The enhanced Commonwealth performance framework 2016–17 corporate plans LESSONS LEARNED January 2017 This paper summarises progress on the development of corporate plans under the Public Governance, Performance and Accountability Act 2013. It includes examples of better practice to assist Commonwealth entities and companies to develop planning and performance reporting frameworks and performance information. Enquiries: [email protected]
Transcript
The enhanced Commonwealth performance framework
2016–17 corporate plans
LESSONS LEARNED
January 2017
This paper summarises progress on the development of corporate plans under the Public Governance, Performance and Accountability Act 2013. It includes examples of better practice to assist Commonwealth entities and companies to develop planning and performance reporting frameworks and performance information.
Overview In August 2015, Commonwealth entities and companies published their inaugural corporate plans under the Public Governance, Performance and Accountability Act 2013 (PGPA Act). Since that time, the Department of Finance (Finance) has worked with parliament (through the Joint Committee of Public Accounts and Audit) to put in place new arrangements for the publication of annual reports and Portfolio Budget Statements (PBS), both of which must include information that cross-references corporate plans. Performance information in corporate plans and PBSs is reconciled through annual performance statements contained in annual reports. These arrangements complete the suite of legal requirements – e.g. as described in the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) – for performance reporting under the enhanced Commonwealth performance framework.
The second round of corporate plans were published during July and August 2016, and annual reports, containing the first annual performance statements (reporting against 2015–16 corporate plans and PBSs), were tabled in parliament in October 2016.
Commonwealth entities have worked with Finance and with one another, including through communities of practice, to share lessons and explore approaches to developing their corporate plans. Many entities accepted an invitation from Finance to comment on the drafts of their 2016–17 corporate plans, and have made use of the various pieces of advice issued by Finance (e.g. revised corporate plan guidance and a note on potential approaches to structuring a good corporate plan). This engagement has had an impact on the quality of 2016–17 corporate plans, which represent noticeable progress on the inaugural 2015–16 corporate plans.
This paper makes a range of observations about the 2016–17 corporate plans. It is based on Finance’s qualitative analysis against criteria outlined in Appendix A of 121 corporate plans (see Appendix B). The observations in this paper build on a lessons learned paper based on 2015–16 corporate plans and the findings of a recent ANAO performance audit of corporate planning in the Australian public sector (ANAO report no. 6 of 2016–17).
Summary of observations Commonwealth entities and companies have made progress since the publication of their first corporate plans in 2015. They are moving beyond simply complying with the minimum requirements prescribed in the PGPA Rule and are publishing better quality plans that serve as their primary strategic planning documents.
The 2015–16 lessons learned paper identified specific elements in the first set of corporate plans that represented better practice. This year, there are examples of plans whose structure has been refined to provide greater clarity about how entities’ purposes are achieved through their activities and how progress is monitored and measured. There are also examples of plans that provide useful analysis and discussion of how entities address key issues, including in relation to their operating environment and capability, that influence how they pursue their purposes.
There is evidence that the lessons learned from the 2015–16 plans have been noted and addressed during the development of 2016–17 corporate plans. Improvements are evident in the following areas:
Understanding and meeting publication requirements – As at 31 August 2016, 97 per cent of entities required to publish corporate plans had done so. In 2015–16, 15 per cent of entities failed to meet the publication deadline, either because they misunderstood the rules or because their internal processes took longer than expected.
Developing clear and concise purpose statements – Many of the 2016–17 corporate plans include examples of clear and concise purpose statements. A clear statement of what an entity seeks to achieve forms a sound basis for a good corporate plan. Examples of better practice purpose statements across a broad sample of Commonwealth entities are provided in Section 1 of this paper (page 4).
Focusing on improving performance information – Entities have invested in improving the quality of the performance information in their corporate plans. A previous over-reliance on quantitative key performance indicators is shifting to monitoring and reporting frameworks that include qualitative information (e.g. case studies and comprehensive evaluations). Examples of good performance information across a diverse range of activities are provided in Section 2 of this paper (page 9).
Structure and presentation – A number of entities have adopted different structures and innovative ways of providing information in their 2016-17 corporate plans to make their plans more accessible and readily understood. In some cases, plans have a strong focus on facets of their operating context to meet the specific information needs of their stakeholders. Examples of these are provided in Section 3 of this paper (page 19).
Finance expects that corporate plans will continue to improve over the coming reporting periods. Finance will continue to support the work of entities through communities of practice, improved guidance and other assistance. With the publication of each round of PBSs, corporate plans and annual performance statements, entities will have opportunities to increase their understanding of how these elements combine to tell a full performance story.
