPAA ACT to what we’re aiming to achieve. We members in November last year – as have great support across the sector a Councillor – and this demonstrated and there is an appetite for us to do to me the opportunity for IPAA ACT more to promote excellence in public to increase our range of services to the administration. The public sector has public sector in Canberra. faced a number of challenges over recent How have you found it so far? years and IPAA’s initiatives represent a positive contribution toward building the DB It’s great – I am now eight weeks into capability of the sector and celebrating the role and have made the right decision. our achievements. It has been a busy start, with a new strategic What are its main challenges – plan developed for the period 2015-17, nationally and in ACT? which we have just circulated to members. We’ve also launched the inaugural DB I believe one of our most significant IPAA ACT conference later this year in challenges is how we choose to operate September, support for which has been very nationally. I have had the chance to speak What was your career experience positive. I am fortunate I have been able to with or meet with most of the CEOs before this appointment? hit the ground running … so to speak … and EDs from each division, who have as my history with IPAA means I have a all been very welcoming. It has surprised DB I have worked in the field of public good understanding of the business and me how little we collaborate across the administration for 20 years, in roles know the council members well. divisions, as I see some huge opportunities spanning the public, private and not-for- to leverage each other’s programs and What goals and aims do you have profit sector. This included 13 years in the initiatives. At a time when we are seeing for IPAA ACT? Australian Public Service ranging from continued consolidation in the private operational work at Customs through DB IPAA ACT has a great foundation – sector, thought needs to be given to how to SES roles in the Industry and Human my goal is to build on that to promote our state-based divisions interact. During Services portfolios. I left the APS in excellence and professionalism in public my tenure with AIM, I was involved in a 2007 and consulted for a number of administration. This will include a series of mergers between different state years, working for the Centre for Public greater focus on engagement with our entities into a new national body. While Management (CPM) as a facilitator and membership base, along with a fresh look I don’t propose that model would work general consultant. More recently, I spent at our program of events and awards. with IPAA, there are some interesting two years working for the Australian There is a great opportunity through learnings that could be of interest. Institute of Management (AIM), heading the professional capability standards What do you do for fun? up its Canberra office and working to really contribute to the increased closely with the public sector. professionalism of the sector, both in DB I’m married and have two beautiful girls aged 8 and 6, who keep me busy Why were you attracted to the ACT and in partnership with other outside of work. I am also a keen runner, the position? divisions. There’s also a role for IPAA ACT to provide a platform for thought having completed a number of marathons DB I have sat on the IPAA ACT leadership and debate, including greater including Tokyo and, most recently, the Council since 2008 and have been quite collaboration with the private sector and Six Foot Track in the Blue Mountains – a active, so came to the role with a good academic institutions. 45 kilometre-trail run from Katoomba to understanding of IPAA’s strengths and Jenolan Caves. I am currently having a bit How do you think IPAA (generally) challenges. The attraction for me is the of a break after the Canberra marathon a is placed to serve its stakeholders? opportunity to broaden the reach of few weeks ago, before I begin training for IPAA in the ACT and to build on the DB I believe we are very well placed. The the New York Marathon in November strong platform that Tamara Cutcliffe IPAA ACT Council is of a high calibre this year! It’s a great sport, very social and put in place. I helped facilitate a number and there is a high level of commitment gives you a good perspective on life.

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Australian Capital Territory Young Professionals – Networking for the Future ‘Hot tips for building professional profiles’ Clarke, was the keynote speaker for activities that provided participants with were on offer for young professionals at the evening and generously shared her the opportunity to practice these skills. Canberra offices of the Australian Institute knowledge and experience on how to Somehow, Andrew had found out some of Management, in May. be remembered by key people in your interesting and ‘secret squirrel facts’ Learning how to network is an important organisation. Bronwen nudged attendees to about some guests – probably by skilful skill for young professionals looking to thrust their hand in the air for inclusion in networking – and the other participants enhance professional status and grow a list new projects and reminded them to keep were challenged to find out who had been of professional contacts. an open mind and ears to learn from more keeping these facts close to their chests. senior people. Acting Deputy Director General and The YPN will host more events in 2015 Commissioner for Public Administration, Andrew Marshall from Hays Recruitment including the annual YPN Debate in August. ACT Government, Bronwen Overton- then set up a series of interactive See ‘Coming Attractions’ on page 70.

