induction guide for western australian public sector ceos · 2017-05-29 · 6 ceo essentials –...

Induction guide for Western Australian public sector CEOs

CEO essentials

2 CEO essentials – Induction guide for Western Australian public sector CEOs

Enquiries:

Strategic Engagement and Coordination Public Sector Commission Dumas House, 2 Havelock Street, West Perth 6005Locked Bag 3002, West Perth WA 6872Telephone: (08) 6552 8500 Fax: (08) 6552 8710Email: [email protected]: www.publicsector.wa.gov.au

© State of Western Australia 2017There is no objection to this publication being copied in whole or part, provided there is due acknowledgement of any material quoted or reproduced.Published by the Public Sector Commission, May 2017.This publication is available on the Public Sector Commission website at www.publicsector.wa.gov.au

DisclaimerThe Western Australian Government is committed to quality service to its customers and makes every attempt to ensure accuracy, currency and reliability of the information contained in this publication. However, changes in circumstances over time may impact on the veracity of this information.

AccessibilityCopies of this publication are available in alternative formats upon request.

ContentsForeword ......................................................................................................................... 6

Introduction ..................................................................................................................... 7

CEO role and functions .................................................................................................. 8

Success profile for CEOs .................................................................................... 10

Framework for public sector management ................................................................ 11

Public Sector Management Act 1994 ................................................................. 11

Legislative framework ......................................................................................... 11

Whole-of-government requirements .................................................................. 11

Public Sector Commission – Commissioner’s Instructions and Circulars ................ 12

Department of the Premier and Cabinet – Premier’s Circulars ................................ 12

Department of Treasury – Treasurer’s Instructions .................................................. 13

Department of Finance – Government Procurement (State Supply Commission) ... 13

State Records Office ............................................................................................ 13

Office of the Government Chief Information Officer (GCIO) ..................................... 14

Agency annual reporting ....................................................................................... 14

Accountability ...................................................................................................... 14

Public sector principles ...................................................................................... 15

Section 7 – Public administration and management principles ............................... 15

Section 8 – Human resource management principles ............................................ 15

Section 9 – Principles of conduct by public sector bodies ..................................... 16

Code of Ethics ...................................................................................................... 16

Code of conduct .................................................................................................. 17

Accountable and Ethical Decision Making (AEDM) ................................................. 17

Gifts, benefits and hospitality ............................................................................. 18

Public sector standards in human resource management .............................. 21

Acting in the public interest ................................................................................ 21

Breaches of conduct ........................................................................................... 22

Misconduct ........................................................................................................... 22

Serious misconduct .............................................................................................. 22

Minor misconduct ................................................................................................. 23

Reporting wrongdoing ........................................................................................... 23

Oversight in the public sector ............................................................................ 24

Public Sector Commission .................................................................................... 25

Office of the Auditor General ................................................................................. 25

Corruption and Crime Commission ....................................................................... 26

Ombudsman Western Australia ............................................................................. 26

Office of the Information Commissioner ................................................................. 27

View from the top—a CEO perspective ............................................................. 27

Being a CEO in the WA public sector .................................................................... 27

Employment .................................................................................................................. 28

Recruitment, appointment and reappointment ................................................. 28

Transfers ............................................................................................................... 29

Acting appointments ........................................................................................... 29

Remuneration ....................................................................................................... 29

Salary Packaging .................................................................................................. 30

Motor vehicle ........................................................................................................ 30

Performance agreement and assessment system ........................................... 30

Evaluating the agreement ................................................................................... 31

Discipline .............................................................................................................. 31

Separation ............................................................................................................ 31

Structure of the public sector ..................................................................................... 32

Government entities ............................................................................................ 32

View from the top—contemporary research ..................................................... 32

Being a CEO will have its moments ....................................................................... 32

Government boards ...................................................................................................... 34

Roles and responsibilities ...................................................................................... 34

Statement of expectation ...................................................................................... 35

Statement of intent ................................................................................................ 36


Your working relationship with the board ............................................................... 36

Structure of the Western Australian Government ..................................................... 37

Executive Government ........................................................................................ 37

Serving the government of the day .................................................................... 37

Cabinet ................................................................................................................. 38

Executive Council ................................................................................................ 38

Relationship with ministers ................................................................................ 38

Independence on human resource matters ........................................................... 39

Communication arrangements .............................................................................. 39

Recruitment, selection and appointment processes .............................................. 39

Relationship with Parliament .............................................................................. 40

Parliamentary questions ..................................................................................... 40

Parliamentary Committees ................................................................................. 40


Your working relationship with your minister (and their office) ................................. 41

Caretaker Conventions ....................................................................................... 42

Support the Commission ............................................................................................. 43

Executive Fellows Program (EFP) .......................................................................... 43

Leadership Seminar Series (LSS) ........................................................................... 44

References and resources material ............................................................................ 45

CEO essentials – Induction guide for Western Australian public sector CEOs6

Congratulations on your new role or reappointment as a Chief Executive Officer (CEO) in the Western Australian public sector. CEOs have significant responsibilities and operate with considerable autonomy. Your ability to lead your agency is vital to the efficient operation of the sector and the effective delivery of services to the community.

As CEO you are a role model for integrity, innovation and performance, as well as an advisor to the Western Australian Government (Government) of the day and your minister. Your leadership style and approach should build community trust and confidence, and provide clear direction for your staff and agency stakeholders.

This guide is a tool to assist CEOs appointed under section 45 of the Public Sector Management Act 1994 and those new to the Western Australian public sector.

It is designed to guide you as you begin your new role and is complementary to your induction into your agency. It provides you with an overview of your obligations and responsibilities, and covers key elements of the legislative framework, accountability requirements and the employment environment in which you operate.

As Public Sector Commissioner, I look forward to building a productive working relationship with you and supporting you in your new role.

M C Wauchope PUBLIC SECTOR COMMISSIONER

Foreword

CEO essentials – Induction guide for Western Australian public sector CEOs 7

Introduction

The role of a chief executive officer (CEO) in the Western Australian public sector is complex. The role has multiple dimensions and the accountabilities are substantial and multifaceted. The role is critical to the effective and efficient delivery of government services. As a CEO, you operate in a legislative and policy environment that provides frameworks for agency accountability, governance, management, policy development and service delivery.

CEOs are role models for integrity, innovation and performance, as well as advisors to the government of the day. As CEO, your first 90 days are critical to forming key relationships, gaining a detailed understanding of the business of the entity and setting key directions and targets.

The primary aim of this publication is to provide a reference point for incoming CEOs on their role within the public sector. It should be read in conjunction with the face-to-face induction meetings coordinated by the Public Sector Commission (Commission), which include those with the:

• Public Sector Commissioner (Commissioner)

• Under Treasurer

• Auditor General

• Department of Finance

• Department of the Premier and Cabinet (DPC).

The Commissioner’s induction process operates in addition to any induction that is provided by your agency.


CEO role and functions

As CEO, you are the principal officer of a public sector agency and accountable for the efficient and effective management of this agency. You are directly responsible to either a minister or board for implementing services and providing policy advice.