Appendixes Appendix A – Assessment criteria
Appendix B – 2016–17 corporate plans included in qualitative analysis
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Section 1: Better practice – purpose statements
This section provides examples of what Finance considers to be better practice in articulating and presenting purposes in 2016–17 corporate plans. The sample spans corporate and non-corporate Commonwealth entities, small and material entities, and diverse portfolios.
DEPARTMENT OF AGRICULTURE AND WATER RESOURCES (AGRICULTURE)
Agriculture 2016–17 corporate plan
Agriculture’s 2016–17 corporate plan includes a purpose statement that is readily identifiable – it appears immediately after the table of contents and is the first text to appear in the main body of the plan.
This purpose statement consolidates previous multiple outcome statements into a single sentence about what the entity seeks to achieve and to what effect.
DEPARTMENT OF EMPLOYMENT (EMPLOYMENT)
Employment 2016–17 corporate plan
Employment’s purpose statement is clear and concise. The reader can identify: WHAT the entity aims to achieve (a productive and
competitive labour market and jobs growth)
HOW (through policies and programs) and
to what EFFECT (increased workforce participation and fair, productive and safe workplaces).
We help drive a stronger Australian economy by building a more profitable, resilient and sustainable agriculture sector, and by supporting the sustainable and productive management and use of rivers and water resources.
Our role is to foster a productive and competitive labour market through employment policies and programs that increase workforce participation, and facilitate jobs growth through policies that promote fair, productive and safe workplaces.
The FWBC’s two purposes are derived from its legislative functions, which are distilled in a way that is easily understood.
The FWBC links its purposes and the high-level (or core) activities in the beginning of the document, which sets the scene for the rest of the plan and provides an example of how clearly expressed purposes can be used as the basis for a good performance story.
AUSTRALIAN FILM, TELEVISION AND RADIO SCHOOL (AFTRS)
AFTRS 2016–17 corporate plan
AFTRS’ purpose is a succinct statement of the entity’s unique contribution – which is to deliver education, research and training to allow Australians to tell their stories.
It is a substantial improvement on the purpose description in the 2015–16 plan, which consisted of several paragraphs under a ‘Purposes’ heading without identifying the core purpose against which performance was to be assessed.
AFTRS’ corporate plan shows that vision and values statements can be presented without detracting from the purpose statement. The vision describes what motivates AFTRS to achieve its purpose and the values help describe the organisational culture in which the purpose is pursued.
PURPOSE
To find and empower Australian talent to shape and share their stories with the world by delivering future-focused, industry-relevant education, research and training.
VISION
To be the reference point for innovation in screen, sound and story-making, globally.
VALUES
We strive for mastery
We know that mastering this craft is a life-long endeavour. There is always more to learn.
We encourage daring
Nothing great ever came from playing it safe. We are bold. We take risks.
AIHW’s purpose statement makes it clear that the entity’s success lies in providing data that contributes to the better health and welfare of Australian citizens.
AUSTRALIAN SECURITY INTELLIGENCE ORGANISATION (ASIO)
ASIO 2016–17 corporate plan
ASIO’s purpose statement is direct, concise and consistent with what most readers would understand as its unique role.
ASIO’s corporate plan is built around its purpose. Subsequent discussion of such things as its operating environment, activities and capability are with reference to this purpose and the factors it needs to take into account to fulfil it well.
COMMONWEALTH DIRECTOR OF PUBLIC PROSECUTIONS (CDPP)
CDPP 2016–17 corporate plan
The CDPP purpose statement explains WHAT, HOW and to what EFFECT in a single sentence. It prosecutes crimes under Commonwealth law to ensure that the law is upheld and that confidence in the justice system is maintained.
To provide information and statistics to promote better health and welfare among Australians.
We have a single enduring purpose that delivers value for the public:
To protect the nation and its interests from threats to security through intelligence collection, assessment and advice for Government, government agencies,
To provide an independent prosecution service that contributes to the respect and maintenance of Commonwealth criminal law and public respect in the justice system through the prosecution of crimes.
DEPARTMENT OF IMMIGRATION AND BORDER PROTECTION (IMMIGRATION)
Immigration 2016–17 corporate plan
Page 8 Immigration’s 2016–17 corporate plan is built around three well-stated, distinct purposes.
The ‘Corporate plan – at a glance’ table, reproduced above, charts the connection between Immigration’s three purposes and the main elements of its performance story. This places the relevance of purposes at the forefront of the reader’s mind, helping them understand when these purposes are achieved.
