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  1. 1. 28 th Session of the Public Management Committee Ch âteau de la Muette, Paris Governing for Performance in Australia Lynne Tacy 14 November 2003
  2. 2. The Context <ul><li>our legislative framework is principles based and devolves financial authority and employment powers to Agency Heads </li></ul><ul><ul><li>they are responsible for the efficient, effective and ethical use of resources </li></ul></ul><ul><ul><li>and for promoting and upholding the APS Values </li></ul></ul><ul><li>this is underpinned by </li></ul><ul><ul><li>a robust performance monitoring and evaluation regime </li></ul></ul><ul><ul><li>strengthened accountability for results </li></ul></ul><ul><li>it is set against an environment of increased contestability and competition </li></ul>
  3. 3. Performance Management Framework
  4. 4. Performance Management Framework Government Portfolio Minister/s, Minister/s, Parliamentary Secretary Legislative and regulatory framework <ul><li>Outcomes & Outputs Structure </li></ul><ul><li>Outcomes </li></ul><ul><li>Outputs </li></ul><ul><li>Performance indicators </li></ul>
  5. 5. Performance Budgeting Management and Reporting <ul><li>the system is based on an outcomes and outputs framework </li></ul><ul><ul><li>the basis for appropriations and accountability for performance </li></ul></ul><ul><li>agencies are required to specify and cost outputs against planned outcomes and identify performance targets and indicators </li></ul><ul><ul><li>and report against their achievement </li></ul></ul><ul><li>the system has been supported by a move to accrual accounting </li></ul><ul><li>the framework has been modified recently to provide for more lower level program information </li></ul>
  6. 6. Accountability and Assurance <ul><li>there has been a growing level of scrutiny by Parliament </li></ul><ul><li>the Auditor-General plays a key role in monitoring and reporting on performance and accountability </li></ul><ul><ul><li>an independent officer of the Parliament </li></ul></ul><ul><ul><li>strengthened role in performance auditing and better practice guidance </li></ul></ul><ul><li>the Public Service Commissioner has a statutory role to evaluate the application of the APS Values and APS employment policies and practices </li></ul><ul><ul><li>including to prepare an annual report on the State of the Service </li></ul></ul>
  7. 7. Performance Management Framework <ul><li>Corporate Planning & Governance </li></ul><ul><li>Vision, Mission, Aims </li></ul><ul><li>Values, Behaviours </li></ul><ul><li>Major Directions/priorities </li></ul><ul><li>Management Structures </li></ul><ul><li>Business Planning </li></ul><ul><li>Priorities, Resource Allocation, Risks </li></ul><ul><li>Budget cycle links </li></ul><ul><li>Organisational capabilities </li></ul><ul><li>Corporate Strategies (IT, people, financial) </li></ul><ul><li>Individual action plans/performance agreements </li></ul><ul><ul><li>Objectives </li></ul></ul><ul><ul><li>Values/behaviours </li></ul></ul>
  8. 8. Planning and Evaluation <ul><li>we have moved from a general requirement for a regular cycle of program evaluation to a more targetted approach, eg </li></ul><ul><ul><li>all lapsing programs are required to be reviewed </li></ul></ul><ul><ul><li>major new programs and initiatives have a built in evaluation phase </li></ul></ul><ul><li>agency governance systems include business planning processes </li></ul><ul><ul><li>with an increasing use of balanced scorecard and other performance monitoring type approaches </li></ul></ul><ul><li>all agencies dealing with the public must have service charters </li></ul>
  9. 9. Performance Management Framework <ul><li>Performance Review & Feedback </li></ul><ul><li>Organisational Performance Reviews </li></ul><ul><li>Individual and Team Performance Reviews </li></ul><ul><li>Performance Linked Remuneration Policy </li></ul><ul><li>Managing Under-performance </li></ul>
  10. 10. Performance Management <ul><li>all agencies must have an effective performance management system in place </li></ul><ul><li>features include </li></ul><ul><ul><li>statement of performance expectations and links to business plans </li></ul></ul><ul><ul><li>regular performance feedback and appraisal </li></ul></ul><ul><ul><li>recognition and reward </li></ul></ul><ul><ul><li>focus on capability development </li></ul></ul><ul><ul><li>management of poor performance </li></ul></ul><ul><li>approaches vary between agencies, including in relation to performance based remuneration </li></ul><ul><li>there is room for improvement in relation to the alignment, integration and credibility of systems </li></ul>
  11. 11. Challenges and Issues <ul><li>using meaningful performance information and linking results into decision making in practical and useful ways </li></ul><ul><li>giving more emphasis to the implementation of public policy </li></ul><ul><ul><li>establishment of a Policy Implementation Unit in the Department of Prime Minister and Cabinet </li></ul></ul><ul><li>ensuring that the system caters for effective whole of government approaches </li></ul><ul><li>providing appropriate performance governance arrangements for outsourced service provision </li></ul><ul><li>improving agencies’ performance management systems, including performance based remuneration </li></ul>
  12. 12. For Further Information <ul><li>The Australian Experience of Public Sector Reform APSC 2003 </li></ul><ul><li>Performance Management in the Australian Public Service Management Advisory Committee 2001 </li></ul><ul><li>Performance Management APSC 2002 </li></ul><ul><li> </li></ul><ul><li>For details of Australia’s financial management system: </li></ul>