It’s a wrap! Financial management and accountability

Indigenous Business Australia had much Special guest, Secretary of the Department to celebrate at IPAA ACT’s 2013 Annual of Finance, Jane Halton, spoke at the Report Awards presentations at the Great ‘national’ awards, which, although Hall of the Australian National University conducted by and in the ACT, are open in May. to all Australian and ACT Government IBA pulled off the hat trick, with three bodies. Jane presented the Gold Awards successive annual wins – again taking out to FMA and CAC agencies, while the Gold award for their hard copy annual ACT Public Service chief, Kathy Leigh, report. It also won Silver for the online presented the awards for ACT Government version of its annual report. agencies, across all categories (see page 61). Other Gold winners were the Department The awards are open to all Australian and of Communications, which won the large/ ACT Government bodies. And for the medium FMA Agency category for online final time, FMA agencies, CAC bodies and reporting and the Clean Energy Finance ACT government agencies were judged in Corporation, which won the same award separate categories using similar reporting GUESTS From left, Ian McPhee, Auditor-General and Carmel for CAC Bodies. requirements, with hard copy and online McGregor, Vice President IPAA ACT versions judged separately. FMA agencies – those operating A premier event on the IPAA calendar, under the Financial Accountability and the ‘flagship’ awards evening was well Management Act, and CAC bodies attended by public servants keen to see – covered by the Commonwealth if they had won an award for the quality Authorities and Companies Act, of their annual reports and, generally, to were judged for the last time in those monitor performance across the sector. categories as all agencies have now IPAA ACT President and Secretary of transitioned to reporting under the the Department of Industry and Science, Public Governance, Performance and Glenys Beauchamp, said annual reports Accountability Act 2013. were important accountability documents. All entrants were judged in defined ‘These reports provide comprehensive, categories using similar reporting accurate and timely information on the work, management, performance and financial KEY NOTE SPEAKER Jane Halton now ‘AM’, requirements, with hard copy and online see page 58 versions judged separately. position of the reporting agency,’ she said.

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DEPARTMENT SHIELD From left, Kate Neser, Kathy Leigh, ASSESSOR CUP From left, Kathie Dent, Andrew Marshall and Penny Knox Craig Jones and Jenny Mardel

All the winners HARD COPY REPORTS ONLINE REPORTS Large/medium Large/medium FMA Agencies FMA Agencies Silver Fair Work Commission Gold Department of Bronze Australian Customs and Communications Border Protection Service Bronze Comsuper Bronze Department of Agriculture Bronze Department of Bronze Department of Finance Human Services Highly Commended Small FMA Agencies CAC GOLD HARD COPY AWARD From left, Department of Health Hayley Cullen and Leo Bator Bronze Australian Transport Safety Bureau ACT’s Education and Training Directorate Small FMA Agencies won its first Department Shield, as Silver Australian Organ and Tissue Highly Commended the agency supplying the most awards’ Donation and Transplantation Authority National Blood Authority assessors. The Australian Research Council Silver Australian Research Council won the Assessor Cup – awarded to the CAC Bodies agency providing the most assessors as a Bronze National Health Gold Clean Energy Corporation Performance Authority proportion of its total staff. Silver Indigenous Business Australia CAC Bodies Bronze Australian Maritime Gold Indigenous Business Authority Safety Authority Silver Australian Maritime Safety Authority ACT Government Bronze Civil Aviation Safety Authority Silver Education and Bronze Food Standards Australia Training Directorate and New Zealand Silver Health Directorate ACT Government Silver ACT Policing Bronze Education and Training Directorate Bronze Health Directorate LARGE/MEDIUM FMA GOLD ONLINE AWARD From left, Marnie Hodsdon and Sarah Christie

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New South Wales How to manage a Design robust policy to achieve change successful career

YOUNG GUESTS From left, Aaron Alcantara of NSW Trains and Iona Krefel of NSW Office of Liquor, Gaming & Racing, NSW Trade & Investment