Section 2: Better practice – performance information
This section highlights better practice examples of the presentation of performance information identified from Finance’s analysis of 2016–17 corporate plans. Included are examples of improvements on performance information provided in 2015–16 corporate plans and of the better performance reporting aimed for as part of the enhanced Commonwealth performance framework. Some of the examples show a movement away from purely quantitative key performance indicators to a mix of quantitative and qualitative measures that, together, provide a more complete picture and insightful information about performance at the level of an entity’s purposes. There is also evidence of reporting information on different time scales, and at a level and of a nature that is appropriate to measuring long-term outcomes.
TOURISM AUSTRALIA
Tourism Australia 2016–17 corporate plan
Tourism Australia uses a relatively small set of performance criteria to convey the growth it seeks to facilitate in the Australian tourism market by pursuing its purpose. The key performance measure is growth in tourism expenditure. This is supported by other information that connects Tourism Australia’s activities with the growth of the tourism sector. This includes information on the extent to which Tourism Australia contributes to recognition of the Australian tourism brand (measured as earned advertising value), the return on marketing investment and the proportion of stakeholders who recognise the value added by Tourism Australia.
The ANAO uses a mix of quantitative and qualitative information to measure performance. For example, output measures are used to report on audit activities, such as the numbers of financial statement audits, performance audit reports, and new or revised better practice guides.
Outcome measures are used to measure the impact of the ANAO’s activities. These include the extent to which audit committees acknowledge the value added by the ANAO’s audit services, the extent to which audited entities implement recommendations made in ANAO reports and the extent to which the Australian Parliament – one of the ANAO’s key stakeholders – considers the ANAO contributes to better government administration.
The FWBC has broadened the output measures in its 2015–16 plan, and they are now complemented with outcome measures that assess the impact of the FWBC’s activities.
For example, measures of education activities and number of visits to building sites have been extended to encompass the level of client satisfaction with these activities and the impact the activities have had. A measure to assess the percentage of enterprise agreements that are compliant, which reflects the FWBC’s progress towards achieving its purpose, has also been added. This complements the efficiency measure of assessing enterprise agreements within set timeframes.
CSC has rationalised the number of performance measures that were included in its 2015–16 corporate plan.
The simplified performance information outlined in the 2016–17 plan is likely to make it easier for readers to draw a connection between CSC’s purpose – to grow the wealth of members of Australian government superannuation funds – and the impact generated when that purpose is fulfilled.
The performance information is highly relevant to CSC’s members, and appropriate for an entity that is responsible for growing the value of its members’ contributions. The main performance information consists of targets for returns above CPI and limiting the number of years in which funds managed by the CSC make a loss.
Other information – such as client satisfaction measures – is linked to CSC’s administrative functions, including paying benefits to eligible members.
Defence’s 2016–17 corporate plan is a good example of a complex entity focusing on high-level performance measures and activities. It does not describe in depth everything Defence does to deliver its purposes, but provides a high-level set of performance measures at the purpose level that is supported by high-level activities undertaken to achieve each purpose.
More detailed, operational-level performance information for Defence is contained in its classified internal business plan. A distinct set of performance information is provided for each of Defence’s three purposes. This means that the standard for judging the achievement of each purpose is unambiguous and easily identified. The measures describe what success looks like for each of Defence’s purposes.
The purpose-level performance measures are supported by performance information for activities that Defence undertakes to achieve its purposes. Defence states the intended results for each activity, which provides the reader with a link back to how each activity contributes to achieving the purpose and the overall impact being sought.
Each activity is described in terms of:
• an intended result (e.g. Government is able to deploy defence capability to support policy objectives)
• the criteria used to measure the quality of outcomes (e.g. preparedness levels meet government requirements)
• when assessment against these criteria will be conducted (e.g. on an ongoing basis).
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AUSTRALIAN SECURITY INTELLIGENCE ORGANISATION (ASIO)
ASIO 2016–17 corporate plan
ASIO’s plan provides an example of how performance information can be linked to activities with clarity. The presentation of the purpose, activities, intended results and performance measures in a single illustration is very effective.
ASIO’s purpose is delivered through five high-level activities. Performance information is presented for each activity (e.g. countering terrorism and the promotion of communal violence) in terms of the intended results, performance measures and targets. The intended results describe the contributions the activity makes to ASIO’s purpose (e.g. identifying terrorism-related activities to help protect Australia against security threats). Performance measures identify how these results are to be assessed and targets provide a standard against which to judge the quality of results.
ASIO’s performance information acknowledges that achieving results is necessary for national security partners to achieve their purposes. For example, targets associated with countering terrorism and the promotion of communal violence involve ASIO sharing data with partners in the national security community. ASIO has met these targets if national security partners are able to use the data to successfully counter threats.
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SCREEN AUSTRALIA
Screen Australia 2016–17 corporate plan
The performance information in Screen Australia’s plan provides an example of how proxy measures can be used to assess outcomes that are difficult to measure directly.