The responsibilities and functions of a CEO are specified in s. 29 and s. 30 of the Public Sector Management Act 1994 (PSM Act). Put simply, a general role description is to:

• articulate a clear vision – by articulating and promoting a clear vision of what the agency will achieve in line with its purpose, powers, authority, functions, deliverables, reporting and compliance requirements

• establish strategies – by setting strategies to deliver priorities and meet the agency’s obligations

• manage agency plans – by establishing and delivering operational, financial, workforce and other plans that detail how the agency’s vision will lead to tangible outcomes

• design the agency – by establishing and revising the way in which the agency is designed, including the key roles, relationships, systems, and deployment of staff with particular skills sets, to ensure the effective and efficient delivery of outcomes

• manage finances and assets – by managing finances and assets in line with legal requirements and established business management practices

• lead and manage the agency’s workforce – by engaging staff and developing their capacity to deliver the entity’s plans, and ensuring their safety and wellbeing during their employment

• establish a productive culture – by establishing a workplace culture that delivers productivity by fostering staff engagement, satisfaction and wellbeing. This includes ‘walking the talk’ by actively practicing and modelling values that contribute to a productive culture

• establish and manage the entity’s reputation – by building and maintaining a positive reputation for the agency and one that engenders trust and credibility

• establish and manage relationships – by establishing and managing communications and collaborations with other agencies and key stakeholders in order to deliver outcomes effectively and efficiently

9CEO essentials – Induction guide for Western Australian public sector CEOs

• manage compliance and reporting – by ensuring compliance with relevant legislation, including:

• enabling legislation (where applicable)

• Public Sector Management Act 1994

• Corruption, Crime and Misconduct Act 2003

• Disability Services Act 1993

• Equal Opportunity Act 1984

• Financial Management Act 2006

• Freedom of Information Act 1992

• Industrial Relations Act 1979

• Occupational Health and Safety Act 1984

• Public Interest Disclosure Act 2003

• State Records Act 2000

• Working with Children (Criminal Record Checking) Act 2004.

• manage risk to ensure the agency is able to deliver outcomes and ensure appropriate controls are in place to eliminate or minimise risk

• provide advice through accurate and timely information to the minister, staff and other stakeholders about the agency, the field in which it works, and emerging risks and challenges.

The community has a sense of ownership with regard to public sector agencies. This results in a large degree of public scrutiny. Any loss of reputation by an agency may impact on the minister or Government. ‘Public money’ is viewed differently to ‘private money’ and the process of doing business is as important as the outcome of the transaction. Accountability for public entities is related to service delivery, and not just financial accountability.

Some CEOs have found it helpful to clarify expectations through the development of a statement of intent with the minister, which identifies the key outcomes and performance indicators.

A CEO should be aware that CEOs are not required to personally exercise every power vested by legislation—some powers or duties may be delegated. When delegating powers as CEO you:

• provide delegated officers with authority to make decisions in specified circumstances

• are aware that when a delegation is in place, both you as the responsible officer and the delegate have the power and authority to make decisions

• understand that you, as the responsible officer, are ultimately accountable for the decision made.


Success profile for CEOs

To assist you in clarifying your role expectations, A success profile for Chief Executive Officers and accompanying Guidelines for measuring a success profile for Chief Executive Officers have been developed.

The profile describes and supports high-level CEO leadership success factors by outlining role expectations and examples of key accountabilities and experiences deemed critical to overall individual, organisation and whole of sector performance.

The accompanying guidelines for measuring the profile provide examples of high-level metrics that can be used to report on the performance of the individual role, its organisational impact and the whole WA public service system as a whole.

These guidelines are not intended to be either prescriptive or exhaustive and it is recommended that CEOs and responsible authorities adopt, adapt and add to the suite of measurements as appropriate to their individual and organisational context.

For further information please contact the Commission.

The Chief Executive is the leader…

…and as the leader there are a few things you do. One is to set the direction of where the agency is going, the second is to ensure the right people are in place and the third is to live the standards.

How you go about it will be noticed.

Do you involve and work with your staff? Do you engage with others outside the agency? Do you seek assistance from others? Do you demonstrate the type of leadership you want your staff and others to notice and understand?

All of this is crucial to building and sustaining relationships and growing the trust and confidence others have in you as a leader and CEO.

Current CEO, WA public sector


Framework for public sector management

As CEO you need a strong understanding of the legislative framework, particularly the PSM Act and the enabling legislation of your agency. In addition to these, there are a further 15 or 16 pieces of legislation that directly impact the administration and management of a public authority in Western Australia.

Public Sector Management Act 1994The PSM Act provides the legislative framework for the structure, administration and management of the public sector. The PSM Act covers among other things:

• public administration and management principles

• human resource and conduct standards

• the role and functions of the Commissioner

• the functions and responsibilities of CEOs

• substandard performance and disciplinary matters

• appointments in the Senior Executive Service.

It is important to note not all government entities fall within the scope of the PSM Act. Schedule 1 of the PSM Act specifically excludes some entities from application of the Act.

Legislative framework

In addition to the requirements of the PSM Act, a range of functions and responsibilities are required of CEOs and are contained in the various statutes that apply to the public sector, as mentioned in the previous section.

Whole-of-government requirements

There are a range of whole-of-government requirements that affect your work in the public sector. The Commission, DPC, Department of Treasury and Department of Finance issue various requirements.

The role of these bodies and the requirements they administer are outlined in the following sections.


Public Sector Commission – Commissioner’s Instructions and Circulars

In addition to other functions already outlined in this guide, the Commissioner may issue Commissioner’s Instructions and Circulars.

Commissioner’s Instructions are directions about how to administer and manage the public sector (or a part of the public sector). Existing instructions include directions that cover public sector employment, integrity and discipline.

Unlike those instructions establishing Public Sector Standards and the Code of Ethics, other instruments are not subsidiary legislation—the Parliament of Western Australia (Parliament) cannot disallow a Commissioner’s Instruction. However, if there is any conflict between a Commissioner’s Instruction and the PSM Act, regulations, public sector standards or Code of Ethics, then the latter instruments prevail.

Public Sector Commissioner’s Circulars relate to:

• public sector management policy or arrangements—these are made to promote and improve the overall effectiveness and efficiency of the public sector

• mandatory compliance obligations, which do not originate from the Commissioner’s functions or the PSM Act.

More information on Commissioner’s Instructions and Circulars can be found on the Commission’s website or you can consult your human resource manager.

Department of the Premier and Cabinet – Premier’s Circulars

The DPC is responsible for a range of services in support of the Premier and Government. Its goals are to:

• deliver a high level of effective support and policy advice to meet the identified needs of executive government

• show leadership and give support to agencies to identify and promote options for innovative government service delivery to better reflect community needs

• maximise benefits to Western Australians from engagement with the Commonwealth Government

• strengthen policy capacity across government.

The DPC issues Premier’s Circulars, which communicate matters of whole-of-government policy and issues of strategic importance to the state. As CEO, it is your responsibility to remain informed of Premier’s Circular content, comply with their directions and disseminate information to relevant staff.

More information on Premier’s Circulars can be found on the DPC website or you can consult your corporate services manager.


Department of Treasury – Treasurer’s Instructions

The Department of Treasury serves the public interest through the provision of high quality economic and financial advice and expert asset management. It comprises two businesses—Treasury, and Strategic Projects and Asset Sales.

Treasury plays a central role in managing Western Australia’s public finances and in providing expert analysis and advice on the strategies and frameworks necessary for maintaining the State’s economic and financial position. Strategic Projects is responsible for the planning and delivery of major projects that are considered to be of significant importance to the State.

Treasurer’s Instructions detail financial administration requirements for accounting for revenue, expenditure and property, and the standards for reporting.

More information on Treasurer’s Instructions can be found in the Financial Administration Bookcase on the Treasury website, or you can consult your Chief Finance Officer.