PRESENTER Professor Vivien Lowndes Grand Ballroom of Sydney’s The Westin In April, at the University of New South for ‘good enough’ design: ‘robustness’ and was the venue in May for NSW’s 13th Wales’ Sydney campus, visiting UK ‘revisability’. CEO and Young Professionals Breakfast. Professor Lowndes showcased examples of Following Professor Lowndes presentation, It was again a wonderful opportunity public policy littered with failed attempts Louise Chappell, Professor of Politics, for senior executives to support the at institutional reform. She argued such School of School Sciences, UNSW, development of young people in their failure is not random but a result of facilitated a panel discussion between organisations, providing the perfect forum institutional design limited by contested Professor Lowndes and senior policy to engage, recognise and foster young values, power relationships and the officers from the NSW public sector, talent and share ideas about a better existing institutional landscape. including Graham Pointer, Principal public sector. Professor Lowndes – a visiting Professor Policy Officer, Department of Premier Kate Boorer, Employee Engagement of Public Policy from the University of and Cabinet; Maree Walk, Deputy & Performance Specialist from Nottingham, UK – advocated a different Secretary, Programs and Service Design, Employerbility facilitated the event called institutional design mindset – that Department of Family and Community ‘How to manage your career for success’. sees design as a process rather than an Services; and George Sotiropoulos, A panel – including Michael Coutts- outcome and based upon two principles Executive Director, Treasury. Trotter, Secretary, NSW Department of Family and Community Services; Andrew Cappie-Wood, Secretary, NSW Department of Justice; and Tim Orton, Managing Director, Nous Group – discussed their experiences and offered insights and practical advice. The breakfast answered some of the questions young professionals frequently ask about public sector career progression. Each table was invited to participate in a crowd-sourcing exercise where they identified five steps young professionals can take in managing their career for success. Captured and shared and available on

PANELISTS From left, George Sotiropoulos, Maree Walk, Professor Vivien Lowndes, Twitter, courtesy of the Nous Group at: Professor Louise Chappell and Graham Pointer www.nsw.ipaa.org.au/ignite/top-10-career-tips

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On the couch IPAA NSW’s On the Couch series uncovers the person behind the public sector role by examining their interests, influences, leadership styles and aspirations. In March at Ernst & Young’s Sydney HQ, interviewer Monica Attard – a former ABC journalist and five-time Walkley Award winner – explored what Secretary of the NSW Department of Premier and Cabinet, Blair Comley, sees as the priorities in his current role and GUESTS From left, Adrian Renouf, Ernst & Young, Monica Attard, former ABC journalist his insights into the future of the public and five-time Walkley Award winner, Blair Comley, NSW Department of Premier and Cabinet and sector in New South Wales. Carolyn Burlew, IPAA NSW

Northern Territory NTPS Annual Report Awards Looking back, NT’s Public Service Annual Report looking forward Awards have been running for more than 20 years and recognise excellence in reporting, disclosure, accountability and corporate governance. The awards are WINNER Janette sponsored by accounting firm Deloitte Galton of the and supported by the NT Government, Department of CPA Australia, Charles Darwin University Correctional Services and the Auditor General. Overall Presentation and Readability; The 2013-2014 awards were presented Department of Lands, Planning and in Darwin on April 22 by Chair of the Environment for Best Reporting the Public Accounts Committee, of Corporate Governance; Department Lia Finocchiaro, in the categories of of Correctional Services for Best Presentation; Corporate Governance; Annual Report and Best Reporting of Performance Reporting; HR Performance; Darwin Port Corporation Accountability; Financial Reporting and for Best Human Resource Reporting and the Overall Best Report. Best Sustainability Reporting; and, for The deserving winners were: NT Police, Best Financial Reporting, the Department Fire and Emergency Services for Best of Treasury and Finance. GUESTS From left, Craig Allen and Steve Sedgwick In March, former Australian Public Service Commissioner Steve Sedgwick reflected, in Darwin, on his time as a chief executive and the challenges facing the public sector in the 21st Century. Steve was APS Commissioner from 2009 and 2014, and before that was Secretary MAKING HIS POINT From left, David Alexander. Lia Finocchiaro and Graham Symons of various federal departments.