Screen Australia’s purpose is to ‘inspire, inform and connect audiences with compelling Australian stories’. One of the ways it does this is by supporting the promotion and marketing of Australian film and television projects so that more Australians view Australian product. Direct measures against this activity include the number of people attending cinemas to watch Australian films and television rating figures. They are also indirect – or proxy – measures because they enable readers to draw conclusions about the quality of Australian film and television programs.
AUSTRALIAN CURRICULUM, ASSESSMENT AND REPORTING AUTHORITY (ACARA)
ACARA 2016–17 corporate plan
ACARA’s plan provides examples of how performance information can demonstrate progress over the four reporting periods covered by the plan.
The table below relates to the activity ‘to conduct national assessment of education outcomes’ and shows how ACARA plans to pursue the goal of supporting schools to conduct annual NAPLAN testing. In the short term (i.e. during 2016–17) it intends to provide online proficiency standards and reports that are agreed and understood by key stakeholders (e.g. the Education Council). Over the medium term (the period 2018–17 to 2019–20) it expects to demonstrate improvement of its online delivery of NAPLAN testing – including through customer satisfaction surveys and the development of a dataset that will allow it to monitor satisfaction over the longer term.
DEPARTMENT OF THE ENVIRONMENT AND ENERGY (ENVIRONMENT)
Environment 2016–17 corporate plan
Environment’s 2016–17 corporate plan describes multiple purposes and connects them to the entity’s operational context and the activities through which they are fulfilled. This provides the platform for a performance story for each purpose that is easy to follow and understand.
Purposes
Environment’s 2016–17 corporate plan presents four distinct and succinctly worded purposes, each of which gives a clear indication of the high-level impacts the entity is seeking to achieve. Beneath each purpose statement is a description of the high-level activities which Environment undertakes to achieve its purposes. This provides a strong platform for the rest of the plan, particularly the presentation of performance information.
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Environment
The context in which Environment operates is diverse, challenging and global in nature. Information provided in the ‘Operational context’ section provides the reader with a clear understanding of this complexity. It also explains how Environment’s purposes fit into a broader
context – for example, it discusses the fundamental links between the economy and the environment. This section also includes a sophisticated discussion of Environment’s scale of influence, governance and enterprise issues, and risk.
Risk
The treatment of enterprise risk goes beyond the obligation under the PGPA Rule to summarise an entity’s formal risk oversight and management systems. The plan discusses risk in an operational context. The discussion covers various aspects of risk, including enterprise risks, risk appetite and tolerance for risk. Of note is the clear statement that Environment will only tolerate risk which permits it to achieve its stated purposes and activities efficiently and cost-effectively.
Capability
Environment opens the discussion about capability with a clear statement of its intent to grow its capability in specific areas over the period of the plan to ‘achieve our purposes and build our influence’. This statement is followed by the diagram below, which illustrates the links between required capabilities and the achievement of purposes. Capabilities are characterised in six high-level categories and presented in a way that points to a program of cultural change to ensure that Environment is well placed to deliver on its purposes over the medium to long term.
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The discussion of capability is complemented by case studies that demonstrate the development of capability in response to particular challenges. For example, the case study titled ‘Tackling the Digital Transformation Agenda – Department and Parks Australia
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collaborating to be ahead of the game’ describes the development of a new e-ticketing system for access to Kakadu National Park. It shows how Environment is working with partners to develop skills and IT platforms in response to a broader whole-of-government agenda of making better use of digital technologies to conduct government business.
Performance
In the section ‘Measuring our performance’, Environment discusses how it is using its activity performance planning, evaluation and reporting framework to improve performance reporting systems so that they can better demonstrate the impact of the entity’s work. It also expresses a commitment to developing ‘contextual indicators’ that will help build an understanding of the broader impacts of its interventions, particularly where objectives are long term and short-term success is difficult to measure. This work is being done with a view to better communicating the entity’s more sophisticated understanding of the impacts of its activities to government and the community.
Detailed performance information is presented for each purpose against specific activities. The intended result of each activity is described, followed by detail of the delivery strategies.
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Performance criteria and targets for the current year and forward years are then provided, followed by a discussion of how performance will be assessed.
The activities associated with Environment’s purposes are aimed at long-term management of complex policy issues. Long-term impacts can be difficult to demonstrate over the four-year period covered by the corporate plan. Environment manages this issue by including performance information for outputs that can reasonably be expected to contribute to longer-term outcomes (e.g. identifying and monitoring threatened species and ecological communities). This information is complemented with case studies that demonstrate impact in
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specific areas. These case studies help establish an understanding of what can be expected more broadly over the long term.