Department of Finance – Government Procurement (State Supply Commission)

The Department of Finance through its Government Procurement business unit is responsible for leading a whole-of-government approach to procurement. Purchasing (or ‘procurement’) in the public sector is different to the private sector, as the money spent is public money.

Common Use Arrangements (CUA) exist for agencies to purchase a range of goods and services. For most other procurement, a competitive quote or tender process is applied to ensure value for money.

More information on purchasing arrangements can be found on the Department of Finance – Government Procurement website or you can consult your corporate services manager.

State Records Office

Under the State Records Act 2000, all government organisations are to have a recordkeeping plan. The recordkeeping plan must identify all records created and received by the organisation; explain the format and content of those records; demonstrate how they are managed in the context of the organisation’s functions; specify a retention period for each class of record; and describe the management, security and legal disposal procedures for all recorded information.

More information on your recordkeeping obligations can be found on the State Records Office website or you can consult your records officer.


Office of the Government Chief Information Officer (GCIO)

The role of the GCIO is predominantly to stabilise cost, increase value for money and minimise the risk in the development and delivery of Information and Communications Technology (ICT) across the public sector.

As CEO you are required to ensure all ICT related activity undertaken in your agency aligns to the GCIO directives and forms part of an agency ICT plan. This includes reviewing your agency’s business functions and where possible, increasing the business functions delivered through digital channels.

More information on ICT strategy and initiatives can be found on the GCIO website or you can consult your Chief Information Officer.

Agency annual reporting

Annual reports are an important tool to assist public understanding of the operations of government agencies, as well as ensure financial and performance accountability to Parliament.

As CEO, you are required under section 61 of the Financial Management Act 2006 to prepare annual reports for Parliament. Generally, your minister has 90 days from 30 June to table your annual report in Parliament.

To assist you, the Commission develops the annual reporting framework, in conjunction with other authorities with statutory reporting requirements. The framework is a guide to ensure the various reporting obligations under a range of legislative requirements can be readily identified and addressed consistently.

Further information on the annual reporting framework can be found on the Commission’s website.

The Western Australian public sector accountability framework is complex and operating within it is not straightforward. The fundamental elements are based on two principles: personal and collective accountability.

Accountability

Public sector accountability exists on two levels. Firstly, it refers to individuals being responsible for decisions they make and actions they take, and being able to justify those decisions. Secondly, it refers to the framework of accountability in which the public sector operates. This includes legislation, subsidiary instruments, instructions, codes and policies.

When problems arise, more often than not it is either a case of poor judgment or a lack of understanding of public sector accountability requirements. It is essential as CEO that you understand the ethical and accountability obligations for yourself and your agency and are skilled in successfully navigating the accountability framework. Equally, it is important


you prioritise good governance and provide leadership, to enhance positive organisational culture and foster integrity and to appropriately address wrongdoing if it occurs.

Public sector principles

Part 2 of the PSM Act sets out the core public sector principles that guide how the public sector is administered and managed, how you select and treat your employees and the conduct required of all public sector employees, including CEOs. The principles are articulated in the following sections.

Section 7 – Public administration and management principles

The principles of public administration and management include:

• the public sector is to be administered in a manner that emphasises the importance of service to the community

• the public sector is to be structured and organised to achieve and maintain operational responsiveness and flexibility

• public sector agencies are structured and administered to enable decisions to be made and action to be taken in a timely manner

• administrative responsibilities are clearly defined and delegations are sufficient

• continued improvement in the efficiency and effectiveness of performance is a goal

• resources are used effectively and efficiently

• proper standards of financial management and accounting are to be maintained at all times

• proper standards are to be maintained at all times in the creation, management, maintenance and retention of records.

Section 8 – Human resource management principles

The principles of human resource management include:

• selection processes are to be directed towards, and based on, a proper assessment of merit and equity

• no power with regard to human resource management is to be exercised on the basis of nepotism or patronage

• employees are to be treated fairly and consistently and are not to be subjected to arbitrary or capricious administrative acts

• employers are to comply with the Equal Opportunity Act 1984 in relation to employment and are to provide safe and healthy working conditions in accordance with the Occupational Safety and Health Act 1984.


Section 9 – Principles of conduct by public sector bodies

The principles of conduct to be observed by all public sector bodies and employees are that they:

• comply with the provisions of:

• the PSM Act and any other Act governing their conduct

• the Commissioner’s Instructions, public sector standards and codes of ethics

• any code of conduct applicable to the public sector body or employee

• act with integrity when performing official duties and be scrupulous in the use of official information, equipment and facilities

• exercise proper courtesy, consideration and sensitivity in dealing with members of the public and other employees.

Code of Ethics

Commissioner’s Instruction No.7 – Code of Ethics sets out the minimum standards of conduct and integrity to be complied with by all public sector bodies and employees. These standards are articulated in the following three principles:

Personal integrity

We act with care and diligence and make decisions that are honest, fair, impartial and timely and consider all relevant information.

Relationships with others

We treat people with respect, courtesy and sensitivity and recognise their interests, rights, safety and welfare.

Accountability

We use the resources of the State in a responsible and accountable manner that ensures the efficient, effective and appropriate use of human, natural, financial and physical resources, property and information.


Code of conduct

Commissioner’s Instruction No.8 – Codes of conduct and integrity training requires all public sector bodies to have a code of conduct that sets out the standards of conduct and integrity to be complied with by the organisation and its employees. Codes of conduct must be consistent with the Code of Ethics.

As CEO, you play a very important part in promoting integrity within your organisation. Among other things, this involves:

• ensuring your agency has a current code that adequately reflects the functions of your agency and any integrity risks

• developing and implementing initiatives to ensure your employees are familiar with and adhere to your code

• ensuring you act as a role model for integrity, by behaving and making decisions consistent with the code.

Accountable and ethical decision making (AEDM)

Public sector officers in Western Australia work in an ever changing workplace. The roles and tasks carried out by government agencies and organisations are increasingly diverse and challenging. The scrutiny placed on decision making in the public sector is also increasing. The conduct of public officers affects the level of trust the public has in the integrity of public administration.

The AEDM training has been designed to assist public officers to find answers to accountability questions that may arise in their daily work and explain the standards of conduct expected of them.

Training is offered by the Commission to all public sector CEOs and Directors’ General. Public sector bodies (departments, SES organisations, non-SES organisations—including boards established under their own legislation—and ministerial offices as defined under the PSM Act and all employees of these bodies) are responsible for providing the training to their employees.

Further information can be found on the Commission’s website.


Gifts, benefits and hospitality

While offering and accepting gifts is common in everyday life, there can be good reasons for public sector employees and board members to decline them.

The Western Australian community trusts public officers, which includes board members, to perform their duties impartially and with integrity. Public officers may be offered gifts, benefits or hospitality as a consequence of undertaking their duties. Usually these will be a token of appreciation and carry no expectation. In some cases, accepting a gift, benefit or hospitality could give the impression an officer will favour a particular person or organisation when making decisions. This may not be the intention, however, perceptions ‘do matter’.

Perceptions are also important when a public officer provides a gift, benefit or hospitality. Board members need to be mindful to use public resources responsibly and ensure decisions to provide gifts, benefits or hospitality are defensible and further the business of the authority or Government.

Dealing with gifts, benefits and hospitality is not straightforward given the different operating contexts for each public sector body. However, it is important that gifts are dealt with in a practical way to minimise integrity risks. For these reasons, public officers need a good understanding of when the acceptance of a gift, benefit or hospitality is appropriate and when it is not.