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Northern Territory Governance in government – Adjusting to changing expectations There have been John Kost, Gartner group vice president, recent changes to leads a group of analysts providing the NT Government research specific to the role of the CIO, ICT Governance including Gartner’s Executive Programs’ Framework, and at members, and the IT aspects of the roles this May 7 event of CFO, CEO and boards of directors. in Darwin, Gartner With his experience as a government CIO, Research provided an John also continues to provide a worldwide opportunity to find leadership role in helping governments out what makes good create, or re-create, the role of CIO and ICT Governance. THOUGHT LEADER John Kost leads the group analysis improve the effectiveness of the role.

South Australia Jobs 4 Youth – Mentor Refresher Training In February 2014, as part of the ‘Modern The ‘Jobs4YouthSA’ program appointed perform the important roles of coaching, Public Service’ policy, SA Premier Jay 188 trainees and at the end of March counselling, teaching and providing a Weatherill announced the recruitment of 2015, 90 per cent had been retained. resource for trainees. 800 trainees aged between 17 and 30 over The 2014 program concludes in While the program was still going the next four years. September 2015. strong in 2015, due to changes and The Jobs4Youth initiative will give In conjunction with the Office for the improvements from the 2014 program, young people a start in public sector Public Sector, IPAA SA was proud to be IPAA developed and hosted a unique jobs and renew the workforce by bringing involved in the 2014 ‘Trainee Orientation refresher program to assist mentors 200 more young people into the public to Government’ program, an introduction in working with trainees – a series of sector each year, helping to address the to government process. A mentoring workshops in March called the ‘Jobs4Youth ageing workforce. program was also implemented to Mentor Refresher Program’.

Victoria New Chief Executive Rachel Cooper, leadership development. Rachel was increasingly advocating for the fabulous work left, has been previously General Manager, City Services that public servants carry out every day’. appointed to the with the City of Holdfast Bay, where When Today asked Rachel what she does for role of CEO, she led a diverse portfolio with a project fun, she replied ‘Eat far too much chocolate!’ IPAA Victoria. A delivery and customer service focus. Prior transformational to that, Rachel was CEO of IPAA SA, ‘There is always a wide variety of music leader and where she strengthened engagement with playing in our house and I am spoilt for strategic thinker, all sectors of government and collaborated choice as my husband is an acoustic engineer. with the then Public Sector Performance Rachel has spent most of her career ‘I started my event career touring with large Commission to implement the ‘High working across all levels of government and scale concerts … U2, Sting, Phil Collins to has a focus on stakeholder engagement. Performance Framework’ for the South name a few … and I’m an avid music fan. She told Today: ‘I love the dual focus on Australian Executive Service. I love cooking and reading and often have strategic thinking and service delivery’. Rachel began with IPAA Victoria on more than one book on the go at a time Rachel has a strong track record as a June 18, in time for Public Sector Week. … currently Boris Johnson’s The Churchill CEO with specialised experience across She sees IPAA as having an opportunity to Factor. But most of my spare time goes to marketing, project management and strengthen the reputation of the sector ‘by hanging out with my two children.’

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Western Australia W.S. Lonnie Awards – Recognising Excellence and Accountability WorkCover WA was the big winner taking home four of IPAA’s annual report awards, including the coveted W.S. Lonnie Memorial Trophy. The judges commended WorkCover WA for the quality of its report, saying ‘WorkCover WA has produced a very high standard report that is very readable and provides clarity to external stakeholders.’ It was ‘exceptionally well- structured, including very helpful cross referencing throughout … an enjoyable user experience’. Fremantle Port Authority and the Office of the Auditor General received high accolades for their annual reports, each winning three awards. BIG TURNOUT The big crowd at the WS Lonnie Awards presentation in Perth Department of Transport’s Graeme Doyle received the Chief Financial Officer of IPAA WA President and Western Australia’s ‘It is great to see so many departments’ the Year Award, sponsored by Chartered Information Commissioner, Sven Bluemmel, annual reports making the shortlist and Accountants Australia and New Zealand. hosted the 30th annual presentation on being presented for judging. This year’s March 27 at Perth’s Hyatt Regency. large spread of quality reports made the The Lonnie Awards event, celebrating judging process tougher than ever.’ ‘three decades of recognising excellence ‘The Lonnie Awards are a fantastic way and accountability in annual reporting’, for public sector agencies to be recognised was opened by Parliamentary Secretary for their commitment to transparency, to the Premier and Minister for State authenticity and integrity when Development; Science, Donna Faragher. compiling their annual reports,’ Sven said. WINNERS Below, Office of the Auditor General The Awards were established in honour of William Scott Lonnie, recognised for his long and distinguished career in the state public service, culminating in his role as Under Secretary, Premier’s Department during the premiership of Sir Charles Court.

