PLANCorporate

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Royal austRalian Mint Corporate plan 2015–16 to 2018–19 1

Contents

Introduction .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .2

Corporate Planning Process .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 2

Description of the Mint. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .3

Purpose & Core Functions. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 3

Environmental Situation . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .4

Strategic Intent .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .4

Performance Objectives .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .5

Intended Results, Strategies and Performance Measures: 2015–16 to 2018–19 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 5

Capability Requirements. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .9

Risk Oversight & Management.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..10

Organisational Structure. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..12

Contact Details. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..13

Corporate plan 2015–16 to 2018–19 Royal austRalian Mint2

IntroduCtIon

The accountable authority of the Royal Australian Mint (the Mint) presents the 2015–16 corporate plan, which covers the periods of 2015–16 and the following three financial years, as required under paragraph 35(1)(b) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

This corporate plan has been developed, in an environment of global uncertainty, to provide direction for the Mint. Through a consultative process with staff, senior managers and board members, the strategic intent was agreed upon and targets set to achieve a significantly better result.

The focus for the next four years will be to achieve profitable growth by:

• Supplying our customer with quality product in-full and on-time;

• Continuing to build brand recognition;

• Maintaining health, safety and environmental conditions; and

• Continuing to recognise and demonstrate the importance of staff.

Corporate Planning Process

In developing the corporate plan (originally created in 2013), the Mint conducted a number of workshops with staff, senior managers and board members and in that process drew on a recently established body of research, as well as the experience and knowledge of staff that have been in the minting industry for many years.

A strategic planning review will be undertaken during the current financial year, the outcome of which will be a new corporate plan 2016–17 to 2019–20.

While historical performance provided a base from which targets and key performance indicators (KPIs) have been determined, conversations with and feedback from customers, both domestic and international, has also provided valuable input into the planning process.

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desCrIPtIon of the MInt

The Mint, based in Canberra, was established in 1965 to produce the newly created decimal currency for the nation and since that time has produced an estimated 14 billion circulating coins. The Mint also produces numismatic coins (collector and commemorative) for Australia and international markets, as well as circulating coins for other countries.

The gallery provides visitors to the Mint with an education on the history of the coinage system for Australia and coin production and that, combined with the retail shop, ensures the experience is both enlightening and memorable.

Purpose & Core functions

The functions of the Mint could be described in practical terms such as the production of circulating and numismatic coins but we have chosen to define the activities of the Mint in terms of the use of and experience associated with the collection of coins and the presentation of programs of the Mint.

With that as our intention we have defined the Mint as follows:

Product Function and/or Experience

Circulating coin Part of the national currency system of Australia that has real value and acts as a medium of exchange, and on which depict designs of national flora and fauna, culture, heritage and, on occasions, nationally significant historical or contemporary events.

Numismatic coins Used as a medium that represents real and intrinsic value and on which depict designs that tell stories about Australia, its history, heritage, environment, wildlife, culture and achievements.

Gallery A community service that provides a visitor to the Mint with an education on the history of Australian coinage as well as how the use of technology is being used in a contemporary manufacturing environment to produce metal products. The visitor experience will be further enhanced over time with the increased use of interactive displays and technology.

Services – minting, machining and consulting

The Mint has a range of associated assets, knowledge and services that will be utilised to ensure the optimisation of the Australian Government investment.

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envIronMental sItuatIon

A thorough analysis of the performance of the Mint, marketplace, economic and regulatory environments was conducted as part of the planning process with the following being a summary of the key outcomes of that process:

1. The global economy is uncertain, and will continue to be so over the lifespan of this corporate plan, which will require a conservative approach in target setting and strategy development.

2. The use of alternative mediums of exchange i.e. cards and mobile devices, will progressively impact on the demand for coins.

3. The supply of multiple coins with multiple themes has the potential to diminish the value in the numismatic market.

4. The Mint is in a sound financial position which provides a good base from which to grow and invest.

5. The governance and control processes are well established and provide a level of oversight that helps to minimise risk.

6. The ownership by the Australian Government and the associated brand are regarded by the market as significant strengths.