All CEOs and their staff are encouraged to read Gifts, benefits and hospitality – A guide to good practice, found on the Integrity Coordinating Groups (ICG) website. This guide helps public authorities identify the risks associated with gifts, benefits and hospitality and consider how they can minimise those risks through sound policies, transparent recordkeeping, communication and review activities.


Take the ‘GIFT’ test

The ‘GIFT’ test1, outlined below, is a good reminder about matters to be considered when deciding whether to accept or decline a gift, benefit or hospitality.

G - Giver

Who is providing the gift, benefit or hospitality and what is their relationship to me? Does my role require me to select contractors, award grants, regulate industries or determine government policies? Could the person or organisation benefit from a decision I make?

I - Influence

Is the provider seeking to influence my decisions or actions? Has the gift, benefit or hospitality been offered to me publicly or privately? Is it a courtesy, a token of appreciation or highly valuable? Does its timing coincide with a decision I am about to make?

F - Favour

Is the provider seeking a favour in return for the gift, benefit or hospitality? Has the gift, benefit or hospitality been offered honestly? Has the person or organisation made several offers over the last 12 months? Would accepting it create an obligation to return a favour?

T - Trust

Will public trust be enhanced or diminished? Could you publicly explain the rationale for accepting the gift, benefit or hospitality? Will a hospitality event be conducted in a manner that upholds the reputation of the public sector? Have records in relation to the gift, benefit or hospitality been kept in accordance with reporting and recording procedures?

1 Adapted with permission of the State Services Authority, State Government of Victoria


Take the HOST test

The HOST test2 is a good guide to adhere to when deciding whether to provide gifts, benefits or hospitality to staff or stakeholders. Take the test but when in doubt, ask for advice.

H - Hospitality

To whom is the gift, benefit or hospitality being provided? Will recipients be external business partners, or employees of the host organisation?

O - Objectives

For what purpose will a gift, benefit or hospitality be provided? Is the gift, benefit or hospitality being provided to further the conduct of official business? Will it promote and support government policy objectives and priorities?

S - Spend

Will public funds be spent? What type of gift, benefit or hospitality will be provided? Will it be modest or expensive, and will alcohol be provided? Will the costs incurred be proportionate to and less than the benefits obtained?

T - Trust

Will public trust be enhanced or diminished? Could you publicly explain the rationale for providing the gift, benefit or hospitality? Will a hospitality event be conducted in a manner that upholds the reputation of the public sector? Have records in relation to the gift, benefit or hospitality been kept in accordance with reporting and recording procedures?

2 Adapted with permission of the State Services Authority, State Government of Victoria


Public sector standards in human resource management

The public sector standards in human resource management established by the Commissioner set out the minimum standards of merit, equity and probity to be complied with by all public sector bodies when undertaking specific human resource processes.

These include the:

• Employment Standard

• Redeployment Standard

• Discipline Standard

• Performance Management Standard

• Grievance Resolution Standard

• Termination Standard.

The Public Sector Management (Breaches of Public Sector Standards) Regulations 2005 provide for employees to lodge a breach of standard claim for all the standards, with the exception of discipline.

How and when these claims can be made are contained within the regulations.

Human resources practitioners within your agency will play an important role in ensuring your agency complies with the standards and in maintaining data for your annual reporting obligations to the Commission.

Acting in the public interest

Working in the public sector involves making decisions that affect the community in some way. As CEO, it is important you make decisions in the public interest. To ensure you put the public interest first, your decisions need to be:

• impartial and transparent

• based on all available information

• founded on all relevant legislative or policy requirements.

You also need to apply the principles of procedural fairness and natural justice to your decision making process.

Attending the Commissioner’s AEDM program for CEOs will assist your understanding of individual and collective accountability. Your commitment to training your staff in the AEDM program is a requirement under Commissioner’s Instruction No.8 – Codes of conduct and integrity training and will assist your employees to make decisions in the public interest.


Breaches of conduct

From time to time your role as CEO may involve dealing with breaches of the conduct requirements with which your employees must comply. Legislation, such as the PSM Act, and industrial instruments relevant to your employees will provide guidance on how these cases should be managed. The Commission is available to provide advice or assistance with more complex cases.

Misconduct

As CEO you have a responsibility under the Corruption, Crime and Misconduct Act 2003 (CCM Act) to notify of any suspected misconduct under the CCM Act. The CCM Act defines misconduct as serious (s. 4(a), (b) and (c) and minor misconduct (s. 4(d)).

Serious misconduct

Serious misconduct is conduct by a public officer who:

• acts corruptly or corruptly fails to act in the course of their duties

• corruptly takes advantage of their position for the benefit or detriment of any person

• commits an offence that carries a penalty of two or more years’ imprisonment.

Serious misconduct is reliant, to some extent, on the application of the term ‘corruptly’. Corrupt conduct tends to show a deliberate intent or improper purpose and motivation and may involve conduct such as the deliberate failure to perform the functions of office properly, the exercise of power or duty for an improper purpose, or dishonesty.

Allegations of serious misconduct are notifiable to the. Guidelines are issued jointly by the Commission and the Corruption and Crime Commission (CCC) to assist you to determine when to notify the CCC of suspected serious misconduct and how you should deal with the matter prior to notification.

All allegations of misconduct by WA Police are defined as serious misconduct under the CCM Act and are to be notified to the CCC.

Further information about serious misconduct and your notification obligations is found on the CCC’s website.


Minor misconduct

Minor misconduct is behaviour by a public officer that:

• adversely affects the honest or impartial performance of the functions of a public authority or public officer

• involves the performance of functions in a manner that is not honest or impartial

• involves a breach of the trust placed in the public officer

• involves the misuse of information or material that the public officer has acquired in connection with their functions as a public officer, whether the misuse is for the benefit of the public officer or the benefit or detriment of another person.

However, to be considered misconduct under the CCM Act, the behaviour would need to be sufficiently serious that it could result in the officer’s employment being terminated.

Allegations of minor misconduct are to be notified to the Commission.

Further information about minor misconduct and reporting obligations is found on the Commission’s website.

Reporting wrongdoing

Your employees should be encouraged to speak up about wrongdoing in the workplace. As CEO you should ensure your agency code of conduct and associated policies clearly outline a process for reporting wrongdoing. In some cases it may not be appropriate for employees to use the agency’s usual reporting processes. As CEO, you should aim to create a culture where employees feel confident and comfortable to report wrongdoing to the appropriate people without fear of reprisal.

The Public Interest Disclosure Act 2003 (PID Act) enables people to make disclosures about wrongdoing within the State public sector, local government and public universities without fear of reprisal. The PID Act aims to ensure openness and accountability in Government by encouraging people to make disclosures and protecting them when they do.

A public interest disclosure must be about a public authority, public officer or public sector contractor. The conduct must involve one of the following:

• an offence under State law

• substantial unauthorised or irregular use of public resources

• substantial mismanagement of public resources

• matters of administration affecting someone in their personal capacity falling within the jurisdiction of the Ombudsman

• substantial and specific risk of injury to public health, prejudice to public safety or harm to the environment

• improper conduct.


To access the protections of the PID Act, the public interest disclosure must be made to a proper authority. As CEO, you are the Principal Executive Officer for the purposes of the PID Act and designate the occupant of a specific position as a person responsible for receiving disclosures – a PID Officer.

There are also a number of proper authorities named in the PID Act. These include the Commissioner, Auditor General, the CCC and the Western Australian Ombudsman.