FIRST UP Donna Faragher, Parliamentary Secretary to the Premier; Minister for State Development; Science, opened the event WINNERS WorkCover WA

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Western Australia

W.S. Lonnie Awards – All the winners

IN MEMORIAM Gretta Peachment, daughter and Brianna Lonnie, OMBUDSMAN WESTERN AUSTRALIA AWARD FOR COMPLAINTS granddaughter of W.S. Lonnie OBE presenting Memorial Trophy HANDLING WINNER Fremantle Port Authority to WorkCover WA, Chris White

W.S. Lonnie Memorial Trophy Agencies with > 1,000 FTEs State Records Commission Award WorkCover WA for Excellence in Compliance Gold Main Roads WA Margaret McAleer Special Reporting Department of Fisheries Silver Department of Fire and Commendation Office of the Ombudsman Western Australia Emergency Services Auditor General Award for Complaints Handling Bronze Department of Finance The Margaret Nadebaum Trophy Fremantle Port Authority Fremantle Port Authority Government Trading CPA Australia Award for Performance Reporting WorkCover WA The Allan Skinner Trophy Enterprises Office of the Auditor General Gold Fremantle Port Authority Public Sector Commission Award for Good Governance Economic Silver Water Corporation Agencies with < 100 FTEs Regulation Authority Bronze Western Australian Gold Economic Regulation Authority Special Commendations Department Treasury Corporation Silver Small Business of Treasury and the Western Australian Development Corporation Office of the Auditor General Award Treasury Corporation for Transparency and Accountability Bronze The State Heritage Office Institute of Chartered Accountants in WorkCover WA Australia Award for Chief Financial Bronze Western Australian Joint award led by the Department of Officer of 2013 Graeme Doyle – Electoral Commission Commerce for Occupational Safety, Department of Transport Agencies with 101 – 1,000 FTEs Health and Injury Management Other finalists Damon DeNooyer, Disability Services Commission Gold Office of the Auditor General Insurance Commission of Western Australia; Special commendations Metropolitan John Hull, WorkCover WA; Lee Watson, Silver WorkCover WA Cemeteries Board, Main Roads WA and GESB; and Sandy Kerr, Department of Bronze Department of Water the Water Corporation Training and Workforce Development.

66 PUBLIC ADMINISTRATION REVIEW – AROUND THE NATION

Red Tape: Problem or Solution

INSIGHTS Deidre Willmott Q&A From left, Sven Bluemmel and Peter Harris March 19 saw IPAA WA president Sven Presentations then continued Deidre Willmott, CEO of WA’s Chamber Bluemmel open and host proceedings at with Department of Environment of Commerce and Industry, shared her Pan Pacific Perth for this event – a popular Regulation Director General Jason insights from many years of experience topic among public sector professionals. Banks delivering ‘50 shades of tape’, in policy and advocacy before a final Australia’s Productivity Commission in which he introduced delegates to Q&A session gave all participants the Chair Peter Harris kicked off the session, different types of red tape, then, opportunity to ask questions, leading to delivering an entertaining and engaging through case studies, worked through an engaging discussion on issues of red presentation, covering a broad range of to a solution for each. tape reduction within the public sector. issues on red tape reduction. ‘Transparency is your friend’ was one of Peter’s key take home messages. Economic Regulation Authority CEO, Greg Watkinson, then explored Western Australia’s regulatory burden and how to safeguard against red tape, inevitably reducing this commercial burden. A short break provided participants the PANEL From left, Greg Watkinson, CEO, Economic Regulation Authority; opportunity to network over morning Jason Banks, Director-General, Department of Environment Regulation; tea, and informally meet the presenters. and Deidre Willmott, CEO, Chamber of Commerce and Industry of WA