7. The quality of products and attention to detail are recognised by the market.

8. The capability, in all respects, needs to be addressed in order to reduce waste and inefficiency.

9. An investment in innovation and creativity, and the development and retention of knowledge is essential.

10. The Mint has insignificant market shares in the international circulating and numismatic markets.

strategIC Intent

As the sole supplier of Australian circulating coin and being recognised as an official supplier of numismatic and custom minted coins, and associated services, the Mint will achieve profitable growth. Based on the environmental factors mentioned above and in establishing the targets for the next four years the Mint has:

• Allowed for the economic uncertainty in the world;

• Accommodated for the changing demographics and demand drivers as well as the introduction of new technologies;

• Recognised the relatively insignificant market share positions that the Mint has in the international market;

• Focused on the ability to leverage its marketplace strengths;

• Incorporated major events and marketplace expectations;

• Acknowledged its responsibility and accountability to its key stakeholder – the Australian Government; and

• Allowed for the continuing journey to deliver efficiency and effectiveness through capability enhancement.

Royal austRalian Mint Corporate plan 2015–16 to 2018–19 5

PerforManCe objeCtIves

Intended results, strategies and Performance Measures: 2015–16 to 2018–19

To achieve its strategic intent, the Mint will:

IntEndEd REsult

Have the capability and readiness to be a highly effective and efficient supplier

Strategies • Complete process redesign

• Invest in new technology and systems by undertaking rigorous business case analysis and approval process

• Ensure existing IT systems are providing the capability required and if not change the systems

• Implement the LEAN philosophy Mint-wide

Performance Measures

• Gross margin result

• Delivered In-Full, On-Time (DIFOT)

• Expenditure

Targets for Performance Measures

• 1.25% p.a. improvement in gross margin across all business segments

• DIFOT – 95%

• Administrative expenses held constant over planning periods

Corporate plan 2015–16 to 2018–19 Royal austRalian Mint6

IntEndEd REsult

target and convert revenue growth opportunities

Strategies • Target all Pacific Island and other close-by countries

• Establish where feasible, joint ventures with other mints

• Where practical and profitable, offer ‘other’ Mint-owned services

• Develop a product range to meet international requirements and Australian niche markets

• Ensure product and development, and research and development processes are aligned and effective

• Leverage Anzac Centenary coin program to grow collector database.

• Implement ‘own the collector’

• Ensure continued use of most current technology

• Leverage guided tours and the significantly improved gallery experience to create collectors and specifically target more of the 136,000 students who visit Canberra each year

Performance Measures

• Growth in gross revenue for numismatic and international circulating coin business

• Increase in number of visitors to the Mint

Targets for Performance Measures

• 10% p.a. average growth in gross revenue

• 280,000 visitors by 2018–19, of which 30% will be students

Royal austRalian Mint Corporate plan 2015–16 to 2018–19 7

IntEndEd REsult

Build positive brand recognition

Strategies • Build on and convert the existing brand attributes of ‘authentic’ and ‘trustworthy’ and develop a reputation as being ‘the innovator’

• Ensure all activities of the Mint are consistent with the brand attributes and never compromise the ownership position

• Progressively build stories around the strengthening position of the Mint and in particular its role in the Anzac Centenary program

Performance Measures

• Increase in the positive recognition of the Mint

• Increase in the level of satisfaction with the Mint experience

Targets for Performance Measures

• Net promoter score of 60%

• Customer satisfaction 90%

IntEndEd REsult

Reduce waste and inefficient processes

Strategies • Continue to identify activities that cause waste and change them e.g. the circulating coin supply chain program, procurement and vendor management, tooling rework, blank preparation and engraving services.

• Measure to manage in order to drive improvement – ensure all areas and activities are measured

• Finalise process review and then establish a commitment to the process of continuous improvement – LEAN Manufacturing

Performance Measures

• Reject and rework rates

• International quality standard accreditation

Targets for Performance Measures

• Reject and rework rates to decrease by 60%

• Achieve and/or maintain ISO9001, AS/NZ4801 and ISO14001 accreditation

Corporate plan 2015–16 to 2018–19 Royal austRalian Mint8

IntEndEd REsult

Ensure a safe and secure environment

Strategies • Maintain investment in health, safety and environment (HSE)

• Maintain investment in security

• Create and implement an environmental management plan

Performance Measures

• Workers compensation premium

• Number of security breaches

Targets for Performance Measures

• Premium reduction

• No security breaches

IntEndEd REsult

Have engaged, motivated and committed staff

Strategies • Establish a workforce plan and recruit accordingly

• Continue to engage and empower staff through regular communication, individual work plans (IWP) process and ensure training requirements are met

• Maintain the investment in health and wellbeing programs

• Continue to conduct leadership and mentoring programs

• Continue to improve the IWP process and ensure training requirements are met

• Enforce values through education and leading by example

Performance Measures

• Staff satisfaction rating

• Revenue per employee

Targets for Performance Measures

• Staff satisfaction rating of 85%

• Increase in revenue per employee by a minimum of 6% p.a.