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AUSTRALIAN FEDERAL POLICE (AFP)
AFP 2016–17 corporate plan
The AFP’s 2016–17 corporate plan is an incremental yet substantive improvement on its 2015–16 plan. Important points of difference are a more distinct and clearer statement of the AFP’s purposes and changes to content, structure and presentation that improve readability.
The plan sets a ‘performance story’ for AFP activities that is comprehensive and easy to read and understand. The purpose statements give readers a clear understanding of what the AFP seeks to achieve. The environment and capability sections provide a succinct and comprehensive picture of the context in which the AFP operates. The discussion of performance makes it easy for readers to identify the activities through which the purposes are to be pursued, and how the AFP will know if and when the purposes have been achieved.
Environment
The AFP makes a clear and concise opening statement to the section describing its operating environment which provides the reader with an immediate understanding of the complexity of this environment and the capability required to succeed in this environment.
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This is followed by specific detail about its operating environment based on the key challenges that the AFP is likely to face over the period the plan. A description of plans to tailor its activities and capability development in response to these challenges is provided in a readily understood diagram outlining strategic initiatives and activities.
The performance information is a well-thought-out mix of indicators and methodologies, which combines qualitative and quantitative sources. An example of a quantitative measure is KPI 2, the percentage of cases before the courts that result in conviction. This measure demonstrates a link between the AFP’s operations and the extent to which it fulfils aspects of its purpose of protecting Commonwealth interests from criminal activity. It is supported by a qualitative measure, KPI 1, a measure of client/stakeholder satisfaction.
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Another qualitative measure is KPI 11, which uses periodic evaluations to assess the impact of the AFP’s international assistance activities. The plan includes a schedule for program-specific evaluations over the four reporting periods to 2019–20. The evaluations will assess international activity from a range of perspectives that include efficiency, effectiveness, sustainability and gender equality.
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The AFP notes that it intends to continue refining its organisational performance framework over the period covered by the plan.
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Capability
The narrative about capability is clearly linked to the capacity of the AFP to effectively deliver on its purposes over the period covered by the plan. The AFP has included information on efforts to build capability by co-locating specialist and operational capacity, conducting a comprehensive review of diversity within its workforce, investing in IT capability to capture and make the most of intelligence, and strengthening relationships with partners.
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DEPARTMENT OF SOCIAL SERVICES (DSS)
DSS 2016–17 corporate plan
The DSS 2016–17 corporate plan puts the entity’s purposes and what happens when they are achieved at the front of readers’ minds. This provides the platform for a performance story that is easy to follow and understand, by making clear the impact that DSS seeks to deliver through its activities.
Purposes
The DSS corporate plan is structured around four distinct purposes, each of which clearly indicates what is being done, for whom and to what effect. For example, the ‘Housing’ purpose makes clear that it is about providing support and services (the WHAT) to individuals experiencing homelessness (the WHO) to improve access to affordable housing (to what EFFECT).
DSS discusses enterprise risk in the context of its operational environment. Specific risks are related to organisational priorities that help focus and direct activity towards achieving DSS’s purposes.
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Performance
DSS’s performance framework is based on the program logic model. It describes purposes – both individually and taken together – as being aimed at generating impacts in response to identified needs.
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This approach makes the framework easy to understand and interpret. Each purpose is associated with a long-term outcome resulting from shorter-term, ‘intermediate’ outcomes.
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Detailed performance criteria are used to describe the outputs that show how outcomes are achieved. This structure provides readers with an understanding of cause and effect and allows them to judge whether performance information is credible and adequately measures the impact.
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AUSTRALIAN TRADE AND INVESTMENT COMMISSION (AUSTRADE)
Austrade 2016–17 corporate plan
Austrade’s 2016–17 corporate plan presents a clear picture of an entity that collaborates across government and business to achieve its purpose.
Purpose
Austrade’s purpose statement clearly articulates its role in working with Australian businesses and organisations to access overseas markets:
The purpose of Austrade is to contribute to Australia’s economic prosperity by helping Australian businesses, education institutions, tourism operators, and governments to: – develop international markets – win productive foreign direct investment – promote international education, and – strengthen Australia’s tourism industry
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Collaboration is a strong theme throughout the plan. It is an acknowledgment that Austrade depends on effective partnership with stakeholders to understand their needs and provide practical assistance that contributes to the growth of export markets.
Environment
The discussion of environment demonstrates a clear understanding of the global market in which Austrade seeks to help its stakeholders compete. Information under the subheading ‘Strategic partnerships and collaboration’ highlights the relationships it has in place to best assist these stakeholders. For example, it notes that its strategic partnership across government entities ‘helps increase Austrade’s reach into the business community and leverages external resources, knowledge and skills’.