As CEO, you have obligations to comply with the PID Act, provide protection to your employees from detrimental action and prepare and publish internal procedures relating to your agency’s PID process. Information about public interest disclosures may be published on your agency’s website and intranet.

Section 23 of the PID Act sets out your duties as principal executive officer under the PID Act. More information about public interest disclosures can be found on the Commission’s website and in section 23 of the PID Act.

Oversight in the public sector

Certain statutory bodies are established to oversee the public sector. They are independent of the Government and report directly to Parliament. The key oversight bodies in Western Australia are the:

• Public Sector Commission

• Office of the Auditor General

• Corruption and Crime Commission

• Office of the Parliamentary Commissioner for Administrative Investigations (Ombudsman Western Australia)

• Office of the Information Commissioner

• State Records Commission.

The heads of the key oversight bodies formed a network called the Integrity Coordinating Group (ICG). Members of the ICG work together to promote and strengthen integrity in the public sector. The Commission, along with the following oversight bodies, are members of the ICG.


Public Sector Commission

The Commission is responsible for the management, administration and performance of the public sector.

The Commission:

• ensures an ethical and accountable public sector through the establishment and monitoring of the Public Sector Standards in Human Resource Management and the Western Australian Public Sector Code of Ethics

• drives public sector reform

• builds leadership and the capacity of the public sector

• evaluates public sector performance

• has responsibility for misconduct prevention and education and for the oversight of allegations of minor misconduct under the Corruption, Crime and Misconduct Act 2003.

For most CEOs, the Commissioner is your employer and the organisation is closely involved in a range of public sector administration functions, including giving effect to machinery of government changes, the coordination of SES officers and oversight of human resource practices and the management of minor misconduct.

Office of the Auditor General

The Office of the Auditor General conducts audits and reports to Parliament on the accounts and performance of public sector bodies. To enhance accountability and performance in the public sector, the Office of the Auditor General:

• conducts audits of financial statements, controls and key performance indicators

• conducts performance audits to assess whether legislation is complied with and, most importantly, the efficiency, effectiveness and economy of operations and programs

• reports audit results to Parliament in an objective, competent, insightful and timely manner.

As a CEO, it is recommended that you maintain an active awareness of issues and matters considered by the Auditor General. When reports are issued it can be a good idea to seek some assurance from your own officers that your organisation’s systems and controls are managed in accordance with the practice expectations of the Auditor General.


Corruption and Crime Commission

The Corruption and Crime Commission (CCC) aims to improve the integrity of, and reduce the incidence of serious misconduct in, the public sector. It invests its efforts where the risk of serious misconduct is greatest. The CCC:

• identifies and investigates serious misconduct and corruption

• has a specific anti-corruption and misconduct focus for WA Police and deals with all allegations of misconduct by its employees

• grants exceptional powers to the WA Police to act against organised crime

• works cooperatively with the Public Sector Commission in helping public authorities effectively deal with misconduct.

As the CEO you are the ‘principal notifying authority’ under the CCM Act, with responsibilities to notify the CCC of any suspected serious misconduct that occurs in your agency. You have similar responsibilities to notify suspected minor misconduct to the Public Sector Commission.

Ombudsman Western Australia

The functions of the Ombudsman are to:

• investigate and resolve complaints about public sector bodies

• undertake own motion investigations about the practices of public sector bodies

• review and investigate deaths of certain children and following domestic violence

• make suggestions and recommendations to improve services as a result of any investigation

• provide advice and guidance to public sector bodies.

The Ombudsman makes practical recommendations about significant issues.

Administrative decisions that you make consistent with your legislative authority may be subject to review or investigation by the State Ombudsman. In addition, the Ombudsman may oversee the approach taken by your agency to managing complaints.


Office of the Information Commissioner

The key responsibilities of the Office of the Information Commissioner are to:

• resolve complaints about applications to access information and requests to amend personal information, through conciliation or by making legally binding decisions

• raise awareness and provide assistance to public sector bodies and members of the public about their rights and responsibilities under the Freedom of Information Act 1992 (FOI Act)

• recommend legislative or administrative changes to help the objects of the FOI Act to be achieved.

More information about the ICG and its members can be found on the ICG website.

View from the top—a CEO perspective

Being a CEO in the WA public sector

The opportunity to be a CEO in the public sector is one that relatively few people are able to experience. It is a role to be respected, appreciated and enjoyed.

The essence of being a leader in the public sector provides the opportunity to leave a legacy to the community. It is salutary to reflect on CEOs who have made significant contributions in the past, and those who are currently doing so. Now you are part of that rich tradition.

Given the diversity of agencies, range of staff capabilities and stakeholders and communities with whom we work, being a CEO in the public sector will have its moments. Of particular note are the complexities, challenges and expectations regarding ethics and governance.

Being clear about what is important, having the courage to make difficult choices and staying true to one’s self are fundamentally important to being a CEO in the public sector. This should not be compromised in the face of adversity or challenge.

The legacy you leave will reflect the quality of your interactions and the sustainability of the relationships you have with others. It will be through these people—both internal and external to your agency—that you will develop and optimise your leadership role.

Retired CEO – WA public sector

A former CEO shares their perspective on the

inner workings of the public sector.


Employment

The Commissioner employs all CEOs appointed under section 45 of the PSM Act. The Commission assists the Commissioner in his role as the employer of CEOs through a range of functions, including:

• recruitment, appointment and reappointment

• transfer

• acting appointments

• remuneration

• performance agreements

• discipline

• separation.

Recruitment, appointment and reappointment

All CEO appointments, under section 45 of the PSM Act, must be approved by the Governor.

The Commissioner facilitates the appointment of each CEO by making a recommendation to the Governor, who then approves the appointment. Before making this recommendation, by convention each proposed appointment is referred to Cabinet for its approval.

CEOs may be appointed for a maximum period of five years. As CEO, you have a contract of employment agreed between the Commissioner and yourself, which comes into effect from the date of appointment approved by the Governor.

Integrity and ethical behaviour is expected when a person applies for a CEO position and claims made in the application process are rigorously tested. Any misrepresentations made in an application, including qualifications held, may preclude the applicant from appointment and may result in the matter being reported to the CCC or the Commission, as appropriate.


Transfers

Section 50 of the PSM Act enables a CEO to be transferred to another vacant chief executive office or to other functions in the Senior Executive Service (SES). Transfers are approved by the Governor on the recommendation of the Commissioner.

Before recommending a transfer, the Commissioner is required to consult with the CEO, the responsible minister or ministers and responsible authorities of the existing agency and the destination agency. As a transfer to an office in another agency is effectively an appointment, Cabinet also considers the matter before the recommendation is made to the Governor.

Acting appointments

Under section 51 of the PSM Act, the Commissioner is able to direct an existing public sector employee to act in a chief executive office if it is vacant, if the existing CEO is absent from duty or is for any reason unable to perform the duties. This acting direction can be given for a maximum period of up to one year but can be renewed or rescinded at any time. The Commissioner is required to consult with the responsible minister or ministers and the responsible authority of the agency.

The Commissioner has given a delegation of authority to existing CEOs and acting CEOs to enable an existing employee of the public sector to act in the CEO role for three months or less. This is subject to the approval of the responsible minister or ministers and the responsible authority.

Remuneration

Your remuneration is determined by the Salaries and Allowances Tribunal (Tribunal) if the chief executive office is in the Special Division of the Public Service, or is a prescribed office for the purposes of the Salaries and Allowances Act 1975. The Tribunal is required to make annual determinations on the remuneration for CEOs.