PUBLIC ADMINISTRATION 67 REVIEW – AROUND THE NATION

Western Australia Shaping views at the top The unique format of IPAA WA’s ‘Shaping the Views at the Top’ event always provides an engaging, energetic and highly interactive forum for Young Professionals in the public sector. This year’s event, at the WACA Ground in Perth on the evening of April 15, was no different, as more than 80 young professionals from 33 agencies across WA came together for the opportunity Shaping the Views is centred on a PANEL Q&A From left, Sven Bluemmel of to contribute their ideas to public sector mentored workshop session where Office of the Information Commissioner, policy development. Ms Michelle Reynolds of WorkCover WA, delegates respond to pressing policy issues Len Kosova of City of Vincent and Irina Guest speakers were Michelle Reynolds, presented by the guest speakers. This Cattalini of WA Council of Social Service Chief Executive Officer of WorkCover year, delegates were required to respond Some of the many ideas to emerge WA; Richard Sellers, Director General, to: ‘Building a 21st Century public included; the need for a ‘rebranding’ of Department of Mines and Petroleum; Len service; Maintaining trust: generating a the public sector the importance for Kosova, Chief Executive Officer, City of social license to operate; Overcoming agencies to focus on transparency; and the Vincent and WA Council of Social Service inertia: reforming public institutions; and need for the public sector to engage more Chief Executive Officer, Irina Cattalini. Housing affordability’. with the community.

PRESENTER Len Kosova, City of Vincent BRAINSTORM Mentored Workshop Session

MORNING TEA Richard Sellers, Director General, Department ENGAGING Mentors led absorbing workshops of Mines and Petroleum, chats with delegates

68 PUBLIC ADMINISTRATION REVIEW – AROUND THE NATION

Budget Briefing

CONVERSATION From left, Dr Simon Avenell of PwC and Dr Mike Nahan, WA Treasurer and Minister for Energy; Citizenship and Multicultural Interests This year’s Budget Briefing proved more PwC Partner & WA Government information – a broad assessment of the popular than ever, with IPAA WA hosting Leader, Dr Simon Avenell, supported current state of public finances, the most WA Treasurer, the Honourable Dr Mike keynote presenter, Dr Mike Nahan – important factors in today’s economic Nahan. Presented over breakfast at the WA’s Treasurer and Minister for Energy; environment shaping the future and the Perth Convention and Exhibition Centre Citizenship and Multicultural Interests. underlying assumptions behind this year’s on May 20, the 2015 event attracted more Dr Nahan went beyond individual agency state budget. He provided an analysis of than 250 delegates from both private and funding allocations, by providing delegates the current state of the Western Australian public sectors eager to hear a first-hand with the all-important contextual economy and gave insights into how analysis of the 2015/16 State Budget. it differs greatly from other states and how this then adds to the state’s unique economic challenges. The Treasurer was well received – praised for his engaging and informative analysis and presentation – with his frankness being a highlight for many participants.

GUESTS From left, Dr Simon Avenell of PwC, Dr Mike Nahan, WA Treasurer and Minister for Energy, Citizenship and Multicultural Interests, Sven Bluemmel of IPAA WA and Office of the Information Commissioner and Gavin Lewis, Chief Executive Officer, IPAA WA

PUBLIC ADMINISTRATION 69 COMING ATTRACTIONS

Australian Capital Territory www.act.ipaa.org.au

DREAM, DARE, DO! YPN ANNUAL DEBATE ANNUAL GENERAL CELEBRATING MEETING INNOVATION MONTH 27 06-08 30 30 AUG PM PM 08 TBA 14 7 -9 SEP TIME JUL AM AM IT’S TIME TO END STANDARD HOURS IN THE PUBLIC SERVICE All welcome to attend and welcome In collaboration with the Department the new IPAA ACT Council. Light Is it time for public servants to discard old of Industry and Science, IPAA ACT will refreshments will be provided. notions about the timeframe of an average host this breakfast seminar to celebrate More information at www.act.ipaa.org.au working day? Perhaps? What is certain innovation in the public sector. With will be the audience’s enjoyment of both TBA transformational change sweeping the teams’ wit and humour as they battle to sector, there is the need to do many sway the adjudicator on the strength of IPAA ACT 2015 things differently to achieve high quality CONFERENCE their argument. outcomes. Fortunately, within agencies there are many creative brains trusts This event is always well subscribed by developing and experimenting with young (and older) professionals. It is a 24 TBA innovative approaches to improve targeted prime opportunity for young professionals SEP TIME programs and better service delivery. to be entertained and work on expanding PUBLIC SERVICE IN NATIONAL PORTRAIT GALLERY professional networks. INTERESTING TIMES: Light refreshments will be provided. DELIVERING BIG REFORMS? AUSTRALIAN AWARDS FOR EXCELLENCE IN PUBLIC See you there, even if you think you An optional pre-conference dinner SECTOR MANAGEMENT should be working! will be held on the previous evening, JAPAN THEATRE – QUESTACON Wednesday September 23. Then, from KING EDWARD TCE CANBERRA September 24 it’s on to ‘Is the public NOMINATIONS 03 service about to deliver big reforms?’ CLOSE AUG See page 25 or visit www.act.ipaa.org.au Winners of these most prestigious awards GANDEL HALL, NATIONAL GALLERY OF AUSTRALIA come from across Australia and from all levels of the public sector, so look into the awards and submit your entry. Presentation dinner is November 26th. NATIONAL PORTRAIT GALLERY