The plan emphasises Austrade’s focus on ensuring its activity is joined up across the Australian Government and the importance of maintaining close working relationships with other entities with an interest in Australia’s overseas trade activity. The description of collaboration across the government sector extends to joining up with state and territory governments, for example, through committees such as the Senior Officials Trade and Investment Group and the Australian Standing Committee on Tourism. It also details engagement with industry associations and chambers of commerce and industry, ‘particularly those which operate in sectors where Australia has a competitive advantage’. This information helps the reader understand the nature of Austrade’s collaboration and provides confidence that it has the relationships necessary to achieve its purpose.
The performance information in the plan acknowledges the critical role of collaboration to achieving Austrade’s purpose. A discussion of activities under the general heading ‘Develop international markets’ notes that annual surveys of Australian businesses will be conducted to assess such things as the:
‘Proportion of Australian businesses which have engaged with Austrade, and say Austrade made a positive contribution to their international business activities’ ‘Proportion of Australian businesses which have engaged with Austrade, and say they achieved some form of commercial outcome as a result of working with Austrade’
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Information of this sort provides readers with a sense of the importance Austrade places on its engagement with its business partners and contributes to an understanding of the impact when this collaboration is successful.
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AUSTRALIAN MARITIME SAFETY AUTHORITY (AMSA)
AMSA 2016–17 corporate plan
AMSA’s 2016–17 corporate plan is an example of a well-structured document. Environment, capability, risk and performance are treated in relation to specific purposes and integrated into a performance story that provides a clear understanding of how each purpose is to be fulfilled. The plan is also used to meet other reporting requirements.
Structure
The AMSA 2016–17 corporate plan is structured around three ‘challenges’, which can be interpreted as the entity’s purposes:
Challenge 1 – Managing risks to [maritime] safety and the environment
Challenge 2 – Building the national system for domestic and commercial vessel safety
Challenge 3 – Delivering [maritime] incident intervention and response.
Each challenge is described in a separate section that provides information under the following headings:
• Operating environment – factors within and outside AMSA’s control and their implications for what AMSA must do to
• Strategic goals – what success broadly looks like when the challenge is addressed well
• Responses – the activities (referred to as ‘focus areas’) AMSA will pursue to address each challenge, the capability required and how it will measure its success (i.e. performance information).
Each of these sections tells a self-contained performance story that allows readers to understand the environment in which AMSA operates to achieve each purpose, the activities undertaken to achieve that purpose and the capability required to undertake those activities.
Other sections of the plan serve to augment the understanding of how challenges are addressed, including the broader organisational and external environment in which AMSA operates.
Environment
The discussion of the operating environment is framed in a way that allows readers to understand how this environment shapes the activities AMSA undertakes. For example, the discussion of the operating environment in which it addresses Challenge 1 emphasises the effect of cyclical downturns and uncertainty in global markets, which, in turn, affects the number and nature of maritime vessels carrying freight to and from Australia. Information under the heading ‘Implications – we must’ gives the reader a sense that AMSA is responding appropriately to the changes in the global economic environment that are affecting sea freight
in Australian waters. It is clear that AMSA is looking at more efficient ways to collect shipping revenue, to respond to variations in the amount of levy revenue collected and to reduce the burden on vessel operators.
Capability
Capability requirements and development are discussed in relation to each of the three challenges. The plan includes tables summarising the projects designed to develop and maintain capability that AMSA will implement to help address each challenge over the period covered by the plan. Below is the table for Challenge 1 - Managing risks to [maritime] safety and the environment.
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Performance
As a regulator, AMSA uses its corporate plan to also incorporate reporting requirements of the Commonwealth Regulator Performance Framework. It does this by explicitly linking performance measurement to the outcomes-based key performance indicators in the framework:
1. reducing regulatory burden 2. effective communications 3. risk based and proportionate approaches 4. efficient and co-ordinated monitoring 5. transparency 6. continuous improvement.
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The table of performance measures in each challenge section includes a column with cross-references to the applicable indicators. Below is the table for Challenge 1 - Managing risks to [maritime] safety and the environment.
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BUREAU OF METEOROLOGY (BoM)
BoM 2016–17 corporate plan
BoM’s plan is a good example of a corporate plan from an entity that relies on the development and maintenance of capability to achieve its purpose.
Purpose
Capability
BoM is an entity that requires specific technical capabilities to undertake the activities necessary for achieving its purpose. As such, its corporate plan has a strong focus on the work it does to attract, develop and maintain these capabilities.
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For each key area, BoM outlines its current capability, its capability ‘aim’ and what it calls the ‘capability development pathway’, which includes outputs and measures of success.
− The current capability establishes the baseline capability. − The capability ‘aim’ sets out the enhancements or changes that are planned over the
coming four years. − The capability development pathway sets out specified outputs to be achieved over the
life of the plan and the success measures that will be used to identify when capability is developed as planned.
