The document summarizes the Australian experience in implementing policy through projects and strategies. It finds that while states like Victoria invest heavily in projects, there is little evidence that these projects actually help achieve long-term strategic goals. An analysis of NSW found that only 28% of strategies improved over 9 years, despite billions spent on projects. The document recommends establishing a National Strategy Audit Office to better ensure that projects and programs are properly aligned with and help realize strategic goals and priorities. It argues that without such oversight and a strategic focus, there is a large risk that strategic goals will not be met despite significant investments.

1. Implementing policy: the Australian
experienceEstablishing the need for a National Strategy [Audit]
Office
Dr Simon Poon, Dr Raymond Young

2. Overview
Is strategy being implemented through projects?
The case of Vic
The case of NSW
The Department of Social Services & the Department of Education and Employment
Benefits [outcomes] management
Portfolio management
Recommendation
National Strategy [Audit] Office

3. Strategy

5. 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

6. 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%

7. 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)

8. 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.”

9. 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

10. Department of Social Services
Department of Education & Employment
School of Business

11. Welfare
Reform
Shergold
2035 people
delivering ….
Mission
Improved
lifetime well
being of
people and
families in
Australia
• NDIS
• WhoG Grants
DSS Results – strong commitment to mission statement

12. Welfare
Reform
Shergold
2035 people
delivering ….
Long term Strategic
Policy
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
Mission
Improved
lifetime well
being of
people and
families in
Australia

13. DEEWR - Project Portfolio Management

14. DEEWR Key Changes
Timing 2012-13
Cluster Employment
investment category (Multiple Items)
Value Assessment
Count of cost pa Column Labels
Row Labels
Policy Strategy Savings Risk
Grand Total
implement 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 strategy
support dept strategy - clear & measurable benefits 6 6
support dept strategy - intangible benefits only 1 1
No clear linkage to dept strategy
ROI > 200%
ROI > 150%, <200%
ROI > 100%, <150%
ROI > 0%, <100% 2 2
no ROI
will reduce dept risk rated High or Extreme
will reduce op risk rated High or Extreme
help 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 Low
help reduce op risk rated Moderate or Low
No linkage to risks
Grand Total 10 7 2 2 21
2 template changes
• ValIT Categorisation
1. Doing better things
2. Doing more things
3. Doing things better
4. Keeping our promise
5. Keeping lights on
6. Keeping our job
• Value Risk Assessment
– Policy
– Strategy
– Savings
– Risk

15. Recommendations
School of Business

16. 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

17. 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

18. Potential Strategic Directions
Focus on Translations & Implementation

19. Digitization in the Different Sectors

20. Digitization in the Different Sectors

21. 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
Development
Delphi
Method
Refinement
Card Sorting
2015 (Year 1) 2016 (Year 2)

22. Development to instruments to collect data & Measurements

23. The development of a multi-disciplinary
measurement model for governance
Construct Measures
Do we have a clear idea of where we are and the direction in which the
organisation needs to move?
Does a coherent and supportive relationship exist between the overall corporate
strategy and project goals?
Is the vision of the benefits to be realised communicated transparently to all
stakeholders?
Do stakeholders agree on the vision of the benefits to be realised?
Is there an understanding of the amount of change that needs to take place in
order to realise the benefits [supported by sound and reliable data]?
Has management ensured that the required processes and resources are in place
for achieving the desired business objectives?
Has management involved enough stakeholders to ensure project success?
Does the sponsor have the ability to foster trust and support from stakeholders?
Is leadership committed to the change taking place?
Does a guiding coalition exist (consisting of members are different levels of the
organisation) that has the influence and passion to drive the change process?
Does the organisational culture encourage the raising of risks/issues?
Are appropriate structures in place to facilitate the raising of risks/issues?
Are important risks/issues prioritised?
Are there clearly defined key performance indicators for evaluating project
status?
Are performance measures used to motivate and encourage stakeholders?
Is project status being constantly monitored resulting in adjusting processes and
strategies?
Are appropriate tools and technologies used to analyse project status and inform
leadership with accurate information from sound and realistic data?
Is monitoring independent of the Sponsor and Project Team?
Have policies been implemented to reinforce the change?
Have changes been instilled in corporate culture?
Reinforcing
Changes
Vision of the
Benefits to be
Realised
Understanding
the Amount of
Change
Required
Sponsor and
Leadership
Risk
Management
Culture
Performance
Measures
Project
Monitoring

24. Questions & Discussion