VENUES National Portrait Gallery, left, and Gandel Hall, above

70 PUBLIC ADMINISTRATION COMING ATTRACTIONS

New South Wales South Australia Victoria www.nsw.ipaa.org.au www.sa.ipaa.org.au www.vic.ipaa.org.au

DRIVE YOUR CAREER ICAC AWARENESS INFLUENCING FOR PUBLIC OFFICERS 12 09-05 11 930-02 AUG AM PM 21 10 -11 AUG AM PM JUL AM AM For emerging leaders in the NSW Successful managers Public Service, to accelerate their career Conducted by ICAC Commissioner Bruce use their influence development and suited to those performing Lander, who will address ICAC’s role and and negotiation well in their current role, are ready to take function, explain what, how and when skills in every on greater responsibility and are motivated you are to report, plus other rights and situation. From obligations imposed on South Australian to develop their leadership capabilities. obtaining resources public officers and public authorities. THE WESTIN and negotiating NO. 1 MARTIN PLACE, SYDNEY THE THEATRETTE major contracts, 55 CURRIE STREET, ADELAIDE to dealing with IPAA NATIONAL colleagues and engaging with stakeholders, CONFERENCE DIPLOMA OF PROJECT influence and negotiation techniques are MANAGEMENT the tools you need to get results. This 30 half-day program is presented by Christine 14 -15 8 30 Nixon, Former Chief Commissioner of OCT AM 08-20 09-4 SEP OCT AM PM Victoria Police, above. IPAA’s annual conference provides a forum This Diploma of Project Management STAMFORD PLAZA for debate, discussion and promotion 111 LITTLE COLLINS STREET, is for managers or leaders of projects MELBOURNE of the public sector. The 2015 program who want to develop their skills reimagines how the public sector might and knowledge in excellent project STAKEHOLDER look following the current Reform of management and gain a nationally ENGAGEMENT Federation and explores the skills required recognised qualification, endorsed of the public sector in this changed world. by the Australian Institute of Project 30 See Today’s coverage on pages 38-43 with Management. More at www.sa.ipaa.org.au 14 9 -02 further information at www.ipaa2015.org.au IPAA SA, LEVEL 6 OCT AM PM THE HILTON 12 PIRIE STREET, ADELAIDE 438 GEORGE STREET, SYDNEY 30 MANAGEMENT AND 11 9 -02 DEVELOPMENT SERIES – NOV AM PM A PATHWAY TO SAES This course – (SOUTH AUSTRALIAN EXECUTIVE SERVICE) for those who manage a range of complex and 25-22 09-12 30 often competing AUG OCT AM PM stakeholder needs and want to develop Explores eight core topics for middle to their skills in senior level public sector leaders seeking to enhance and develop management and building mutually beneficial partnerships leadership skills and for those who are – is presented by David Hawkins, aspiring the pathway to the SAES. Managing Director, Socom, above. All the details, including course dates at STAMFORD PLAZA www.sa.ipaa.org.au 111 LITTLE COLLINS STREET, MELBOURNE IPAA SA, LEVEL 6 PHOTO Ethan Rohloff, Destination NSW 12 PIRIE STREET, ADELAIDE