Royal austRalian Mint Corporate plan 2015–16 to 2018–19 9

IntEndEd REsult

satisfy stakeholder expectations and requirements

Strategies • All reporting requirements will be on time

• Maintain relationships with all key stakeholders through a formalised contract management program

• Ensure ongoing conformance of all regulatory and governance requirements

Performance Measures

• Stakeholder satisfaction rating

• Delivered In-Full, On-Time (DIFOT)

Targets for Performance Measures

• Satisfaction rating of 95%

• DIFOT – 95%

CaPabIlIty requIreMents

In order to achieve the abovementioned goals, the Mint will require the following:

1. Funds available to continue to prudently reinvest in:

a. research;

b. innovation;

c. new technology, and

d. system improvements.

2. A quality workforce team, who are engaged, motivated and empowered.

3. Strong governance.

4. Timely and reliable information as well as understood and implemented measurement systems.

5. Active brand management.

6. Outstanding communication.

7. Enabling IT systems.

8. Quality relationships with key stakeholders.

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rIsk oversIght & ManageMent

The Mint is committed to a comprehensive, coordinated and systematic approach to the management of risk. Risk management is not a standalone process but requires ongoing assessment, including the need to review risks in lieu of new developments. Risk management is an integral part of the Mint’s governance framework, and is considered in the context of the Mint’s strategic outputs and outcomes, business planning and reporting, and in day-to-day decision making.

The Mint has adopted a Risk Management Policy and Framework, which formalises the Mint’s approach to risk management across the organisation. It is designed to support managers at all levels to anticipate uncertain events, exploit opportunities and respond appropriately to potential weaknesses. The framework is consistent with Australian/New Zealand Standard (AS/NZS) ISO 31000:2009 and Comcover’s Better Practice Guide for Risk Management (June 2008) as well as the Australian Government’s Risk Management Policy.

The Mint addresses its internal and external risks under the following key risk categories:

• Organisational;

• ICT and Business Information;

• Commercial, and

• Production and Supply.

The following are the Mint’s identified risks and their mitigation strategies:

Risk Inherent Residual Mitigation strategies

ORGANISATIONAL

Lower staff morale High Medium • Effectively manage EBA negotiations with timely communication to staff

• Address job freeze by considered recruitment

ICT & BUSINESS INFORMATION

Failure to successfully implement Inventory Management System, costing and process review

Medium Low • Refined inventory management and costing options

• Scenario testing and validation

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Risk Inherent Residual Mitigation strategies

COMMERICAL

Negative impact of costing review – business bottom line (2014–15)

High Medium • Increased data accuracy requirements and preventative error management (lean improvements)

• Timely reporting

Diminishing demand in circulating coins, leading to reduced return to Government (Seigniorage)

High Medium • Continue to grow Pacific market

• Coin review (size) and alternate coinage alloy

• Coloured circulating coins

Diminishing demand for collector products resulting in loss of revenue and reduced profit

High Medium • Continued review of our target market

• Strategic partnership/sporting programs

• Leveraging Anzac Centenary coin program

• Innovations across product development and targeted distribution strategies

• Road Shows – regional Australia plan

PRODUCTION & SUPPLY

Inconsistency of quality and timely supply of precious metal blanks

High Medium • Vendor development and alternate local supplier and review of the blank specification

• Application LEAN methodology

Ineffective supplier relationship

High Medium • Vendor development plan

• Application of LEAN methodology

• Dedicated relationship manager

• Quality assurance check list and compliance process

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organIsatIonal struCture

Human Resources

Quality Management

Services

Systems and Process

Management

Finance

Sales, Marketing and

Distribution

Business Development and Facilities

Tooling, Coining and Engineering

NBL Operations

Winnie Turco

Esther McVicar

Sarah Polhill

Suzannah Ridley

Mark Cartwright

Prabir De

Colin Dedourek

Sam Murthi

Executive Branch

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ContaCt detaIls

address

Royal Australian Mint Denison St Deakin ACT 2600 AUSTRALIA

Visitors are welcome between 8.30 am and 5.00 pm weekdays and between 10.00 am and 4.00 pm on weekends and public holidays. The Mint is closed to visitors on Good Friday and Christmas Day.

email info@ramint.gov.au

Web www.ramint.gov.au

Phone Domestic (02) 6202 6900 International +61 2 6202 6900