CEOs generally receive the same terms and conditions applicable to other public servants under the Public Service Award 1992 and the Public Service and Government Officers General Agreement 2014, although as a CEO, you are not covered by this award and agreement.

The Commissioner is empowered to determine the offices that will be included in the Special Division of the Public Service. For offices not in the Special Division, the Commissioner is able to determine the remuneration for that CEO.

It is important that you read and understand your conditions of appointment. These are set out in the employment contract and in the SAT determination found on its website.

More information on the items of remuneration determined by the Tribunal can be found on the Tribunal’s website.


Salary Packaging

A CEO may enter into salary packaging arrangements for superannuation and novated leases in accordance with the Guidelines for Salary Packaging in the WA Public Sector issued by the Department of Commerce.

Motor vehicle

In addition to the salary determined for a CEO, those office holders have an entitlement to an allowance which may be taken as cash with salary or may be utilised to access a motor vehicle for private use leased through State Fleet.

If leased, the vehicle should be managed in accordance with the policies and conditions established and amended from time to time by the Department of Finance. Applicable terms and conditions are currently set out in the ‘State Fleet – Agency General Agreement’ administered by the Department of Finance. If leasing, it is your responsibility to ensure the vehicle and accessories selected do not exceed your entitlement. If so you will need to pay extra for this. Ask questions of your employee with responsibility for this function.

If you choose not to use the vehicle for business or travelling to and from work, and allow the vehicle to be used for private use during business hours by another family member or person, you are not entitled to access another government vehicle for your private use, including transport to and from work

If you choose to take cash in lieu of a leased motor vehicle supplied through State Fleet, you are not entitled to claim a mileage allowance for use of your private vehicle for work purposes. Neither are you entitled to access another government vehicle for your personal use, including transport to and from work.

Performance agreement and assessment system

Under section 47 of the PSM Act, CEO performance agreements and assessments are conducted annually. Performance agreements and assessments support high performance leadership by articulating agreed goals and outcomes. The Commission is responsible for administering the performance agreement framework.

As CEO, you and your responsible authority (the minister or board chair) document your agreement on the key performance objectives of the agency. Typically, your performance agreement and assessment would include the:

• delivery of specific government commitments

• service delivery, expansion or service improvement targets

• design, development or implementation of major policy initiatives, reforms or new business models

• resource agreement commitments

• expected contribution of the agency in progressing government policy priorities in areas that cross departmental boundaries.


Evaluating the agreement

In consultation with you—under section 47 of the PSM Act—your responsible authority will appraise your performance against your performance agreement.

The evaluation typically involves:

• a self-assessment

• the responsible authority’s observations and experience of working with you

• information provided by central agencies or oversight bodies who sponsor sector-wide initiatives to which you contribute

• other relevant information collected by the Commission.

Discipline

Public sector officers are expected to demonstrate integrity in all professional spheres and CEOs are expected to maintain the highest levels of integrity in their professional and private activities.

CEOs—as public service employees—are subject to the disciplinary provisions contained in the PSM Act. When warranted, the Commissioner is required under the PSM Act to take disciplinary action against a CEO. If the breach of discipline warrants dismissal, the Commissioner must recommend to the Governor the dismissal of the CEO. Other enabling legislation under which a CEO is appointed may also contain provisions in relation to the circumstances in which a CEO can be removed from office.

Separation

The vacation of a chief executive office and the cessation of a CEO’s employment may occur in a number of circumstances. These are summarised in section 63 of the PSM Act. The vacation of an office may not result in the cessation of a CEO’s employment. If required, consult the Commission to obtain advice.

More information about your employment terms and conditions can be found on the Commission’s website.


Structure of the public sector

Government entities

The Western Australian Government is made up of departments, Senior Executive Service (SES) organisations, non-SES organisations and Schedule 1 organisations as depicted on the following page. These entities are defined in the PSM Act.

The main point of difference between each entity is the basis of their establishment, governing legislation and employment status. These are used to determine the application of rules and processes that apply to each agency. As CEO, you should be cognisant of these differences when working across government.

View from the top—contemporary research

Being a CEO will have its moments

Undoubtedly, being a CEO will have challenges. The main difference between being the CEO and other positions is that you own the outcomes of decisions made. Who can really understand what it is like in the CEO shoes at such times—to be the sounding board, to share experiences and ideas, to provide advice, recognising that at the end of the day it is the CEO who has to make the call?

While it is getting more challenging for CEOs, there are also more options available for support and assistance.

Options include colleague CEOs, mentors, executive coaches, the Public Sector Commissioner, organisations who provide ‘learning sets’ and CEO forums to meet and have full and frank discussions in a confidential and supportive environment.

The key is to recognise that as a CEO you cannot always have the answer, and you will experience times when it feels tough and lonely. Conversely, you should remain resourceful, passionate, creative and take care of yourself.

Put in place one or more strategies now, build the relationships and enjoy the support available so you can thrive in your CEO role.

Adapted from The Weekend Australian, 20-21 August 2012

Being the CEO is challenging.

Be sure to have your network of support in

place.

Government entitiesP

ub

lic s

ecto

r au

tho

riti

esDepartments

Departments are responsible for administering particular legislation, and implementing government policy.

Section 35 of the PSM Act allows the Governor to establish, amalgamate, divide or abolish departments.

Public service agencies

SES organisations

SES organisations are statutory authorities. Schedule 2 of the PSM Act lists those organisations designated

as SES organisations.

Non-SES organisations

A non-SES agency is any entity created for a public purpose under a written law that is not an SES agency

or a Schedule 1 entity.

Ministerial offices

The staff employed in a ministerial office support a particular political office holder.

Pu

blic

sec

tor

enti

ties

Schedule 1 entities

Schedule 1 entities are listed in the PSM Act as being excluded from the operation of that Act. They are

covered by other legislation. Schedule 1 entities fall outside the definition of the public sector and include:

• courts and tribunals

• sworn officers of the police service

• universities

• local governments

• port authorities

• various utility corporations.

Bo

ard

s an

d c

om

mit

tees

Boards can be classified into five broad categories:

Trading boards – These boards are engaged in commercial activities and, in a broad sense, are all

government owned. They include the Water Corporation, Gold Corporation and the Busselton Water Board.

Governing boards – These boards govern the operation of an agency. They include the Insurance

Commission of Western Australia, Art Gallery of Western Australia and the Botanic Gardens and Parks

Authority. Governing bodies are statutory bodies and, as with most statutory bodies, their particular

functions and powers are usually set out in their enabling legislation.

Policy, review or specialist boards – These boards have a policy or coordination role, such as the

Industry Management Committee and the State Emergency Management Committee.

Regulatory, registration, appeal or quasi-judicial boards – These boards are charged with making

independent decisions affecting large groups and determining matters of importance with a regulatory or

registration role, such as the Legal Practice Board of Western Australia and the Local Government Standards

Panel.

Stewardship boards – These boards are entrusted with the stewardship of assets and resources. They

include the Aboriginal Land Trust, Public Education Endowment Trust and the Western Australian Local

Government Grants Commission.

Advisory or consultative boards – These boards provide independent or expert advice to the

Government on strategic matters or those of broad significance. They can be either statutory or non-

statutory, such as the Geographic Names Committee and the Dieback Consultative Committee.


Government boards

The governance arrangements for government boards can be complex. It is essential you understand the roles, responsibilities and reporting arrangements between yourself, the minister, the chair and board members. Research indicates the best performing boards go beyond fiduciary3 responsibilities, to take a more active role in constructively challenging and providing input on a broader range of matters. Since some of these are also the province of the CEO, finding the right place to draw the line between governance and management is as important for the CEO as it is for board members.