As an example, the capability pathway for the key area ‘ICT, data and information’ is provided below.
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Environment
The discussion of environmental factors, under the heading ‘Environmental scan’, gives the reader an understanding of the drivers of BoM’s capability requirements. For example, BoM states that users of its services are:
expecting greater value for money, better targeting of services to individual requirements [and] immediate access to localised information and services ... This is demonstrated by an increasing preference for highly accessible visual services provided via multiple devices … The Bureau must continuously reassess user requirements … to respond to user demands, including delivering services through an increasing number of channels.
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This external trend clearly influences the capability BoM requires to deliver relevant services to its users. A focus on developing user-driven forecast and warning services is readily identified as a response to this trend.
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Appendix A
Assessment criteria
Finance used the following criteria to guide its assessment of the quality of 2016–17 corporate plans. Questions under four broad themes — the corporate plan as a whole, purpose statements, operating context and performance information – were used as a guide to analysing the content of plans and to identify examples of better practice.
THEME 1 – Corporate plan as a whole
General impression of quality Does the corporate plan give the reader a clear
understanding of what the purposes of the entity are? Does the plan describe the activities the entity
undertakes to achieve its purposes? Does the plan explain the context in which the entity
operates? Does the plan show how the entity intends to measure
progress towards achieving its purposes? Does the plan explain how the entity will know when it
has achieved its purposes?
Quality compared to 2015–16 corporate plan
Is the entity’s 2016–17 plan an improvement on its 2015–16 corporate plan?
If yes, in what ways has it improved?
General impression of structure Is the structure of the 2016–17 corporate plan different
to that of the 2015–16 plan?
If yes, is the structure of the 2016–17 plan based on guidance and suggestions provided by Finance?
Does the structure of the plan facilitate access to information in the plan?
Does the structure enable the reader to understand how each element of the plan connects to the entity’s purposes?
THEME 2 – Purpose statements
Clarity and conciseness Do the purpose statements convey information in a way
that is easy to understand and interpret?
Are the purpose statements succinct but sufficiently comprehensive?
Distinct Purposes Are the entity’s purposes easy to find (for example, not
embedded in several paragraphs of descriptive text)?
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Purposes clearly indicate impact when achieved
Do the purposes convey a sense of what effect or influence is to be achieved, for whom and when?
Is the reader able to understand what difference is made when the purposes are achieved?
THEME 3 – Operating context
Relationship between environment and purposes
Is it clear how the entity’s operating environment affects and shapes the activities it undertakes to achieve its purposes?
Link between capability and purposes
It is clear that the entity has an understanding of the capability required to undertake activities to achieve its purposes?
Does the plan describe how the capability needed to achieve the entity’s purposes will be sourced or developed?
Risks Does the discussion of risk extend beyond identifying
formal oversight and management of enterprise risk?
Does the plan give a sense of what specific risks affect the entity’s ability to achieve its purposes, and what is being done to manage and mitigate those risks?
Collaboration Does the plan give a sense of how the entity works with
others – across the Commonwealth and with state and territory jurisdictions, the private sector and not-for-profit organisations – to achieve its purposes?
THEME 4 – Performance information
Contribution of activities to purposes
Are the activities through which the entity achieves its purposes easily identifiable?
Is it clear how the activities contribute to achieving the entity’s purposes?
Appropriateness Is the performance information relevant – i.e. does it
clearly demonstrate who will benefit from the entity’s activities, how they will benefit and why?
Is the performance information reliable – i.e. does it
use information sources and methodologies that are fit for purpose and verifiable?
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Is the performance information complete – i.e. does it help stakeholders judge whether the purposes of the entity are being achieved?
Is there an appropriate mix of short-term, medium-term
and longer-term quantitative and qualitative performance measures?
Improvements since 2015–16 Does the performance information in the 2016–17 plan
represent a significant improvement on that in the 2015–16 corporate plan – i.e. is it clearly superior to the 2015–16 performance information?