PUBLIC ADMINISTRATION 71 COMING ATTRACTIONS

Western Australia www.wa.ipaa.org.au THE INNOVATION YPAC INSIGHTS WITH CITIZEN INSIGHTS IMPERATIVE LORISSA KELLY 30 30 45 06 01-04 21 7 -09 27 7 -8 AUG PM PM JUL AM AM AUG AM AM Better understanding, better services. Presenters from the public, private, and An invaluable Leading public sector agencies, service not-for-profit sectors will discuss the opportunity for our organisations and social researchers motivation behind their innovation young professional discuss the most effective contemporary programs. This first of a three part members to gain practices in citizen engagement and series in partnership with Landgate career advice from insights, and converting those into Innovation aims to increase the adoption an inspiring leader improved services. of innovation programs across the in an informal NOVOTEL PERTH public sector. morning session. LANGLEY PERTH CONVENTION AND THE GEORGE EXHIBITION CENTRE 216 ST GEORGES TCE, PERTH

PUBLIC SERVICE MEDAL (PSM) ‘For outstanding public service …

AUSTRALIAN PUBLIC SERVICE Ian Feneley, Kenthurst – to education in Mark Williams, Hahndorf – Mary Balzary, ACT – in leading the New South Wales. in the achievement of positive delivery of G20 meetings. Geoffrey Fogarty, St Ives – to roads and teaching and learning maritime services in New South Wales. outcomes for children Katrina Fanning, ACT – in Indigenous affairs. and young people, Matthew Hall, ACT – as Executive Director Mr Mark Gifford, Earlwood – to environmental particularly in the area of of the Defence Abuse Response Taskforce. protection in New South Wales. Aboriginal education. Thomas Howe QC, ACT – through Dr Peter Gould, Kearns – to education, VICTORIA particularly to mathematics, in New South Wales. Commonwealth litigation. Bruce Armstrong – to to water supply William Lawrence, ACT – in electronic Andrew Grant, Temora – educational improvement and distribution in the South West Tablelands of warfare protection systems. in Victoria through leadership, New South Wales. change management, policy Frances Lisson, ACT – in the establishment Peter Johnson, Blaxland – to education in New development and innovation. of free trade agreements with China, Japan South Wales. Susan Christophers, Donvale – to and Korea. Stephen Mudge, Milperra – in the area of education in Victoria through policy making Toni Moate, Tas – in Australian marine and financial management in New South Wales. and leadership, including overseeing atmospheric science. substantial growth in the international student QUEENSLAND Dr Kamal Puri, Vic – in meteorological program in Victorian Government schools. science, particularly Numerical Weather Dr Owen Arndt, Ipswich – Alan Hall, Northcote – to disadvantaged Prediction. to Queensland Transport and Main Roads. Victorians, particularly through service delivery Roxanne Ramsey, SA – in social services, Dennis Bird, Mansfield – and support. particularly for Indigenous communities. to Queensland State Development. Jemmes Handy, Mildura – to Indigenous communities in Victoria, particularly to Dr Heather Smith, ACT – as Australia’s Michael McDade, Brighton – youth, through the development of culturally ‘sherpa’ for the G20, 2014. to Queensland Education. appropriate policing and health services. Scott Suridge, NT – in the management Dr Edward Strivens, Cairns – Photini Kallifidas, Mount Waverley – to of Australia’s national parks. to Queensland Health. victims of serious crime through support roles, Judith Zielke, ACT – in leading the Joint Dr Gary Ward, Chapel Hill – to economic and through the provision of expert guidance Agency Coordination Centre to support the and fiscal management in Queensland. to Victoria police. Australian Government’s response to the Dr Jeannette Young, Holland Park – Robert Stephens, Beaumaris – to the disappearance of Malaysia Airlines flight MH370. to Queensland Health. teaching profession in Victoria. NEW SOUTH WALES SOUTH AUSTRALIA WESTERN AUSTRALIA Tracy Allen, Bathurst – to community health, Philip Fagan-Schmidt, Aldgate – in the area Ricky Dawson, Kensington – to the and to education, in New South Wales. of social housing policy and practice. environment in Western Australia, particularly Dr Kerry Chant – to population health in Jane Lemon, Edwardstown – to public through parks and wildlife. New South Wales. education, children and families in South Australia.

72 PUBLIC ADMINISTRATION IMPROVING ORGANISATIONAL PERFORMANCE

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