Strong collaboration between the CEO and board chair can help define a broad and forward-looking board agenda, one that rather than pressuring management to maximise short-term value, instead helps the agency thrive for years.

Roles and responsibilities

The responsible minister is accountable to Parliament for the operation of agencies and boards within their portfolios. Depending on the legislation relating to the board’s establishment, board members may be appointed at the direction of a minister, by Cabinet or the Governor on the recommendation of the minister, or—in some instances—by representatives.

The Chairman is responsible for the leadership of the board and is pivotal in the creation of the conditions necessary for overall board and individual director effectiveness, both inside and outside the boardroom.

The CEO is responsible for the day-to-day management of the business, in line with the strategy and long term objectives approved by the board. The CEO may make decisions in all matters affecting operations, performance and strategy, with the exception of those matters reserved for the board or specifically delegated by the board to its committees.

During your CEO tenure, the systems and practices that support good governance for boards may change as the board’s individual circumstances change.

3 The power and obligation to make decisions or act for another under circumstances that require total trust


There is an ongoing obligation on boards to monitor and review their systems, practices, and governance framework to ensure that those systems and practices remain relevant and current to the board’s situation.

More information on Good governance for boards and committees can be found on the Commission’s website.

Statement of expectation

To enhance clarity, it is suggested the minister formally state their expectations, and the board formally respond with a statement of intent. These statements are not mandatory—nor do they replace any aspect of the relationship defined within legislation—but they do provide clarity to both parties and support an effective relationship.

A statement of expectation articulates the responsible minister’s expectations of a statutory board or committee in regard to performance, objectives, values and broader government policies.

The statement specifies the purpose and functions of the authority and communicates the objectives and priorities of Government to be incorporated into the authority’s approach to administering legislated responsibilities.

This process presents a valuable opportunity for effective dialogue between the minister and a board about the government’s expectations. It enables a minister to provide clarity on the Government’s policies and priorities that are relevant to the board, and the expectations about how the board should observe these policies and priorities in conducting its operations. Importantly, the minister’s statement will give consideration to and respect the responsibilities and independence of the board in accordance with its enabling legislation.

Note: the statement of expectation is different from—and complementary to—the arrangements made in writing by a minister under s. 74 of the PSM Act for dealings and communications between a minister, ministerial staff and public sector bodies. In essence, the statement covers the minister’s expectations of the strategic direction for the board, while the arrangements cover the minister’s expectations of the operational manner in which the minister, ministerial officers and board chair and members should communicate.


Statement of intent

Once the board has considered the minister’s statement of expectation, the board should respond with a statement of intent. The response should demonstrate the board’s understanding of—and commitment to—the minister’s expectations. The response should articulate how the board intends to undertake its operations—consistent with those expectations—and provide detail on any matters of particular concern to the minister.

For this process to be meaningful, responses should include performance indicators that enable assessment of the performance against expectations. This would require identification of relevant key performance indicators where possible.

Once the statements are established, the board chair should regularly brief the minister on progress and discuss any relevant matters of concern at appropriate opportunities. Within the limits of the enabling statute, a board should keep the minister informed and your relationship should be one where there are no surprises, good or bad.


Your working relationship with the board

The relationship between a CEO and the board chair is critical to the effective functioning of the board and the agency.

The board is there to set the strategic direction and policy as well as scrutinising the CEO and the information and reports presented to the board. The board’s job is to govern, the CEO’s is to manage.

A strong relationship doesn’t just happen. As CEO, you have to work at establishing a relationship built on mutual respect, honesty, transparency, trust and frank two-way communication. There are three areas that describe the characteristics of an effective working relationship: good chemistry, a clear framework and a supportive context.

Establishing a strong working relationship with the board chair can also provide the CEO with personal support. It can also have the positive result of the chair acting as a mentor, a confidante and someone the CEO can go to for advice on challenges they may face.

There must be explicit trust between the CEO and chair, otherwise the CEO will not be able to confide in the chair. As CEO, you need to know you have the confidence of the board and that the board is supportive of you as CEO.

The outcome of a strong working relationship between the CEO and the chair is a well-functioning board that is looking to the future of the agency in unison with the executive staff.

A former CEO highlights the

importance of a strong working relationship with

the board.


Structure of the Western Australian Government

Executive Government

The system of government in Western Australia is a parliamentary democracy—inherited from the Westminster system and officially adopted in 1890 through the Constitution Act 1889—and is based on the principle of the separation of powers. This ensures that one branch cannot exercise absolute power over the people of the State. The three branches are the:

• Legislature

• Executive

• Judiciary.

As CEO, you lead an organisation that forms part of the executive branch of government. The Executive branch has the responsibility for carrying out or administering the law enacted by the legislature and consists of the:

• Governor

• Executive Council

• Executive Government or Cabinet

• Public sector bodies and other government entities.

Serving the government of the day

The Government is the political party or coalition of parties with majority representation in the Legislative Assembly.

As CEO, you and your agency are expected to serve the Government.

This means carrying out the work of the agency professionally and impartially, regardless of who is in Government or your political views.


Cabinet

Cabinet consists of the Premier and ministers meeting together under the leadership of the Premier. Cabinet meets every Monday—except in the event of a public holiday—when the meeting is on Tuesday. Meetings are held in regions throughout the year, usually when Parliament is in recess.

The relevant minister presents matters to Cabinet in the form of a submission. Submissions must be received 10 working days before Cabinet meets.

Once a submission is received by the Cabinet Services Branch of the DPC, it will be referred to relevant ministers and agencies for comment. Consultation with appropriate agencies prior to referring a submission to Cabinet is an essential part of the process and assists Cabinet in making informed decisions.

Cabinet confidentiality covers all Cabinet documents, discussions and decisions. This long established principle is essential for the maintenance of Cabinet collective responsibility and frankness between ministers and senior officials.

More information on Cabinet procedures can be found in the Cabinet Handbook, available from the DPC.

Executive Council

Executive Council is the supreme decision making body of the Executive arm of government. It consists of the Governor and the ministers. Executive Council advises the Governor on matters relating to the government of the State. Where applicable, it also gives legal form to Cabinet decisions.

A quorum of the Executive Council comprises the Governor, two ministers of the Crown and the Clerk of the Executive Council (currently rotated between four officers from the DPC).

Meetings of the full Executive Council are not common and generally will only be held following a major reconstitution of the ministry or upon the resignation of an outgoing government immediately following a general State election.

Further information on Executive Council formalities and submissions can be found in the Executive Council Guidelines, available from the DPC.

Relationship with ministers

There are specific boundaries around the relationship between ministers and the public sector. These provisions were established to safeguard the separation of the public service from the Government.

Parameters for how these relationships operate are stipulated in legislation and are highlighted below.


Independence on human resource matters

Under section 8(2) of the PSM Act, employing authorities are not subject to the direction of any responsible minister around matters relating to the employment of an individual employee or the classification of a particular office, post or position.

Communication arrangements

Section 74 of the PSM Act deals with communication arrangements between ministers and the employees of departments. It outlines the manner and circumstances in which dealings are to be had and communications made between the two parties. It also includes a provision that ministerial officers shall not direct an employee on how they perform their functions.

Recruitment, selection and appointment processes

Section 105 of the PSM Act states that members of Parliament and ministerial office employees are prohibited from communicating with agency employees or the Commissioner in relation to the selection and appointment process for public sector positions or CEOs.