41
Appendix B
2016-17 corporate plans included in qualitative analysis
Non-corporate Commonwealth entity - NCE (69)
Corporate Commonwealth entity – CCE (44)
Commonwealth Company – CC (8)
Total – 121 entities and companies
Portfolio Entity Type
Agriculture and Water Resources Department of Agriculture and Water Resources NCE
Australian Pesticides and Veterinary Medicines Authority CCE
Murray-Darling Basin Authority CCE
Attorney-General’s Attorney-General’s Department NCE
Administrative Appeals Tribunal NCE
Australian Commission for Law Enforcement Integrity NCE
Australian Crime Commission (Australian Criminal Intelligence Commission)
NCE
Australian Federal Police NCE
Australian Financial Security Authority NCE
Australian Law Reform Commission NCE
Australian Security Intelligence Organisation NCE
Australian Transaction Reports and Analysis Centre NCE
Federal Court of Australia NCE
National Archives of Australia NCE
Office of the Australian Information Commissioner NCE
Office of Parliamentary Counsel NCE
Office of the Director of Public Prosecutions NCE
Australian Human Rights Commission CCE
Communication and the Arts Department of Communications and the Arts NCE
Australian Communications and Media Authority NCE
Australian Broadcasting Corporation CCE
Australian Postal Corporation CCE
National Gallery of Australia CCE
National Library of Australia CCE
National Museum of Australia CCE
Old Parliament House CCE
42
Communication and the Arts cont. Screen Australia CCE
Australia Business Arts Foundation Ltd CC
Bundanon Trust CC
NBN Co Limited CC
Defence Department of Defence NCE
Department of Veterans’ Affairs NCE
Australian War Memorial CCE
Australian Military Forces Relief Trust Fund CCE
Defence Housing Australia CCE
Royal Australian Air Force Welfare Trust Fund CCE
Royal Australian Navy Central Canteens Board CCE
AAF Company CC
Education Department of Education and Training NCE
Australian Research Council NCE
Tertiary Education Quality and Standards Agency NCE
Australian Institute of Aboriginal & Torres Strait Islander Studies
CCE
Australian Curriculum, Assessment & Reporting Authority CCE
Employment Department of Employment NCE
Workplace Gender Equality Agency NCE
Office of the Fair Work Building Industry Inspectorate NCE
Fair Work Commission NCE
Coal Mining Industry (Long Service Leave Funding) Corporation
CCE
Comcare CCE
Environment and Energy Department of the Environment and Energy NCE
Bureau of Meteorology NCE
Clean Energy Regulator NCE
Climate Change Authority NCE
Great Barrier Reef Marine Park Authority NCE
Australian Renewable Energy Agency CCE
Clean Energy Finance Corporation CCE
Director of National Parks CCE
Sydney Harbour Federation Trust CCE
Finance Department of Finance NCE
Australian Electoral Commission NCE
Future Fund Management Agency NCE
43
Finance cont. ASC Pty Ltd CC
Foreign Affairs and Trade Department of Foreign Affairs and Trade NCE
Austrade NCE
Export Finance and Insurance Corporation CCE
Tourism Australia CCE
Health Department of Health NCE
Australian Aged Care Quality Agency (Quality Agency) NCE
Australian Sports Anti-Doping Authority NCE
Cancer Australia NCE
National Health and Medical Research Council NCE
National Mental Health Commission NCE
Australian Commission on Safety and Quality in Health Care
CCE
Australian Institute of Health and Welfare CCE
Australian Sports Commission (Australian Institute of Sport) CCE
Food Standards Australia New Zealand CCE
Independent Hospital Pricing Authority CCE
Australian Sports Foundation Limited CC
Immigration Department of Immigration and Border Protection NCE
Industry, Innovation and Science Department of Industry, Innovation and Science NCE
Geoscience Australia NCE
Australian Institute of Marine Science CCE
Australian Nuclear Science and Technology Organisation CCE
Commonwealth Scientific and Industrial Research Organisation
CCE
Infrastructure and Regional Development
Department of Infrastructure and Regional Development NCE
National Capital Authority NCE
Airservices Australia CCE
Australian Maritime Safety Authority CCE
Infrastructure Australia CCE
National Transport Commission CCE
Australian Rail Track Corporation Limited CC
Moorebank Intermodal Company Limited CC
Parliamentary Departments Department of Parliamentary Services NCE
Department of the House of Representatives NCE
Department of the Senate NCE
Parliamentary Budget Office NCE
44
Prime Minister and Cabinet Department of the Prime Minister and Cabinet NCE
Australian National Audit Office NCE
Australian Public Service Commission NCE
Central Land Council CCE
Indigenous Business Australia CCE
Northern Land Council CCE
Torres Strait Regional Authority CCE
Social Services Department of Social Services NCE
Department of Human Services NCE
Australian Institute of Family Studies NCE
National Disability Insurance Agency CCE
Treasury Department of the Treasury NCE
Australian Bureau of Statistics NCE
Australian Competition and Consumer Commission NCE
Australian Office of Financial Management NCE
Australian Prudential Regulation Authority NCE
Australian Securities and Investments Commission NCE
Australian Taxation Office NCE
Commonwealth Grants Commission NCE
National Competition Council NCE
Royal Australian Mint NCE
Office of the Auditing and Assurance Standards Board NCE
