Implementing policy: the Australian experience Establishing the need for a National Strategy [Audit] Office

Dr Simon Poon, Dr Raymond Young

OverviewIs strategy being implemented through projects?

The case of VicThe case of NSW

The Department of Social Services & the Department of Education and EmploymentBenefits [outcomes] managementPortfolio management

RecommendationNational Strategy [Audit] Office

Strategy

The State of Victoria – a leader in NPM

the State of Victoria is considered to be one of the international leaders in New Public Management (Greve and Hodge, 2007)

Victorian Auditor-General’s Office (VAGO) believed the Victorian project management and investment frameworks were at the forefront of industry practice but were consistently finding the same problems in their project performance audits

10 year strategic goals

↑ economy, ↑ jobs (↑quality)↓ crime 5% & ‘feel safer’↑ health

– ↓ waiting times (emergency, elective, …)↑ education

– ↑ literacy/numeracy– >90% year 12– ↑ Vocational Training

↑ transport– ↓ commuting times

↑ environment– ↓ water usage 15%

Are projects meant to contribute to strategic outcomes?• The 2008-09 Budget stressed that their long term commitment to project investments

would have to be maintained and strengthened to meet the strategic objective of the State

• ... economic reform focussed on the long term is vital… to be competitive in a global market

• … in the face of an aging population and climate change (2008-09 Budget Update)

Contrary evidence of improvement

“It seems reasonable to assume if evidence was available to show that the highest priority strategic goals had improved, the data would have been reported.”

The NSW evidence suggests 7 out of 25 strategies (28%) improved over the nine year period of study (2001 – 2010). – ‘projects contribute little to the realisation of

strategic goals’

We and others (Thorp 2003) believe that 80-90% of projects should deliver the expected benefits

VIC Study Replicated in NSW

Department of Social ServicesDepartment of Education &

EmploymentSchool of Business

Efficiency

dividend

Shared

Services

Welfare Reform

Shergold

2035 people delivering ….

MissionImproved

lifetime well being of

people and families in Australia

• NDIS• WhoG Grants

DSS Results – strong commitment to mission statement

Efficiency

dividend

Shared

Services

Welfare Reform

Shergold

2035 people delivering ….

Long term Strategic Policy

PGPA

Business Plans - Annual

?

Corporate Plan- 2015/16

PBS – 4 years• Outcome 1• Outcome 2• Outcome 3• Outcome 4

• NDIS• WhoG Grants

DSS Results – Weak Benefits Management

MissionImproved

lifetime well being of

people and families in Australia

DEEWR - Project Portfolio Management

DEEWR Key Changes

Timing 2012-13Cluster Employmentinvestment category (Multiple Items)Value AssessmentCount of cost pa Column Labels

Row Labels

Policy Strategy Savings Risk

Grand Totalimplement govt policy 3 3

support govt policy - clear & measurable benefits 2 2

support govt policy - intangible benefits only 4 4

No clear linkage to govt policy 1 1

implement dept strategysupport dept strategy - clear & measurable benefits 6 6

support dept strategy - intangible benefits only 1 1

No clear linkage to dept strategyROI > 200%ROI > 150%, <200%ROI > 100%, <150%ROI > 0%, <100% 2 2

no ROIwill reduce dept risk rated High or Extremewill reduce op risk rated High or Extremehelp reduce dept risk rated High or Extreme 1 1

will reduce dept risk rated Moderate or Low 1 1

help reduce dept risk rated Moderate or Lowhelp reduce op risk rated Moderate or LowNo linkage to risksGrand Total 10 7 2 2 21

2 template changes• ValIT Categorisation

1. Doing better things2. Doing more things3. Doing things better4. Keeping our promise5. Keeping lights on6. Keeping our job

• Value Risk Assessment– Policy– Strategy– Savings– Risk

Recommendations

School of Business

Transform program mngt

Soft Projects

10-year strategic goals• ↑ economy, ↑ jobs

(↑quality)• ↓ crime 5% & ‘feel safer’• ↑ health

– ↓ waiting times (emergency, elective, …)

• ↑ education – ↑ literacy/numeracy– >90% year 12– ↑ Vocational Training

• ↑ transport– ↓ commuting times

• ↑ environment– ↓ water usage 15%

Hard Projects(Assets)

Programs asset investments alone generally will not

lead directly to the realisation of strategic goals

Establish a National Strategy [Audit] Office• Currently, there is little evidence to suggest that

projects contribute much to strategy• Organisations often cannot explain how daily

work contributes to strategic goals• There is a large risk that strategy goals will not be

met

• RECOMMENDATION: The Ministry of Interior should establish a National Strategy [Audit] Office• It is not difficult to enforce a strategic mindset • The key is to transform program management practices

Potential Strategic DirectionsFocus on Translations & Implementation

Digitization in the Different Sectors

Digitization in the Different Sectors

Development of Measurement Model for eHealth Readiness (Capacity for Implementation)

2 Focus Groups (Rural)

1 Specialist Interview (Metro)

Thematic Analyses

HIT evaluation

review

3rd Focus Group (Metro)

Thematic Analysis

Model Developme

nt

Delphi Method

Refinement

Card Sorting

2015 (Year 1) 2016 (Year 2)

Development to instruments to collect data & Measurements

The development of a multi-disciplinary measurement model for governance

Questions & Discussion