As CEO, you are responsible for ensuring your minister or ministers are:

• informed on the operations of the agency

• knowledgeable on other portfolio related matters

• supported to make effective decisions.

Relationship between public sector agencies and ministerial offices

The quality of the working relationship between a minister’s office and a public sector agency impacts the effective translation of government policy into service delivery, and the proper management of agencies. Minister’s offices and agencies work collaboratively to deal with complex policy and service delivery challenges in a dynamic environment. They manage these challenges under high levels of community scrutiny and in an environment of rapid decision making.

In this light, working relationships between ministerial officers and public sector employees can experience occasional tensions. This is not unexpected, but needs to be managed appropriately.

The Commission has recently examined factors contributing to effective working relationships between agencies and ministerial offices and the nature of arrangements in place within the DPC to promote those factors. The report and recommendations can be found on the Commission’s website.


Relationship with Parliament

As CEO, you are accountable for your agency’s activities to the relevant minister and through the minister to Parliament.

Accountability is also supported through oversight bodies such as the Ombudsman, the Office of the Auditor General and the Commission.

Common parliamentary processes you may be involved in include parliamentary questions, legislative processes and parliamentary committees.

Further information on parliamentary processes can be found in the Parliamentary Procedures Guide, available from the DPC.

Parliamentary questions

Each minister may be asked questions by any member of either House of Parliament concerning matters in relation to portfolio responsibilities.

Each ministerial office has an officer(s) assigned to coordinate responses to parliamentary questions who will forward questions to the relevant agency within the portfolio. This process occurs for each sitting day of Parliament.

Hansard provides a record of all proceedings in the Legislative Council and Legislative Assembly. Hansard is available on the Parliament of Western Australia website.

Parliamentary Committees

One of the roles of Parliament is to oversee the conduct and actions of the public sector, which it usually does through its Parliamentary Committee (Committees) system.

Committees are made up of members of Parliament and assist Parliament in its scrutiny and law-making functions by holding inquiries into complex issues. Committees can call for written submissions, hear evidence and seek advice from experts. Committees will generally address all correspondence to the CEO.

As CEO, it is your responsibility to keep the responsible minister informed about communications with a Committee.

Claims that any information should be withheld—for example, on grounds such as public interest immunity, legal professional privilege or commercial-in-confidence—should be made by the responsible minister. Precise details and reasons should be provided in the making of such a claim.


The Commissioner’s Circular Public sector witnesses appearing before Parliamentary Committees provides the framework and guidance for members of the public sector appearing before Committees. It outlines the Committee’s powers and obligations and the entitlements of members of the public sector dealing with or appearing before Committees.


Your working relationship with your minister (and their office)

This is one of the most important relationships you will have as a CEO. It is crucial you give it the priority it deserves and that you build the minister’s trust and confidence in you.

Often ministers will arrange to meet with you very shortly after your appointment. If not, seek a meeting. At that meeting a minister will generally share their priorities and concerns. Discuss each in detail to get clarity on the minister’s desired outcomes. If you are not particularly familiar with the issue, get as much of the minister’s ‘take’ as possible.

The minister’s desired outcomes are now also among your priorities. It is important to keep the minister briefed on their progress and if relevant, discuss them at appropriate opportunities. Equally, it is important the minister knows you will give ‘frank and fearless’ advice. Your relationship should be one where there are no surprises, good or bad. Your minister should know you will keep them honestly informed.

It is also important that you have regular contact (some ministers prefer more than others). In part, this maintains the mutual trust and confidence, but it also enables you to ensure there are no surprises for either of you.

As ministers change you may have to do this a number of times. The working relationship with the minister is key. Your working relationship with the chief of staff and the relevant adviser(s) is also important. It is essential to invest in building and sustaining these relationships.

Finally, have in place clear communication policies for your executive staff and other key staff—including regional staff—who may have dealings with the minister’s office, and at times the minister. It is important that your staff and the minister’s office know and respect these policies, which must be consistent with your communication agreement with the minister.

Retired CEO, WA public sector

A former CEO highlights tips for working with your

minister or ministers.


Caretaker Conventions

Once the Legislative Assembly is dissolved and writs are issued for a general election by the Governor, the Government assumes a ‘caretaker’ role because it is recognised the Government may change. This role continues until the election result is clear or, in the event of a change of government, until the new government is formally sworn in.

The Caretaker Conventions provide guidance on the handling of business during the caretaker period. The conventions are not legally binding and DPC’s role is to provide advice to agencies in relation to their operation.

Led by the Director General, the DPC administers and monitors compliance with the caretaker convention. Generally, the arrangements are intended, wherever possible, to ensure:

• significant appointments are not made

• major policy decisions are not taken that would be likely to commit an incoming government (including the implementation of new policies or approval of major projects within government agencies)

• no commitments are made to major contracts or undertakings

• electioneering is not undertaken through government advertising, publications or electronic communications

• Members of Parliament do not undertake air travel at public expense for electioneering purposes

• public sector officers are not involved in party political activities.

Further information regarding caretaker conventions are published by the DPC before any State elections and can be found on their website.


Support the Commission

As a CEO, the Commissioner and Commission can provide you with advice and assistance on a range of public administration and management matters.

CEO Gateway is one way the Commissioner directly communicates with you as a CEO. It is used to advise you of issues relating to the management of the public sector. It typically includes information on CEO appointments, personal development opportunities and notification of new and revised legislative and policy matters.

CEOs need to maintain a focus on continuing their own personal and professional development as public sector leaders.

The Commission hosts two initiatives for CEOs, including the Executive Fellows Program and the Leadership Seminar Series.

Executive Fellows Program (EFP)

The EFP is an intensive three-week residential program, bringing together 80 high-level senior executives, leading academics and experienced practitioners from Australia, New Zealand and overseas.

The program has been designed to enhance core relationships, leadership and management skills needed to meet the challenges of leading in the 21st century. The curriculum fosters two-way communication, engaging participants and facilitators in case study discussions, group work and peer clinics.

This format provides an invaluable opportunity to gain fresh strategic insights and advice from domestic and international jurisdictions.


Leadership Seminar Series (LSS)

The Leadership Seminar Series provides an opportunity for CEOs to network with fellow CEOs over lunch while hearing from distinguished presenters on a range of contemporary topics relevant to the public sector. These lunch seminars are held throughout the year. The LSS delivers targeted practitioner forums to provide:

• an opportunity for informed debate and dialogue about innovative and cutting-edge ideas

• access to pre-eminent thinkers of national and international standing

• development of the capability of Western Australia's current and emerging leaders

• the opportunity for practitioners to share ideas and build networks across government.

More information can be found on the Commission’s website.


References and resources material

Department Source

Department of Finance Government Procurement

Department of the Premier and Cabinet Role of the Executive Government

Guidelines and Policies: Premier’s Circulars

Department of Treasury Financial Administration Bookcase

Equal Opportunity Commission Your Rights: EO For You

Parliament of Western Australia About Parliament Fact Sheets

State Records Office Recordkeeping

Victorian Public Sector Commission Serving Victoria: A guide for public sector CEOs

Salaries and Allowances Tribunal Tribunal

Public Sector Commission Board Essentials

Commissioner’s Instructions

Public Sector Commissioner’s Circulars

Public Sector Standards

Integrity Coordinating Group Integrity Coordinating Group

induction guide for western australian public sector ceos · 2017-05-29 · 6 ceo essentials –...

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